Market capitalisation sheds N38b as investors sell off banking stocks

Sell-offs in Tier-one banking stocks on Tuesday extended losses on the Nigerian Exchange Limited stock market capitalisation by 0.07 percent.

Notably, investors lost N38 billion as the market capitalisation, which opened at N56.069 trillion, closed at N56.031 trillion.

The  All-Share Index also closed 0.07 percent or 68 points lower to settle at 99,051.02, compared to 99,118.86 posted in the previous session.

Consequently, the Year-To-Date return fell to 32.47 percent.

Losses in Zenith Bank, FBN Holdings, United Bank For Africa, Fidelity Bank, Wema Bank, Transnational Corporation, United Capital, among other declined equities underpinned the market’s weak performance.

In reaction, Analysts at United Capital Plc predicted mixed sentiments amongst investors to persist in the local equities market.

The analysts said: “On one hand, we expect pockets of buy-interests in the market, as market participants take positions in fundamentally sound stocks given their low prices.

“Nevertheless, we still anticipate that the high returns in the fixed-income market will continue to negatively impact the equities market as investors switch.”

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Meanwhile, the market breadth closed negative with 22 losers and 17 gainers on the floor of the Exchange.

On the losers’ table, Tantalizers led by 10 percent to close at 45k, International Energy Insurance trailed by 9.71 percent to close at N1.58 per share.

UPDC Real Estate Investment lost 9.70 percent to close at N1.21, Unity Bank shed 9.42 percent to close at N1.25 and Chams declined by 6.67 percent to close at N1.40 per share.

Conversely, Nigeria Breweries led the gainers table by 10 percent to close at N28.60, Presco Plc followed closely by 9.99 percent to settle at N293.90 per share.

Oando Plc rose by 9.65 percent to close at N14.20, RTBriscoe gained 9.62 percent to close at 57k and Deap Capital Management and Trust Plc added 9.09 percent to close at 48k per share.

Analysis of the market activities showed trade turnover settled higher relative to the previous session, with the value of transactions up by 46.19 percent.

A total of 347.39 million shares valued at N7.66 billion were exchanged in 8,122 deals, as against 349.59 million shares valued at N5.24 billion exchanged in 8,082 deals recorded in the previous session.

Veritas Kapital again led the activity chart in volume with 59.17 million shares valued at N40.22 million, followed by Fidelity Bank with 48.12 million shares worth N468.23 million.

Oando sold 27.96 million shares valued at N397.02 million, Unity Bank traded 20.53 million valued at N25.92 million and UBA transacted 19.78 million shares worth N418.86 million to lead the chart in value.