Bank stocks push market higher

Shares of Nigeria’s listed banks continued on Wednesday to lead the bull race at the Lagos bourse.

As at 11 am on Wednesday, June 14, Access Corporation was trading at a 52-week high of N15.65, gaining N1.35 or 9.44 percent.

As at the time of filling this report, GTCO was trading at a new high of N33, up by N2.2 or 7.14 percent.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities Market Capitalisation increased further on Wednesday from the preceding day’s low of 58,163.59 points and N31.670 trillion respectively to 59,232.67 points and
N32.252trillion.

UBA was also seen trading at a year high of N11.95, up by N1.05 or 9.63 percent, while Zenith Bank rallied to N33.15, up by N2.35 or 7.63 percent.

Also, FBN Holdings was also trading at N15 per share, up by 50kobo or 3.45 percent, while FCMB Group was trading at N5.3, rising by 30 kobo or 6 percent. In the same manner, Fidelity Bank trades at a new high of N6.34, up by 25kobo or 4.11 percent.

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While the banking stocks rallied on the back of the anticipated reforms by the new administration, Vetiva Research analysts said they expect to see a similar trading pattern, as sentiment is expected to remain positive. “However, we do not rule out profit taking in some of the counters that have experienced significant upside in recent sessions,” the analysts added.

According to Lagos-based analysts at Coronation Research, “On Monday a key adviser to President Bola Ahmed Tinubu told Bloomberg news that the Naira’s multiple foreign exchange rates would be merged within three months.

“FX rate unification was a feature of the President’s inaugural address on May 29, and we think it follows logically from his termination of fuel subsidies”. Meanwhile, the equity market rose by 3.99 percent Monday “in response and there are huge implications for different sectors and stocks,” they added.