The Nigerian banking stocks slumped the most since June 2016 a day after the re-election of President Muhammadu Buhari, as some investors showed disappointment at the defeat of his market-friendly opponent.
An index of Nigeria’s 10 largest banking stocks dropped by 4.6 per cent at the end of trading on the floor of the Nigerian Stock Exchange on Thursday, while the country’s benchmark stocks index retreated for the third day.
First City Monument Bank Plc was the sector’s major loser, down by 9.78 per cent.
Diamond Bank Plc saw it share price drop by 7.76 per cent, Unity Bank Plc’s share price declined by seven per cent, while Guaranty Trust Bank Plc’s share price dropped by 6.85 per cent.
Fidelity Bank Plc, Wema Bank Plc, Access Bank Plc, United Bank for Africa Plc, Stanbic IBTC Holdings Plc, Zenith Bank Plc, FBN Holdings Plc, Ecobank Transnational Incorporated and NPF Microfinance Bank Plc recorded share price declines of 6.38 per cent, 5.13 per cent, five per cent, 4.49 per cent, 4.23 per cent, 4.02 per cent, 1.92 per cent, 1.41 per cent and 1.23 per cent.
An analyst at Exotix Capital, Olabisi Ayodeji, said in an interview with Bloomberg, “We are seeing investors react negatively in the short term to the election results.
“Buhari easily won a second term as president of Africa’s biggest oil producer with promises to revive an anaemic economy and tackle security threats, including a devastating insurgency by Islamic State.
“His main opponent, Atiku Abubakar, who was seen as favoured by investors, has rejected the results of the weekend vote.”