Bank stocks on the Nigerian Exchange (NGX) suffered significant losses on Monday, June 16, 2025, after the Central Bank of Nigeria (CBN) issued a directive suspending dividend payments to shareholders. The NGX Banking Index dropped by 3.98 percent, making it the steepest decline among sector indices for the day. The move sparked widespread sell-offs among investors, despite Monday marking the first trading day of the week.
The broader stock market also saw a modest decline of 0.15 percent, while sector-specific performance varied. The NGX Consumer Goods Index rose by 1.98 percent, showing some investor confidence in the sector. Conversely, the NGX Insurance and Oil & Gas Indices declined by 0.49 and 0.90 percent respectively. Analysts at Vetiva noted that while some downward pressure is expected to continue, institutional activity and healthy volume flow indicate a constructive sentiment if the market remains above the 110,000-point level.
The All Share Index (ASI) ended the day at 115,258.77 points, and the total market capitalisation decreased to N72.68 trillion. Actively traded stocks included major banking institutions such as Access Holdings, UBA, Zenith Bank, Fidelity Bank, and GTCO. Overall, a total of 721.75 million shares were exchanged in 22,100 deals, amounting to N22.01 billion in value.
In addition to halting dividend payments, the CBN directive also includes a suspension on bonuses for directors and top management of banks. The apex bank further instructed financial institutions to pause new investments in foreign subsidiaries and overseas ventures. These measures are part of regulatory tightening efforts aimed at strengthening the domestic banking sector.
Analysts from Futureview predicted a mixed-to-bearish outlook for the equities market in the days ahead. Profit-taking activities and investor focus on the upcoming Treasury Bills Primary Market Auction (PMA) scheduled for Wednesday are expected to impact market direction in the short term.
Source: Business day