Banking Stocks Miss Out As Equities Gain N11bn

Investors in the Nigerian Exchange Limited gained N11.17bn at the end of trading on Thursday amid a further decline of the NGX banking index to the ninth consecutive day.

The NGX All-Share Index increased by 0.06 per cent, rebounding from the previous day’s loss to close at 38,874.13 basis points. The market capitalisation of stocks also rose from N20.24tn to N20.25tn. Trading volumes dropped from 155.70 million shares valued at N1.51bn in 3,256 deals to N125.8 million shares worth N1.27tn in 2,990 deals.

All sectoral indices with the exception of the NGX Banking index gained value as trading ended. NGX Banking dropped by 0.19 per cent while NGX Industrial, Oil & Gas, consumer goods and insurance rose by 0.01 per cent, 0.68 per cent, 0.08 per cent and 0.90 per cent.

Mutual Benefits Assurance Plc outdid the traded stocks in terms of volume, accounting for 10.90 per cent of the total volume of trades, while Guaranty Trust Holding Company Plc remained the most traded stock in value terms for the third consecutive trading day with 21.40 per cent of the total value of trades on the exchange.

Market sentiment as measured by market breadth was positive as 16 equities gained compared to 12 losing stocks. The Nigerian Aviation Handling Company Plc led the gainers’ table as its share price gained 10.00 per cent to close at N3.52 per share. Pharma-Deko Plc came next with a 9.55 per cent increase to N1.95 per share.

Other top gainers on Thursday were Veritas Kapital Assurance Plc (+9.52 per cent), Cornerstone Insurance Plc (+9.43 per cent), and Chams Plc (+4.76 per cent). The major loser at the end of trading was Sovereign Trust Insurance Plc with a 4.17 per cent decline, ending the day at N0.23 per share.

Analysts from Atlas Portfolios Limited said, “Bull in the Nigeria equities market regains strength today as the NGX-ASI halts the three consecutive trading sessions of bearish sentiments, following the price appreciation in some highly capitalized stocks like GTCO, Flour Mills Plc, Lafarge Africa Plc and Stanbic IBTC Holdings Plc, amongst others.  As a result, the All-Share Index surged.

“However, the market activities extended the bearish sentiments as institutional investors continued to slur the equities market. In that regard, both the total volume and value traded lowered by 19.24 per cent and 16.17 per cent, respectively.”

Analysts from Cordros Capital said, “The domestic equities market snapped a three-day bearish trading streak as investors’ late interests in Flour Mills (+1.2 per cent) and PZ (+4.6 per cent) underpinned a +0.1 per cent increase in the ASI to 38,874.13 points.”