Investors Lose Over N107bn in Hours As Nigerian Stock Market Starts New Week on a Negative Note
- The Nigerian Exchange kicked off the new week on the red as several indices, including banking, recorded a selloffs
- Reports of CBN regulatory forbearance led investors to sell part of their shares in many financial institutions
- Banking stocks top the major trades on Monday, and they include Guaranty Trust Bank, Zenith, and UBA
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Nigerian stock market started the new week on a negative note, declining by 0.15% as profit-taking in major banking stocks weighed heavily on overall performance.
At the close of trading on Monday, June 16, the Nigerian Exchange Limited (NGX) All-Share Index (ASI) dropped to 115,258.77 points from 115,429.54 points recorded in the previous session.
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Investors lost N107.69 billion after trading on Monday as market capitalisation declined to N72.68 trillion.
The downturn was largely attributed to selling pressure in the banking sector, following regulatory concerns over forbearance.
The NGX Banking Index was hit hardest, with huge losses recorded in Access Holdings Plc (-8.28%), Zenith Bank Plc (-6.37%), FBN Holdings Plc (-6.03%), United Bank for Africa Plc (-5.67%), and Fidelity Bank Plc (-4.94%).
Snapshot of market activity
Trading activity slowed, with total volume falling by 22.66% to 721.75 million units, valued at N22.01 billion, across 22,100 deals.
Top 5 gainers:
- Guinea Insurance Plc rose by N0.07, increasing from N0.70 to N0.77 per share (+10.00%).
- Ellah Lakes Plc gained N0.43, moving from N4.33 to N4.76 per share (+9.93%).
- Legendary Investments Plc appreciated by N0.70, climbing from N7.09 to N7.79 per share (+9.87%).
- Royal Exchange Plc advanced by N0.09, rising from N0.93 to N1.02 per share (+9.68%).
- Fidson Healthcare Plc added N3.70, going up from N38.40 to N42.10 per share (+9.64%).
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Top 5 decliners
- Northern Nigeria Flour Mills Plc dropped by N11.25, falling from N112.55 to N101.30 per share (-10.00%).
- C&I Leasing Plc declined by N0.45, decreasing from N4.65 to N4.20 per share (-9.68%).
- University Press Plc lost N0.51, moving from N5.50 to N4.99 per share (-9.27%).
- Deap Capital Management & Trust Plc shed N0.08, going down from N0.89 to N0.81 per share (-8.99%).
- Learn Africa Plc fell by N0.35, dropping from N4.15 to N3.80 per share (-8.43%).
Top 5 trades by volume:
- Access Holdings Plc led with 92.7 million shares worth approximately N1.90 billion.
- United Bank for Africa Plc followed with 91.4 million shares valued at about N3.09 billion.
- Zenith Bank Plc traded 76.8 million shares, worth roughly N3.56 billion.
- Fidelity Bank Plc posted 50.0 million shares valued at N884 million.
- Guaranty Trust Holding Company Plc recorded 40.5 million shares, with a total value of about N2.85 billion.
CBN tells banks to stop payment of executive bonuses, dividends
Earlier, Legit.ng reported that the payment of executive bonuses, dividends, and foreign investments by banks that are currently subject to regulatory forbearance has been temporarily halted by the Central Bank of Nigeria (CBN).
This is part of a plan to strengthen financial restraint and safeguard the stability of the banking industry.
This move applies to banks facing financial stress and aims to prioritise their recovery.
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Source: Legit.ng
