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Banking stocks push NSE ASI further south

Nigeria’s stock market has decreased by 4.49percent since the beginning of this month of February 2020, almost eroding the gains recorded earlier this year.
The market extended its loss path after Tuesday’s trading session, driven by investors’ decisions to sell banking stocks like FBN Holdings, UBA, GTBank and Zenith with a corresponding demand.

The Nigeria stock market’s returns which previously placed it as the world’s best has now decreased to +2.62percent year-to-date (ytd).

The Nigerian Stock Exchange (NSE) All Share Index (ASI) closed lower by 0.08percent to 27,547.56 points as against preceding day’s high of 27,570.94 points. Only this week, the NSE ASI has decreased by 0.75percent.

“The NSEASI was briefly the best performing index globally in January but its gains ytd have since been pared back …This compares with 1.4percent for the Jo’burg all-share and a loss of -3.9percent in Nairobi (NSE20). The brief surge was driven by domestic investors, specifically by retail rather than institutional players”, said FBNQuest analysts in the February 18 note.

“Now that the PFAs are excluded from the CBN’s open market operations (OMO), the hope is that they will begin to deploy the proceeds of their maturing bills in the equities market”, the analysts added.

The value of listed stocks decreased to N14.347trillion on Tuesday, February 18 from preceding day high of N14.359trillion, representing a decline of about N12billion.

FBN Holdings Plc led the losers’ league after its share price dropped from day open high of N5.95 to N5.8, losing 15kobo or 2.52percent. Vitafoam Nigeria Plc also joined the top losers table, after its share price moved from N4.7 to N4.55, shedding 15kobo or 3.19percent.

The top five decliners list includes UBA Plc which dipped from N7.7 to N7.55, losing 15kobo or 1.95percent. GTBank Plc was also down, from N29 to N28.85, shedding 15kobo or 0.52percent, while Zenith Bank Plc lost 10kobo, from N19.6 to N19.5, losing 0.51percent.

In 3,075 deals, equity investors exchanged 168,073,631 units valued at N2.156billion. Zenith, GTBank, United Capital, Access Bank and FBN Holdings were actively traded stocks.

Stanbic IBTC Holdings Plc occupied the top gainers position after its share price increased from N38 to N38.5, adding 50kobo or 1.32percent. It was followed by C&I Leasing which advanced from N5.4 to N5.8, adding 40kobo or 7.41percent. UAC-Property Development Company Plc increased from 90kobo to 99kobo, adding 9kobo or 10percent. United Capital Plc rose from N2.88 to N2.93, adding 5kobo or 1.74percent; while Eterna Plc increased from N2.1 to N2.15, adding 5kobo or 2.38percent.

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