NGX Lost N121bn as Forbearance Phase Out Provokes Selloffs
The Nigerian Exchange (NGX) shed about N121 billion on Monday as the Central Bank’s forbearance phase out notice to banks provoked profit-taking in banking stocks.
Key performance indicators eased 17 basis points as banking stocks became target for profit-taking in reaction to negative effects of the post-COVID-19 forbearance phase out for deposit money banks.
The bearish play on the exchange was driven by sell-offs in some large- and medium-cap stocks across major market sectors, while the banking index dropped sharply by 3.98%. Price depreciation was visible in NNFM, ACCESSCORP, ZENITHBANK, UBA, and some tier-2 lenders.
Hence, the NGX All-Share Index decreased by 191.30 basis points to close at 115,238.24. However, market activities were mixed as the total volume traded at the local exchange reduced by 33.72%, while the total value of all transactions was up by 5.75%.
In its note, Atlass Portfolio Limited told investors that approximately 618.55 million units valued at ₦18,984.13 million were transacted across 18,835 deals.
In terms of volume, ACCESSCORP led the activity chart, accounting for 12.86% of the total volume traded in the market, followed by UBA (12.57%), ZENITHBANK (10.66%), FIDELITYBK (6.94%), and GTCO (5.61%), rounding out the top five.
ZENITHBANK emerged as the most traded stock in value terms, accounting for 16.16% of the total value of trades on the exchange.
GUINEAINS topped the advancers’ chart with a price appreciation of 10.00 percent, trailed by ELLAHLAKES (+9.93%), LEGENDINT (+9.87%), ROYALEX (+9.68%), FIDSON (+9.64%), NGXGROUP (+9.09%), and fifteen others.
Forty-three stocks depreciated, according to stockbrokers. NNFM was the top loser, with a price depreciation of -10.00%. Other decliners include ACCESSCORP (-8.28%), FIRSTHOLDCO (7.5%), TANTALIZER (-6.84%), BERGER (-6.72%), ZENITHBANK (-6.37%), UBA (5.7%), and CADBURY (-4.27%).
At the close of the trading sessions, the market breadth closed negative, recording 21 gainers and 43 losers. The sectoral performance was negative, as three out of the five major market sectors were down.
The Banking Index declined by 3.98%, followed by the Oil & Gas sector, which dropped by 0.90%, and the Insurance sector, which shed 0.49%. The consumer goods sector recorded a growth of 1.98%, while the industrial sector closed unchanged.
Overall, the equities market capitalization of the Nigerian Exchange lost ₦120.64 billion, representing a decline of 0.17%, to close at ₦72.67 trillion. #NGX Lost N121bn as Forbearance Phase Out Provokes Selloffs Dangote Cement Opens N100bn Commercial Papers for Subscription
