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The collective stock market valuation of major Nigerian banks has surpassed the N6 trillion threshold, experiencing a notable increase of about 13% within the week. As of the close of the trading session on Friday, Research that the combined market value of the top five banks on the Nigerian Exchange reached N6.132 trillion, marking a significant uptrend.
Data gathered from the Nigerian Exchange revealed that the combined market valuation of Zenith, GTCO, UBA, ACCESS, and FBNH settled at N5.4 trillion initially. The recent rally has propelled banking stocks to higher prices, capturing investors’ attention and contributing to the positive momentum in financial stocks.
This sustained surge in demand for financial stocks, including the gradually advancing insurance index, can be attributed to positive sentiment ahead of the anticipated fourth-quarter earnings releases in 2023. Investors are hopeful that companies will declare and pay dividends in the near future, creating a favorable market environment.
A notable observation is the increase in the share prices of the banks, making entry transactions more expensive compared to previous levels. FBN Holdings, with its share price at N28.6, currently has the lowest share price among tier-1 banks, and its financial services market valuation settled at N1.026 trillion.
Access Bank Plc, with a market value of N1.056 trillion, has the second-lowest share price, trading at N29.70 after experiencing significant share appreciation on the same day. UBA’s share price has risen to N32.6.
GTCO, maintaining an upward trajectory in its earnings, is now valued at N1.418 trillion on the Nigerian Exchange, with a closing share price of N48.2 as of Tuesday. Zenith Bank Plc has emerged as the most valuable in the Banking index, reaching a market value of N1.486 trillion due to sustained buying interest in the equities market. The bank’s share price climbed to N47.2 as of Tuesday.
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