Trading on the floor of the Nigerian Stock Exchange yesterday opened higher in the early hours of the day trading into noon, but closed marginally in the red as investors and traders mildly reacted to the decision of the Central Bank of Nigeria’s Monetary Policy Committee (MPC) to hold rates.
As earlier anticipated by traders and analysts, market players are already positioned for the coming earnings season.
It is also expected that between now and when numbers start hitting the market, more portfolio adjustments in fixed income market for quick returns in equity market will contribute to the oscillatory mood of the market.
Meanwhile, the composite NSE All-Share Index shed 13.83 points to close at 26,217.54, after opening at 26,231.37 for the day, representing a slight decline of 0.05% on low volume of transactions. Similarly, market capitalisation dropped by N4.75 billion to close at N9.02 trillion from the opening value of N9.03 trillion, which equally represented 0.05% lost in value.
This further increased the NSE’s ASI Year-to-Date negative returns to 2.44%, just like market capitalisation for the same period has lost N226.00 billion till date.
Market breadth yesterday turned negative and weak as the number of decliners outnumbered advancers in the ratio of 25:13 to reverse the two day seeming bull transition on a low volume of mixed buy and sell position.
The volume traded was down by 17.89% to 187.70 million shares from 228.60 million shares recorded in the previous trading session, while value of traded was up by a significant 304.26% from N2.58 billion to N10.43 billion. This was boosted by transactions in financial services sector and energy stocks, especially Seplat, Ucap, Transcorp , FBNH and Guaranty that topped the activity chart as most traded equities by volume.
The sectorial indices recorded a mixed performance to close the day, while CCNN led the advancers chart with 5.00% to close at N4.61, followed by UACN with 4.96% to close at N17.13, on the decliners side, 7up topped the chart with 4.99% to close N101.40, behind it was Custodian & Allied Insurance with 4.97% to close at N3.63.
This trend may continue in today’s session as yesterday MPC decision may likely trigger money management decisions by many fund managers who want to play quickly in the equity market. If you are already in value stocks with dividend expectation, just hold your position and watch the general market trend.
NSEASI DAILY TIME FRAME

NSE index on a daily time frame seem to be on a side trending range within the bearish channel and symmetrical triangle chart pattern that supports continuation of trend, which is a very dicey situation for traders as volume traded decline on a mixed buy position of 54% and sell volume position of 46% as of yesterday’s trading signals mixed sentiments. A breakout of the up dotted blue line of the falling channel may confirm uptrend as earnings season is underway.
The direction and trending ability of the market on a daily time frame is weak as ADX is below 20 as at close of trading yesterday and also trading below its shortest 15-Day moving average. Observed balance volume is looking up which is good pointing to reversal soon.
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Watch your position and general market trend today and tomorrow.