Bearish trading pulls NSE’s ASI down by 21%

The equities market closed yesterday on a negative note, as Nigerian Stock Exchange [NSE] All Share Index [ASI] depreciated by 0.21 per cent to close at 31,267.25basis points, compared with the 0.92 per cent appreciation recorded previously. Its Year-to-Date (YTD) returns currently stands at 9.78 per cent.

Market breadth also closed negative as Neimeth led 21gainers against 32 losers topped by ETI at the end of yesterday’s session- an unimproved performance when compared with previous outlook.

Market turnover equally closed negative as volume slipped by 68.82 per cent against 375.22 per cent surge recorded in the previous session. UBA, Transcorp and UnionDac were the most active to boost market turnover. Guaranty and UBA topped market value list.

Volume shockers included Mbenefit which led the list of active stocks that recorded impressive volume spike at the end of yesterday’s session.

Meanwhile, Skye Bank shares were down by 29 per cent year-on-year But Standard and Poor just assigned a BB, stable outlook in its latest rating.

S and P said it based its rating of the bank on Nigeria’s positive economic prospects which will support Skye Bank’s earnings growth, capitalisation and asset quality over the next 12 to 18 months.

Standard and Poor’s rationalised Skye Bank’s stable rating on the bank’s modest, but profitable franchise, operating in the mid-tier of the nation’s highly competitive banking sector.

The rating agency is anticipating that Skye Bank’s RAC ratio will remain between 5.5 per cent and six per cent over the next 12 months, reflecting robust internal capital generation and mild risk-asset accumulation.

“We could lower the ratings if the bank failed to maintain a risk-adjusted capital ratio above five per cent over the next 12 months”,
S and P said.

The agency noted that Skye Bank had a modest, mid-tier position in Nigeria’s increasingly competitive banking sector, pointing out that in 2013,it reported total assets of N1.4 trillion, ranking it the eighth-largest bank in Nigeria by lending.

Also, it said its rating was based on the lender’s strategy of focusing on expanding its retail and commercial (largely SME) franchise, while leveraging its branch network and electronic platforms to mobilise low-cost retail deposits.