Nigerian stocks worsen losses amid investors’ reluctance to hold bank stocks


The all-equity index lost 21.16 points.

Nigerian stocks came under more pressure on Wednesday as the benchmark slowed 0.05% to its lowest level in more than six weeks and trading activity remained subdued, stoking fears the turn needed for the market to reverse its negative return since the start of the year is not yet on the horizon.

Equity investors have been desperate since the week began to ditch bank stocks at all costs, causing a glut of customer orders that weakens their valuation and, by extension, the overall performance of stocks.

Sales of Access, UBA, GTCO and Zenith particularly detracted from performance, with investment bank United Capital leading the decline.

The breadth of the market, often used to gauge investor attitudes towards trade, was negative, as 17 losers emerged against 13 progressives.

The all-stock index fell 21.16 points to 38,852.16, while market capitalization eased to 20.3 trillion naira by the end of trading.

Year-to-date, the index is down 3.52 percent.


Transcorp Hotel led the winners, rising 10 percent to close at 4.95 N. Pharma Deko added 9.88 percent to end today’s trade at N1.78. Conoil rose 9.84 percent to N24.55.

Cornerstone rose to N0.53, up 8.16 percent in the process. NEM rounded out the top 5, climbing 5.26% to N2.


Veritas was the worst performing stock, falling 8.70% to close at 0.21 N. UCAP fell to N8.55, losing 5%. Chams fell to 0.21, recording a depreciation of 4.55 percent. Access lost 3.37 percent to close at 8.60 N. Japaul closed at 0.46 N, down 2.13%.


In total, 155.8 million shares valued at 1.5 billion naira were traded in 3,256 transactions.

Universal Insurance was the most active stock with 19 million units of its shares worth 3.8 million naira traded in 8 transactions. UBA traded 18.8 million shares priced at 143.1 million naira in 165 transactions.

Zenith traded 11.8 million shares valued at N268.8 million in 370 transactions. GTCO traded 10 million shares valued at 271.3 million naira in 241 transactions. UCAP had 8.5 million shares valued at 74.6 million naira traded in 170 transactions.

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