Grace Ashiru
Nigeria’s five largest banks, namely First Bank, Access Bank, UBA, Guaranty Trust Bank, and Zenith Bank have each achieved a market capitalization of at least N1 Trillion on the NGX, Nigeria’s stock exchange. These banks are currently benefiting from a strong market performance that resulted in a significant ₦1.6 trillion gain just yesterday.
As of the end of Tuesday, the banking index recorded an impressive 8.2% increase, equivalent to ₦6.1 trillion, which welcomed Access Bank, UBA, and First Bank into the trillion naira club. These newcomers have joined longstanding members like GTCO and Zenith, which concluded trading with market capitalizations of ₦1.42 trillion and ₦1.49 trillion, respectively.
The three recently introduced bank stocks have collectively experienced an average increase of 10% in value, leading to their current status within the market this week. Concerns expressed by analysts in the past regarding the NGX’s heavy reliance on seven trillion naira firms, which constitute 66% of the NGX’s total market capitalization, may now be alleviated to some extent due to the addition of more banking stocks that have crossed the trillion naira threshold
Nigeria’s stock market is currently witnessing an unprecedented surge, encouraging tech startups to contemplate listing their stocks on the exchange. The All Share Index, a key indicator tracking the movements of share prices on the stock exchange, recently reached a 7-month high of 83,191.84 at the close of trading yesterday. This achievement leaves room for anticipation, as today’s trading session could potentially culminate in yet another record-breaking high.
However, some analysts cautioned that the upward momentum in the stock exchange might be temporary, anticipating a potential decline later this month. “Investors could start to cash in their gains towards the end of the month,” cautioned Oyekanmi. As trading begins today, investors might consider taking calculated risks. In 2024, the NGX has already seen a growth of 11.26%, aiming to surpass the impressive 45.90% growth achieved last year.
