Impressive Performance of FBNH Leads Bank Stock Rebound, Exceeds N1 Trillion Capitalisation Mark

FBN Holdings Plc garnered significant attention yesterday due to a nearly 10 per cent surge in its stock for the third consecutive session, resulting in the surpassing of the N1 trillion capitalisation threshold. This surge has placed the premier bank amongst Zenith Bank and GTCO in the exclusive group of stocks valued over one trillion, informally referred to as SWOOT (Stocks Worth Over One Trillion). It is noteworthy that movements in SWOOT stocks have considerable influence on the pace and direction of the equity market in the Nigerian capital market.

The remarkable rally can be attributed to FBNH’s impressive performance over the past year. The stock value nearly tripled, experiencing a 172.2 per cent gain in 12 months, pushing the capitalisation to N1.06 trillion. The stock has demonstrated consistent bullish momentum, with an unbroken five-day run and a remarkable year-to-day (YTD) growth of 170 per cent, increasing from N10.90 kobo to its current value of N29.40 kobo. This outstanding performance has piqued the interest of stockbrokers and investors who recognize the strong fundamentals exhibited by the bank.

The positive momentum exhibited by FBNH is indicative of a broader industry recovery. United Bank for Africa Plc has also tripled its share capital in the past year, while AccessCorp rose by approximately 150 per cent. Additionally, other members of the top five banks – Zenith and GTCO – also experienced significant growth of 61 and 99 per cent respectively. These substantial gains have collectively propelled the top tier-one banks to increase their share value by an average of 136 per cent in the past year.

Moreover, the surge in bank stocks has had a positive impact on the market, resulting in gains in 34 equities that lifted the market capitalisation by N306 billion. The all-share index (ASI) gained 0.78 per cent to close at 71,808.64 points, while the market capitalisation rose by N306 billion to close at N39.295 trillion.

The upward trend also extended to large and medium capitalised stocks, with 34 stocks gaining in comparison to 22 losers. Notable gainers included Thomas Wyatt Nigeria, FBNH, Multiverse Mining and Exploration, ETI, and Infinity Trust Mortgage Bank. Conversely, AXA Mansard Insurance, Guinea Insurance, Oando, Omatek Ventures, and Universal Insurance led the decliners.

The impressive market performance was also reflected in the significant increase in the total volume traded, which advanced by 61.2 per cent to 690.01 million units, valued at N12.1 billion, and exchanged in 8,412 deals. With these recent developments, it is evident that the Nigerian capital market is poised for further excitement and intrigue in the subsequent trading sessions.