Punch||Bank stocks fell on Wednesday as investors continue to exit the banking sub-sector of the financial services sector of the Nigerian Stock Exchange.
Their action was being propelled by the likely negative impact of the increase of the Cash Reserve Requirement of Deposit Money Banks by the Central Bank of Nigeria.
The increase of the CRR to 75 per cent from 50 per cent on Tuesday, January 22 had caused bank stocks to fall the next day due to what analysts said was panic action by investors over the likely impact of the decision.
While the stocks recovered a day after with many rising as several investors chose to maintain their positions for a while, many investors have bowed to selling pressure this week, causing the stocks to fall.
On Wednesday equities declined, extending a losing streak, which started on Monday to the third consecutive day.
At the close of trading, a total of 46 stocks fell with only 11 appreciating. About 11 banking stocks were among the losers.
For instance, Ecobank Transnational Incorporated and Union Bank of Nigeria Plc shed 4.95 per cent each to close at N15.17 and N9.22 per share respectively, while Skye Bank Plc recorded a 4.79 share price depreciation to close at N3.78 per share.
Diamond Bank Plc was down by 4.32 per cent or 30 kobo to close at N6.65, while Sterling Bank Plc dropped by 3.91 per cent or nine kobo to close at N2.21 per share.
Fidelity Bank Plc declined by 2.86 per cent or seven kobo to close at N2.38 per share just as United Bank for Africa shed 2.59 per cent or 21 kobo to close at N7.89 per share and Access Bank Plc fell by 1.42 per cent to close at N9.02 per share.
FCMB Group Plc, Stanbic IBTC Holdings Plc and FBN Holdings Plc fell by 4.38 per cent, 2.44 per cent and 1.96 per cent to close at N3.71, N22 and N14.50 per share in that order.
https://www.punchng.com/business/capital-market/more-shareholders-sell-off-bank-stocks/
