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Nume Ekeghe

Banks shares continued upward momentum last week at the Nigerian Exchange Limited (NGX) as investors sold 360 million shares of Zenith Bank Plc valued at N16.9 billion.

The Tier-1 lender outperformed all other stocks by volume and value, helping lift the banking index and extend the stock market’s bullish run.

The surge in investor activity around Zenith Bank follows recent insider purchases by the bank’s founder and Chairman, Jim Ovia, and Group Managing Director, Dr.AdaoraUmeoji. Between June 10 and 18, Ovia’s investment vehicle, Quantum Zenith Securities, acquired 1.45 million shares valued at over N68 million, while Umeoji purchased a total of 68.75 million shares worth over N3.3 billion, moves seen as a strong vote of confidence in the bank’s long-term prospects.

According to Afrinvest Research’s market wrap, the NGX All-Share Index gained 2.3 per cent to close at 118,138.2 points, improving the year-to-date return to 14.8 per cent. Market capitalisation also advanced by N1.68 trillion to N74.5 trillion.

The report stated: “The local bourse roared to a positive close, extending to its fourth consecutive week of gains, as the NGX-ASI advanced 2.3 per cent w/w to close at 118,138.2 points. Consequently, YTD performance improved to 14.8 per cent from 12.1 per cent in the previous week, while market capitalisation advanced 2.3 per cent to N74.5trillion. Trading activity level improved as average volume and value traded expanded 4.3 per cent and 36.6 per cent to 683.7million units and N16.9billion, respectively.

“The top traded stocks by volume were Zenith Bank 360.6million units, Champion Breweries Plc, 344.9million units, and AccessHoldco 241.5million units, while the top traded stocks by value were Zenith Bank N16.9billion, GTCO, N15.0billion, and UBA N7.5billion.”

Also, the fixed-income market closed last week on a bullish note across all segments, with investors’ demand in the primary market notably significant, especially for long-dated bills.

On its part, Meristem Securities Limited in its weekly update noted that the sentiment in the secondary market reflected investors’ confidence in Nigeria’s economy especially with the gradual increase in oil prices and relative stability of the economy.

It stated: “In the primary market, the CBN conducted the second Nigerian T-bills auction in the month of June with total offer reaching N162.0billion (vs.N450.00billion offered previously). Investors demand remained strong with subscription totaling N1.23trillion, however, 89.43 per cent of total subscription was tilted towards the 364-day bill.

“Ultimately, the CBN allotted the exact amount offered with stop rates for the 91-day, 182-day 364-day bills declining to 17.80 per cent, 18.35 per cent and 18.84 per cent, respectively from 17.98 per cent, 18.50 per cent and 19.35 per cent at the prior auction.

“Additionally, the CBN conducted an OMO auction driven by its continuous effort to absorb excess system liquidity. The Bank offered N600.00billion across the 155-day and 204-day tenors, attracting strong investor interest with total subscriptions reaching N1.14trillion. Ultimately, the CBN allotted N1.07trn, with stop rates clearing at 24.20 per cent and 24.59 per cent, respectively.”

Performance in the secondary market for T-bills and bonds were broadly bullish. At the T-bills segment, average T-bills yield dropped by 22bps WoW to 20.51 per cent from 20.73 per cent the previous week.

“Strong buying interest was seen across the curve, especially in the DEC- 25, -75bps, MAR-26, -69bps, and OCT-25, -52bps bills. However, the JAN-26 bill saw mild profit-taking, pushing its yield up by 7bps WoW,” it stated.