NGX Sheds N121bn as CBN’s Policy Shift Triggers Banking Stock Sell-Off
The Nigerian Exchange (NGX) experienced a significant decline on Monday, losing approximately N121 billion in market value following the Central Bank’s announcement regarding the end of forbearance measures for banks, which triggered widespread selling in banking sector stocks.
Market indices fell by 17 basis points as investors moved to take profits from banking stocks amid concerns over the potential impact of ending post-pandemic forbearance policies for deposit money banks.
The market downturn was characterised by selling pressure across large and medium-capitalisation stocks spanning multiple sectors, with the banking index suffering a notable 3.98% decline. Several major financial institutions saw their share prices fall, including NNFM, ACCESSCORP, ZENITHBANK, UBA, and various second-tier banking institutions.
Consequently, the NGX All-Share Index dropped by 191.30 basis points, settling at 115,238.24. Trading activity presented a mixed picture, with transaction volumes decreasing by 33.72% while the total value of trades increased by 5.75%.
Market data from Atlas Portfolio Limited indicated that approximately 618.55 million shares worth ₦18,984.13 million changed hands across 18,835 transactions.
ACCESSCORP dominated trading volumes, representing 12.86% of total shares traded, followed by UBA at 12.57%, ZENITHBANK at 10.66%, FIDELITYBK at 6.94%, and GTCO at 5.61%.
By transaction value, ZENITHBANK led the market, accounting for 16.16% of total trade value.
On the positive side, GUINEAINS topped the gainers’ list with a 10.00% price increase, followed by ELLAHLAKES (+9.93%), LEGENDINT (+9.87%), ROYALEX (+9.68%), FIDSON (+9.64%), NGXGROUP (+9.09%), and fifteen other advancing stocks.
However, 43 stocks recorded losses during the session. NNFM led the declining stocks with a 10.00% drop, while other notable losers included ACCESSCORP (-8.28%), FIRSTHOLDCO (-7.5%), TANTALIZER (-6.84%), BERGER (-6.72%), ZENITHBANK (-6.37%), UBA (-5.7%), and CADBURY (-4.27%).
Market sentiment was negative overall, with 21 stocks advancing compared to 43 declining issues. Sectoral performance was predominantly weak, with three of the five major indices posting losses.
The Banking sector led the decline at -3.98%, followed by Oil & Gas at -0.90% and Insurance at -0.49%. The Consumer Goods sector bucked the trend with a 1.98% gain, while the Industrial sector remained flat.
The overall market capitalisation of the Nigerian Exchange contracted by ₦120.64 billion, a 0.17% decrease, closing at ₦72.67 trillion.
