Sell-offs in banking stocks drag market performance lower

SELL-OFFS in banking stocks dragged market performance lower on Wednesday amidst weak macroeconomic condition in the country.

Again,  sentiments turned negative today as investors sustained apprehension towards banking stock, with most of today’s losses stemming from GUARANTY (-1.75%) and FBNH (-1.37%).

Precisely, the NSE All-Share Index declined by 4bps. Against that backdrop, the year to date loss increased to 3.89%, while the market capitalisation dipped to N20.251 trillion.

The combination of WAPIC (+10.00% to N0.55), OANDO (+9.67% to N3.29), and UNITYBNK (+9.09% to N0.72) were today’s top gaining stocks.

On the flip side, NCR (-9.71% to N2.79), NEIMETH Plc (-9.09% to N1.90), and VITAFOAM (-5.16% to N7.35) were today’s top losers.

Mixed Sector Performance

“Across sectors under our coverage, performance was mixed as 3 indicators lost, 1 gained and the Industrial Goods and AFR-ICT indices closed flat”, Afrinvest said.

On the sectorial breakdown, the NSE banking and NSE insurance indices sustained benign movements, as both shed 42bps and 103bps, respectively.

Further, the NSE consumer goods also declined by 2bps.

The foregoing masked the gains recorded in the NSE oil & gas index, which rose by 127bps, driven by OANDO and SEPLAT (+0.92%). We noted that the NSE industrial goods index closed flat.

Investor Sentiment Strengthens

Investor sentiment, as measured by market breadth strengthened to 1.1x from the 0.6x recorded previously as 13 stocks advanced against 12 losers.

 The market’s activity was broadly bearish, with the total volume declining by 19.68% to 177mn, while the total value traded also dipped by 36.35% to N2.677bn.

Today’s most traded stocks by volume were GUARANTY (34.20mn units), ZENITHBANK (28.45mn units), and UBA (17.68mn units).

On the other hand, the top traded stocks by value were GUARANTY (N0.958bn), ZENITHBANK (0.572bn), and SEPLAT (0.266bn).

Elsewhere, Chapel Hill Denham’s Paramount Equity Fund (PEF) and the Women Investment Fund (WIF) declined by 103bps and 133bps, respectively.

“We anticipate an uptick in subsequent trading sessions as investors sentiment towards the market strengthened”, Afrinvest stated.

Sell-offs in Banking Stocks Drag Market Performance Lower