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Investors dump banking stock as equity loses N311bn

By on June 23, 2017

Investors in the equity market of the Nigerian Stock Exchange (NSE) rushed to dump shares of the banking sector following the deadlock discussions with Etisalat Nigeria to restructure over $1.2 billion (N541 billion) loan, leading the market to lose about N311bn, as market capitalization closed at N11.6 trillion.

The telecommunications company had obtained the loans from 13 banks in 2013, including Guaranty Trust Bank, Access Bank, Zenith Bank, UBA, Fidelity Bank and First Bank,  to refinance an existing commercial medium-term debt of $650 million and continue its network rollout across the country.

The NSE All Share Index (ASI) depreciated by -2.61% to close at 33,477.89 basis points, as against +0.71% appreciation recorded previously. Its Year-to-Date (YTD) returns currently stands at +24.57%.

The banking stock which took the biggest hit of the day shed 9.9 per cent of its market share as it lost a total of N236bn to close its market capitalization at N2.15 trillion from N2.39 trillion the previous day.

Investors in Zenith dumped 87 million shares worth N1.8bn. GTBank traded 50 million shares worth N1.7 billion while UBA saw 40 million shares worth N336 million exchange hands.

Market breadth closed negative as NEIMETH led 13 Gainers against 37 losers topped by PZ at the end of the day’s session – an unimproved performance when compared with previous outlook.

Market turnover closes positive as volume moved up by +29.69% against -18.70% downtick recorded in the previous session.

ZENITHBANK, FIDELITYBK and GUARANTY were the most active to boost market turnover. ZENITHBANK and GUARANTY topped market value list.

CUTIX leads the list of active stocks that recorded impressive volume spike at the end of today’s session.

Summary of the day’s activities saw a total of 508 million shares, worth N6.4 billion exchanged hands in 5.876 deals.


[Daily Trust]