Equities trading on the floor of The Nigerian Stock Exchange dipped further as it gave up another 46Bpts and closed the day’s trade at 41,496.25 from 41,686.36. It was a mixed performance among the observed market indices as shown in the index movement table. Week to Date 105Bpts had been lost from market trading points while the total lost points within the month of March is now 423Bpts. See the index movement table for details.
Value loss by the market capitalization of the listed equities during today’s trading activities was N68.302 billion, same as 46Bpts below the opening value. Meanwhile, trading activities for the day produced 19 advancers and 35 lagers. NSEASI Year to Date gain is now 8.51% while the Market Capitalization Year to Date gain stood at N1.234 trillion same as 9.07% above the year’s opening value.
The dwindling nature of the market in recent times may be a blessing in disguise for smart and intelligent investors, especially the technical analyst. Ordinarily, price correction will give entry positions for those who missed out in the last short move. Complimenting this, we have spotted Harmonic Bullish Gat pattern completely formed on the lead index chart pattern. Technically, this pattern is known for its smart warning of market reversal (bullish & bearish). We therefore, recommend positioning in tranches in dropping equities so as not to miss out when the new trend picks up.
Although the market had maintained bearish trend, we see this as mere market correction and see a bigger move ahead. One notable thing about both the market and several other equities dropping at the moment is the fact that fundamentals remain intact and correct. In fact, listed equities with December financial year end may be said to have further boosted market fundamentals with various positive earnings.
Save the coming election, the nation’s economy kept getting better by the day, for example, the nation’s external reserve is expected to cross $50 billion by the end of 2018, the headline inflation has maintained reducing trend till last month and the trend is expected to continue. More positivity is blooming on the monetary policy committee as April 3rd and 4th had been scheduled for their next meeting. On the strength of these facts, we recommend that traders smartly return to the market before the trend commence. Safe Trade.