Banks Drive N1.5tn Appreciation In NGX Market Cap

Banks Drive N1.5tn Appreciation In NGX Market Cap

Banking stocks were the main drivers of the gain recorded by investors on the Nigerian Exchange Limited in the first two trading sessions of 2024.

At the close of trading, the market capitalisation had gained over N1.5tn combined from Tuesday and Wednesday’s sessions.

The banking stocks include Fidelity Bank which had over 108 million units of its shares worth N1.312bn traded in 473 deals, United Bank for Africa had the highest value of traded units at N1.544bn exchanged in 634 deals and FCMB Group saw 79.062 million units worth N644.032m traded in 440 deals.

The stocks of Access Holdings witnessed increased activities on Wednesday as 46.872 million units of it valued at N1.184bn were traded in 550 deals. The equities of Jaiz Bank, Sterling Financial Holdings, Wema Bank, Unity Bank, and Zenith Bank were also investors’ toast.

In the previous trading session, the drivers of the market were the stocks of  Mutual Benefits Assurance Plc, Transcorp Plc (+9.93 per cent), Unity Bank (+9.88 per cent), United Bank for Africa (+1.36 per cent), Access Holdings (+1.73 per cent), Zenith Bank (+0.91 per cent) and Airtel Africa (+5.99 per cent).

At the close of trading, both the market capitalisation and All-Share Index broke the milestones set on Tuesday to close at new record highs of  N42.429tn and 77,537.57 points respectively.

The market had closed in 2023 with the market cap and ASI at N40.917tn and 74,773.77 points.

A number of the banks whose stocks are recording increased activities are observing a closed period which bars insiders and persons related to them from trading in the shares of the financial institutions pending the release of the audited accounts and financial statements for the year ended December 31, 2023.

This is one of the post-listing requirements of Nigerian Exchange Limited for companies on its platform.

Meanwhile, the market breadth remained positive with the gainers chart jumping to 78 gainers from 50 on Tuesday and the decliners shrinking to seven from 18 in the previous trading session.

Eleven equities namely Berger Paints Plc, Custodian Investment Plc, Dangote Sugar, Cornerstone Insurance, FCMB Group, Ikeja Hotel Plc, Morison, NASCON Allied Industries, UBA, University Press Plc and Infinity Trust Mortgage Bank Plc gained 10 per cent each; the maximum gain they could in a day.

The losers were led by Learn Africa, Champion, CI Leasing, NGX Group and EllahLakes with 9.09 per cent, 7.32 per cent, 2.33 per cent, 1.70 per cent and 1.64 per cent losses respectively.

The volume of traded stocks for the day rose to 927.56 million units valued at N10.69bn, which were exchanged in 11,3629 deals.

Analysts had projected a bullish run on the market ahead of the reporting and earnings season of listed companies.

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