Banking Stocks in the Red as Domestic Bourse Reverses Gains

Photo L-R: Nornah Awoh, Chief Equity Analyst at Palesa Capital Markets Associates Limited; Friday Ekeoba, Secretary General, Capital Market Correspondents Association of Nigeria (CAMCAN); Chinyere Joel-Nwokeoma, Vice President, CAMCAN;  Cyril Eigbobo, Chief Financial Officer, The Nigerian Stock Exchange (NSE); Dr. Qasim Olalere Akinreti, President, Nigeria Union of Journalist (NUJ), Lagos Chapter; Chris Ugwu, Financial Secretary, CAMCAN; Kayode Ogunwale, Assistant General Secretary, CAMCAN and Abimbola Babalola, Head, Market Surveillance, NSE during the Closing Gong Ceremony in commemoration of the launch of NSE Media Lounge yesterday in Lagos.


The domestic bourse on Wednesday shed 14bps to settle at 32,108.92 points following losses in ZENITH (-0.8%), DIAMOND (-9.5%) and UBA (-0.6%). Consequently, market capitalisation declined by N16.1bn to settle at N11.7tn as YTD loss worsened to -16.0%. However, activity level was mixed as volume traded declined by 42.7% to 229.3m units while value traded advanced by 11.4% to N2.5bn. The top traded stocks by volume were FBNH (72.1m), DIAMOND (29.6m) and ACCESS (22.4m) while FBNH (N541.2m), ZENITH (N497.8m) and GUARANTY (N456.5m) were the top traded stocks by value.
Mixed Sector Performance
Performance across sectors was mixed as 3 of 5 indices under our coverage advanced while 2 declined. The Insurance index improved the most, increasing 0.2% due to gains in NEM (+3.9%) and LAWUNION (+5.8%). Similarly, the Consumer and Industrial Goods indices rose 5bps and 2bps on the back of gains in NIGERIAN BREWERIES (+0.6%) and CCNN (+0.6%) respectively. On the flipside, the Banking index declined the most, falling 0.3% following sell-offs in ZENITH (-0.8%), DIAMOND (-9.5%) and UBA (-0.6%). Likewise, the Oil & Gas index slid 1bp as price appreciation in OANDO (+1.0%) was unable to offset the impact of sell pressure on ETERNA (-9.2%) and JAPAUL (-4.8%).

Investor Sentiment Strengthens
Investor sentiment as measured by market breadth (advance/decline ratio) strengthened to 1.1x from 0.6x recorded yesterday as 16 stocks advanced against 15 that declined. UNITY (+9.0%), HONYFLOUR (+6.0%) and LAWUNION (+5.8%) were today’s top gainers while DIAMOND (-9.5%), ETERNA (-9.2%) and JAIZBANK (-9.1%) led losers. Despite the overall negative performance today, market breadth strengthened. Hence, we envisage a potential rebound before the end of the week.