BANKS lead the market sell-off   

April 15 (Lagos) - The all stock index fell more than 0.5% today as the sell-off in banks expectedly increased after the GTCO released their capital raise plans. 

On the global front also there are grew skies everywhere as Iran attacked Israel over the weekend and now the world is waiting to see how Israel will respond. US markets sold off after gaining initially and in Asia, the high flying Indian stock market also fell today. 

However, at home Bank investors are spooked by the banking sector after realizing what the Banks will have to do to meet the requirements that the CBN has put in front of them over the next two years. Shareholders rushed to sell bank shares today and many were not able to get them off their hands, they will be back again tomorrow and rest of the week. The dividends that the banks announced are in no way attractive given the amount of dilution that shareholders are staring at. 

The future currency devaluation risk is potentially another huge risk. The CBN's resolve to "fix" the banking sector is a strong resolve that will require pain before the gain which will be years into the future. One shareholders who spoke with easykobo today said he tried his best to sell his top banking stock but was not able to fill his orders and he has left standing orders with his brokers to sell tomorrow first thing in the morning. 

There were a few green shoots today with gains in TRANSCORP and OANDO which is up as its long awaited court case regarding de-listing is scheduled to be heard by a judge later this week. 

reporting for on Monday, April 15 2024 from Lagos, Nigeria
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