The market capitalisation of banks listed on the Nigerian Stock Exchange dropped by N657bn in the first seven months of the year as market conditions remained bearish.

The market capitalisation of banks opened the year at N3.63tn but closed at N2.97tn on July 31.

Guaranty Trust Bank Plc market saw its market capitalisation drop from N1.01tn to N835.85bn.

Access Bank Plc, which merged with the Diamond Bank Plc, saw its market capitalisation drop to N232.82bn from N247.2bn (Diamond Bank’s capitalisation inclusive) at the beginning of the year.

Ecobank Transnational Incorporated saw N106.42bn wiped off from its market capitalisation as it dropped to N150.47bn from N256.89bn, while the capitalisation of FBN Holdings dropped from N285.37bn to N204.60bn.

FCMB Group Plc recorded N5.35bn decline in its market capitalisation from N37.43bn to N32.08bn while Fidelity Bank’s capitalisation dropped from N58.82bn to N46.36bn.

The market value of Stanbic IBTC Holdings Plc’s shares dropped from N491.03bn to N391.19bn while United Bank for Africa Plc saw its market value shed N58.14bn to close at N205.20bn on July 31.

Unity Bank Plc’s market capitalisation, depreciated to N7.72bn from N12.51bn, while Zenith Bank Plc’s capitalisation dropped from N723.69bn to N574.56bn.

On the flip side, Sterling Bank Plc’s market capitalisation increased to N66.22bn from N54.70bn while Union Bank Nigeria Plc’s capitalisation increased from N163.08bn to N199.48bn.

The market capitalisation of Wema Bank Plc remained unchanged at N24.30bn.

The Group Chief Executive Officer, United Capital Plc, Mr Peter Ashade, said the bearish position of the market was because foreign investors had continued to snub equities due to deeper concerns about the policy framework of the government.

He said in terms of what the Nigerian Stock Exchange could do to turn the situation around, there was a need to continue to encourage big- ticket listing like that of MTN Nigeria Communications Plc and Airtel Africa Plc.

Ashade said, “The exchange can also target huge non-listed entities such as DSTV, Shoprite, as operators in the rapidly growing digital economy, to boost newer listings.

“To trigger a rally, we need to sort out concerns around multiple exchange rates, government revenue and other related issues to bolster interest in equities. The market is looking for something to trigger a rally.”

He added that more pro-market policy pronouncements and reforms by the government were needed to bolster investor confidence in the domestic economy.