NGX Trades Negative as Investors Pullout from Banking Stocks
The Nigerian Exchange (NGX) records a negative start to the week as equity investors dumped banking stocks, thus driving market capitalisation and year to date gain lower.
After last week selling mode closed the market on a negative note, NGX sees bearish trades again despite headline inflation rate slowdown that would probably keep yield repricing in the fixed income market in check for the rest of the year.
Today’s equity slides came precisely from price depreciation in telecom giant MTNN and major banking stocks such as UBA, ETI among others. Seen MTN Nigeria stock gains, investors are now pulling out from the stocks as the selloff persists for days.
Consequent to the profit-takings, the Nigerian Exchange All-Share Index dipped 22.67 basis points, representing a decline of 0.05 per cent to close at 43,230.34.
Stock market capitalisation lost ₦11.83 billion, representing a decrease of 0.05 per cent to close at ₦22.56 trillion, Atlass Portfolios Limited said in a market report.
Data shows that market activities were largely bearish as the total volume and value traded dipped by 6.80 per cent and 7.75 per cent, respectively, as against the previous session.
A total of 293.43 million units valued at ₦4.29 billion were transacted in 4,239 deals, with weak investors’ sentiment.
FBNH outperformed the traded stocks in terms of volume, accounting for 34.50 per cent of the total volume of trades, followed by ACCESS (15.05%), FCMB (11.88%), GTCO (6.29%), and ZENITH BANK (5.51%) to complete the top five on the volume chart.
Likewise, FBNH emerged as the most traded stock in value terms, with 28.96 per cent of the total value of trades on the exchange. CUTIX topped the advancers’ list as its share prices rose by 9.89 percent, trailed by FBNH (2.50%), AFRIPRUD (2.36%), FLOURMILL (2.03%), PRESCO (1.02%), ACCESS (0.53%), NGXGROUP (0.28%), GTCO (0.18%) and twelve (12) others.
Conversely, 14 stocks declined in price led by VERITASKAP with price depreciation of 8.70 per cent to close at ₦0.21, as UBA (-2.96%), ETI (-1.74%), DABGSUGAR (-0.58%), MTNN (-0.52%) and FIDSON (-0.16%) also dipped in price.
However, the market breadth closed negatively, recording 20 gainers and 14 losers.
Nevertheless, the sector performance was largely positive as four of the five major sectors closed positively, led by Oil & Gas (0.08%), Insurance (0.06%), Consumer Goods (0.05%) and Industrial Goods (0.01%) as the Banking sector dipped by 0.37%.
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