Investors pick banking stocks: A review of Nigerian markets
Investors are lapping up banking stocks today, with FBN holdings and Access Bank topping the value of transactions traded today. To review the trading day, Rotimi Fakayejo, Stockbroker and Capital Market Analyst joins CNBC Africa for more.
Mon, 09 Sep 2019 15:18:52 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Banking stocks experience increased trading activity, signaling a shift in market sentiment.
- Strong fundamentals and attractive dividend yields drive investor interest in banking stocks.
- Optimism grows for a turnaround in the aftermath of recent business attacks in Lagos.
The Nigerian stock market witnessed a surge in investor interest in banking stocks today, with GT Bank leading the pack with over 3.3 billion in value traded. First Bank and Access Bank also saw a significant uptick in trading activity, signaling a potential shift in sentiment towards the banking sector. Rotimi Fakayejo, a Stockbroker and Capital Market Analyst, highlighted the resilience of banking stocks despite recent challenges, attributing the renewed interest to the companies' strong fundamentals and attractive dividend yields. Fakayejo emphasized that the current prices of banking stocks offer competitive returns compared to traditional money market instruments, making them an appealing investment option. Fidelity Bank, a tier two bank, was singled out for its consistent growth and promising outlook, with analysts projecting significant upside potential for the stock. The resurgence of interest in equities is seen as a positive sign for the Nigerian market, with investors increasingly considering the equity market as a viable investment avenue. Amid concerns following the recent attacks on businesses in Lagos, Fakayejo expressed optimism about the prospects of a swift recovery, citing improved cooperation between Nigeria and South Africa as a key factor in restoring business confidence. Overall, the market sentiment appears to be improving as investors regain confidence in the stability and growth potential of Nigerian equities.
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