Condolence Letter For A Church Member

NSE dips 2% as the Bank sell-off lead

March 17 (easykobo) - Contrary to reports that fund managers may be building long positions in shares, an increase in selling pressure today as the NSE market plunged 526 points or 2.11 %. banking stocks led the sell-off, as almost all the major banks fell. Damning reports of a major militant attack in an Agip oil facility in the state Bayelsa increased concerns about security before the general elections next month. Easykobo analyst interviewed said "it is as if the political uncertainty was not enough, now we have this security problem that makes foreign investors doubtful about investing in Nigeria." To stay updated with the financial environment of Nigeria, www.easykobo.com visit every day.

Bank sell-off

Even the news of heating plans $ 300 million investment in Sterling Bank of South Africa's First Rand failed to cheer the market. sell off in banking shares has much to do with an increase in waiting rate loan reference by 25 basis points to 6.75%. This squeeze profit margins for banks with an increase in recruitment costs.

The decline Naira erode a substantial part of earnings, reported in dollar terms. Earlier this week, CEO of Skye Bank has confirmed that the bank's profits will be reduced due to an increase in the CBN in benchmark lending rates.

Budget

Senate passed a 4.972 trillion naira ($ 32 billion) 2011 budget yesterday, weeks before the election, increasing spending plans with respect to the initial proposal, the President Goodluck Jonathan three months ago. This can lead to higher inflation is already high at 11.1%

CBN therefore has no choice but to raise the benchmark lending rate, not just this month, but prpbably as much as two or three times a year. This is the main reason for the sell off in banking today. Round up

the NSE today, the banking sector led the sell off with

Access Bank down 5%,

Zenith Bank was down 4%,

LSU was down 4.5%

First Bank was down 4.2%, -0.8%

Sterling Bank

GT Bank was up 1%

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