The Nigerian Exchange Limited (NGX) Banking Index, on Monday opened the week on a bearish note, dropping by four per cent to 1,169.74 basis points amid investors reaction to the Central Bank of Nigeria’s (CBN) directive suspending bank dividend payouts, director bonuses, and new foreign investments.
Accordingly, the NGX ASI Month-to-Date and Year-to-Date returns moderated to +3.2per cent and +12per cent, respectively.
The downward trend in banking stocks impacted on the major stock market indicators.
For instance, the NGX All-Share Index (NGX ASI) , yesterday was down by 170.77 basis points or 0.15 per cent to close at 115,258.77 basis points.
Consequently, market capitalisation declined by N108 billion to close at N72.680 trillion.
Market breadth was negative, with 19 gainers against 45 decliners. Guinea Insurance emerged the highest price gainer of 10 per cent to close at 77 kobo, per share. Ellah Lakes followed with a gain of 9.93 per cent to close at N4.76, while Legend Internet rose by 9.87 per cent to close at N7.79, per share.
May & Baker Nigeria up by 9.74 per cent to close at N16.90, while Fidson Healthcare appreciated by 9.64 per cent to close at N42.10, per share. On the other side, NNFM led the losers’ chart with 10 per cent to close at N101.30, per share. C&I Leasing followed with a decline of 9.68 per cent to close at N4.20, while University Press shed 9.09 per cent to close at N5.00, per share.
FCMB Group depreciated by 8.59 per cent to close at N9.05, while Learn Africa down by 8.43 per cent to close at N3.80, per share.
The total volume traded decreased by 22.70 per cent to 721.751 million units, valued at N22.010 billion, and exchanged in 22,100 deals.
Transactions in the shares of Access Holdings led the activity with 92.702 million shares worth N1.905 billion. United Bank for Africa (UBA) followed with account of 91.363 million shares valued at N3.085 billion, while Zenith Bank traded 76.848 million shares valued at N3.556 billion.
Fidelity Bank traded 49.995 million shares worth N883.988 million, while Guaranty Trust Holding Company (GTCO) traded 40.456 million shares worth N2.849 billion.
On market outlook, Afrinvest Limited said that “we expect the market to extend its bearish trend, as investors shift focus to the CBN T-bills auction, where expectations of stable yields may dampen appetite for equities.”
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