Sustained demand for UBA, Access Holdings, and Nigeria’s 3-F banks (FBNH, FCMB, and Fidelity Bank) boosted the banking index as the Nigerian Exchange rose further. The surge in interest in banking names coincided with the Central Bank’s decision to raise the benchmark interest rate by 50 basis points.
Additionally, UBA and Access Holdings contributed to the momentum. Prior to its rights offering, UBA’s market price grew by +4.53%, while ACCESSCORP increased by +1.84%. FBN Holdings began the process of recouping losses after the financial services group announced the divestiture of its merchant division.
FCMB became an investor favorite after its capital raising exercise, aided by better sentiment. Fidelity Bank experienced a similar event, and its stock price has remained on an upward trajectory.
Stock analyst said momentum in banking tickers, drove the Banking Index up by 3.01%, led by strong performances in FBNH, up by +9.93% and FIDELITYBK rose by +9.70% while FCMB gained 2.7%.
FBN Holdings has gained N3.50 in the last two days, up from N27.50 to N31, with total market capitalization ending at N1.112 trillion. In two days, FCMB has gained N1 or 10% to settle at N9, and its market value reached N178.223 billion in the equities market.
Fidelity Bank has gained N2.80 over two days in the equities market, up from N13.60 at the close of trading session last week to N16.40. Its total market value has surged to N525 billion.
Access Holdings, Nigeria’s largest banking group by total asset currently above N36 trillion has total market value of less than N700 billion.
Ahead of its rights issues to shareholders, UBA shares have surged higher, and stockbrokers said improved sentiment could drive the pan African lender price upward as the market prepares for the third quarter’s earnings.
