NSE Records Losses Due To Banking Stocks Sell-off
Transactions on the Nigerian Stock Exchange (NSE) on Wednesday maintained a negative outlook for the third consecutive trading sessions.
The News Agency of Nigeria (NAN) reports that the All-Share Index dropped marginally by 0.02 per cent due to sell-off in banking stocks.
The index lost 5.74 per cent or 0.02 per cent to close at 26, 938.58 against 26, 944.32 achieved on Tuesday.
Consequently, the Month-to-Date and the Year-to-Date losses worsened to -0.24 per cent and -14.29 per cent respectively.
Similarly, the market capitalisation, which opened at N13.005 trillion, lost three billion naira to close at N13.002 trillion. The downturn was impacted by losses recorded in medium and large capitalised stocks, amongst which are: Sterling Bank; United Bank for Africa (UBA); Zenith Bank; Oando and Nigerian Aviation Handling Company.
Analysts at Afrinvest Limited stated that “Despite strong investors’ sentiment due to renewed interest in the local bourse, we expect profit taking activities to persist, following four consecutive weeks of price appreciation.” Sterling Bank led the losers’ chart in percentage terms, dropping by 6.34 per cent to close at N1.92 per share.
Chams followed with a decline of 5.71 per cent to close at 33k, while FCMB Group lost 3.23 per share to close at N1.80 per share. NAHCO dipped 2.80 per cent to close at N2.43 per share.
Conversely, Japaul Oil and Maritime Services led the gainers’ chart in percentage terms, appreciating by 10 per cent to close at 22k per share. May & Baker followed with a gain of 9.74 per cent to close at N2.14, while NEM Insurance rose by 5.26 per cent to close at N2 per share.
Courteville Business Solutions grew by 3.85 per cent to close at 27k, while Cutix appreciated by 3.50 per cent to close at N1.48 per share. Also, the total volume of trades dipped by 40.27 per cent as investors bought and sold 112.89 million valued at N1.08 billion and exchanged in 3,041 deals.
This was in contrast with a total of 189.01 million shares worth N283 billion achieved in 3,314 deals on Tuesday. Zenith Bank was the most traded stock by volume and value at 15.86 million units valued at N296.86 million.
FCMB Group followed with 15.17 million shares worth N26.99 million, while UBA traded 12.96 million shares valued at N90.66 million. Fidelity Bank sold 7.45 million shares worth N14.98 million, while Guaranty Trust Bank transacted 6.09 million shares valued at N183.97 million. (NAN)