Diamond Bank, FCMB, Others Drive Nigerian Stocks Down -0.18% in First Trading Day

November 12, 2018

By InvestAdvocate

Lagos (INVESTADVOCATE)-The shares of Diamond Bank Plc, First City Monument Bank Limited, and other top tier lenders on Monday impacted negatively on the Nigerian Stock Exchange (NSE) as the all-share index (ASI) plunged -0.18 percent to close at 32,143.41 basis points compared to -0.09 percent decline posted previously, bringing Year-to-Date (YTD) returns to a negative -15.95 percent. 

InvestmentOne reports that market breadth index was positive with 14 gainers compared to 12 stocks that declined.

Insurer, Regency Alliance Insurance Plc with a gain of +10.00 percent emerged the topmost gainer, while primary mortgage institution, Abbey Mortgage Bank Plc with a loss of -9.40 percent led the losers’ chart.

According to the report, Diamond Bank Plc with a loss of -9.38 percent was the most actively traded with 32 million units of shares worth about N37 million. This is coming on the heels of  the bank’s acquisition report which in an emailed statement on Monday to InvestAdvocate by the lender was debunked.

In terms of sector performance, the NSE Banking index closed down by 1.06 percent, largely driven by the losses in the shares of Diamond Bank Plc and First City Monument Bank Plc; both depreciated -9.38 percent and -2.45 percent each.

Others are tier one lenders, Guaranty Trust Bank Plc and Zenith Bank Plc; both are down -1.75 percent and -1.64 percent apiece, while Fidelity Bank Plc and United Bank for Africa Plc declined -1.51 percent and -0.63 percent respectively.

On the positive side, the NSE Oil & Gas index gained 0.75 percent, largely due to the advancement in the shares of oil marketing major, Oando Plc which gained by +6.45 percent.

In the same vein, the NSE Consumer Goods index closed up by 0.17 percent, on the back of the gains in the shares of Flour Mills of Nigeria Plc and Honeywell Flour Mills Plc; both appreciated +7.14 percent and +2.86 percent each; while soap and detergent producer, PZ Cussons Nigeria Plc surged +1.67 percent. The report says the NSE Industrial index closed flat.

“Despite the sell-off in the equities market in the previous quarter, we believe this presents decent entry opportunities in our quality names,” the InvestmentOne report affirmed.

 

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