Trading on the Nigerian Exchange (NGX) ended January on a strong note, with banking stocks adding a combined N1.307 trillion in market value, and outperforming the broader market amid rising investor confidence linked to the ongoing banking sector recapitalization exercise.
Renewed buying interest in tier-one and select mid-tier lenders reflected expectations of balance sheet expansion, improved capital adequacy and resilient earnings, positioning banking equities as key drivers of overall market performance during the month.
Market data showed that the NGX Banking Index advanced by 6.99 per cent in January, slightly ahead of the 6.27 per cent gain recorded by the All-Share Index (ASI) over the same period. Analysts attributed the relative outperformance to improved sentiment, driven largely by progress made by several lenders in meeting new regulatory capital requirements.
Overall market capitalisation expanded by N9.757 trillion during the month, underscoring robust investor participation and an optimistic outlook for equities at the start of the year.
Market watchers noted that banking stocks accounted for a significant share of trading activity and value appreciation, supported by expectations of stronger balance sheets, enhanced resilience and improved long-term earnings prospects following recapitalisation.
The Banking Index opened the year at 1,515.85 basis points and closed January at 1,621.77 points, signalling sustained demand for tier-one and select midtier banking stocks. In comparison, the ASI rose from 155,613.03 basis points to 165,370.40 points, reflecting broad-based gains across the market, with the banking sector slightly ahead. Performance within the banking sub-sector was largely positive.
Eight banking stocks recorded price appreciation in January, while three declined and one ended the month flat. Zenith Bank Plc led the gainers, adding N396.324 billion to its market value as its share price rose from N61.80 to N71.45. Guaranty Trust Holding Company Plc (GTCO) followed, gaining N303.367 billion to close at N99.00 from an opening price of N90.70.
Ecobank Transnational Incorporated also posted a strong showing, adding N144.760 billion to market value, while Stanbic IBTC Holdings Plc advanced by N127.214 billion to close at N198.00 per share. Wema Bank Plc gained N120.357 billion during the month.
