Nigerian stocks down 1.2% on sell-offs in big cap banks

Nigeria stocks decreased Tuesday with the benchmark NSEASI Index down by 1.16 percent to close at 44,389.85 points. Big cap banking stocks, as well as mid and small caps, had broad-based sell-offs, which dragged market performance.

The day’s performance thus brought the bears on the charge in two consecutive trading sessions.

Specifically, the banking index was the top loser, down 2.6 percent on profit-taking in GUARANTY (-2.8%), FBNH (-5.3%) and ZENITH (-2.3%). DANGCEM (-1.5%), as well as mid and small cap stocks also contributed to the negative performance of the day.

Consequently, year-to-date return contracted further to 16.1 percent. Similarly, market capitalization lost N187.3 billion to settle at N15.9 trillion.

Equally, market activity level declined as volume and value traded fell 83.4% and 51.8% to 737.9 million units and N7.7 billion respectively.

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Sector performance was mixed as three of five indices closed in the red while two trended northwards. The banking index led with the heaviest decline followed by the insurance and industrial goods indices, which lost 2.4 percent and 0.7 percent respectively, on the back of price depreciation in MANSARD (-4.8%), LINKASSURE (-8.8%) and DANGCEM (-1.5%).

On the flip side, the consumer goods index was the top gainer, up 0.7 percent following gains in PZ (+1.7%), NASCON (+2.5%) and a rebound in NESTLE (+8bps). Similarly, uptick in SEPLAT (+1.5%) drove the oil & gas index 0.1 percent higher.

Investor sentiment as measured by market breadth (advance/decline ratio) weakened to 0.3x from 1.0x recorded yesterday as 14 stocks advanced against 43 decliners.

The day’s best performers were SKYE (+9.9%), CAVERTON (+9.8%) and UNITY (+9.2%) while FIDELITY (-9.2%), AGLEVENT (-9.1%) and LINKASSURE (-8.7%) were the worst performing stocks.

Analysts say going by the losses recorded since the start of the week, they expect sell-offs across sectors to continue in subsequent trading sessions as investors look to book profits following weeks of sustained gains.