Nigerian Banks Drive Intraday Momentum in Equities Market
The Nigerian Exchange (NGX) is tracking higher sharply during the intraday trading session as investors increase their bets on Nigerian banks. Buying interest in local banks stocks continues to gain momentum ahead of the second quarter earnings release.
The local bourse is experiencing a significant rise in value in intraday trading as investors show more confidence in Nigerian banks. Interest in purchasing shares in local banks is growing steadily in anticipation of the upcoming second-quarter earnings announcement.
The increased bargain hunting followed a recent assurance given by the Central Bank of Nigeria (CBN) that deposit money banks in the country are healthy. In a chat with MarketForces Africa, some of the Broadstreet analysts highlighted that the Nigerian banks are undervalued compared with their emerging market peers.
To stockbrokers, the valuation provides support for buying action via the local bourse, given huge upside potentials and the expectation that many Nigerian banks have exited the CBN forbearance.
At midday, the NGX All Share Index posted a gain of 0.58%, Alpha Morgan Capital Limited told investors in an emailed note, reflecting an upward trend on the day. Stockbrokers explained that this upward movement was driven by buying interest of investors in some mid- to high-capitalized stocks.
Banking names making waves in the Nigerian Exchange include WEMABANK (5.38%), GTCO (4.00%), UBA (2.24%), JAIZBANK (2.20%), FCMB (2.15%), and WAPCO (2.00%).
The rally is also supported by gains in DANGSUGAR (3.37%), INTBREW (3.00%), and UCAP (2.94%). Other gaining tickers include TRANSCORP (1.85%), STERLINGNG (1.79%), NASCON (1.37%), ACCESSCORP (1.08%), NB (0.81%), and ZENITHBANK (0.53%), among others. Nigeria’s Eurobond Yield Falls Sharply, Closed at 8.80%
