The Nigerian Exchange (NGX) Banking Index ended the week on a bearish note, recording a week-on-week (W-o-W) decline of 5.09% to close at 1,127.18. The downturn reflects investors’ cautious sentiment as they await the release of the Full-Year 2024 Audited Financial Statements from various banks.
In the Tier 1 category, the performance was mixed, with United Bank for Africa (UBA) emerging as the highest gainer, appreciating by 7.65%. Guaranty Trust Holding Company (GTCO) and Zenith Bank also posted positive returns of 7.02% and 5.05%, respectively.
However, the Tier 2 banks displayed a contrasting pattern. Wema Bank led the gainers with a significant rise of 20.33%, followed by FCMB with a modest 4.26% increase. On the downside, Fidelity Bank and Sterling Bank suffered losses of -2.00% and -3.57%, respectively, contributing to the overall market decline.
Analysts attribute the mixed performance to investors’ divergent reactions to the banks’ anticipated financial results and broader market uncertainties. With some banks expected to announce strong earnings, bargain hunters are seizing opportunities, while others remain cautious.
As the market awaits the audited financial results, investors are expected to maintain a cautious approach, potentially leading to further volatility in the banking index.
