Investors seen cashing out gains in Nigeria’s bank stocks

Nigeria’s equities market opened this week on a negative note as investors moved to cash out some gains in a number of banking stocks that had rallied recently.

Market watchers see the resumption of FX sales providing foreign investors the long-waited opportunity to sell their stakes and limit exposure in equities. Investors lost N13billion at the close of trading on Monday September 7.

GTBank, UBA and Zenith Bank stocks topped the list of equities investors took profit on, which fueled the record decline in the market’s benchmark performance index while bargains hunting in Stanbic IBTC, Access Bank and others could not reroute the market.

In 4,699 deals, investors exchanged 254,973,889 units valued at N2billion. UBA, Zenith Bank, Access Bank, Custodian Investment and FBN Holdings were actively traded stocks.

The Nigerian Stock Exchange (NSE) All Share Index (ASI) –decreased by 0.09percent to close at 25,582.23 points from preceding day high of 25,605.64 points while the market capitalisation of listed stocks decreased from N13.358trillion to N13.345trillion. The market’s negative return year-to-date (ytd) stood at -4.69percent.

GTBank stock price decreased most on the Bourse from N26.55 to N25.9, losing 65kobo or 2.45percent; followed by Dangote Sugar Refinery which dropped from N12.5 to N12.05, losing 45kobo or 3.60percent.

Red Star Express also dipped from N3.89 to N3.72, losing 17kobo or 4.37percent. UBA decreased from N6.45 to N6.3, shedding 15kobo or 2.33percent; while Zenith Bank share price dropped from N17.4 to N17.3, losing 10kobo or 0.57percent.