In the first seven months of 2024, Nigerian equities market transactions increased by 44% compared to the same period in 2023, driven primarily by the ongoing bank recapitalisation exercise.
The total transactions in the market rose to N3.095 trillion, a significant jump from N2.154 trillion recorded in the previous year.
Banks such as Fidelity, GTCO, and Access Holdings have successfully completed their capital raising programs, while others like FCMB Group and Zenith Bank are still in the process.
The Central Bank of Nigeria (CBN) initiated a two-year recapitalisation plan starting in April 2024, which has spurred increased activity in the stock market as banks rush to meet the new capital requirements.
Analysts suggest that while this exercise will strengthen banks and enhance their ability to support the real sector, it may also dilute returns for existing shareholders and concentrate market power among a few large banks.
Domestic investors have been particularly active in the market, almost doubling their transactions in 2024 compared to 2023.
Analysts remain optimistic about the market’s outlook for the rest of the year, citing corporate actions, improved liquidity, and a positive economic outlook as key drivers of growth.
https://businessday.ng/markets/article/stock-deals-jump-44-on-banks-recapitalisation/