The bears returned to the stock market tuesday after the two days of losing control. As a result, the Nigerian Stock Exchange (NSE) All-Share Index, which had appreciated by 1.25 per cent on Monday, declined by 0.88 per cent to close at 26,346.24 yesterday. The market had rebounded last Friday after depreciating for the first three days in 2017. And when trading resumed for the second week of the year on Monday, the uptrend was sustained leading to a rise of 1.25 per cent as Dangote Cement Plc, and GTBank Plc appreciated by 1.2 per cent and 4.9 per cent respectively.
However, the bears resurfaced yesterday as Dangote Cement Plc declined along with other highly capitalised stocks.
Market analysts at Cordros Capital Limited said they expected the sell off to persist today. Twenty-five stocks declined compared with 19 stocks that appreciated. Cutix Plc led the price losers with 9.5 per cent to close at N1.71 per share. Caverton followed with 9.3 per cent, while Seven-Up Bottling Company Plc Fidson Healthcare Plc,May & Baker Nigeria Plc and GTBank Plc shed 9.1 per cent, 4.5 per cent, 4.2 per cent and 4.2 per cent respectively.
Although GTBank fell yesterday, market analysts believe the stock would soon rebound as the directors prepare to meet to recommend dividend for the 2016 financial year.
Directors of GTBank would meet on January 25 to consider the financial accounts and recommend a final dividend.
Expectations are high that the bank will pay a higher dividend for 2016, following the improved profit after tax recorded for the nine months ended September 30, 2016.
GTBank Plc recorded gross earnings of N329.284 billion, up by 43.5 per cent compared with N229.4 billion in the corresponding period of 2015. Net interest income rose by 10.5 per cent from N120.13 billion to N132.7 billion, while net fees and commission income grew by 28.2 billion to N37.5 billion, up from N48.13 billion. PBT improved to N141 billion, up from N92.1 billion, while PAT rose by 59.6 per cent to N119.92 billion, compared from N75.2 billion in 2015.
PBT improved to N141 billion, up from N92.1 billion, while PAT rose by 59.6 per cent to N119.92 billion, compared from N75.2 billion in 2015.