Eleven banks loss N36.5bn to panic sales

By Kayode Ogunwale

 

stock buildingEleven out of 13 banking stocks available for trading on the floor of the Nigerian Stock Exchange (NSE) today recorded N36.531 billion losses in their market capitalization to panic sales as a result of Central Bank of Nigeria decision to bared nine banks from Forex trading which latter reduced to eight.

 

At the end of the trading, shareholders of Union Bank of Nigeria Plc recorded the highest losses of N16.936 billion, followed by Zenith Bank Plc with N9.105 billion and United Bank of Africa with N3.265 billion loss.

 

More so, FBN Holdings Plc, parent company of First Bank of Nigeria also recorded a loss of N2.154 billion of its market capitalisation while Ecobank Transnational Corporation Plc (ETI) and Wema Bank Plc recorded N1.835 billion and N1.157 billion dropped in their market capitalisation respectively.

 

Others are, Fidelity Bank Plc with N869.244 million, Skye Bank Plc with N694.015 million, Guaranty Trust Bank Plc with N294.312 million, FCMB Plc with N198.027 million and Diamond Bank Plc with N23.604 million.

 

However, only Sterling Bank Plc and Access Bank Plc were recorded N863.713 million and N578.559 million gained respectively.

 

Meanwhile, the NSE Banking Index contributed 0.70 per cent loss to general market index, as it open with 286.93 basis points to close Thursday at 284.91 points. The NSE All Share Index depreciated from 27,880.46 point it open to close at 27,379.95 points, represented 500.51 points or 1.80 per cent.

 

In the same vein, the market capitalization of equities listed on the nations bourse decline by N172 billion, from N9.576 trillion to close the day at N9.404 trillion.

 

Reacting to the development, National President, Constance Shareholders’ Association of Nigeria, Shehu Mallami Mikail believed that massive dropped in banking shares is as a result of CBN to bar some banks from Forex trading.

 

According to him, “Central Bank decision to bared nine banks from Forex trading is a signal to discourage investors to invest in Nigeria”.

 

He believe that there is nowhere in the world were regulator will barred over 60 per cent of banks from Forex trading expect good result.

 

“CBN should have looked for a better way of handling the matter than banning them from trading. Investors relied on information to trade their shares, and that kind of information would rather create a panic than do our economy.”

 

CBN should come out with better option that can boost Nigeria economy that the one that will create panic into the system, he said.