NGX Loses N63bn as Selloffs Hit Tier-1 Banks
The Nigerian Exchange (NGX) equities market capitalisation dropped by about N63 billion on Monday as investors offloaded banks’ stocks after the regulator re-enforces of 65% loan-to-deposit ratio benchmark in the sector.
Dragging market index lower, ZENITHBANK lost 2.57%, FBNH fell by 3.68%, ACCESSCORP went down by 1.15%, UBA slumped by 1.39% and GTCO dipped by 0.79%.
Consequently, the Nigerian Exchange All-share index declined, and year-to-date return moderated amidst an expectation that July inflation rate would rise significantly due to the inclusion of the impacts of subsidy removal on the consumer price index.
Data from the local bourse showed that the market index or All-Share Index went south by 114.88 basis points today, representing a decrease of -0.18% to close at 65,210.49. Following a similar path, year-to-date return moderated to 27.24%.
Stockbrokers reported that market activities were down amidst profit takings on banks. Both total trade volume and total value traded dropped by -47.10% and +49.72% respectively.
Atlass Portfolios Limited said in its market update that approximately 259.04 million units valued at ₦4,204.79 million were transacted in 5,899 deals.
TRANSCORP was the most traded stock in terms of volume, accounting for 16.12% of the total volume of trades. The conglomerate company was followed by ACCESSCORP (7.01%), GTCO (6.01%), STERLINGNG (5.48%), and UBA (5.02%) to complete the top 5 on the volume chart.
Meanwhile, GTCO was also the most traded stock in value terms, with 13.92% of the total value of trades on the exchange. CORNERST topped the advancers’ chart with a price appreciation of 9.32 percent. The Insurance company was trailed by OMATEK (8.82%), TIP (+8.51%), CHAMS (+7.37%), RTBRISCOE (+6.98%), and seventeen others.
On Monday, twenty-three stocks depreciated. ETERNA was the top loser, with a price depreciation of -9.90%, to close at ₦17.75. It was followed by FTNCOCOA which dipped by 8.44%, OKOMUOIL fell by 5.66%, AFRIPRUD lost 4.84%, FBNH dropped by 3.68% and ZENITH BANK fell by 2.57%.
At the end of the first trading session in the week, the market breadth closed negative, recording 22 gainers and 23 losers. However, the market sector performance closed positive.
Market data showed that three of the five major market sectors rallied. The Insurance sector (+0.80%), followed by the Consumer goods sector (+0.47%), and the Industrial sector (+0.01%), while the Banking and Oil & Gas sectors were down by –1.13 % and -0.44% accordingly.
Overall, equities market capitalisation lost ₦62.56 billion, representing a decline of -0.18%, to close at ₦35,509.89 trillion from ₦35,572.45 last Friday. #NGX Loses N63bn as Selloffs Hit Tier-1 Banks Treasury Bills Yield Steadies, Money Market Rates Decline