Stock Market Report: Tier-one banking stocks drive N56 billion loss in market value

The stock market experienced a significant decline on Friday as losses in tier-one banking stocks pushed market indices into negative territory, resulting in a N56 billion loss for investors.

Major sell-offs in the stocks of Guaranty Trust Holding Company (GTCO), Zenith Bank, FBN Holdings, Fidelity Bank, Wema Bank, Nestle, and African Prudential were primarily responsible for the downturn.

The stock market report capitalisation, which opened at N56.479 trillion, fell by N56 billion or 0.10 per cent to close at N56.423 trillion. Similarly, the All-Share Index dropped by 0.10 per cent, shedding 100 points to settle at 99,743.05, down from 99,842.94 in the previous session.

Market breadth was negative, with 26 laggards compared to 23 gainers on the floor of the Exchange. On the gainers’ log, International Breweries led with a 10 per cent increase, closing at N4.40. Thomas Wyatt followed with a 9.95 per cent rise to N2.10, Chams gained 9.86 per cent to close at N2.34 per share, Champion rose by 9.83 per cent to N3.91, and John Holt advanced by 9.66 per cent to N2.61 per share.

Conversely, Multiverse led the losers’ log with a 9.68 per cent drop to close at N11.20. RT Briscoe trailed with a 7.46 per cent decrease to close at 62k per share. Sunu Assurances shed 6.25 per cent to N1.20, NEM Insurance declined by 5.95 per cent to N7.90, and Fidelity Bank dropped 4.81 per cent to N9.90 per share.

Market activity analysis showed a decline in trade turnover relative to the previous session, with transaction values down by 55.20 per cent. Investors traded 617.22 million shares valued at N11.35 billion in 9,273 deals, compared to 1.3 million shares valued at N25.33 billion in 8,364 deals on Thursday.

FBN Holdings led the activity log in volume and value, trading 207.91 million shares worth N4.57 billion. GTCO followed with 58.55 million shares valued at N2.6 billion. Veritas Kapital sold 57.59 million shares worth N55.20 million, AIICO Insurance traded 46.83 million shares valued at N45.17 million, and Fidelity Bank transacted 38.44 million shares worth N392.17 million.

The market’s overall performance highlights the volatility and sensitivity to major banking stocks, underscoring the need for investors to stay informed and cautious in their trading strategies.