Banking Stocks Record Biggest Fall in Four Years With 7.6% Loss

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Banking stocks on the Nigerian Stock Exchange, NSE, on Wednesday, June 1 , saw its biggest drop in three and a half years.
This came as investors grapple with uncertainties in the guided flexible foreign exchange policy announced by the Central Bank of Nigeria last week amidst profit-taking transactions.

The Nigerian Stock Exchange Banking 10 Index shed 7.6 per cent as of 1:31 p.m. in Lagos, the biggest retreat since November 2012 on a closing basis, extending a 6.6 per cent slump Tuesday.

Seven banking stocks ranked among the top 10 losers, in percentage terms, with losses ranging around the 10 per cent maximum daily allowable percentage price change. Stanbic IBTC led the losers with 9.70 per cent. United Bank for Africa declined by 9.47 per cent. FCMB Group dropped by 9.36 per cent. Skye Bank depreciated by 8.40 per cent while Access Bank dropped by 6.88 per cent.

Guaranty Trust Bank Plc, the country’s biggest lender by market value, declined 9.6 per cent, while Zenith Bank Plc dropped 8.9 per cent. United Bank for Africa Plc retreated 9.5 per cent.

Average loss in the banking sector more than doubled the overall average loss in the entire market as most banking stocks tumbled under open sale orders, unrestricted sell orders, which sought to close the deals at any available price.

The NSE Banking Index, which tracks the banking sector, dropped by 6.9 per cent, after the two most capitalized banking stocks-Guaranty Trust Bank and Zenith Bank – lost 9.6 per cent and 9.2 per cent respectively.



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