Post Views: 122 The compose All-Share index of the Nigerian Stock Exchange (NSE) soared further on Thursday, closing 2.93% better at 43,041.54 basis p...
The compose All-Share index of the Nigerian Stock Exchange (NSE) soared further on Thursday, closing 2.93% better at 43,041.54 basis points, a level last seen in October 2008, after local and foreign funds bought shares across several sectors, according to Reuters.
The index also trended above its 2014 all-time high of 43,255 points.
Thursday’s gain raised year-to-date gain to 12.55%, as 55 stocks recorded gains, compared to 10 on the laggards’ side.
According to Rasheed Momoh, equities analyst and trader at TRW Stockbrokers Ltd, in a not clients: “As earlier said the market has closed within a critical support/resistance where FEAR +GREED meets.”
Explaining further, he stressed: “Greed causes traders to drive prices up as they follow the herd but as prices go higher and higher, the marginal utility of profit making falls and the Fear of losing those profit takes over.
“Technically, We have come to a tipping point where making more money is less satisfying than the fear of losing those gains so far and then a profit taking occurs, taking the market down.”
Yhe question that begs answering now is, whether or not the Index would do what it did in 2014 highs before pulling back to lower highs/lows or Consolidate within these current levels as experienced in 2007 and the beginning of a new bull rally again taking market to 52,000 points range before its all-time highs of 65,000 points.
If the Market fails to make a significant up day over the course of the week, then this is again another fake out. However, even if it does retreat, I still see strong support at the coming in, so this is still going to be a volatile and tricky market to trade.”
Meanwhile, Sepat Petroleum Development Company led the garners’ side, chalking N15.01 at N675.01; just as Nigerian Breweries closed at N152.68 each, after chalking N6.68; ahead of Guinness Nigeria’s N5.01, following which it closed at N105.21; while Dangote Cement, the Exchange’s biggest company by market capitalization climbed N5.00 up to N252.00; and Okomu Oil Palm, N4.46 at N72.15 per share.
Stocks have gained strongly in January, extending 2017’s 43% rise. Equities rallied for the sixth day on Thursday, climbing 2.9 percent to add to a 9.3% rise since the start of the year.
Last year’s gain was the biggest since 2013, and traders had said they expected further advances fuelled by hopes of lower interest rates and a more stable currency.
On Wednesday stocks posted their biggest one-day gain in seven months.
Traders said foreign investors are taking positions in consumer goods while local pension funds snapped up shares in a switch from bonds, where the outlook for yields is negative as government seeks to lower its borrowing costs.
Year-end results due in March are also helping lift sentiment towards equities, traders said, especially after data showed that Nigeria’s forex reserves had started to increase after a currency crisis, a sign of support for the naira.
The index of Nigeria’s top 10 lenders led the charge, rallying 4.4%. The oil and consumer sectors rose more than 2% each.