On Monday, when the regulator re-enforced the 65% loan-to-deposit ratio benchmark in the sector, investors sold off their holdings in banks’ stocks, causing the market capitalization of the Nigerian Exchange (NGX) to decline by around N63 billion.
ZENITHBANK dropped 2.57%, FBNH lost 3.68%, ACCESSCORP lost 1.15%, UBA lost 1.39%, and GTCO lost 0.79%, all of which dragged the market index down. Since it was anticipated that the effects of subsidy withdrawal on the consumer price index would cause the July inflation rate to rise considerably, the Nigerian Exchange All-Share index fell, and the year-to-date return moderated.
The market index, also known as the All-Share Index, decreased by 114.88 basis points today, or -0.18%, to settle at 65,210.49, according to data from the local exchange. The year-to-date return reduced to 27.24% after following a similar course.
Stockbrokers saw a decline in market activity amid profit taking on banks. Trade volume overall decreased by -47.10%, and trade value overall increased by 49.72%. In its market update, Atlass Portfolios Limited said that 5,899 trades totaling roughly 259.04 million units valued at $4,204.79 million had been completed.
With 16.12% of the total volume of transactions, TRANSCORP was the stock that was most actively traded. The top 5 on the volume ranking were made up of the conglomerate company, ACCESSCORP (7.01%), GTCO (6.01%), STERLINGNG (5.48%), and UBA (5.02%).
With 13.92% of the total value of trades on the market, GTCO was also the most traded stock in terms of volume. With a 9.32% price increase, CORNERST topped the list of advancers. OMATEK (8.82%), TIP (+8.51%), CHAMS (+7.37%), RTBRISCOE (+6.98%), and seventeen other companies lagged behind the insurance provider.
Twenty-three equities lost value on Monday. ETERNA was the biggest loser, falling -9.90% in price to close at $17.75. Following that, FTNCOCOA declined by 8.44%, and OKOMUOIL decreased by 5.66%, AFRIPRUD lost 4.84%, FBNH dropped by 3.68% and ZENITH BANK fell by 2.57%.
At the end of the first trading session in the week, the market breadth closed negative, recording 22 gainers and 23 losers. However, the market sector performance closed positive.
Market data showed that three of the five major market sectors rallied. The Insurance sector (+0.80%), followed by the Consumer goods sector (+0.47%), and the Industrial sector (+0.01%), while the Banking and Oil & Gas sectors were down by –1.13 % and -0.44% accordingly.
Overall, equities market capitalisation lost ₦62.56 billion, representing a decline of -0.18%, to close at ₦35,509.89 trillion from ₦35,572.45 last Friday.
