Market sheds N6bn despite investors interest in banking stocks

The stock market failed to sustain previous day’s gain after it dropped slightly by 0.02 percent or N6billion 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 67,217.77 points and N36.929 trillion respectively to 67,206.16 points and N36.923trillion.

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Investors were seen trading banking stocks that are currently priced low, thereby positioning ahead of their third quarter (Q3) financial scorecards after GTCO fired the first impressive salvo.

Stocks like Access Corporation, Fidelity Bank, United Bank for Africa, and GTCO were highly traded by investors.

Investors traded Fidelity Bank’s 50,319,813 units worth N411.728million. They also exchanged Access Corporation’s 43,186,594 units valued at N730.10million.

Also traded were Chams 26,650,699 units worth N501.27million, UBA’s 25,848,588 units valued at N502.077million and GTCO’s 20,630,172 units worth N733.79million.

In 5,998 deals, investors exchanged 329,660,250 shares worth N4.41billion.

The market’s positive return year-to-date (YtD) decreased to 31.13 percent. The market had taken off this week on a negative note.

The Board of Directors of Access Corporation on Wednesday held its meeting to approve Q3 results.

Fidelity Bank holds its board meeting on Thursday, October 26 to consider and approve its Q3 financials; while UBA board meeting holds on Friday, October 27, 2023, also to consider and approve the bank’s 2023 financial statements and reports for the nine months (9M) period ended September 30, 2023.

UBA dipped most on Wednesday from N19.90 to N18.75, losing N1.15 or 5.78 percent. It was followed by Eterna which dropped from N14.80 to N13.75, shedding N1.05 or 7.09 percent and Etranzact which was down from N8.40 to N7.56, losing 84kobo or N10.

United Capital analysts said, “This week, we expect mixed investors’ sentiments in the equities market to continue. We anticipate more improvements in positive sentiments as investors look to position ahead of the 9M-2023 earnings season. The weak earnings expectation will remain a downside to the overall rebound of positive sentiments”.

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“Fueling the positive sentiment is the expectation of impressive earnings results from the outstanding banks, as GTCO’s 9M’23 numbers show a 133percent and 182percent growth in top-line and bottom-line,” Lagos-based Vetiva Research analysts
said.

Vetiva Research analysts had expected Tuesday’s positive sentiment to filter into today’s trading session.