A view shows Nigeria's Central Bank headquarters in Abuja, Nigeria November 22, 2020. Picture taken November 22, 2020. REUTERS/Afolabi Sotunde

Nigeria’s Five Biggest Banks Achieve Trillion Naira Market Capitalization

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Nigeria’s stock exchange, NGX, witnessed a significant milestone as the country’s five largest banks—First Bank, Access Bank, UBA, Guaranty Trust Bank, and Zenith Bank—achieved a market capitalization of at least N1 Trillion each. The banking index surged by 8.2%, resulting in a ₦6.1 trillion gain, with the trio of Access Bank, UBA, and First Bank joining the trillion naira club.

On January 8, UBA appreciated by 10% to hit N1.023 trillion, a historic milestone. Unlike FBNH, which dropped back below N1 trillion one day after crossing the mark, UBA further appreciated by 9.03%, taking its market cap to N1.115 trillion on January 9. On the same day, Access Holdings (ACCESSCORP), the parent group of Access Bank, crossed the N1 trillion market capitalization level, as its stock rose by 8.39% to close at N29.70, thus taking the bank’s market capitalization to N1.056 trillion.

Also, FBN Holdings rebounded to its highest level since December 6, 2023, as its stock appreciated by 10%, reaching a market cap of N1.027 trillion. The older members of the SWOOT category, GTCO and Zenith Bank, closed trading on January 9 with a market cap of N1.42 trillion and N1.49 trillion, respectively

This strong market performance reflects the growing confidence in the banking sector and its contribution to the overall market capitalization. The three new bank stocks appreciated by an average of 10% to attain their new status, signaling investor optimism and a positive outlook for the banking industry.

The entry of more banking stocks into the trillion naira club is expected to diversify and strengthen the NGX, reducing concerns about overreliance on a few firms. This development also paves the way for potential listings of other companies, including tech startups, as the stock market continues to experience a bullish trend.

While the bullish trend is a cause for celebration, some analysts have cautioned that it may not be sustained indefinitely, predicting a possible dip later in the month. Investors are advised to carefully consider their strategies as the market dynamics evolve, with the NGX aiming to surpass its growth from the previous year.

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