Nigerian Bourse Declines as Investors Dump Banking Stocks

Nigerian Bourse Declines as Investors Dump Banking Stocks

Nigerian bourse declines by about N17 billion on Tuesday as investors drop low on banking stocks after Broadstreet open negative. As a result, the All-Share Index dipped 32.57 basis points, representing a 0.08 per cent decrease to close at 38,873.85 points with year to date losses edging higher.

The selling rallies at the local bourse dragged market capitalization downward as investors lost ₦16.97 billion to close at ₦20.25 trillion. Market activities traded bearishly, as both the total volume and value traded shed 3.23 per cent and 0.42 per cent, respectively.

A total of 184.44 million units of shares valued at ₦2.34 billion were traded in 3,809 deals.

UBA led the traded stocks in terms of volume, accounting for 21.14 per cent of the total volume of trades, followed by GTCO (10.32%), ZENITH BANK (7.70%), UCAP (6.99%), and ACCESS (5.47%) to complete the top five on the volume chart.

GTCO emerged as the most traded stock in value terms, with 22.10 per cent of the total value of trades on the exchange. MRS led the advancers table with price appreciation of 9.75 per cent, trailed closely by ETI (2.94%), STANBIC (2.63%), ETERNA (2.30%), VITAFOAM (2.00%), WAPCO (1.36%), UBA (0.66%), and 9 others.

In contrast, NEIMETH topped the decliners chart as its share price declined by 7.89 per cent to close at ₦1.75, as WEMABANK (-3.80%), ZENITH BANK (-2.34%), ACCESS (-1.11%), GTCO (-0.73%) and FLOURMILL (-0.34%) amongst others also declined in price.

Overall, the Nigerian stock market breadth closed negatively, recording 16 gainers and 13 losers.

Afrinvest said in a market report that performance was mixed across sectors under its coverage, as 3 indices gained, 1 lost, while the Consumer Goods and AFR-ICT indices closed flat. The Banking index was the lone laggard, down 1.0% due to sell-offs in ZENITH (-2.3%), GTCO (-0.7%), and ACCESS (-1.1%).

Conversely, the Industrial Goods index led the gainers, up to 8 basis points on the back of price appreciation in WAPCO (+1.4%) and CUTIX (+2.1%). Similarly, the Insurance and Oil & Gas indices gained 7bps and 6bps respectively on account of buying interest in WAPIC (+2.1%) and MRSOIL (+9.8%).

“Following an improvement in sentiment, we expect a positive performance in the next trading session as investors take a position in attractive stocks”, Afrinvest.

Nigerian Bourse Declines as Investors Dump Banking Stocks