Nigerian Stock Market Gains As Zenith, Access, FBN Make Promises to Shareholders

• Nigeria's stock market recorded a second consecutive day of gains as banks expressed public commitment to comply with the CBN’s directives
• The NGX Banking Index and Consumer Goods Index both recorded gains, as investors regained confidence
• Champion Breweries, GTCO, PZ Cussons, Zenith Bank and Access Holdings stocks were mostly traded

Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Nigeria’s equities market rose on Thursday, June 19, as banking stocks rallied, thanks to public commitments from commercial banks to comply with recent regulatory directives issued by the Central Bank of Nigeria (CBN).

Data from NGX showed that the market recorded a second consecutive day of gains, with the All-Share Index (ASI) climbing 0.92% to 117,861.13 points.

While the market capitalisation rose to N74.36 trillion from N73.68 trillion the previous day, which means investors made N680 billion.

Year-to-date, the market has returned 14.51%.

Why Nigerian stock market improved

Analysts said market sentiment was boosted by assurances from banks affected by the CBN’s compliance enforcement.

Investors showed interest in banks' shares, which helped a rebound as the NGX Banking Index led sectoral performance, up 2.99%, followed by the NGX Insurance Index, which gained 1.53%.

The NGX Consumer Goods Index rose 1.02%, while the Industrial and Oil & Gas indices posted marginal gains of 0.16% and 0.24% respectively.

Vetiva Research analysts wrote in a post-trading note:

“We expect the market to maintain its bullish momentum in tomorrow’s (Friday) session, supported by sustained investor interest in the banking sector, particularly in names previously flagged for non-compliance with regulatory thresholds.

“With these banks publicly committing to swift alignment with regulatory guidelines, investor sentiment remains positive.”

Snapshot of the market

At the end of trading, 893.97 million shares were exchanged in 17,257 deals, valued at N22.03 billion.

Here is a snapshot of the market on Thursday.

Top gainers

• Ikeja Hotel Plc gained N1.40, rising from N14.00 to N15.40 per share (+10.00%).
• Beta Glass Plc rose by N25.05, climbing from N250.95 to N276.00 per share (+9.98%).
• Legend Interiors Plc gained N0.65, increasing from N6.55 to N7.20 per share (+9.92%).
• University Press Plc gained N0.54, moving from N5.48 to N6.02 per share (+9.85%).
• Eterna Plc rose by N3.80, advancing from N38.70 to N42.50 per share (+9.82%).

Top losers

• Guinea Insurance Plc lost N0.07, declining from N0.76 to N0.69 per share (−9.21%).
• Honeywell Automation and Control Ltd dropped N0.25, falling from N4.25 to N4.00 per share (−5.88%).
• C&I Leasing Plc declined by N0.27, moving from N4.62 to N4.35 per share (−5.84%).
• McNichols Plc lost N0.13, decreasing from N2.33 to N2.20 per share (−5.58%).
• Fidson Healthcare Plc declined by N2.00, dropping from N43.00 to N41.00 per share (−4.65%).

Top active trades

• Champion Breweries Plc recorded a turnover of 332.30 million shares valued at N2.27 billion.
• Guaranty Trust Holding Company Plc traded 62.66 million shares worth N5.00 billion.
• PZ Cussons Nigeria Plc exchanged 46.58 million shares valued at N1.48 billion.
• Zenith Bank Plc recorded 37.55 million shares worth N1.89 billion.
• Access Holdings Plc traded 35.99 million shares, amounting to N787.11 million.

Access, Zenith commits to June 30

Earlier, Legit.ng reported that Nigeria's leading financial institutions, Zenith and Access Bank and have also reacted to the CBN's regulatory forbearance

The forbearance temporarily restricts the banks from paying dividends and bonuses to their executives

The banks have assured readiness to exit regulatory forbearance and comply with CBN’s requirements by June 30, 2025.

Source: Legit.ng