APRIL 9, 2019: STERLING BANK OFFLOAD CONTINUES AT NIGERIAN STOCK EXCHANGE

At the Nigerian Stock Exchange offload of Sterling Bank continued on Tuesday April 9, 2019 without the usual rush for the shares resulting in leading number of deals.

Once again Sterling Bank paced traded volume with 119.718m of its shares offloaded  in just 75 deals worth N311.311m while easing by N0.01 per share. the shares were traded at between N2.69 and 2.55 per share..

The bank also led traded volume on Monday April 8, at the start of the week with 93.423m shares offloaded in 81 deals just like on April 5, 2019 when through 51 deals 59.866m shares were also traded.

Sterling Bank, according to a major stock broker months ago, was a bank that commanded high foreign investors interest and it is time to check if the new lack of interest is a product of drop in foreign funds inflow.

For example, much smaller Chams Plc, which in recent days had already recorded a chain of offloads, witnessed exchange of less than half of  the Sterling Bank offload on Tuesday (50.233m shares) that were snapped up in 61 deals.

indeed, many other companies recorded far less that the Sterling Bank offload but ended with multiples of deals when compared to Sterling Bank. Zenith Bank for example, paced deals with 363 through which 23.352m  of its shares were exchanged for N471.286m.

Guaranty Trust Bank witnessed 354 deals for 24.072m shares worth leading N787.994m while closing up N2.45 or 7.77% per share which made it the second highest gainer for the day.

United Bank for Africa too closed the day up N0.05 per share while recording 336 deals for 26.934m shares worth N161.941m and FBN Holdings, though down N0.1 per share, also ended with 325 deals involving 44.595m shares valued at N323.135m.

In all, traded volume declined to 374.026m shares traded in 3634 deals worth N3.057bn compared to 3993 deals for 455.375m shares worth N5.257bn on Monday.

The market also closed down too but not as sharply as it did on Monday. In fact, price discovery was far more cautious as only 27 price changes were recorded, 15 of which were downwards.

The price drops were all of the low margin type below N1 per share while the gainers were paced by 2 of above this range, yet of course, the All share index closed down by marginal 0.04% to 29,149.46.

This was most likely because Dangote Cement, down N0.5 or 0.27% per share placed 3rd amongst the price losers led by NASCON Industries with N0.95 or 4.75% drop per share while recording 41 deals for 0.198m shares worth N3.791m aas it found and closed at N19 per share compared to N20 previously.

Stanbic IBTC found and closed at N46 per share, up N2.8 or 6.48% per share on Monday's N43.2 per share to lead price gains while recording only 17 deals for 7.025m shares worth N323.114m.

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