Equity market dips as major banking stocks shed points

The equity market closed negative on Monday as the Nigerian Stock Exchange's All-Share Index fell by 0.65 per cent or 236.19 basis points to close at 35,861.88 points.

Also, the market capitalisation of the listed equities shed N75bn or 0.65 per cent to close at N11.418tn,down from N11.11.493tn recorded in the previous session.

For the first time in 5 weeks, JOSBREW share price moderated, losing 9.9% to close at NGN8.19. The stock has recorded average daily gains of 9.75% on 26 consecutive trading days, with cumulative returns of 921.35% within the period. Aside NB which closed flat at NGN161, other players within the brewery subsector declined as follows: GUINNESS: 40bps and INTBREW: 986bps.

The overall market direction was dominated by pessimism as the banking counters were the most affected. Virtually all major banking players (except ZENITHBANK and ACCESS) shed points as investors were wary of the outcome of the US Fed decision on the quantitative easing. The losses recorded as follows; FBNH: 0.65%, GUARANTY: 1.65%, UBA: 1.81% and STANBIC: 1.51% was enough to dip the NSEASI by 24bps.

Market activity was heavy today as shown by the volume and value of transactions, which increased 158% and 31% respectively when compared with the previous trading day.

All NSE sectoral indices declined with oil marketing leading the pack. OANDO singlehandedly suppressed the gains made by MOBIL as the sector leader lost 9.95%, broke the NGN10 band and closed at its year low of NGN9.32. The counter’s recent negative sentiment may be in relation to the allegation of the former Delta State Governor holding 30% stake in the company. The oil marketing sector lost 1.67% and was followed by the insurance sector and NSE30 with 0.42% and 0.38%.