NSE Pullback Offers Opportunity For New Entrance | Independent Newspapers Limited
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NSE Pullback Offers Opportunity For New Entrance

Posted: Oct 12, 2015 at 12:06 am   /   by   /   comments (0)

The recent pullback of the Nigeria equity market was attributed to factors that include reactions to the list of President Muhammadu Buhari’sministerial nominees, expulsion of the Federal Government bonds again from Barclay Bank’s index, due to the seeming lack of a defined direction for the economy and an unstable currency management.
Also, the downward trend was sustained as a result of profit taking that kept the market in red for four straight trading days of the week before trying a rebound last Friday, after a positive outing for five weeks.
The global equities market’s seeming rebound was due to the rise in commodities prices as energy and mining stocks climbed higher, touching and crossing its 50-day moving average. The dwindling growth rate of the major economies of the worldneed to be addressed as it had started affecting the emerging economy which if not handled with speed maycompress global economic and financial markets as discussed in the ongoing World Bank/International Monetary Fund Annual Meetings in Lima, Peru.
The market closedmarginally positive last Friday, but the Composite NSEASI still recorded a lossof 1.40 per cent to close at 30,165.22 from an opening figure of 30,588.41 basis points, a difference of 423.19 points, bringing the year-to-date negative return to 12.96 per cent. Market Capitalisation also closed last week at N10.40 trillion from an opening value of N10.73 trillion recorded in the previous week. In the same vain, all the sectorial indices for the period closed negative with the NSE Oil/Gas sectoral index leading after shedding 3.22 per cent.
On the big board, the decliners outpaced advancers by 48 to 23 and this reflected the negative performance recorded in four trading sessions of the week, making market breadth negative on the back of a declining volume.