Nigerian Stock Market Takes a Further Plunge
After recording positive performance for the eighth trading day, and recovering over N278 billion during the period in view, the Nigerian Stock Exchange (NSE), which lost about N15 billion last Friday, further plunged by N51.3 billion on Monday.
Analysts have attributed profit taking activities by investors to the downturn as sell pressures continued across the sectors on the bourse. Even the news of the assumption of office of the three new chief executive officers of UBA, Zenith, and Skye banks could not change the banking sector’s direction. Equity Analysts at Proshare Nigeria, an investment advisory firm, at the close of trading on Monday, said the negative trend resumed last Wednesday. “Sectors such as banking that experienced strongest rally on the back of Asset Management Company expectedly witnessed the strongest sell pressures,” the analysts said.
They, however, said considering the positive developments in the market, and barring any negative news in the market, “we are of the view that the present bearish mode may not last longer than necessary, as investors may have reasons for holding some stocks when their prices hit some certain points.” At the close of the day’s proceeding, the Exchange’s market capitalisation lost N51.3 billion, or 0.81 per cent, to close at N6.269 trillion. The All-Share Index was also down by 0.81 per cent to close at 25,634.39 basis points, reflecting a decrease of 209.79 units.
The number of gainers at the close of trading session stood at 25 compared with the 22 gainers recorded on Friday, while losers also closed higher at 43 compared with the 42 recorded last trading day. The banking sector led the market transaction volume on Monday with 110.721 million units valued at N892.096 million exchanged in 3,205 deals. Transactions in the shares of Zenith, Diamond, First Bank and UBA boosted the volume traded in the sector. The total volume of 49.586 million units valued at N590.225 million traded in the shares of the four banks accounted for 48.75 per cent of the entire sector volume.
Meanwhile, seamless takeover was it at the three banks whose new chief executive officers assumed office on Monday. Phillip Oduoza for UBA, Phillip Emefiele, Zenith and Kehinde Durosimmi-Etti for Skye assumed office on Monday. At the head offices of the three banks, it was business as usual as there was no visible indication that a change of guard had occurred. At UBA head office; there was no unusual happening as people moved in and out of the premises. It was the same thing at Skye Bank head office on Victoria Island. A visit to one of its branches in the Central Business District on Lagos Island, revealed the usual throng of customers conducting normal transactions.
Nasir Ramon, of the media unit of UBA, said the handover was smooth and seamless. “The new managing director assumed his position officially on Sunday. Everything is going on well”, he said. The Central Bank in January unveiled new sets of corporate governance codes that would see chief executives of banks spending a maximum of 10 years in office. Bank CEOs who were affected by the directive include Jim Ovia of Zenith Bank and Tony Elumelu of UBA, who have spent 19 and 12 years as CEOs of their respective banks. Akinfemi Akinfehinwa, former CEO of Skye Bank, had also spent over 10 years.
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