Stock Market Value Declines as Banking Index Dip
The Nigerian stock market value declined by about N28 billion midweek as selloffs in Tier-1 Banks shares pushed the banking index down by 3% amidst corporate earnings releases, halting the previous day’s rally.
Stockbrokers told MarketForces Africa that the negative outing was driven by investors’ huge profit-taking Banking stocks. This was supported by selloffs in Transcorp, and Flour Mills of Nigeria (FMN Plc) which then resulted in a decline in the benchmark index.
Market data showed that the Nigerian Exchange dropped by eight 8 basis points (bps) to close at 66,439.53 points, as against its previous day’s closing value of 66,490.34 points.
Major gainers today were CHIPLC (+10.0%) and CAPHOTEL (+10.0%).
But investors’ sell-off activities were stronger, resulting in a decline in prices across tickers like TRANSCORP (-9.99%), GTCO (-0.95%), FLOURMILL (-1.52%), FIDELITYBK (-1.42%), ACCESSCORP (-0.30%), ZENITHBANK (-1.79%), along with 18 other stocks.
There was a price decline in TRANSCOH (-10.1%) OANDO (0.9%) and ETERNA (-0.6%) and CWG (-9.9%). With the return of the bears into the local bourse, year-to-date return slid to 29.64% from 29.7%, accompanied by a 0.08% downturn in the overall market capitalization.
Meanwhile, activity level improved as volume and value traded rose 45.8% and 11.1% to 637.1m units and ₦7.8bn respectively. Investor sentiment, as measured by market breadth, improved to 0.05x from 0.04x in the prior session as 27 stocks advanced, 24 declined, and 64 closed flat
Market activity witnessed a surge as both trading volume and value exhibited growth, expanding by 45.83% and 11.08% to reach 637.19 million units and N7.79 billion, respectively.
On sectors, the Insurance (+1.5%), Consumer Goods (+0.3%) and Industrial Goods (+0.1%) indices advanced, while the Banking (-0.3%) index declined. Meanwhile, the Oil & Gas index closed flat. Overall, the Nigerian Exchange market capitalisation declined by N27.81 billion to close at N36.36 trillion #Stock Market Value Declines as Banking Index Dip