TINUBUNOMICS: Bank stocks surge 12.59% in a week

Nigerian investors made a significant profit of N544.807 billion from banks listed on the Nigerian Exchange Limited (NGX) as the local stock market closed the trading week on a positive note.

The banking sector index gained 12.59% to emerge as the best-performing index at the close of trading. This was due to investors’ reaction to the changes in Nigeria’s foreign exchange operational framework and President Bola Tinubu’s suspension of Central Bank Governor, Godwin Emefiele, who oversaw restrictive policies that cramped their earnings.

The president also announced a list of technocrats as special advisers for his economic team. These technocrats are expected to help the president in formulating and implementing policies that will boost the economy and attract foreign investment.

Market performance

Available statistics to RNN showed that the NGX All-Share Index and Market Capitalization appreciated by 5.49% to close the week at 59,000.96 and N32.126 trillion respectively. 

Similarly, all other indices finished higher except NGX Industrial Goods and NGX Growth which depreciated by 1.63% and 1.07% respectively while the NGX ASeM index closed flat. 

Banking index

The banking index on the Nigerian Exchange increased by 12.59% or 66.21 basis points to close at 592.14 points, up from 525.93 points the previous week.

RNN analyzed the share prices of 14 banks listed on the Nigerian Exchange Group during the week. Notable among the banks are Zenith Bank, Access Holdings, FBNH, UBA, GTCO, Stanbic IBTC Holdings, and ETI.

Others are Fidelity Bank, Jaiz Bank, Sterling Bank, Union Bank, Unity Bank, Wema Bank, and FCMB Group.

Data from the NGX showed that the banks’ stocks recorded a combined gain of 544.807 billion nairas in market value during the week under review.

Except for Union Bank, whose share price remained static, all other banks recorded an increase in market value following positive sentiment from investors excited about the new reforms.

Further checks revealed that Zenith Bank, Stanbic IBTC, GTCO, Fidelity Bank, and ETI topped the list of gainers during the week.

These banks collectively recorded a gain of 373.810 billion nairas in market capitalization, accounting for about 68.61% of the combined gain of all the banks.

1. ETI – N51.379 billion  

ETI Plc enjoyed a profitable week in its equity performances. The Bank recorded a gain of N51.379 billion in market capitalization during the week from N231.204 billion the previous week to close at N282.583 billion on Friday. Its share price grew to N15.40 per share from N12.60 it recorded the previous week, representing an increase of 22%. 

 ETI closed its last trading on Friday at N15.40 per share on the Nigerian Stock Exchange (NGX), recording a 1% gain over its previous closing price of N15.25. Ecobank began the year with a share price of N10.60 and has gained 45.3% on price valuation. 

2.FBNH-N61.021 billion 

FBNH recorded a gain of N61.021 billion in market value from N506.123 billion it opened the week’s trading to N567.145 at the end of trading on Friday, representing a growth of 12.06%.  

The share price equally grew by 12.06% to close at N15.80 per share compared to 14.10 as of the previous week. 

FBNH ended its trading session at the weekend at N15.80 per share, recording a 1.9% drop from its previous closing price of N16.10. The group began the year with a share price of N10.90 and has gained 45% on price valuation. 

3. GTCO- N76.521 billion 

GTCO Plc closed the week with a gain of N76.521 billion in market capitalization, from N824.073 billion the previous week to close at N900.594 billion, accounting for 9.28%. 

The share price gained 9.28% to close at N30.60 per share from N28.00 recorded as of the previous week. 

GTCO closed its last trading session at N30.60 per share recording a 3.9% drop from its previous closing price of N31.85. Guaranty Trust Holding began the year with a share price of N23.00 and recorded 33% on that price valuation. 

4. Stanbic IBTC-N90.698 billion 

Stanbic IBTC Plc also enjoyed a profitable week in its equity performance. The group recorded a growth in market capitalization of N90.698 billion to close at N673.763 billion at the close of the week’s trading, from N583.064 billion the previous week. 

 Stanbic IBTC’s share price appreciated by 15.55% to close the year at N52.00 per share from N45.00 recorded a week after. 

Stanbic finished the last trading day of the week at N52.00 per share, posting a 3.7% drop from its previous closing price of N54.00. Stanbic IBTC began the year with a share price of N33.45 and has since achieved 55.5% on the price valuation. 

5. Zenith Bank- N94.189 billion 

Zenith Bank Plc closed the week with a gain of N94.189 billion in market value, from N879.101 billion the previous week to close at N973.291 billion on Friday. 

The share price recorded a gain of 10.71% to close at N31.00 per share from N28.00 recorded as of the previous week. 

Zenith Bank closed at N31.00 per share on the Nigerian Stock Exchange (NGX), recording a 3.3% drop from its previous closing price of N32.05. Zenith began the year with a share price of N24.00 and has since gained 29.2% on the price valuation. 

Others include 

• Access Holdings- N43.431 billion 
• UBA- N39.329 billion 
• Fidelity Bank- N33.900 billion 
• Sterling Bank- N19.289 billion 
• Jaiz Bank-N14.161 billion 
• Wema Bank – N9.257 billion 
• FCMB – N8.119 billion 
• Unity Bank- N3.506 
• Union Bank – Flat 

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