Failing the seemingly recovery attempt posted yesterday, equities trading on the floor of the Nigerian Stock Exchange dipped by 54Bpts as it closed at 29,994.81. Noteworthy is the fact that this is despite the very attractive financials and final cash dividend (N1.75) announced by Gtbank during today’s trading activities. In fact, NSE-Banking Index dropped. Performance was mixed amongst the observed market indices as shown in the index movement table. Meanwhile, Week to Date market returns is now red – 7Bpts while Month to Date loss shifted to 132Bpts.
Value loss by the market capitalization of the listed equities during today’s trading activities was N49.574 billion same as 57Bpts below the opening value. Meanwhile, trading activities for the day produced 10 advancers and 16 lagers. NSEASI Year to Date loss is -6.99% while the Market Capitalization Year to Date loss stood at –N599.732 billion same as 6.49% below the year’s opening value.
Exciting traders during today’s trading activities was the financial statistics of Guaranty Trust Bank for the year ended 31st December, 2016. In the result, a final cash dividend of N1.75 was proposed in addition to the previously paid N0.25. In other words, total cash dividend paid in 2016 is N2.00. So far, this is the highest dividend paid by any listed financial institution, at least among those that already unveiled their financials till date.
Ordinarily, investors are expected to react positively to this figure, but going by the trend seen in recent times where investors dumped equities after earnings released, one is not sure how Gtbank shares will be treated. In our view, this action is due to the fact that most investors had positioned for the results over four months before now. It is therefore necessary to cautiously play around the market arena.