Nigerian stocks end shaky respite as investors shun big banks

Nigerian stocks fell 0.07 per cent on Wednesday, signalling its first retreat in three trading sessions at the same time alerting investors that recording gain two trading days in a row after the market plunged to a near-six month low last Thursday is no mark of sure rebound.

Big banks GTCO, UBA and FBN Holdings have been unable to come away from the spell of loss that has held them for at least three trading days in a row, setting in train the contraction seen in the broader market on Wednesday.

It echoes a concerning development in the market shaped by steady exits of smart money from stocks into fixed income securities as three straight interest rate hikes by the CBN continue to spur bond yields, giving investors better shelter for their money than shares.

Foreign investors often cringe from portfolio investment during election season given that it can heighten risk, and that is another probable factor slowing participation.

“We expect continued bearish sentiment to dominate the market, given the high-yield environment. However, investors will continue to hunt growth stocks,” analysts at the brokerage firm United Capital said in their outlook note for this week seen by PREMIUM TIMES.

Trade saw a decline in volume by almost one quarter compared to the previous session, with 9 stocks advancing and a double of that figure depreciating of the 102 participating equities.

The all-share index dropped 34.1 points to 47,531.8 and market capitalisation to N25.9 trillion.

The index has returned 11.3 per cent year to date.

TOP FIVE GAINERS

Red Star led advancers, appreciating by 8.5 per cent to N2.30. May & Baker climbed up by 3.70 per cent to N4.20. Oando added up 2.27 per cent to end trade at N4.50. Cornerstone advanced by 1.85 per cent to N0.55. Sterling Bank rose to N1.55, notching up 1.31 per cent.

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TOP FIVE LOSERS

GSPEC PLC topped the losers’ chart, declining by 9.82 per cent to close at N2.48. Honeywell Flour went down by 9.8 per cent to end trade at N1.94. Livestock fell to N1.03, losing 9.65 per cent. RT Briscoe slumped to N0.31, recording 8.8 per cent slip. Chams closed at N0.26, going down by 7.1 per cent.

TOP FIVE TRADES

In all, 155.2 million shares valued at N3.7 billion were traded in 3,797 deals.

Mutual Benefits was the most active stock, with 41.9 million of its shares worth N11.3 million traded in 22 deals. GTCO saw 28.5 million units of its shares priced at N480 million exchanged hands in 665 transactions. Zenith traded 11.8 million shares valued at N228.9 million in 346 deals. Courteville traded 10.2 million shares estimated at N4.7 million in 12 transactions. Dangote Cement transacted 8.4 million shares valued at N2.1 billion in 85 deals.