NGX Banking Index decreased the most on Monday by 3.98 percent as bank stocks were mostly offered by investors on the local bourse, the first trading day after the Central Bank of Nigeria (CBN) directed banks to temporarily suspend the payment of dividends to shareholders.
The stock market decreased by 0.15 percent at the close of trading on Monday. While the NGX Consumer Good Index rose by 1.98 percent, NGX Insurance Index decreased by 0.49 percent, and NGX Oil & Gas Index (-0.90 percent).
“While we still expect to see some downward pressure in tomorrow’s (Tuesday) market, volume flows remain healthy, with activity trending in line with rising prices, a key confirmation of institutional participation. As it stands, the ASI is in price discovery mode, and sentiment remains constructive as long as it holds above 110,000 points,” according to Vetiva research analysts.
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The Nigerian Exchange Limited (NGX) All Share Index (ASI) decreased to 115,258.77 points while the market capitalisation decreased to N72.680 trillion.
Stocks like Access Holdings, UBA, Zenith Bank, Fidelity Bank and GTCO were actively traded. In 22,100 deals, investors exchanged 721,751,190 shares worth N22.010billion.
The CBN also directed banks to defer the payment of bonuses to directors and senior management staff, and refrain from making investments in foreign subsidiaries or embarking on new offshore ventures.
“We anticipate a mixed to bearish performance in the equities market this week, driven by profit-taking activities and a shift in investor attention toward the upcoming Treasury Bills Primary Market Auction (PMA) on Wednesday,” according to Futureview research analysts.
