Stocks shed 3.1% on unclear CBN’s forex policy

Stocks shed 3.1% on unclear CBN’s forex policy
Oladejo Amos
Trading in equities segment of the Nigerian Stock Exchange closed on a negative note on Tuesday as investors waiting for clarity on a new Central Bank of Nigeria, CBN’s currency policy sold shares to book profits following a recent rally.
The All Share Index fell 3.1 per cent to close at 27,995 points, dragged down mostly by a sell-off in the relatively liquid banking sector.
The stock had last week hit a six-month high after the CBN’s said it will abandon a currency peg, which has frustrated investors and a shift to a more flexible policy.
The measure aimed at luring foreign cash prompted domestic investors to buy shares.
However, doubts remain over whether the gains would be sustained as central bank is yet to clarify how the new policy would work, after keeping its currency peg for 15-months in order to avoid devaluation.
Transnational Express Plc led the gainers’ table with 14 kobo or 9.21 per cent to close at N1.66 per share, followed by Etranzact Plc with 45 kobo or 8.98 per cent to close at N5.46 per share.
University Press Plc appreciated 22 kobo or 4.98 per cent to close at N4.64 per share, while Continetal Insurance Plc rose five kobo or 4.55 per cent to close at N1.15 per share.
Learn Africa Plc added three kobo or 3.95 per cent to close at 79 kobo per share, while May and Baker Plc gained four kobo or 3.45 per cent to close at N1.20 per share.
Zenith Bank Plc shed N1.60 or 9.65 per cent to close at N14.98 per share, while ETI Plc lost N1.73 or 9.58 per cent to close at N16.32 per share.
FBN Holdings Plc depreciated 41 kobo or 9.40 per cent to close at N3.95 per share, while WAPCO Plc dropped N6.44 or 7.76 per cent to close at N76.57 per share.
United Bank for Africa dipped 29 kobo or 5.75 per cent to close at N4.75 per share, while Guaranty Trust Bank Plc fell N1.08 or 5.24 per cent to close at N19.53 per share.