Market analysts are taking a cautious but optimistic stance on Nigeria’s banking sector, issuing a string of “Hold” recommendations on key banking stocks amid signs of improving investor sentiment. Despite recent market volatility triggered by March’s inflation data, the general mood on the Nigerian Exchange (NGX) appears to be stabilizing. The All-Share Index dipped slightly by 0.32% last week, but positive momentum has since returned, buoyed by renewed interest in some of the major banking names.
Sector performance has been mixed. While the Consumer Goods and Oil & Gas indices saw modest gains, the Banking Index dropped by over 5%, reflecting continued pressure in the sector. However, Lagos-based Capital Bancorp and FutureView both revised their ratings on several banking stocks from “Caution” or “Sell” to “Hold,” pointing to a stabilizing outlook. Stocks like ACCESSCORP, ETI, UBA, and GTCO saw renewed buying interest, helping lift the ASI and market capitalization at the start of this week.
Outside banking, investor sentiment varied across other sectors. In consumer goods, FutureView downgraded Nigerian Breweries but upgraded Nestlé Nigeria, signaling a shift in risk appetite. The ICT sector was similarly divided, with MTNN receiving mixed ratings, while industrial stocks held steady with “Buy/Hold” outlooks. Overall, the market’s sentiment ratio rose, suggesting a broader sense of confidence despite subdued trading volumes and continued economic headwinds.
In a related development, Sterling Bank announced a strategic partnership with ECOWAS Bank for Investment and Development (EBID) to provide $50 million in long-term funding for high-impact Nigerian businesses. This deal strengthens Sterling’s position as a key driver of real sector growth, particularly in its focus areas—Health, Education, Agriculture, Renewable Energy, and Transportation (HEART). The move underscores growing trust in Nigerian financial institutions’ ability to channel development finance effectively, offering a much-needed boost to enterprises across the country.
Source: Tribune