Banks spur Nigeria stock market’s N44bn loss

Nigeria’s stock market dips further by 0.33 percent (or N44billion) as investors continued to take profit on banking stocks, no thanks to GTBank, Zenith and Union Bank equity holders.

Crude oil prices slumped to their lowest level in more than two months, under pressure from a stalling recovery in demand and planned production expansions by OPEC that threaten to add to an existing glut of crude.

Brent-crude futures dropped 5.4percent to $39.73 a barrel, the first time the international benchmark has fallen below $40 in more than two months.

Futures tied to West Texas Intermediate, the benchmark grade of U.S. crude oil, tumbled 8percent to $36.58 a barrel, their lowest price since mid-June.

The record dip seen on Tuesday September 8 at the Nigerian Stock Exchange (NSE) has increased the market’s negative return year-to-date (YtD) to -5.01percent.

Also, the positive returns seen month-to-date (MtD) has decreased to 0.67percent. Investors lost N44billion at the close of trading session on the Nigerian Bourse.

GTBank led the laggards after its share price moved from N25.9 to N24.3, losing N1.6 or 6.18percent; while Guinness Nigeria Plc followed after dipping from N14.4 to N14, down by 40kobo or 2.78percent.

Zenith Bank decreased from N17.3 to N16.9, losing 40kobo or 2.31percent; while Union Bank share price dropped from N5.1 to N4.9, down by 20kobo or 3.92percent.

The Nigerian Stock Exchange All Share Index (ASI) decreased to 25,497.32 points while the market capitalisation stood lower at N13.301trillion as against preceding trading day high of 25,582.23points and N13.345trillion respectively.

“Given the continued declines seen in prices of crude oil, we expect the market to remain soft, hence, a cautious trading strategy is recommended”, said Lagos-based research analysts at Vetiva Securities.

In 4,185 deals, investors exchanged 251,963,602 units valued at N2.044billion. Custodian, FBN Holdings, Zenith Bank, Access Bank, and Transcorp were actively traded stocks.