Nigerian Stocks Deepen Loss Amid Investors’ Reluctance to Hold Bank Shares

The all-share index dropped 21.16 points.

Nigerian stocks encountered more strain on Wednesday as the benchmark index slowed 0.05 per cent to its lowest point in more than six weeks and trading activity remained subdued, stoking fears that the turning point needed for the market to reverse its negative year-to-date yield is not yet in the horizon.

Equity investors have been desperate since the week began to get rid of bank stocks at all cost, causing a glut of sales orders that is weakening their valuation and, by extension, the broad performance of stocks.

Sell-offs in Access, UBA, GTCO and Zenith were particularly damaging to performance, with investment bank United Capital leading the retreat.

Market breadth, often used to weigh investors’ attitude to trade, was negative as 17 losers emerged compared to 13 advancers.

The all-share index dropped 21.16 points to 38,852.16, while market capitalisation eased to N20.3 trillion at the end of trade.

Year to date, the index is down by 3.52 per cent.

TOP FIVE GAINERS

Transcorp Hotel led gainers, appreciating by 10 per cent to close at N4.95. Pharma Deko added 9.88 per cent to end today’s trade at N1.78. Conoil went up by 9.84 per cent to N24.55.

Cornerstone rose to N0.53, notching up 8.16 per cent in the process. NEM completed the top 5, climbing by 5.26 per cent to N2.

TOP FIVE LOSERS