In a notable market response to the Central Bank Governor’s announcement regarding the need for banks to recapitalize for a projected $1 trillion economy, financial institutions witnessed a surge in stock prices on the first trading day. Dr. Olayemi Cardoso’s statement at the 58th annual Bankers’ Dinner emphasized the importance of reinforcing the banking industry to meet the challenges of sustaining a robust economy.
The leading gainer on Monday’s trading session was First Bank of Nigeria Holdings (FBNH), which saw a remarkable 10% gain, closing at N22 per unit—the highest recorded this month. FBNH has already announced plans to raise fresh capital through a Rights Issue, leading investors to position themselves ahead of the upcoming issue.
Sterling Financial Holdings Company also experienced a positive momentum, gaining 5.07% to close at N3.73, marking a notable high compared to its previous trading days. Similarly, Access Holdings Plc recorded a 4.32% appreciation, closing at N18.1, with a substantial trading volume of over 81.514 million units worth N1.467 billion.
Zenith Bank shares witnessed a 1.73% rise, closing at N35.3 per unit, and FCMB (First City Monument Bank) saw a 1.46% increase, closing at N6.95 per unit. United Bank for Africa (UBA) also made gains, closing with a 1.44% increase. Notably, banking stocks dominated both the volume and value drivers of the day’s trend on the Nigerian Exchange Group (NGX), with stocks of AccessCorp, UBA, and Zenith Bank leading the way.
Investors displayed renewed interest in banking stocks, prompted by the anticipation of recapitalization measures in response to the Central Bank’s stress test results. The positive market response underscores the significance of strengthening the banking industry to align with the demands of a projected $1 trillion economy.