By Udeme Ekwere

Market indices closed lower on the Nigerian Stock Exchange on the first trading day of the week as most banking stocks recorded significant losses.

The key benchmark indices, which had improved last Thursday, dipped as a result of huge sell-offs witnessed in banking, insurance and other major sectors.

Specifically, the NSE’s All-Share Index fell by 176.40 basis points or 0.8 per cent on Friday to close at 22,724.02 points from 22,547.62 recorded last week.

Also, the market capitalisation of the listed equities fell by N57bn or 0.8 per cent from N7.269tn to close at N7.212tn, while the NSE-30 Index lost 7.87 points or 0.8 per cent to close at 1,000.93 points.

The Managing Director, Ideal Securities Limited, Mr. George Okafor, told our correspondent that the lull in the market was as a result of uncertainties in the banking sector.

This, he said, had resulted in investors offloading their holdings in banking stocks and other sectors in the market.

Statistics from the NSE, showed that the losses recorded on Monday were mainly borne by stocks in the banking sub-sector.

For instance, the huge volume recorded on the stocks of United Bank for Africa Plc, Sterling Bank Plc, Access Bank Plc, Zenith Bank Plc and First Bank of Nigeria Plc dragged down indices.

Transaction on the five stocks accounted for 79 per cent of volume traded in the sub-sector.

For instance, UBA, Ecobank Plc and GTBank Plc dropped by 4.9 per cent, 4.8 per cent and 4.3 per cent respectively.

Investors in the banking sub-sector exchanged 145.31 million shares, valued at N1.145bn in 2,103 deals, thus accounting for 79 per cent of total volume traded on Thursday.

Consequently, the NSE Banking Index, which had gained 1.8 per cent the previous day, fell by 0.3 per cent or 1.54 basis points from 440.89 to close at 439.35 points.

Only four stocks recorded price appreciation at the close of trading on Monday.

Transnational Corporation Plc led on the price gainers’ chart, rising by 4.8 per cent or four kobo to close at 88 kobo per share.

Red Star Express Plc gained 4.2 per cent or 11 kobo to close at N2.65 per share.

On the other hand, Guinness Nigeria Plc led 26 other stocks on the price losers’ chart, shedding five per cent to close at N7.60 per share.

Source: Punch