New Tenure Policy Raises Banking Stocks
- By Kayode Ogunwale
- Published January 25th, 2010
- News
- Unrated
THE Central Bank of Nigeria policy that limits the tenure of bank chief executive to 10 years has started to have positive impact on banking stocks on the floor of the Nigerian Stock exchange.
The Banking sub-sector was the most active stock last week (measured by turnover volume), with 1.11 billion shares worth N7.9 billion exchanged by investors in 17,452 deals. Volume in the Banking sub-sector was largely driven by activity in the shares of Zenith Bank Plc, Finbank Plc and Fidelity Bank Plc. Trading in the shares of the three Banks accounted for 552.13 million shares, representing 49.6 per cent of the sub-sector’s turnover.
Two of the affected banks recorded price appreciation during the week, UBA started the week with N10.99 kobo to closed the week with N11.20 kobo, this is an increase of 1.9 per cent price appreciation, also Skye Bank started the week with N5.78 kobo to close at N5.82 kobo representing 0.7 per cent increased while Zenith bank recorded loss of 9 per cent.
Meanwhile, a turnover of 2.35 billion shares worth N11.8 billion in 160,784 deals was recorded last week, in contrast to a total of 2.2 billion shares valued at N12.8 billion exchanged last week in 34,511 deals. On the other hand, the NSE Banking Index depreciated by 0.22 per cent to close at 357.35, the NSE All-Share Index depreciated by 0.14 per cent to close on Friday at 22,030.18. The market capitalisation closed at N5.3 trillion.
The Banking sub-sector was the most active stock last week (measured by turnover volume), with 1.11 billion shares worth N7.9 billion exchanged by investors in 17,452 deals. Volume in the Banking sub-sector was largely driven by activity in the shares of Zenith Bank Plc, Finbank Plc and Fidelity Bank Plc. Trading in the shares of the three Banks accounted for 552.13 million shares, representing 49.6 per cent of the sub-sector’s turnover.
Two of the affected banks recorded price appreciation during the week, UBA started the week with N10.99 kobo to closed the week with N11.20 kobo, this is an increase of 1.9 per cent price appreciation, also Skye Bank started the week with N5.78 kobo to close at N5.82 kobo representing 0.7 per cent increased while Zenith bank recorded loss of 9 per cent.
Meanwhile, a turnover of 2.35 billion shares worth N11.8 billion in 160,784 deals was recorded last week, in contrast to a total of 2.2 billion shares valued at N12.8 billion exchanged last week in 34,511 deals. On the other hand, the NSE Banking Index depreciated by 0.22 per cent to close at 357.35, the NSE All-Share Index depreciated by 0.14 per cent to close on Friday at 22,030.18. The market capitalisation closed at N5.3 trillion.
