Investors Appetite for Financial Stocks Rise in Nigerian Market
Investors showed significant buying interest on some financial stocks – banking and insurance names – in the local exchange last week. Demand for financial stocks increase generally ahead of fourth quarter of 2024 earnings release.
Insurance Index drove the momentum amidst weak valuation in the segment, gained 7.87% week on week as investors shifted attention to low priced stocks. Demand for Insurance stocks improved amidst recapitalisation plan.
The buying momentum nudged the Nigerian Exchange (NGX) banking index higher by 1.97% week on week. The bargain hunting or the strong buying sentiments was driven by banks that signal successful capital raising from public offer and rights issues.
The surge in banking index was buoyed by demand for stocks like FIDELITY BANK, STERLING BANK, and STANBIC among others.
Sixty-three (63) equities appreciated in price during the week, higher than sixty equities in the previous week, while Twenty (20) equities depreciated in price, lower than twenty-six in the previous week.
Ticker: STERLINGNG added 13% to its market value, FIDELITYBK gained 7.19% while WEMABANK saw 6.47% price uptick. JAIZBANK gained 5.65%, and FCMB popped higher by 5.56%.
Other financial stocks that inched higher in terms of market value include FBNH which gained 4.85%, while STANBIC popped higher by 2.48%. Pan African lender UBA price surged by 2.37% and ZENITHBANK market value increased by 0.22%.
In the insurance segment, investors’ appetite in UNIVERSAL INSURANCE nudged its market higher by 25% week on week while ,ROYALEX rose by 24.7%. #Investors Appetite for Financial Stocks Rise in Nigerian Market 2025 Budget: N13trn Deficit to be Financed Through Borrowing – Edun
