Zenith Bank escape bear claws amidst NSE banking sell-off

Zenith Bank’s successful recovery pushed it out of the bear claws that gripped the NSE banking.

At the end of the trading section today, the NSE banking (NGNBNK10) saw a drop of (-0.42%) to settle at 336.46 index points. Zenith Bank closing bullish and five banks closing bearish, while neutral gains were posted by four banks.

By Ubah Jeremiah Ifeanyi

Market sentiment measured below par as the trading section saw more losses than wins.

Zenith Bank was the top gainer on the NSE banking index with an increase of (+0.99%) and the price closed at N20.55. Technical analysis shows that Zenith Bank started its bullish trend after 10 a.m., recovering from the sell-off at the early hours of the trading section. Zenith Bank’s successful recovery pushed it out of the bear claws that gripped the NSE banking.

READ: Zenith Bank Plc announces death of its Director, Professor Oyewusi Ibidapo-Obe

Fidelity Bank topped the losers in the NSE banking index with a decrease of (-1.79%) to close at N2.19. Although Fidelity Bank showed bullish tendencies, it could not maintain momentum and finished below par. Guaranty Trust Bank was the second-worst performer in the NSE banking as it dropped (-1.75%) to close at N28.00. Guaranty Trust Bank traded as high as N28.70 but started trading bearish after 10 a.m.

Wema Bank also felt the weight of the bears by finishing the trading session with a loss of (-1.67%) to close at N0.59. Jaiz Bank dropped by (-1.47%) to close at N0.67 thereby making the fourth position on NSE banking top loser today.

Lastly, Union Bank (UBN) dropped (-0.99%) to settle at N5. UBN technical analysis shows consolidation before fall from previously ascertained N5.10.

Neutral gains were seen amongst four of the banks at the end of today’s trading section. Access Bank, Guaranty Trust Bank, Sterling Bank, and UBA all ended the trading section with (0.0%) gains, barely escaping the sell-off in NSE banking.

Outlook

• Bond yield is still having a major impact on market prices.
• The anticipation of earning report may be linked to the sell-off as investors attempt to reposition the investment.
• Recent news of EFCC ultimatum for bankers to declare assets may be seen as a catalyst for sell-off in this sector.