JAN 24, 2018: BANKS DRIVING NIGERIAN STOCK MARKET DOWN?

Just it happened in 2008, it looks investors perception of bank prospects, is dragging the Nigerian stock market down once again.

At the market January 24, 2018, the All share index for  third consecutive day dropped but this time by 0.96% or 426.45 points to 43,963.40.

The ASI had crossed the 45,000 mark on Friday much in line with bullish trend since late 2017 as rising crude oil prices beefed up Nigeria's foreign reserves and restored both local and foreign investors confidence.

It then dropped by 0.4% on Monday before slipping by a higher 1.16% on Tuesday to engender fears that the boom in the market was over.

Of the 43 price drops recorded Wednesday January 24, 15 were by banks or bank dominated groups. Indeed, of the top 10 drops by %, 6 were related to banking as dominant business with the top 4 % drops among them.

A total of 7 equities clustered around 9% price drop and only 1 was non bank related: Transcorp PLC, down 9.35% or N0.20 per share.

FCMB led the pack down N0.33 or 9.71%; followed by Diamond bank with N0.31 or 9.60% drop; Fidelity bank down 9.52% or N0.34 per share and Sterling bank which like Transcorp, eased by 9.35% of N0.20 per share.

Other banking equities in the top 10 by % drop were NPF Microfinance and Skye bank down 9.03% or N0.14 per share each.

FCMB closed Tuesday at N3.4 per share, opened January 24 at N3.23 then closed at N3.07 per share.

Zenith bank and GTB were not among the top % drops but all the same paced the market in Naira drops. GTB closed at N50.9 per share after opening at N50 and hitting day high of N51 compared to Tuesday's N52 per share.

There were 11 price gainers led in Naira terms by still waxing stronger Nestlé Nigeria as it closed N3.89 or 0.26% up followed by Nigerian Breweries with N2.99 or 2.06% per share rise.

All trading indicators trended down with number of deals at 7370, down 17.4%; traded volume at 536.43m, down 27.3% and traded value ending at N5.18bn, down 32.5% on Tuesday's N7.68bn.

Offloads came in relatively smaller parcels though led once again by Transcorp 91.04m changing hands in 369 deals worth N178.14m followed by Skye bank with 451 deals for 83.25m shares worth N117.49m and FBN Holdings in which day high 1105 deals were struck for 60.669m shares worth N754.4m.

Only GTB witnessed above N1bn traded volume as it closed with 622 deals involving 31.8m shares worth N1.6bn.

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