The equity market continued with its bullish trend on Monday, as investors gained N673bn.
At the close of trading, both the market capitalisation of the exchange and the All-Share Index rose by 1.30 per cent to settle at N52.408tn and 95,768.12 basis points, respectively.
Despite the positive trading, market participation dipped as the volume and value of traded units dropped by 14.52 per cent and 4.23 per cent to 721,813,844 units and N 14.407bn, respectively.
Market sentiment was negative, reflected in 47 losers and 24 gainers.
This week on the market, Cowry Assets analysts had projected a possible pullback in the short term on the back of the ASI’s current movement pattern, which they said indicated that the market was persistently in the overbought region.
Reacting, Managing Director/Chief Executive Officer, Kapital Care Securities Ltd, Andrew Tsaku, dismissed the projections as a usual development in the market.
He said, “We have continued to see growing interest beyond an average pundit’s postulation at the start of the year, with burgeoning effect in spiral prices of fundamentally sound stocks with lingering effects on the less cherished ones alike, a case of bandwagon effect!
“For the first time in a long time, our listed stocks are having a better and more realistic reflection of their intrinsic values. I remain unperturbed with the current posture of the market and would rather relish it because I expect the market to still grow towards an index of 100,000 before there may be a ‘normalisation’.
“Fundamentally sound stocks will maintain their poise, but riders-on may catch a cold at some point when the curve turns. However, in a rising market, one must ‘sit and watch over your Eggs’ because you do not know when the curve will turn and you sure do not want to be caught napping, when you ought to ‘watch and pray.’”
SOURCE: PUNCHNG
