Investments in banks decline as stocks tumble

Investments in banks decline as stocks tumble

Investments in banks decline as stocks tumble

Investment in the banks listed on the Nigerian Stock Exchange declined on Monday as the shares tumbled by 0.9 per cent due to profit-taking and sell-offs witnessed in Guaranty Trust Bank Plc and United Bank for Africa Plc.

The market opened the week on a bearish note as the All Share Index declined by 0.46 per cent from 31,678.70 on Friday to close at 31,553.50 basis points on Monday, while the market capitalisation dropped from N11.565tn recorded on Friday to N11.512tn on Monday.

The volume and value traded reduced by 53.2 per cent and 26.1 per cent to 104.87 million units and N1.94bn, respectively, while the year-to-date return declined to -17.4 per cent.

The top traded stocks by volume were Unilever Nigeria Plc (20.38 million units), Zenith Bank Plc (14.47 million units), Interlinked Technologies Plc (9.53 million units), First City Monument Bank (7.26 million units) and Diamond Bank Plc (5.89 million units).

The top traded stocks by value were Unilever (N804.9m), Zenith Bank (N347.4m), Dangote Cement Plc (N286.7m), Seplat Petroleum Development Company Plc (N68.51m) and GTB (N64.94m).

At the end of trading on the floor of the Exchange on Monday, 17 gainers emerged against 18 decliners.

Of the 18 losers recorded, 10 banks were listed. They are Diamond Bank, Unity Bank Plc, UBA, Wema Bank Plc, GTB, Access Bank Plc, FBN Holdings Plc, FCMB, and Zenith Bank Plc.

The performance across sectors was largely bearish as three of the five indices close negatively.

The Banking index was the highest loser, followed by the Consumer and Industrial Goods indices, which shed 0.7 per cent and 0.1 per cent, respectively as a result of losses in Nigerian Breweries Plc and Lafarge Africa Plc.

On the flip side, the Insurance index gained 0.6 per cent due to the positive performances recorded in shares of Continental Reinsurance Plc and Aiico Insurance Plc.

Similarly, the Oil & Gas index advanced 0.1 per cent on the back of bargains in Oando Plc.

Investor sentiment weakened as the market breadth was pegged at 0.9x.

The top five losers were Diamond Bank Plc, A.G. Leventis Nigeria Plc, Ikeja Hotel Plc, Unity Bank Plc and Veritas Kapital Assurance Plc.

Diamond Bank saw its share price drop by 9.47 per cent to close at 86 kobo as its year-to-date return settled at -42.67 per cent.

A.G. Leventis’ share price declined by 9.09 per cent to close at 30 kobo, while its year-to-date return settled at -57.14 per cent.

Ikeja Hotel, whose year-to-date return settled at -14.04 per cent, saw its share price decline by 8.38 per cent to close at N1.53.

An 8.24 per cent decline was recorded in the share price of Unity Bank as it closed at 78 kobo per share, while its year-to-date return settled at =47.17 per cent.

Veritas Kapital’s share price, recording an eight per cent decline, dropped to 23 kobo per share as its year-to-date return settled at -54 per cent.

The top five gainers were P Z Cussons Nigeria Plc, GLAXO SMITH Kline Plc, CAP, Prestige Assurance Plc and Jaiz Bank Plc.

Analysts at Afrinvest Securities Limited said, “Although market performance was negative today, we expect bargain hunting in subsequent sessions.”

Source:© Copyright Punch Online