On the first trading day post-Christmas, the Nigerian Exchange Limited witnessed a decline of N139 billion in market capitalization. Despite this downturn, banking stocks on the exchange continued their positive trajectory. The All-Share Index and market capitalization experienced a 0.34% drop, bringing the year-to-date gain to 43.94%. Notably, the banking index showed resilience, recording marginal gains.
Key Points:
- Banking Index Performance: While the broader market faced a dip, the banking index on the Nigerian Exchange Limited demonstrated resilience. Notable gainers included FCMB Group, Fidelity Bank, Guaranty Trust Holding Company, Jaiz Bank, Unity Bank, Zenith Bank, and Access Holdings.
- Mixed Performances: Among the banking stocks, FCMB Group surged by 4.79%, Fidelity Bank by 0.95%, and Jaiz Bank by 8.75%. However, Stanbic IBTC Holdings, Sterling Financial Holdings Company, FBN Holdings, and United Bank for Africa experienced declines.
- Market Breadth: The market breadth, indicating investor sentiment, remained positive with 40 gainers and 21 losers. Notable gainers included Eterna, Axa Mansard, and Multiverse TERNA.
- Trading Activity: Trading activity saw an improvement with a 40.55% increase in total deals and a 2.27% rise in traded volume. However, the traded value declined by 21.99% to N12.94 billion.
- Despite the market’s overall decline, the Nigerian banking sector demonstrated resilience, with several key players maintaining positive momentum. The positive market breadth and increased trading activity suggest ongoing investor confidence. However, concerns about the Central Bank of Nigeria’s special investigator report did not materialize into a run on banks, and the CBN reassured the public about the safety of deposits in Nigerian banks.