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Bank losses drag down indices by 1.2%

By on April 23, 2011

Heavy losses recorded by banks’ shares, especially those of the rescued banks on Thursday, impacted negatively on trading activities on the Nigerian Stock Exchange.

Specifically, the major market indicators shed 1.2 per cent each with the market capitalisation of the listed equities sliding by N97bn or 1.2 per cent from N8.091tn to N7.994tn. Also, the NSE’s All-Share Index fell by 1.2 per cent or 304.45 basis points to 25,020.08 from 25,324.53 the previous day.

Sterling Bank Plc recorded the highest price depreciation for the day, shedding five per cent or 12 kobo to close at N2.28 per share. It led nine other banks on the losers’ chart.

Oceanic Bank Plc which opened for trading at N1.81 fell by 4.9 per cent or nine kobo to close at N1.72 per share, while Union Bank of Nigeria Plc lost 4.8 per cent or 15 kobo to close at N2.97 per share.

Wema Bank Plc and Intercontinental Bank Plc dropped by 4.6 per cent and 4.4 per cent to close at N1.24 and N1.28 per share respectively.

Other banks that recorded price depreciation included Unity Bank Plc, Afribank Plc, and United Bank for Africa Plc losing 4.1 per cent, 3.6 per cent and 3.03 per cent in that order.

Champion Breweries Plc appreciated the most for the day, leading 38 other stocks on the gainers’ chart.

It rose by 4.9 per cent or 22 kobo to close at N4.63 per share.

Berger Paints Plc also gained 4.9 per cent or 59 kobo to close at N12.57 per share.

RT Briscoe Plc and C&I Leasing Plc added 4.8 per cent each to close at N3.65 and N1.30 per share respectively.

The NSE-30 Index fell by 3.14 basis points or 0.3 per cent from 1,103.45 down to 1,100.31 points, while the NSE Food/Beverages Index fell from 811.91 to 810.79 basis points.

The Conglomerates sub-sector displaced the banking sub-sector from the activity chart, as trading in the sub-sector accounted for 56 per cent of total turnover.

Large trading in the shares of Transnational Corporation of Nigeria Plc continued to drive turnover in the sub-sector, accounting for 99 per cent of volume.

The banking sub-sector driven by trading in the shares of UBA, First Bank of Nigeria Plc and Guaranty Trust Bank Plc followed on the activity chart.

In all, investors exchanged 861.97 million shares, valued at N4.317bn in 5,489 transactions.

Source : Punch