The Nigerian stock market has continued its upward trend, with banking stocks driving the spike and contributing more than N2.62 billion to the market.
Investors are showing renewed interest in banking equities, in anticipation of higher dividend payouts. Analysts attribute this surge to expectations of increased dividends rather than the recapitalization process.
Ambrose Omorodion, a financial analyst, believes that investors are positioning themselves for higher dividend payments, driving the improvement in banking sector values.
Boniface Okezie, National Coordinator of the Progressive Shareholders Association of Nigeria, concurs, stating that the performance of banking stocks is primarily driven by investors’ anticipation for higher dividends, focusing on fourth-quarter results and potential dividend increases, rather than recapitalisation alone. This anticipation is driving stock performance and overall market performance.
Access Holdings Plc led trading in value terms with N1.06bn, followed closely by GTCO with N599.34m and FirstBank Holdings which recorded N519.53m in trades.
The market capitalization and All-Share Index rose by 0.49%, with investors trading 443.16 million shares valued at N5.64bn. Additionally, the market gained N272 billion, boosting investor confidence.
The market capitalisation closed at N55.44bn while the All-Share Index closed at 96,510.13, bringing the year-to-date percentage to 29.57%
Of the 120 equities traded on Tuesday, there were 49 gainers and 14 losers.
TotalEnergies Marketing Nigeria, Julius Berger Nigeria, John Holt Plc, and Neimeth Pharmaceuticals were among the top gainers, with a 10% increase each.
Conversely, University Press led the losers’ chart, dipping by 9.58%. followed by Cutix Plc and Vitafoam Nigeria, which dropped by 6.25 per cent and 5.17 per cent, respectively.
Veritas Kapital Assurance Plc had the largest trading volume with 83.1 million shares, followed by Access Holdings Plc with 56 million shares. Universal Insurance Company Plc and FBN Holdings also saw significant volumes of 29.1 million and 23.6 million shares, respectively.
