Banks’ shares dropped on Monday as investors adopted a cautious approach, following the implementation of the 50 per cent Cash Reserve Requirement of the Central Bank of Nigeria.
The stocks of eight banks recorded price depreciation, as the NSE’s Banking Index closed at 409.17 basis points, down by 1.5 per cent or 6.27 points.
Of the banks, Wema Bank Plc recorded the highest loss on Monday, as it shed 9.09 per cent or 10 kobo to close at N1.
United Bank for Africa Plc and Union Bank of Nigeria Plc fell by 5.10 per cent and 3.20 per cent to close at N8 and N11.21, respectively.
Skye Bank Plc and Guarantee Trust Bank Plc followed, depreciating by 3.12 per cent and 2.64 per cent to close at N4.35 and N24.68 in that order.
Also, Access Bank Plc, Diamond Bank Plc and First City Monument Bank fell by 1.23 per cent, 1.16 per cent and 0.22 per cent to close at N11.20, N6.80 and 4.49, respectively.
Three banks, however, recorded price appreciation on Monday. Sterling Bank Plc appreciated by seven kobo or 3.57 per cent to close at N2.90, while Unity Bank Plc and Zenith Bank Plc rose by 1.75 per cent and 0.81 per cent to close at 58 kobo and N21.28, respectively.
Notwithstanding the drop, the banking sub-sector maintained its lead on the activity chart, accounting for 27.79 per cent of the total turnover traded.
In the sub-sector, 136.015 million shares, valued at N1.195bn were exchanged by investors in 2,206 transactions.
Trading in the shares of UBA, Access Bank, Diamond Bank and Skye Bank drove volume in the sub-sector.
Equity trading activities on the Nigerian Stock Exchange generally witnessed a weak bargain on Monday as major indicators closed negative.
The NSE’s All-Share Index dropped by 225.36 or 0.59 basis points to close at 37,813.43 points, while the market capitalisation of the listed equities fell by N71bn or 0.59 per cent to close at N11.975tn.
Source Punch
