NSE reacts negatively to Trump’s victory

…as market drops by 3% in one week

The equities market of the Nigerian Stock Exchange (NSE) reacted negatively to Donald Trump’s unexpected election victory over his rival Hillary Clinton at the US presidential election.

The equities market lead indicator of The Nigerian Stock All-Share Index shed three per cent or 810.72 basis points to 26,170.88 basis points from 26,981.60 basis points it opened with on Monday.

Investors in the equities market this week lost N290 billion when market capitalisation moved from N9.29 trillion it opened to close on Friday at N9 trillion.

Also, A turnover of 2.847 billion shares worth N7.420 billion in 16,065 deals were traded this week by investors on the floor of the Exchange in contrast to a total of 873.838 million shares valued at N8.024 billion that exchanged hands last week in 15,944 deals.

The Financial Services Industry (measured by volume) led the activity chart with 2.632 billion shares valued at N4.935 billion traded in 10,882 deals; thus contributing 92.48per cent and 66.51per cent to the total equity turnover volume and value respectively.

The ICT Industry followed with 105.401 million shares worth N52.702 million in 11 deals. The third place was occupied by the Conglomerates Industry with a turnover of 36.495 million shares worth N44.162 million in 446 deals.

Trading in the Top Three Equities namely – Standard Alliance Insurance Plc, Chams Plc and Guaranty Trust Bank Plc (measured by volume) accounted for 2.310 billion shares worth N3.005 billion in 1,825 deals, contributing 81.16per cent and 40.49per cent to the total equity turnover volume and value respectively.

A total of 73,694 units of Federal Government Bonds valued at N80.177 million were traded in 9 deals compared to a total of 13,020 units of Federal Government Bonds valued at N12.953 million transacted last week in 14 deals.

However, the inter-bank’s foreign exchange spot rate window straightened on Friday with a marginal upside relative to foreign currencies. Specifically, the Naira closed at N304.75 against the US Dollar, representing 0.53per cent upside against previous close.

Week-on-week, the Naira appreciated against the Greenback by 7.62per cent.

The Central Bank of Nigeria (CBN) maintained its daily intervention all through the week at N304.50 save on Wednesday. As at Thursday, a total of $79.35 million was traded on OTC foreign exchange Futures.