Sell-offs in the shares of Tier-one banks on Thursday contributed to a 0.32 per cent decline in the Nigerian Exchange Ltd. (NGX) market indices.

Specifically, losses in the share prices of FBN Holdings, Access Corporation, Guaranty Trust Holding Company (GTCO), Zenith Bank and StanbicIBTC Bank, among others, dragged down the market performance.

Consequently, investors saw a decrease of N190 billion or 0.32 per cent, with market capitalisation opening at N59.095 trillion and closing at N58.905 trillion.

The All-Share Index also dipped by 0.32 per cent to close at 104,181.32 points, compared to 104,518.14 points posted on Tuesday.

This led to a Year-To-Date (YTD) return of 39.33 per cent.

The market breadth ended negative, with 32 losers and 21 gainers.

On the losers’ table, International Energy Insurance and Caverton led by 10 per cent each to close at N1.44, N1.62 per share respectively.

Thomaswy lost 9.63 per cent to close at N1.97, NEM Insurance dropped 9.60 per cent to close at N8.95, while Tantalizers went down by 9.52 per cent to close at 38k per share.

On the other hand, UPL Ltd., led the gainers table by 9.84 per cent to close at N2.68, SCOA Nigeria Plc gained 9.96 per cent to close at N2.15 per share.

Morison Industries Plc rose by 9.66 per cent to close at N1.93, Cutix Plc advanced by 9.62 per cent to close at N2.85 and Mutual Benefits Assurance appreciated by 9.38 per cent to close at 70k per share.

Analysis of the market activities showed trade turnover settled lower relative to the previous session, with the value of transactions down by 39.04 per cent.

A total of 405.03 million shares valued at N8.91 billion were exchanged in 10,364 deals, compared to 545.49 million shares valued at N14.61 billion exchanged in 12,747 deals posted previously.

Access Corporation led the volume chart with 50.00 million shares traded in value of N1.24 billion, UBA sold 49.01 million shares worth N1.37 billion.

Transcorp traded N45.95 million shares worth N612.80 million, Zenith sold 41.88 million shares worth N1.86 billion to lead the chart by value and GTCO transacted 29.70 million shared valued at N1.57 billion.(NAN)

helinues:
Loosing and gaining is part of the trade market

NaijaCowFarm:

Just like Tinubulation is the harbinger of economic woes!

onez:
Like every policy of this failed and illegitimate govt, that recapitalization is a bad policy at the moment. We keep putting the cart before the horse. The policy should be suspended asap. What we need now is stability of the economy before any recapitalization.

onez:
Like every policy of this failed and illegitimate govt, that recapitalization is a bad policy at the moment. We keep putting the cart before the horse. The policy should be suspended asap. What we need now is stability of the economy before any recapitalization.

Fibonacci88:
It's anticipated. Most banks are going to issue IPOs to raise funds to meet CBN capitalization requirements. Investors already holding these highly priced shares will need to dump some and book profit and mitigate risk when these banks go public.

NaijaCowFarm:
Tinubulation is synonymous with Tribulation

ppogba:


You are trying hard to sound knowledgeable but you are not.
Is it only the tier 1 banks that are responsible for the current fall?

Who told you people holding a particular stock will dump when the company plans to raise additional capital?

Dumping to book profit to mitigate risk?
What risk is being mitigated with the dumping?

It is not a must you should comment here.
Take the little knowledge you have to the beer parlour.

ppogba:


You are trying hard to sound knowledgeable but you are not.
Is it only the tier 1 banks that are responsible for the current fall?

Who told you people holding a particular stock will dump when the company plans to raise additional capital?

Dumping to book profit to mitigate risk?
What risk is being mitigated with the dumping?

It is not a must you should comment here.
Take the little knowledge you have to the beer parlour.

perfri:
The person you quoted is actually right. when these banks recapitalize, this wouild mean issuing new shares in the market, which can reduce the ownership percentage and earnings per share for existing shareholders. This dilution could put downward pressure on the stock price. So actually, existing shareholders may likely want to sell off their stocks.

Fibonacci88:

This douchebag u will be hopping from thread to thread spewing rubbish on threads beyond ur capacity. If u were sensible enough to comprehend the write up u will see that not all banks mentioned there are tier 1 bank. I gave a reason why a sell off is reasonable but the stupidity in u couldn't comprehend what booking profit or mitigating risk meant. U have never owned a stock before I don't expect u to understand investment terminologies. Go stick with ur trolling threads this post is beyond ur capacity.

ppogba:


You are trying hard to sound knowledgeable but you are not.
Is it only the tier 1 banks that are responsible for the current fall?

Who told you people holding a particular stock will dump when the company plans to raise additional capital?

Dumping to book profit to mitigate risk?
What risk is being mitigated with the dumping?

It is not a must you should comment here.
Take the little knowledge you have to the beer parlour.

ppogba:


You are partially right.
For now, the banking stocks and the rest of the market is bearish because investors especially the institutional ones have a more lucrative alternative in the fixed income market as a result of the increase in MPR.

Hold me by my words. When the results of the tier one banks starts to flow into the market. By then, this theory of shares dilution will not hold.

Fluctuations in share prices is determined by so many factors so being tentative about the re- capitalisation as the major reason for now is lame and lazy.

IyfeNamikaze:
So what would be your advice to someone who holds a share with a tier 1 Bank right now, To sell or not to sell?

ppogba:


Read my comment to the other guy It will educate you.

Without being immodest, I can boldly say I have been owning shares when you were a toddler. It is not everyone on Nairaland that is your presumed never do well.

I do not troll. I only take time to correct people with little knowledge claiming CRonaldo In topics they have little knowledge.
I strongly recommend my other comment to you.

OilandGasMarket:
I thought Cardoso was looking to strengthen the banking system. Investors clearly don't believe him.

onez:
Like every policy of this failed and illegitimate govt, that recapitalization is a bad policy at the moment. We keep putting the cart before the horse. The policy should be suspended asap. What we need now is stability of the economy before any recapitalization.