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Bank stocks dominate gainers as equities halt slide

By BusinessNews Staff on February 26, 2014

Equities rallied on Monday, led by banking stocks, to halt a two-session slide caused by the suspension of the Central Bank of Nigeria Governor, Mr. Lamido Sanusi.

Banking stocks were hit the most as equities value fell by N353bn or 2.80 per cent in two days on negative investor sentiment about Sanusi’s suspension.

However, United Bank for Africa Plc, which rose by 8.66 per cent or 58 kobo to close at N7.28 per share, was the top gainer on Monday with more than eight other bank stocks also rising.

For instance, Diamond Bank Plc rose by 4.92 per cent, Skye Bank Plc was up by 4.55 per cent, while Wema Bank Plc and Fidelity Bank Plc rose by 4.21 per cent and 3.83 per cent, respectively.

Zenith Bank Plc, Sterling Bank Plc and Ecobank Transnational Incorporated were up by 3.27 per cent, 3.18 per cent and 2.90 per cent in that order, while Guaranty Trust Bank Plc gained 1.48 per cent.

The stocks of FBN Holdings Plc, the parent company of First Bank of Nigeria Limited, and FCMB Group Plc, the parent company of First City Monument Bank Limited, also erased part of the recent losses they made. They rose by 4.92 per cent and 3.03 per cent, respectively.

Access Bank Plc, however, shed 3.41 per cent to secure a spot among Monday’s 18 losers, alongside Stanbic IBTC Holdings Plc, the parent company of Stanbic IBTC Bank, which fell by 0.51 per cent.

The market capitalisation of the listed equities rose on Monday by N132bn or 1.07 per cent to close at N12.433tn, up from N12.301tn.

Similarly, the Nigerian Stock Exchange All-Share Index recorded a 1.07 per cent or 411.4 basis points rise to close at 38,707.14 basis points.

The Chief Executive Officer, Enterprise Stockbrokers Plc, Mr. Rotimi Fakayejo, said Monday’s rise was partly due to the fact that investors were beginning to get more information about the situation as well as the realisation that there was value in the banking stocks.

[Punch]

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