Banking stocks drag equities to 0.17% loss

In from Success Allantee . . .
The Nigerian stock market showed a positive momentum yesterday with more gainers than losers, but losses by banking stocks overshadowed the wider positive sentiments.
With 23 advancers to 19 decliners, most sectoral and group indices indicated a gradual rebound in investors’ appetite.
Losses by highly capitalised banking stocks such as Guaranty Trust Bank, Zenith Bank and Stanbic IBTC Holdings drove a 1.5 per cent in the NSE Banking Index, which upset the overall market position.
The All Share Index (ASI), the benchmark index that tracks prices of all quoted equities on the Nigerian Stock Exchange (NSE), slipped marginally by 0.17 per cent from 27,743.92 points to close at 27,697.12 points. Aggregate market value of all quoted companies also declined from N9.539 trillion to close at N9.522 trillion.
The average year-to-date return at the stock market now stands at -20.08 per cent. The decline yesterday was orchestrated by banking stocks, which dominated activities chart.
Total turnover yesterday stood at 167.46 million shares valued at N2.32 billion in 2,625 deals. The three most actively traded stocks were Zenith Bank, with 33.97 million shares, Guaranty Trust Bank, 29.06 million shares and FBN Holdings, with 14.96 million shares. Financial services sector dominated the trading log with a turnover of 130.32 million shares.

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Most sectoral indices showed marginal but broad recovery. The NSE Consumer Goods Index appreciated by 0.7 per cent. The NSE Insurance Index improved by 0.5 per cent. The NSE Oil and Gas Index returned 0.2 per cent gain while the NSE Industrial Goods Index inched up by four basis points.
Analysts said activities in the stock market yesterday continued to reflect investors’ responses to the implications of the recent interest rate cut by the Central Bank of Nigeria (CBN). The Monetary Policy Committee (MPC) of the CBN had on Tuesday reduced the benchmark interest rate-Monetary Policy Rate (MPR), from 13 per cent to 11 per cent.
Analysts at Afrinvest Securities and Cowry Asset Management said the outlook remained cautious as investors continue to weigh the options.
“We therefore advise investors to remain cautious as they take advantage of stocks with currently cheap valuations and significant upside potential,” said Afrinvest Securities in Lagos.

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