Demand for banking stocks at the Nigerian Bourse soared last week due to the positive impact the new foreign exchange policy of the Central Bank of Nigeria, CBN, is expected to have on the performance of banks.
As swoop in on banking stocks, the index gained a whooping 8.75 per cent last week. Also, the banking index outperformed the NSE All-Share Index last week and year-to-date as at last Friday, June 17. While the NSE has booked a YTD growth of 2.1 per cent, the Banking Index has recorded a growth of 11.9 per cent.
Five banking stocks leaped significantly recording gains between 15.8 per cent and 11 per cent. FBN Holdings Plc led with 15.8 per cent, trailed by Guaranty Trust Bank Plc with 14.4 per cent.
Diamond Bank Plc went up by 12.7 per cent, while United Bank for Africa Plc and Zenith Bank Plc added 11.8 per cent and 11 per cent to their respective value. Investors traded about N1.9 billion shares worth N12 billion shares.
According to Market analysts, the earnings of some of the banks would improve following the introduction of the flexible foreign exchange policy since they are the ones to play in the forex market.