Banks Record Gains Over Shares Buying Festival
Nigerian deposit money banks (DMBs) listed in the stock market recorded valuations jump on Tuesday after the shares buying festival that greeted Godwin Emefiele’s suspension as the Central Bank of Nigeria (CBN) Governor.
Apart from big banks like Zenith, GTCO, Access, FBNH, and UBA, other lenders in the tier-2 class also recorded valuations jump over improved market sentiments with the hope of better, healthy policies and regulation in the financial sector.
Last week, President Bola Tinubu suspended Emefiele with immediate effect over an investigation ahead of monetary policy reforms. Reacting, equities investors pumped money into value, growth stocks while relatively underpriced Nigerian banks stock receives large buying orders.
Consequently, the stock market index inched near 15 years of 56148 points, supported by 8% growth recorded by the banking index.
Zenith Bank’s market price jumped by 10% to N30.8 after investors staked an N2.64 billion bet on about 86 million of the financial service company. Zenith Bank’s market valuation settled at N967 billion at the close of the market.
Similarly, GTCO shares ballooned at the same rate, surging to N30.8 per share from N28 last week. More than 208 million shares were transacted on the floor of the Nigerian Exchange at N6.40 billion. The bank’s popularity earned it an increase in market valuation to N906 billion.
FBN Holdings’ market valuation inched to N520 billion amidst the shares buying festival that happened on the local bourse on Tuesday.
The financial service group’s share price turned up to N14.50 from N14.1 per share when the market opened. The elephant brand moved up slowly as equities investors traded more than 240 million shares at N340 million.
Access Bank accelerated to N14.3 per share in the domestic bourse after 72.111 million exchange hands at N1.031 billion yesterday. Nigeria’s largest bank market valuation jumped to N508 billion.
UBA shares were traded heavily as investors exchanged about 215 million shares at N2.34 billion amidst improved market sentiment. The strong buying side pushed the Pan Africa bank market valuation to N372 billion as shares pushed through, up 9.95% to N10.9 from N9.95.
“We believe the improved bias for Banking tickers was orchestrated by the changes at the Apex bank”, TrustBanc Capital Limited said in a note to investors. #Banks Record Gains Over Shares Buying Festival#
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