Still trapped in the bearish territory, equities trading on the floor of The Nigerian Stock Exchange rounded up the first trading day in the month of September on a bearish note. Total point shed was 3BPts as it ended at 34,837.67 from 34,848.45. It was a mixed performance amongst the observed market indices as shown in the index movement table. Being the first trading day of the week and the new month, both Month to Date and Week to Date returns respectively remained red at 3Bpts. See the index movement table for details.
Value loss by the market capitalization of the listed equities during today’s trading activities was N3.999 billion, same as 3Bpts below the opening value. Meanwhile, trading activities for the day produced 18 advancers and 19 lagers. NSEASI Year to Date loss is now 8.90% while the Market Capitalization Year to Date loss stood at N801.097 billion same as 6.55% below the year’s opening value.
The consistence bearish move that currently dominated the market is as a result of increasing selloffs by foreign investors majorly from blue chips companies. Please understand that the selloffs are largely due to heightened political uncertainties that are currently increasing investment risk around the market arena. Other factors includes, heightened trade and currency war generally impacting the global economy as currency devaluation shook up markets globally due to fear of sovereign debt default as the US$ looks up.
A careful observation has clearly revealed that equities involved in the straight bearish runs are the blue chips, especially those traded by the institutional investors within the first two months of 2018. In other words, we have observed that few equities are actually running a contradictory trend to the general market. Please understand that such equities which were not keenly patronized by institutional investors will stand sure for short term investment at the moment.
Nevertheless, for those willing to play for long term, we are of the opinion, that the consistent price crash is a blessing. For these groups of investors, we recommend strategic positioning into their equities of choice, adopting the strategy of stocking goods when prices are down. The approach will yield positive returns at the re-entry of the exiting funds, probably after the upcoming national election. Safe Trade.