Market Loses N59bn as CBN Restricts Forex Sales

  • Market Loses N59bn as CBN Restricts Forex Sales

The stock market (equities) dipped by N59bn on Thursday following the Central Bank of Nigeria’s directive to Deposit Money Banks (excluding First Bank of Nigeria Limited) to restrict the sale of foreign exchange to Bureau De Change operators.

Generally, the banking sector made the biggest loss.

ETranzact Internal Plc, BOC Gases Plc, Forte Oil Plc, Pharma-Deko Plc and Guaranty Trust Bank Plc topped the losers’ chart at the close of trading on the floor of the Nigerian Stock Exchange on Thursday.

The NSE market capitalisation dropped to N9.567tn from N9.626tn, while the NSE All-Share Index closed at 27,854.78 basis points from 28,027.23 basis points recorded on Wednesday.

A total of 380.754 million shares worth N1.833bn exchanged hands in 2,954 deals.

ETranzact share price plunged to N5.14 from N5.41, shedding N0.27 (4.99 per cent while the shares of BOC Gases lost N0.18 (4.86 per cent) to close at N3.52 from N3.70.

Forte Oil share price also depreciated by N7.69 (4.82 per cent) to close at N152 from N159.69, while Pharma-Deko shares recorded a loss of N0.09 (4.81 per cent) to close at N1.78 from N1.87.

GTBank shares also plunged by N1.14 (4.75 per cent) to close at N22.86 from N24.

Overall, the Nigerian equities closed lower with banking stocks leading the decline.

The financial services sector snapped a three-day positive run, down by 2.13 per cent. GTBank dropped by 4.75 per cent, Wema Bank Plc by 4.62 per cent and StanbicIBTC by 3.15 per cent.

The oil and gas sector snapped a two-day rally following market reaction to the Q3 2016 earnings of Forte Oil coupled with 0.77 per cent loss in Oando Plc.

While the industrial goods sector dipped further into the red amid continued decline in Lafarge Africa Plc (2.58 per cent loss), the consumers goods sector proved resilient as it advanced following the 2.85 per cent gain in Dangote Sugar Refinery Plc, 0.82 per cent gain in Nigerian Breweries Plc and 0.78 per cent gain in Honeywell Flour Mill Plc.

Market breadth remained negative with 12 advances and 31 declines.

“We expect the NSE ASI to further drop points at week close following the pressure across board, particularly banking stocks even as the negative spread in market breadth widened,” Vetiva Capital Management Limited analysts said.

Global markets traded mostly lower after minutes from the United States Federal Reserve’s September meeting raised expectations of a December interest rate hike and as weak China trade data (exports and imports slipped by 10 per cent and two per cent respectively) weighed on investor sentiment.

About the Author

Samed Olukoya
Samed Olukoya is the CEO/Founder of, a digital business media, with over 10 years experience as a foreign exchange research analyst and trader.

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