By Udeme Ekwere

Tuesday, 15 Feb 2011

Wema Bank Plc rose the most among the banks on the Nigerian Stock Exchange on Monday. This followed the Central Bank of Nigeria’s approval of its capital requirement for a regional banking licence.

At the close of trading activities for the day, the bank’s stock rose by its highest margin since February 4, gaining seven kobo or 4.8 per cent, to close at N1.52 per share

The CBN had, on Friday, stated that the bank had exceeded the capital requirement for the licence for which it had applied.

The bank, which was the only rescued bank that recorded price appreciation on Monday, has risen by a total of 18 per cent this year alone.

Meanwhile, four other bank stocks recorded price appreciation as trading activities closed for the day.

United Bank for Africa Plc gained 4.6 per cent or 48 kobo to close at N10.88 per share.

First City Monument Bank Plc rose by 1.1 per cent or nine kobo to close at N7.99 per share.

Fidelity Bank Plc and Stanbic IBTC Bank Plc also appreciated by 0.6 per cent and 0.3 per cent to close at N3.20 and N9.98 per share.

However, 14 stocks from the banking sub-sector recorded significant price losses at the close of trading activities.

Skye Bank Plc recorded the highest loss, shedding five per cent or 50 kobo to close at N9.50 per share.

Intercontinenental Bank Plc and Afribank Plc fell by 4.8 per cent and 4.7 per cent to close at N2.73 and N2.60 per share.

Unity Bank Plc, Oceanic Bank International Plc and Finbank Plc lost 4.6 per cent each to close at N1.43, N3.11 and N1.05 per share in that order.

Sterling Bank Plc, Bank PHB Plc and Spring Bank Plc lost 4.1 per cent, 2.2 per cent and 2.1 per cent to close at N2.30, N2.21 and N1.88 per share respectively.

Significantly, trading in the banking sub-sector drove the total turnover, accounting for 56 per cent of volume.

Turnover in the sub-sector was driven by trading in the shares of Unity Bank, Sterling Bank Plc, Finbank and First Bank of Nigeria Plc.

In all, investors exchanged 281.68 million shares, worth N1.935bn in 4,991 transactions.

The market capitalisation of the listed equities closed lower at N8.501tn, representing a fall by 0.3 per cent or N28bn down from N8.529tn recorded last Friday.

The NSE’s All-Share Index also lost 86.08 basis points or 0.3 per cent from 26,684.49 to close at 26,598.41 points.

Source: Punch