FBNH, Zenith, Access Lift Banking Index By 0.33% Amid NGX’s Widening Losses
There was active profit-taking in the shares of FBN Holdings, Access Holdings and Zenith Bank that led to a 0.33 per cent rise in the performance of the banking index, despite the general loss recorded on the floor of the Nigerian Exchange Limited(NGX) in the just concluded week.
At the close of the five-day trading sessions, NGX All-Share Index and market capitalisation depreciated by 0.14 per cent to close at 51,705.61 basis points and N27.87 trillion respectively. This resulted in investors losing N39.08 billion in a week, and a total of N806 billion in two consecutive weeks.
Other sub-sector performances ended up in the red zone. The consumer goods index fell by 2.02 per cent to close at 626.45 basis points. This was followed by the industry index which depreciated by 1.89 per cent to 2,155.90 basis points. Also, the insurance index fell by 1.36 per cent to close at 174.27 basis points.
Trailing on the path of the banking index, in the week under review, the oil and gas rose by 0.32 per cent to close at 544.53 basis points.
The stocks that lifted the banking sector performance were the shares of FBNH, Zenith, Access, Jaiz and Fidelity.
Leading the pack, the share price of FBNH rose by 8.76 per cent or 0.85k to close at N10.55; Zenith Bank followed, gaining 0.25k or 1.17 per cent to close at N21.65. While Access Bank rose by 2.15 per cent or 0.2k to N9.5, the share prices of Jaiz Bank and Fidelity Bank appreciated by 2.13 per cent and 0.59 per cent, gaining 0.2k apiece, to close at 0.96k and N3.39 respectively.
The share price of Union Bank of Nigeria which opened trading at N6 on Monday, June 20 remained unchanged as at the close of trading on Friday, June 25.
On the contrary, the share prices of Stanbic IBTC Holdings, Ecobank Transnational Inc, FCMB Group, Guaranty Trust Holding Company, United Bank for Africa, Sterling Bank, Wema Bank and Unity Bank declined in the week under review.
Stanbic lost N 1.05 or -3.13 per cent of its share price to close at N32.5; ETI fell by 3.96 per cent or 0.4k to close at N9.7; FCMB shed 0.2k or -5.71 per cent to close at N3.3; GTCO dipped by 0.71 per cent or 0.15k to close at N20.9, and UBA declined by 0.67 per cent or 0.05 to close at N7.45.
Sterling, Wema and Unity banks’ shares also fell by 0.02k each or 1.29 per cent, 0.63 per cent and 4.26 per cent to close at N1.53, N3.15 and 0.45k respectively.
The total volume and value of the shares of the 14 banks under consideration fell by 57.27 per cent and -61.49 per cent to 619.15 million and N1.61 billion, in the week under review.
Analysts at Cowry Asset Management were of the view that investors might print a mixed reaction to the daily change of the domestic bourse in the coming week.
They said, “With the expectations of second-quarter numbers (financial results) coming in over the next few weeks we continue to maintain positive sentiments in the market although profit-taking will likely set in as prices rise. Investors are advised to trade on companies’ stocks with good fundamentals and a positive outlook to avoid falling into the bear trap.”
At the close of the week’s trading, a total turnover of 1.12 billion shares worth N13.70 billion in 22,350 deals was traded during the week by investors on the floor of NGX, in contrast to a total of 940.89 million shares valued at N11.49 billion that exchanged hands the week before in 20,077 deals.
NGX reported that the financial services industry (measured by volume) led the activity chart with 806.824 million shares valued at N6.08 billion traded in 11,071 deals and contributed 71.99 per cent and 44.33 per cent to the total equity turnover volume and value respectively.
While the oil and gas industry followed with 95.031 million shares worth N1.45 billion in 1,849 deals, the conglomerate’s goods industry traded a turnover of 66.72 million shares worth N169.52 million in 733 deals.
“Trading in the top three equities namely FCMB Group Plc, United Bank for Africa Plc and Oando Plc (measured by volume) accounted for 407.770 million shares worth N2.009 billion in 2,181 deals, contributing 36.39 per cent and 14.66 per cent to the total equity turnover volume and value respectively,” NGX added.
The share prices of Nigerian Aviation Handling Company, Champion Breweries, Mrs Oil Nigeria and FBNH led the gainer’s table. NAHCO share price rose by 10.53 per cent to N8.4, Champion gained 10 per cent to close at N3.74 and Mrs Oil Nigeria rose by 9.8 per cent to close at N16.25.
While on the losers’ table, CWG led the pack, declining by 14.89 per cent to close at 0.8k; R T Briscoe fell by -14.29 per cent to 0.48k; GlaxoSmithKline Consumer Nigeria dipped by 13.48 per cent to N6.1, and John Holt dropped 11.27 per cent to close at 0.63k
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