CBN Investigation: Banks sustain positive NGX outlook

On the Nigerian Exchange Limited, banking stocks maintained their positive trend as the local bourse shed N139bn on the first trading day after the Christmas holiday.

The All-Share Index and the market capitalisation dipped by 0.34 per cent to 73,768.64 and N40.367tn respectively, consequently, the year-to-date gain of the ASI slipped to 43.94 per cent.

However, the banking index on the NGX marginally increased to 889.15 on Wednesday from 887.60 on Friday.

A closer look at the performance of the banking stocks showed that FCMB Group rose by 4.79 per cent, Fidelity Bank, by 0.95 per cent, Guaranty Trust Holding Company Plc, by 0.50 per cent, and Jaiz Bank Plc, by 8.75 per cent. Unity Bank Plc shares appreciated by 2.50 per cent while Zenith Bank gained 0.26 per cent and Access Holdings Plc gained 0.22 per cent.

On the flip side, Stanbic IBTC Holdings’ share value dipped by 6.01 per cent, Sterling Financial Holdings Company Plc shed 1.11 per cent, FBN Holdings Plc lost 1.04 per cent and United Bank for Africa also shed 0.39 per cent. Both Ecobank Transnational Incorporated and Wema Bank closed flat.

There had been concerns that in the aftermath of the Central Bank of Nigeria special investigator report which alleged that the former CBN governor, Godwin Emefiele, used his cronies to acquire some banks including Keystone Bank, Polaris Bank, and Union Bank, customers would be queuing to withdraw their money.

Also, the CBN in a statement signed by its acting Director, Corporate Communications, Hakama Sidi-Ali, allayed fears about the security of customers’ deposits.

The statement issued on Wednesday said, “The Central Bank of Nigeria has noticed reports, in certain media outlets, about a recommendation for the Federal Government to take over some CBN-supervised financial institutions.

“For the avoidance of doubt, Nigerian banks remain safe and sound. The CBN encourages the public to continue their regular activities without being alarmed by reports that have not emanated from the CBN about the health status of Nigerian banks.”



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