Stock market dips further by 0.32%

Nigeria’s equities market continued its downward movement on Wednesday by 0.32 percent as investors trade in line with earnings reports.

Expectedly, banking stocks also continued to be actively traded on the Nigerian Exchange Limited (NGX).

Read also: Nigeria still global best performing stock market despite rate hikes

The Central Bank of Nigeria (CBN) last week announced decision to raise the minimum capital requirements for banks in Nigeria.
A timeline of 24 months has been stipulated for banks to adhere to the new requirements, commencing on April 1, 2024, and concluding on March 31, 2026

Commercial banks with international authorisation are to maintain a minimum capital of N500 billion, while national and regional commercial banks are mandated to hold N200 billion and N50 billion capital bases, respectively.

Also, merchant banks are to have minimum capital of N50 billion, and national and regional non-interest banks are to have N20 billion and N10 billion, respectively.

“If it is implemented, as we expect, it will rate as one of Nigeria’s historic banking reforms. One estimate puts the total to be raised at N2trillion,” said analysts at Coronation Research in their recent note.

Stocks like Access Holdings, UBA, Zenith, GTCO and Transcorp were most actively on Wednesday.

At the close of trading on Wednesday, the Nigerian Exchange Limited (NGX) All Share Index (ASI) and equities market capitalisation decreased from preceding day’s highs of
104,518.14 points and N59.095trillion respectively to 104,181.32 points and N58.905trillion.

NEM Insurance recorded the highest daily loss after its share price lowered from preceding day’s high of N9.90 to N8.95, losing 95 kobo or 9.60 percent.

It was followed by that of Thomas Wyatt which dropped from N2.18 to N1.97, losing 21kobo or 9.63 percent, and Caverton Offshore Support Group which was also down from N1.80 to N1.62, losing 18kobo or 10 percent.

Read also: Stock market defies rate hike to record first gain this week

Also, the market’s positive return year-to-date (YtD) decreased further to 39.33percent. In 10,364 deals, investors exchanged 405,026,417 shares worth N8.908billion.