Robust Engagements With Economy Drivers: Why Fidelity Bank Leads Trading, As Equities Gain N324b
The Oasis Reporters
June 11, 2024
Ever wondered why Fidelity Bank is experiencing a robust rise in earnings and between 2019 to 2023, its pre-tax profit had risen from N30.35 billion to N124.26 billion in 2023, an increase of 309.4 percent ?
And currently, Fidelity Bank Plc was the most active stock on Monday, 10 June 2024 at the Nigerian stock market as a strong positive sentiment led Nigerian equities to a net capital gain of N324 billion in the first trading session of the week.
It ranks as the 6th biggest bank in the country.
Fidelity Bank, one of the Top tier banks in the country, goes to the grassroots to engage robustly with the drivers of the economy and the potential joiners in top level training like it’s done in Ivy league economic institutes around the globe .
For instance, it has already rolled out an Export Management Programme (EMP) that would be held in Kano, the economic capital that is found in Nigeria, north of the River Niger.
This is their flier for the EMP.
“Recent events in the world have resulted in major disruptions especially in supply chains, price stability as well as demand patterns. Foreign exchange liquidity has been impacted negatively in Nigeria, thereby making the need to diversify the country’s foreign exchange revenue base an imperative.
Exports help improve foreign exchange earnings, create employment opportunities, engender wealth creation and sustainable poverty reduction.
The Fidelity Export Management program is an intense, hands-on training, designed to equip Nigerian business with the practical knowledge and management skills required to compete effectively in the global export market.
The program is designed to equip participants with the knowledge, tools and skills required to develop
your export business in line with global standards and take advantage of the AFCTA Treaty as well as the new CBN Policy on value added non-oil export.
Targets include entrepreneurs, exporters, prospective exporters, and financiers of exports, export regulators, Policy makers, MSMEs, state and federal government agencies, logistics service providers and and other interested parties.
July 1st-5th, 2024 at Tahir Guest Palace, 4, Ibrahim Natsugune Road, Nasarawa GRA, Kano, Nigeria”.
What a stimulating engagement this will be.
With such deep engagements lined up, the market therefore opened with widespread positive sentiment as investors sought to lock into value stocks in the high-end sectors of oil and gas, construction and manufacturing .
With three gainers for every loser, the market closed with average return of 0.58 per cent, equivalent to net capital gain of N324 billion.
The momentum of activities also improved considerably as total turnover rose by 148.33 per cent to 963.541 million shares valued at N13.498 billion in 8,657 deals. Fidelity Bank topped the activity chart with 605.257 million shares valued at N6.025 billion.
Fidelity Bank’s activities appeared to be driven by buy sentiment as the stock closed within the top 15 gainers with a gain of 6.52 per cent to close at N9.80 per share.
The All Share Index (ASI)- the common value-based index that tracks all share prices at the Nigerian Exchange (NGX), rose by 0.58 per cent to close at 99,793.71 points as against its opening index of 99,221.14 points.
Aggregate market value of all quoted equities also increased simultaneously from its opening value of N56.128 trillion to close at N56.452 trillion.
Other most active stocks included Access Holdings, which recorded turnover of 93.067 million shares worth N1.744 billion. United Bank for Africa (UBA) traded 58.726 million shares valued at N1.261 billion. Nigerian Breweries traded 45.256 million shares valued at N1.267 billion while Zenith Bank traded 16.079 million shares worth N539.552 million.
Analysts at Futureview Financial Services said they anticipated a mixed sentiment in the equities market, primarily due to the enduring allure of the fixed income market among investors.
“This interest is fueled by expectations of increased rates in the Nigerian Treasury Bill (NTB) auction and the impending release of the inflation rate. However, amidst these factors, there remains an opportunity for sustainable growth, particularly in fundamentally strong stocks that currently find themselves in the oversold region. We foresee a selective pursuit of bargains, particularly in dividend-paying stocks, driven by the nearing corporate qualification and payment,” Futureview stated.
