Equities market drops by 0.36% on sell-off in banking shares

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By Kayode Tokede

The equities maket of the Nigerian Stock Exchange (NSE) on Tuesday sustained a negative posture for the second consecutive day, following sell pressure on banking shares.

The NSE All-Share Index (ASI) dropped by 86.01 basis points or 0.36 per cent to close at 24,114.59 basis points on Tuesday compared with 24,200.60 basis points achieved on Monday.

Similarly, the market capitalisation which opened at N12.624 trillion shed N45 billion or 0.36 per cent to close at N12.579 trillion.

Thus, Month-to-Date and Year-to-Date losses increased to -1.5 per cent and -10.2 per cent, respectively.

Analysing by sectors, the Consumer Goods (+0.4 per cent), Industrial Goods (+0.3 per cent) and Insurance (+0.1 per cent) indices posted gains, while the Banking (-2.8 per cent) and Oil & Gas (-0.4 per cent) indices recorded declines.

The downturn was impacted by losses recorded in large and medium capitalised stocks, amongst which are; Guaranty Trust Bank, Zenith Bank, GlaxoSmithKline, Access Bank and Africa Prudential.

Market breadth closed negative with eight gainers and 15 losers. Arbico led the losers’ chart in percentage terms, dopping by 9.94 per cent, to close at N1.54, per share.

GlaxoSmithKline came second with a loss of 9.38 per cent to close at N4.35, while Associated Bus Company dropped 9.09 per cent to close at 50k, per share.

Sterling Bank shed 4.72 per cent to close at N1.21, while Africa Prudential lost 4.24 per cent to close at N4.07, per share.

On the other hand, Unilever dominated the gainers’ table in percentage terms, gaining 9.64 per cent to close at N13.65 per share.

Chams and Regency Alliance Insurance followed with a gain 4.55 per cent each to close at 23k per share eac.

Japaul Oil improved by 4.17 per cent to close at 25k, while Jaiz Bank appreciated by 3.70 per cent to close at 56k per share.

The total volume of transacted shares decreased by 9.96 per cent with an exchange of 208.20 million shares, worth N1.06 billion, achieved in 4,174 deals.

This was against 231.23 million shares valued at N2.15 billion transacted in 3,950 deals on Monday.

Transactions in the shares of Sterling Bank topped the activity chart with 78.92 million shares valued N98.65 million.

United Bank for Africa followed with 15.78 million shares worth N96.03 million, while Japaul Oil traded 12.79 million shares valued at N3.22 million.

FBN Holdings traded 10.93 million shares worth N56.004 million, while Zenith Bank transacted 10.65 million shares valued at N167.11 million.

Analysts at APT Securities and Funds Limited said the market would maintain a bearish outlook.

“We retain our opinion on a bearish outlook. We therefore advise for a mid to long term positioning as market technically are down at this time,” they said.