Domestic equities sheds N183bn amid banking stock sell-off

The domestic equities market on Tuesday sustained a decline profile, shedding N183 billion as bears continued to dominate the market as sell-off in banking stocks persisted.

Market capitalisation of listed equities declined by 0.25 per cent to N72.497 trillion from N72.680 trillion it closed the previous day.

The NGX All Share Index also depreciated by 348.61 basis points to 114910.16 points from 115258.77 points recorded on Monday.

The negative performance experienced during the day was as result of massive dumping of banking shares by investors in reaction to the Central Bank of Nigeria directives suspending banks dividend, director bonuses and new foreign investment.

Investors took the decision of dumping banks shares on the ground that the affected institutions are likely to face lower profitability, tighter capital buffers, and a potential uptick in non-performing loans (NPLs) as the country’s central bank begins a gradual withdrawal of the regulatory forbearance measures.

An analysis of the investment showed that C&I Leasing, Mutual Benefits and LearnAfrica led gainers today with 10 per cent each to close at N4.62, N1.10 and N4.18 per unit, respectively.

UPL followed with a gain of 9.82 per cent to close at N5.48 per share, Deap Capital added 8.64 per cent to close at N0.88 per share.

On the contrary, Transpower topped losers’ chart, dropping by 9.98 per cent to close at N295.70 per share, Oando Plc and EllahLakes trailed with a loss of 9.97 per cent each to close respectively at N58.25 and N4.29 per unit Omatek dropped by 9.33 per cent to close at N0.68 per share, Custodian Insurance dipped by 8.63 per cent to close at N22.75 per unit.

Volume of trades increased by 65.554 million representing 9.08 per cent as investors traded 787.305 million shares valued at N72.497 billion in 23170 deals against 721.751 million shares costing N22.010 billion in 2210 deals.

Transactions in the shares of Zenith Bank led market activities with 96.226 million shares valued at N4.246 billion, GTCO Plc followed with account of 83.357 million shares worth N6.244 billion, United Bank for Africa exchanged 65.162 million shares valued at N2.114 billion, Access Holdings company traded 64.216 million shares cost N1.303 billion while ETI sold a total of 51.734 million shares valued at N1.574 billion.