COVID-19 pandemic, average quarterly return on equity investments, measured by the change in the average of the daily index values from one quarter to the next, reflected a decline of 20.7 per cent relative to alternative options such as foreign currency and money market investments,” said BOJ.
“More precisely, the average quarterly return on foreign currency investments and 30-day private money market repo securities yielded positive rates of 1.9 per cent and 0.67 per cent, respectively, for the March 2020 quarter,” the central bank said in its Quarterly Monetary Policy Report.
Brokerage house NCB Capital Markets Limited says that of the 52 companies that released quarterly earnings, released up to last Friday, just over half reported improved results; of that, 22 recorded yearover-year increase in profit, 14 recorded contractions, and 16 reporting losses.
The brokerage also noted that financial firms were posting bad results, while the performance of manufacturing companies was mixed.
“Despite the disruption to business activity caused by the COVID-19 pandemic since the latter part of March, the manufacturing and distribution sector seem to have had a relatively better quarter than others did, with eight companies recording an increase in earnings, five seeing contractions, and only two reporting losses,” NCB Cap said.
“Meanwhile, the out-turn for the financial sector was less favourable, with nine companies reporting losses, relative to four reporting contractions, and four reporting higher earnings. This was mainly due to the fall-off in the price of assets held by these institutions.”
During May, the value of share trades on the market was S2.8 billion, less than the $3.9 billion for the month of April, and less than half the $6.8 billion of shares that traded in March. Stock market wealth has fallen from around $2.1 trillion to $1.66 trillion as at the end of May.