As stated by the Nigerian Exchange, stock investors loss hit N252bn

After Easter holidays, the market lost about N467bn between Tuesday and Thursday.

The bearish trend on the local bourse followed the announcement of an increase in the capital base of banks in the country.

Maritime Research in the banking sector update on the recapitalization, projected that one of the three options that the Central Bank of Nigeria gave the banks is to recapitalise in 24 months, most lenders would explore rights issues.

“In total, Nigerian banks are expected to raise NGN3.57trn in fresh capital within the specified timeframe. As it stands, notable players, including FBN Holdings, Fidelity Bank, Wema Bank and Access Holdings have signalled their intentions to raise capital through rights issues and private placements. In response to the CBN’s policy, we anticipate a surge in capital market activities.

“Going forward, more banks are likely to join the fray, seeking to bolster their capital reserves through private placements, rights issues, and public offerings. We expect most banks to explore the right issues and other capital-raising activities. Furthermore, there is a growing anticipation of potential bank consolidations, particularly targeted at banks unable to meet the regulatory requirements.

“Given the relatively low valuation of Nigerian banks compared to their regional peers, we expect increased foreign investment and capital flow from international investors, which is positive for the external reserves and increased activities and participation in the Nigerian capital market,” the report partly read.

All share index trended downward by 0.43 percent to 103,736.08, while the market capitalisation depreciated by the same percentage to N58.65tn on Thursday.

Transaction volume increased by 20.42 percent to 487.73 million units worth N15.63bn from the 8,908 deals.

The total number of gainers was 23, led by stocks of Morison Industries Plc, SCOA and International Energy Insurance 9.84 percent, 9.77 percent, and 9.72 percent gain each to N2.12, N2.36 and N1.58, respectively.

C&I Leasing, stocks decreased by 9.79 percent to N3.50 led to 25 other losers.

Zenith Bank, Guaranty Trust Holding Company Plc and United Bank for Africa were the major drivers of the volume and value of traded equities.

Zenith Bank led in both volume and value, with 161.68 million units traded, amounting to N7.03bn across 527 deals.