By Niyi Jacobs
Wema Bank Plc’s market value took a hit on Wednesday as a wave of sell-offs pushed its share price down by 8.33% to ₦11 on the Nigerian Exchange (NGX). The decline followed sell recommendations from analysts, who believe the stock has reached its peak after gaining about 31% in 2025—far outpacing the NGX year-to-date return of 3.41%.
The sharp price drop saw Wema Bank’s market capitalization fall to ₦235.73 billion, as 17.8 million shares worth ₦197 million exchanged hands. Analysts at Atlass Portfolio Limited and Apel Asset Limited both advised investors to sell, citing an overvaluation of the stock. Atlass set a target price of ₦11.50, while Apel Asset pegged Wema Bank’s fair value at ₦11.83.
Despite the market downturn, Wema Bank’s financial performance remains strong. The bank reported an unaudited profit of ₦88.83 billion for 2024, more than doubling the ₦35.99 billion recorded in 2023. However, analysts suggest that the impressive rally in Wema Bank’s stock may have reached its limit, prompting investors to lock in profits.
With the sell pressure weighing on its valuation, the bank’s share price now trades at a discount to its recent highs, raising questions about whether further corrections are ahead in the coming sessions.
