Technical Glitches Hamper Market Activities, NSE Extends Trading Hours

Trading activities in the market were disrupted today owing to some technical issues experienced on the floor of the Nigerian Stock Exchange which left the market shut after some early trading up until late trading hours.

Trading actually recommenced at 2.15p.m and was extended to 4.00p.m (from the usual time of 2:30 pm) in order to give investors the opportunity to complete their desired transactions for the day.

The management of the NSE said it regrets any inconvenience the incident might have caused, and reassured investors and stakeholders of its commitment to provide best in class trading services with optimal availability.

The Bourse intends to open for trading at the normal trading hours tomorrow.

In the mean time, the Nigerian Equities market started the week on a negative note as the benchmark index slipped 0.3% to close at 24, 650.92 points. The major drags to market performance today were, OANDO (-8.3%), NIGERIAN BREWERIES (-1.4%) and ZENITH (-1.3%).Also, market capitalization fell N23.5bn to N8.5tn. As noted earlier, activity level waned as volume and value traded declined 70.4% and 79.1% to 129.6m units and N582.4bn respectively.

All Sectors Decline
Performance across sectors was broadly bearish as all sector indices closed in the red. The Oil & Gas index depreciated the most, down-0.8% on account of sell offs in OANDO (-8.3%). Similarly, the Consumer Goods and Banking indices fell 0.6% apiece as losses in NIGERIAN BREWERIES (-1.4%) and ZENITH (-1.3%) drove the indices southward. In the Banking space, Zenith Bank Plc released its Q1:2016 results in which Gross earnings fell 12.3% Y-o-Y to N99.4bn while PAT also declined 4.0% Y-o-Y to N26.6bn and this may have resulted in the sell offs on the counter witnessed today. In line with trend, the Insurance index slid 0.3% while the Industrial Goods index was marginally down 3bps.

Sentiments stay weak
Investors’ sentiment stayed weak as market breadth (advancers/decliners) stood at 0.6x as 12 stocks advanced while 20 declined. The top gainers’ chart was topped by TRANSEXPRESS (+9.1%), DIAMOND (+8.5%) and CAVERTON (+4.8%) while CONOIL (-9.4%), OANDO (-8.3%) and CCNN (-5.0%) led the losers’ list. Market performance is expected to be shaped by sentiments towards corporate scorecards as Q1:2016 earnings releases begin to filter in.

Category: 
myfinancialintelligence.com