The directive of the Central Bank of Nigeria (CBN) to banks in the country, particularly those on life support, prohibiting them from paying dividends to shareholders and issuing bonuses to directors took a toll on the Nigerian Exchange (NGX) Limited on Monday.
Yesterday, the stock market was down by 0.19 per cent as a result of this information, triggering profit-taking by investors.
Data obtained by Business Post indicated that apart from the industrial goods index, which grew by 0.42 per cent, every other sector ended in red territory at the close of transactions.
The worst-hit was the commodity space, which lost 4.52 per cent, the consumer goods counter depreciated by 2.73 per cent, the energy sector fell by 2.66 per cent, the banking space shed 1.19 per cent, and the insurance counter weakened by 0.49 per cent.
Consequently, the All-Share Index (ASI) contracted by 222.37 points to 115,238.24 points from 115,460.61 points and the market capitalisation crashed by N141 billion to N72.667 trillion from N72.808 trillion.
Unlike in the last trading session, investor sentiment was weak on Monday after Customs Street finished with 21 price gainers and 43 price losers, representing a negative market breadth index.
Northern Nigeria Flour Mills moderated by 10.00 per cent to N101.30, C&I Leasing slipped by 9.68 per cent to N4.20, University Press stumbled by 9.27 per cent to N4.99, Deap Capital gave up 8.99 per cent to sell for 81 Kobo, and Learn Africa dipped by 8.43 per cent to sell for N3.80.
On the flip side, Guinea Insurance gained 10.00 per cent to quote at 77 Kobo, Ellah Lakes chalked up 9.93 per cent to settle at N4.76, Legend Internet appreciated by 9.87 per cent to N7.79, Royal Exchange improved by 9.68 per cent to N1.02, and Fidson regained 9.64 per cent to end at N42.10.
Yesterday, the bourse recorded a turnover of 618.6 million shares valued at N19.0 billion 18,835 deals compared with the sale of 920.1 million shares worth N17.5 billion traded in 20,167 deals last Friday, implying an 8.57 per cent growth in the trading value, a 32.77 per cent drop in the trading volume, and a 6.60 per cent shortfall in the number of deals.
Access Holdings was the busiest equity at the market on Monday with 92.7 million units valued at N1.9 billion, UBA exchanged 91.4 million units for N3.1 billion, Zenith Bank sold 76.9 million units worth N3.6 billion, Fidelity Bank transacted 50.0 million units valued at N884.0 million, and GTCO traded 40.5 million units worth N2.9 billion.