NGX Falls By N720bn As Investors Sell Banks Shares

Stock Exchange Closes Trading Week With N30bn Gain

Due to sharp selloffs in financial services companies, the Nigerian Exchange’s (NGX) equity market capitalization fell even further during the middle of the week. Selloffs in Tier-1 bank shares continued, costing the local market N720 billion.

In particular, investors exchanged 280.46 million shares valued at N6.12 billion in 9,141 deals on Tuesday, while 396.23 million shares valued at N5.83 billion were traded overall in 10,549 deals. The market was negatively impacted by selloffs in the stocks of Zenith Bank, Guaranty Trust Holding Company (GTCO), and FBN Holdings (FBNH).

As a result, the market capitalization, which began at N55.037 trillion and finished at N54.317 trillion, cost investors N720 billion, or 1.31 percent. In addition, the All-Share Index lost 1,317 points, or 1.31 percent, to close at 99,266.02, as against 100,582.89 recorded in the previous session.

As a result, the Year-To-Date return on the index fell to 32.76 per cent. Meanwhile, market breadth closed negative with 50 losers and four gainers on the trading floor. Transcorp led the activity chart in volume with 52.57 million shares traded at the value of N675.58 million, and United Bank of Africa (UBA) sold 39.47 million shares worth N823.93 million.

Access Corporation traded 35.29 million shares worth N621 million, while Zenith Bank led in value with sales of 30.93 million shares worth N1 billion and Universal Insurance traded 23.22 million shares worth N8.11 million.

On the losers table, Wema Bank, Oando Plc, Nigerian Breweries, The Initiative Plc and Red Star Express Plc led in percentage terms of 10 each to close at N7.02, N9.90, N30.60, N1.80 and N3.42 per share, respectively.

Conversely, PZ Cussons led the gainers table in percentage terms of 10 to close at N29.15, Juli Plc rose by 9.93 per cent to close at N3.10, while AXA Mansard gained 1.53 per cent to close at N5.30 per share.

Nigerian Aviation Handling Company Plc also garnered 0.69 per cent to close at N29, and Nigerian Police Force Microfinance Bank gained 0.55 per cent to close at N1.84 per share. TRANSCORP was the most traded stock by volume at 52.57 million units, while ZENITHBANK was the most traded stock by value at N1.00 billion.

On sector performance, the Banking index declined by 6.9%, the Insurance segment lost -3.7%, and the Consumer Goods index went down 1.2%. The Industrial Goods slipped by 0.4% while the Oil & Gas index closed flat.

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