Market Sheds N35bn as Traders Offload Banking Stocks

Dipo Olowookere

Profit-taking activities trimmed the value of the Nigerian Exchange (NGX) Limited by N35 billion on Friday, closing at N26.686 trillion compared with the previous day’s N26.721 trillion.

Business Post reports that traders found a reason to minimise their exposure to banking stocks and the loss in that sector brought down the market by 0.13 per cent at the close of transactions.

As a result, the All-Share Index (ASI), which measures the performance of the exchange, decreased by 65.06 points yesterday to 49,475.42 points from the 49,540.48 points recorded on Thursday.

Of the five key sectors of the bourse tracked, only the banking counter ended in the red territory as it lost 1.39 per cent. The insurance space grew by 0.65 per cent, the consumer goods sector appreciated by 0.02 per cent, while the industrial goods and energy indices closed flat.

Investors’ attitude to the local equity market remained lackadaisical on Friday as the activity level further waned due to the decline in the trading volume, value and number of deals by 35.87 per cent, 9.04 per cent and 4.48 per cent respectively.

A total of 107.5 million shares worth N1.2 billion exchanged hands in 3,303 deals yesterday compared with the 167.6 million shares worth N1.3 billion transacted a day earlier in 3,458 deals.

FBN Holdings finished the session as the most active stock as it sold 12.0 million units valued at N120.7 million, Zenith Bank exchanged 12.0 million units worth NN235.9 million, Access Holdings transacted 11.4 million units for N98.3 million, UBA sold 9.1 million units valued at N66.5 million, while GTCO traded 6.7 million units worth N131.6 million.

Regency Assurance topped the losers’ chart on the last trading session of the week with a loss of 7.41 per cent to quote at 25 Kobo, Unity Bank fell by 6.98 per cent to 40 Kobo, Access Holdings dropped 5.14 per cent to N8.30, Cornerstone Insurance depreciated by 4.76 per cent to 60 Kobo, while UBA waned by 4.50 per cent to close at N7.10.

After appreciating by 8.97 per cent, NEM Insurance ended the trading day on top of the gainers’ log to sell at N5.59 and was trailed by Academy Press, which improved by 6.80 per cent to N2.20. Japaul grew by 3.70 per cent to 28 Kobo, Cadbury Nigeria expanded by 3.00 per cent to N13.75, while Wema Bank stretched by 1.76 per cent to N3.46.

At the close of trades, the market breadth was negative with 13 price losers and nine price gainers, indicating a weak investor sentiment.