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Stock market trading activity gains momentum

Stock market trading activity gains momentum
TRADING: Momentum highly notable in trade

The Market Performance Report availed this week for the half-year period indicates that there has been some momentum in trading activity as noted from the relative increase in turnover in the second quarter of 2021 compared to the first quarter of 2021.

The Domestic Company Index (DCI) is reported to have continued with its momentum of gains from April and May, adding 0.5 percent in June to end the second quarter of the year with a depreciation of 3.7 percent compared to a depreciation of 5.1 percent in the first quarter of the year.

On a half-yearly basis, the DCI has depreciated by 3.7 percent compared to a depreciation of 4.4 percent in the same period in 2020.

The Domestic Company Total Return Index (DCTRI), which accounts for dividends paid out, has also followed a similar trajectory of gains that are reversing the losses and ended the second quarter up 4.0 percent compared to a depreciation of 4.4 percent in the first quarter.

On a half-yearly basis, the DCTRI has registered an overall marginal loss of 0.6 percent, in comparison to an increase of 1.5 percent in the corresponding 2020 period.

On the other hand, the Foreign Company Index (FCI) appreciated by 0.3 percent on a year-to-date basis in 2021 compared to a decline of 0.7 percent over the same period in 2020.

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The report states that according to the comparative performance of the indices, there are indications that the market is gaining consistency in terms of positive month-on-month returns since April 2021, for the domestic sector.

In addition, listed companies are continuing to pay dividends which tend to augment the capital gains reflected in the DCI.

“Notably, the difference between the performance of the DCI and DCTRI is attributed to dividend payouts as the DCTRI measures the returns accruing from both the price and the dividends,” states the market performance report.

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