Market Sustained More Bear Run Last Week over Abandoned Banking Stocks

The Nigerian Stock Exchange, NSE, Banking Index shed 7.9 per cent as investors dumped bank stock in most days of the week to lock in profit. Besides, some investors reacted as Skye Bank announced profit warning, fueling speculations that regulatory headwinds and high loan impairments will continue to hinder banks’ ability to make profits.

Apart from the above, prices adjustments for dividends also contributed to the negative trading recorded last week. At the close of trades for the week, the NSE All-Share Index and market capitalization depreciated by 1.52 per cent to close at 25,507.09 and N8.774 trillion respectively.

Similarly, all other Indices finished lower during the week, with the exception of the NSE Premium Index, NSE Oil/Gas Index, NSE Lotus II and the NSE Industrial Goods Index that rose by 3.16 per cent, 2.06 per cent, 0.76 per cent, and 0.25 per cent respectively, while the NSE ASeM closed flat.

The market had opened the week in the red last Tuesday, dragged by negative sentiment towards banking (0.8 per cent) and industrial stocks (2.54 per cent) as mark down for dividend in both Guaranty Trust Bank Plc and Zenith Bank Plc led to a bearish close.

The benchmark NSE-ASI shed 2.40 per cent to end the session at 25,277.29 points, corresponding to a market capitalization of N8.69 trillion.

The market ended the week on a positive note last Friday as the NSE ASI jumped further by 0.79 per cent to close at 25,507.09 points, compared with the gain of 0.64 per cent recorded the prior day.

The appreciation recorded in the share prices of Access Bank Plc, FBN Holdings Plc, Dangote Cement Plc, Zenith Bank Plc and Oando Plc were mainly responsible for the gain recorded in the Index. Similarly, the market capitalization appreciated by 0.79 per cent to close at N8.77 trillion, compared with the depreciation of 0.64 per cent recorded the previous day to close at N8.70 trillion.