The stocks of financial institutions experienced a notable upswing in the first trading day after Central Bank Governor Dr. Olayemi Cardoso announced a recapitalization requirement linked to President Bola Tinubu’s ambitious $1 trillion economy projection. During the 58th annual Bankers’ Dinner, Cardoso revealed stress test results indicating that Nigerian banks could withstand mild to moderate stress but would need recapitalization to effectively serve a $1 trillion economy.
He emphasized the need for further fortification to enhance industry resilience against future challenges. In response to these developments, First Bank of Nigeria Holdings led the gainers’ chart on Monday with a 10% increase, reaching N22 per unit, marking its highest point for the month.
This surge comes in tandem with FBNH’s announcement of plans to raise fresh capital through a Rights Issue. Investors are strategically positioning themselves ahead of the commencement of the issue, reflecting the market’s response to the call for recapitalization.
Also making a gain on Monday was the stock of Sterling Financial Holdings Company, which gained 5.07 per cent to close at N3.73. This is another high for the lender as it traded as low as N3.5 on Thursday.
The stocks of Access Holdings Plc appreciated by 4.32 per cent to close at N18.1 compared to Friday’s closing figure of N17.35 per unit. Over 81.514 million units of the shares of the lender worth N1.467bn were traded in 621 deals.
Zenith Bank shares rose by 1.73 per cent to close at N35.3 per unit. The bank saw 12,914,65 units of its shares valued at N453.44m exchanged in 475 deals.
Also, a gainer of the renewed interest in banking stocks were the shares of FCMB which appreciated by 1.46 per cent to N6.95 per unit. A total of 14,950,665 valued at N104.32m were exchanged in 115 deals and United Bank for Africa wrapped up the list of banking stocks on the gainers chart with a gain of 1.44 per cent. 30,306,403 million units of UBA shares worth N646.18m exchanged hands in 517 deals.
Banking stocks were also the volume and value drivers of the day’s trend on the NGX led by stocks of AccessCorp, United Bank of Africa and Zenith Bank.
