Market Sheds N58bn as Confidence in Banking Stocks Wanes

August 10, 2019
Banking Stocks

By Dipo Olowookere

The interest in equities in the banking sector is beginning to wane at the nation’s stock market and some investors have begun to offload them from their portfolios in order to reduce their exposure.

Business Post reports that at the Nigerian Stock Exchange (NSE) on Friday, the banking index emerged the biggest decliner as a result of selloffs in tier-one lenders.

At the close of transactions yesterday, the banking index went down by 1.59 percent, while the other loser, the consumer goods index, depreciated by 0.14 percent.

However, the insurance index appreciated by 1.21 percent, the industrial index went up by 1.00 percent, while the oil and gas index improved by 0.23 percent.

But the main market gauges, the All-Share Index (ASI), reduced yesterday by 118.11 points or 0.43 percent to finish at 27,306.81 points, while the market capitalisation shed N58 billion to settle at N13.307 trillion.

Dominating the losers’ chart yesterday was Zenith Bank. Stocks of the tier-one financial institution went down by 45 kobo to close at N16.35k each.

It was followed by GTBank, which reduced by 40 kobo to finish at N26.50k per unit, and UBA, which reduced in share value by 25 kobo to quote at N5.55k each.

UAC Nigeria also depreciated by 25 kobo on Friday to end at N5.50k per share, while Dangote Sugar depleted by 20 kobo to sell at N9.90k per unit.

At the other side, MTN Nigeria maintained its positive performance from the previous session to finish on Friday at N131 per share after appreciating by N1.45k.

Lafarge Africa gained 65 kobo to close at N15 per unit, while Custodian Investment appreciated by 50 kobo to settle at N6 per share.

In addition, Forte Oil improved its share price by 20 kobo yesterday to end at N17 per unit, while C&I Leasing gained 15 kobo to close at N6.20k per share.

On the activity chart, GTBank was the most traded stock, selling a total of 129.2 million units worth N3.5 billion.

Zenith Bank exchanged a total of 35 million shares worth N577.9 million, Transcorp transacted 10.2 million shares for N8.9 million, UBA traded 8.1 million equities valued at N45.1 million, while Sterling Bank traded 4.5 million shares for N9.8 million.

At the close of business yesterday, the volume of transactions by investors decreased by 21.04 percent to 220.8 million from 279.6 million, while the value of trades increased by 66.91 percent to N4.5 billion from N2.7 billion.

Dipo Olowookere

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

Mr Olowookere can be reached via [email protected]

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