Index dips by 0.4% amid losses in tier-one banks, ahead of Eid-el-fitr break

Ahead of the Eid-el-Fitr break, the Nigerian Exchange Limited (NGX) reopened on a downturn yesterday, as the All-Share Index shed 0.4 per cent, amid losses in tier one banks.

At the close of transactions yesterday, the ASI declined by 390.68 points, representing a decline of 0.38 per cent to close at 103,047.99 points. Accordingly, market capitalisation shed by N221 billion to close at N58.277 trillion.

The market negative performance was driven by price appreciation in large and medium capitalised stocks, which are; GTCO, Flourmills, FBN Holdings, United Bank for Africa, Zenith Bank, Nigerian Breweries, United Capital, Unilever and Fidelity Bank.

This week, United Capital Plc, said: “We expect the bearish sentiments amongst investors to persist in the local equities market given the recent developments in the fixed-income market.

“The impact of the high yields in the fixed-income market will continue to drive selloffs as investors switch their asset classes to less risky assets. However, we expect pockets of bargain-hunting activities across dividend-paying stocks, as the dividend season commences in full.”

On what will shape the market in the next trading session, analysts at Vetiva Dealings and Brokerage, said: “We still expect the banking sector to dictate market direction this week, as investors await earnings reports from that sector.”

As measured by market breadth, market sentiment was negative, as 24 stocks lost relative to 17 gainers. Morison Industries recorded the highest price gain of 9.91 per cent to close at N2.33 kobo. Omatek Ventures followed with a gain of 7.69 per cent to close at 84 kobo, while CWG rose by 5.93 per cent to close at N7.15 kobo.

Linkage Assurance went up by 5.56 per cent to close at 95 kobo, while Sterling Financial Holdings Company appreciated by 5.32 per cent to close at N4.95 kobo.

On the other hand, Abbey Mortgage Bank led the losers’ chart by 9.75 per cent to close at N2.50, per share. Champion Breweries followed with a decline of 9.68 per cent to close at N3.36, while Regency Alliance Insurance declined by 9.30 per cent to close at 39 kobo.

Chams Holding Company depreciated by 7.21 per cent to close at N2.06 and Consolidated Hallmark Holdings declined by 7.01 per cent to close at N1.46 kobo.

The total volume traded declined by 89.03 per cent to 397.942 million units, valued at N7.064 billion, and exchanged in 9,430 deals.

Transactions in the shares of Abbey Mortgage Bank topped the activity chart with 343.031 million shares valued at N1.781 billion. GTCO followed with 33.445 million shares worth N1.552 illion, while Access Holdings traded 32.261 million shares valued at N728.093 million.

Transnational Corporations (Transcorp) traded 17.312 million shares valued at N231.784 million, while Zenith Bank sold 16.097 million shares worth N675.024 million.