Index dips by 0.4% amid losses in tier- one banks, ahead of Eid- el- fitr break

AHEAD of the Eid- el- Fitr break, the Nigerian Exchange Limited ( NGX) reopened on a downturn yesterday, as the All- Share Index shed 0.4 per cent, amid losses in tier one banks.

At the close of transactions yesterday, the ASI declined by 390.68 points, representing a decline of 0.38 per cent to close at 103,047.99 points. Accordingly, market capitalisation shed by N221 billion to close at N58.277 trillion.

The market negative performance was driven by price appreciation in large and medium capitalised stocks, which are; GTCO, Flourmills, FBN Holdings, United Bank for Africa, Zenith Bank, Nigerian Breweries, United Capital, Unilever and Fidelity Bank.

This week, United Capital Plc, said: "We expect the bearish sentiments amongst investors to persist in the local equities market given the recent developments in the fixed- income market.

"The impact of the high yields in the fixed- income market will continue to drive selloffs as investors switch their asset classes to less risky assets. However, we expect pockets of bargain- hunting activities across dividendpaying stocks, as the dividend season commences in full."

On what will shape the market in the next trading session, analysts at V etiva Dealings and Brokerage, said: “We still expect the banking sector to dictate market direction this week, as investors a wait earnings reports from that sector.” As measured by market breadth, market sentiment was negative, as 24 stocks lost relative to 17 gainers. Morison Industries recorded the highest price gain of 9.91 per cent to close at N2.33 kobo . Omatek Ventures followed with a gain of 7.69 per cent to close at 84 kobo, while CWG rose by 5.93 per cent to close at N7.15 kobo.

Linkage Assurance went up by 5.56 per cent to close at 95 kobo, while Sterling Financial Holdings Company appreciated by 5.32 per cent to close at N4.95 kobo.

On the other hand, Abbey Mortgage Bank led the losers’ chart by 9.75 per cent to close at N2.50, per share. Champion Breweries followed with a decline of 9.68 per cent to close at N3.36, while Regency Alliance Insurance declined by 9.30 per cent to close at 39 kobo.

Chams Holding Company depreciated by 7.21 per cent to close at N2.06 and Consolidated Hallmark Holdings declined by 7.01 per cent to close at N1.46 kobo.