Follow Us on Google
By Chinwendu Obienyi
Amid banking stocks appreciating in value during transactions on the floor of the Nigerian Exchange Limited (NGX), the banking index recorded a year-to-date performance of +17.38%, reflecting a strong growth trend within the banking sector.
According to data obtained from the NGX’s website, the likes of AccessCorp, FCMB, GTCO, Jaiz Bank, Sterling Bank, United Bank for Africa (UBA) and Zenith Bank, had their values appreciating as investors swarmed around their stocks.
Noticeably, investors’ appetite for AccessCorp, United Capital and UBA accounted for 433.794 million shares worth N10.274 billion in 8,790 deals, contributing 29.27% and 26.43% to the total equity turnover volume and value respectively.
Experts weighing their opinion on the development attributed the factors contributing to improved earnings from the banks, improved FX reserves and increase in investors’ confidence.
According to them, the sector is showing growth prospects which in turn is attracting investors. Mike Eze, Chief Executive Officer, Crane Securities, said, “You know that the market is information driven and once the market hears about information, it will affect investors’ sentiments towards a particular stock. We saw earning results which was impressive and that is what led to banking stocks appreciating.”
Furthermore, the Financial Services Industry (measured by volume) led the activity chart with 1.068 billion shares valued at N19.820 billion traded in 21,001 deals; thus contributing 72.04% and 50.98% to the total equity turnover volume and value respectively.
The Oil and Gas Industry followed with 103.143 million shares worth N11.351 billion in 8,200 deals. While the Consumer Goods Industry recorded a turnover of 77.198 million shares worth N2.845 billion in 4,266 deals.
This performance underlines the banking sector’s resilience and its role as a cornerstone of Nigeria’s capital market, suggesting continued growth potential amidst stable macroeconomic conditions.
