Banking Stocks Crash NSE Index Below 39,000 Points
By Dipo Olowookere
The All-Share Index (ASI) closed below the 39,000 thresholds at the Nigerian Stock Exchange (NSE) on Tuesday after the market lost 1.80 per cent.
The benchmark index reduced at the market yesterday by 709.72 points to 38,686.85 points from 39,396.57 points, while the market capitalisation fell by N372 billion to N20.241 trillion from N20.613 trillion.
The loss could be attributed to selloffs in the banking sector, which depreciated by 5.30 per cent and this was chiefly from UBA, which announced its financial performance in the year 2020.
Insurance lost 0.63 per cent, industrial goods depreciated by 0.52 per cent, while the energy sector dropped 0.15 per cent. Only the consumer goods counter appreciated yesterday and it moved higher by 0.39 per cent.
Eterna and UBA were the worst-performing stocks on Tuesday as they declined by 10.00 per cent each to close at N5.13 and N7.20 respectively.
Caverton lost 9.55 per cent to sell at N1.80, Northern Nigerian Flour Mills decreased by 9.52 per cent to N5.70, while Greif Nigeria depleted by 9.46 per cent to N6.70.
Conversely, Champion Breweries appreciated by 9.78 per cent to sell at N2.02, Neimeth gained 9.71 per cent to quote at N1.92, Cutix grew by 8,84 per cent to N1.97, Dangote Sugar appreciated by 7.99 per cent to N18.25, while NASCON improved by 7.69 per cent to N14.
Business Post reports that the trading volume and value grew by 64.83 per cent and 110.82 per cent respectively, while the number of deals declined by 0.84 per cent.
This was because investors traded 490.0 million stocks worth N6.7 billion in 4,616 deals on Tuesday compared with the 297.3 million stocks worth N3.2 billion transacted in 4,655 deals on Monday.
UBA was the most traded equity at the session as it sold 123.3 million units valued at N887.6 million, while Notore traded 74.1 million units worth N3.7 billion.
Mutual Benefits exchanged 58.0 million equities for N23.2 million, FBN Holdings traded 48.9 million shares worth N352.1 million, while Access Bank transacted 42.7 million stocks valued at N324.2 million.