Banking stocks fell by most in over four years as Nigerian equities market hit its lowest level in the year after oil threatened to break below $50 per barrels and the country reported its first coronavirus case Friday.
13 banking stocks declined while one remained flat pushing the sector’s index lower by 6.52 percent lower compared to 7.01 percent decline on January 15 2016.
Meanwhile, the broader market lost 2.21 percent in the day – the biggest daily loss in 9 months – to a year-low of 26,216.46 points with investors losing around N308bn.
Only FlourMills and Vitafoam gained while a record number of six stocks shed 10 percent, the maximum allowable in a day. Each of the top ten decliners lost a minimum of 9.8 percent.
The decline comes as crude oil threatens to break below $50 per barrel and test both Central Bank of Nigeria’s ability to defend the naira and the country’s revenue projections.
But the outlook for the market would be linked to how resilient the oil market would prove to be and the national response in controlling the virus outbreak, said Gbolahan Ologunro, equity analyst at Lagos-based CSL Stockbrokers Ltd.
“Broad market sentiment would still be negative but we are not likely to see a steep decline on Monday if there are no further complications regarding the index virus case,” said Ologunro.
Year’s return for stocks has worsened to -2.33%
