Nigerian Banking Sector Posts Gains Despite Market Disruptions

The Nigerian banking sector remained resilient despite the disruptions caused by hunger protests that erupted in parts of the country on August 1, 2023.

The NGX Banking Index, which tracks the sector’s performance, recorded a +0.42% gain, rising from an opening price of N801.43 to close at N804.77.

Daily trading volume within the banking sector was unaffected, with the index closing at 452.45 million shares valued at N6.13 billion, while other sectors struggled to maintain gains amidst the protests.

Despite minimal turnout of protesters, markets and banks in Edo, Delta, and Port Harcourt were shut down, impacting economic activities.

However, the NGX Banking Index is showing signs of a strong recovery, following a dip to N774.35 in April 2023, indicating a potential return to a strong buy-directional bias.

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The hunger protests, which began on August 1, 2024, significantly affected movement and trade, leading to most NGX sectors closing in the red. The NGX Food/Beverages & Tobacco sector, tracked by the NGSEFBT10 index, was the hardest hit, declining by -0.55% from its opening price.

The NGX Oil & Gas sector was the least impacted, with a marginal decline of -0.05% from an opening price of N1,520.65.

The NGX All Share Index, a capitalization-weighted index tracking the performance of listed equities in Nigeria, also saw a slight decline of -0.42% from an opening price of N97,774.22.

The index, which has been on an upward trajectory since hitting a low of N21,300.47 in March 2020, reached a peak of N104,562.06 in March 2024, becoming the “best-performing” stock index, surpassing Argentina’s Merval Index.

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However, the NGX All Share Index is currently experiencing a slight retracement, standing at N97,359.76, but it has the potential to surge again when bullish momentum returns.