Over the weekend, there were reports that the Central Bank of Nigeria (CBN) deducted the sum of N1.4 trillion from some banks in the country for Cash Reserve Ratio (CRR) issues.
When the apex bank took this action, observers said the deduction, which is to control liquidity in the financial system, would affect the lenders and possibly cause investors to selloff their shares at the stock market.
But the reverse seems to be the case because at the Nigerian Stock Exchange (NSE) on Tuesday, banking equities sustained the positive momentum of the bourse.
The equity market closed 0.49 percent higher yesterday, thanks to gains posted by shares in the banking sector.
The index appreciated by 2.83 percent during the session. Another riser on Tuesday was the insurance counter, which gained 0.52 percent, while the consumer goods space rose by 0.32 percent.
Business Post reports that only the industrial goods index and the oil/gas index closed lower yesterday by 0.22 percent and 0.17 percent respectively.
The benchmark index, the All-Share Index (ASI), appreciated on Tuesday by 111.59 points to settle at 22,727.87 points. Also, the market capitalisation increased by N58 billion to finish at N11.845 trillion.
Banking stocks were the most traded during the session, with UBA the most traded individual stock, selling 48.8 million units worth N290.2 million, while FBN Holdings traded 39.1 million units valued at N172.7 million.
Access Bank exchanged 34.1 million shares for N213.8 million, Zenith Bank transacted 27.1 million stocks worth N395.1 million, while FCMB traded 23.7 million equities for N38.2 million.
The volume of shares recorded yesterday increased by 146.6 percent to 266.6 million from 108.1 million of the previous session. Also, the value of stocks went up by 106.56 percent to N2.8 billion from N1.3 billion, while the number of deals rose by 26.98 percent to 4,259 from 3,354.
The market breadth remained positive with 18 price gainers and 10 price losers.
Nestle Nigeria was the highest gainer with N10.20 added to its share value to settle at N920.20 per unit.
GTBank rose by N1 to settle at N21 per share, Zenith Bank gained 65 kobo to sell at N14.85 per unit, Dangote Sugar appreciated by 45 kobo to trade at N12.45 per share, while FCMB gained 10 kobo to finish at N1.70 per unit.
On the flip side, Unilever Nigeria led the losers’ chart after dropping 50 kobo to sell at N10.50 per share.
Lafarge Africa lost 25 kobo to trade at N11.20 per unit, Africa Prudential went down by 22 kobo to trade at N3.48 per share, International Breweries lost 20 kobo to sell at N4.60 per unit, while Caverton declined by 12 kobo to N2.35 per share.
Source:
Dipo Olowookere
When the apex bank took this action, observers said the deduction, which is to control liquidity in the financial system, would affect the lenders and possibly cause investors to selloff their shares at the stock market.
But the reverse seems to be the case because at the Nigerian Stock Exchange (NSE) on Tuesday, banking equities sustained the positive momentum of the bourse.
The equity market closed 0.49 percent higher yesterday, thanks to gains posted by shares in the banking sector.
The index appreciated by 2.83 percent during the session. Another riser on Tuesday was the insurance counter, which gained 0.52 percent, while the consumer goods space rose by 0.32 percent.
Business Post reports that only the industrial goods index and the oil/gas index closed lower yesterday by 0.22 percent and 0.17 percent respectively.
The benchmark index, the All-Share Index (ASI), appreciated on Tuesday by 111.59 points to settle at 22,727.87 points. Also, the market capitalisation increased by N58 billion to finish at N11.845 trillion.
Banking stocks were the most traded during the session, with UBA the most traded individual stock, selling 48.8 million units worth N290.2 million, while FBN Holdings traded 39.1 million units valued at N172.7 million.
Access Bank exchanged 34.1 million shares for N213.8 million, Zenith Bank transacted 27.1 million stocks worth N395.1 million, while FCMB traded 23.7 million equities for N38.2 million.
The volume of shares recorded yesterday increased by 146.6 percent to 266.6 million from 108.1 million of the previous session. Also, the value of stocks went up by 106.56 percent to N2.8 billion from N1.3 billion, while the number of deals rose by 26.98 percent to 4,259 from 3,354.
The market breadth remained positive with 18 price gainers and 10 price losers.
Nestle Nigeria was the highest gainer with N10.20 added to its share value to settle at N920.20 per unit.
GTBank rose by N1 to settle at N21 per share, Zenith Bank gained 65 kobo to sell at N14.85 per unit, Dangote Sugar appreciated by 45 kobo to trade at N12.45 per share, while FCMB gained 10 kobo to finish at N1.70 per unit.
On the flip side, Unilever Nigeria led the losers’ chart after dropping 50 kobo to sell at N10.50 per share.
Lafarge Africa lost 25 kobo to trade at N11.20 per unit, Africa Prudential went down by 22 kobo to trade at N3.48 per share, International Breweries lost 20 kobo to sell at N4.60 per unit, while Caverton declined by 12 kobo to N2.35 per share.
Source:
Dipo Olowookere
