The equity market continued to rise on Monday, with investors gaining N673 billion.
The PUNCH reported that the All-Share Index and the exchange’s market capitalization increased by 1.30 per cent at the end of trade to close at 95,768.12 basis points and N52.408tn, respectively.
Market participation decreased despite the favourable trading, as the volume and value of traded units fell by 14.52 percent and 4.23 percent, respectively, to 721,813,844 units and N 14.407 billion.
Market sentiment was negative, with 47 losers and 24 gainers.
Cowry Assets analysts predicted a short-term decline based on the ASI’s current moving pattern, which they said showed that the market was persistently in the overbought region.
Cowry Assets experts predicted a short-term decline based on the ASI’s current moving pattern, which suggested that the market was consistently overbought.
The Managing Director/Chief Executive Officer of Kapital Care Securities Ltd, Andrew Tsaku, responded by dismissing the estimates as market standard.
He stated, “We have continued to notice increased interest beyond an ordinary pundit’s postulation at the start of the year, with a booming effect in spiral prices of fundamentally sound stocks and lasting effects on the less treasured ones alike, a case of bandwagon effect!
He claimed that for the first time in a long time, the listed stocks are reflecting their intrinsic values more accurately and realistically. I am unconcerned about the market’s current state and would rather enjoy it since I believe the market will continue to rise to an index of 100,000 before a ‘normalization’ occurs.
The MD added that in a rising market, one must ‘sit and watch over your Eggs’ because no one knows when the curve will turn and you do not want to be caught napping, when you ought to ‘watch and pray.’
