Nigeria: Banking Stocks Surge to New Highs On Economic Recovery Hopes
Banking stocks are leading on the Nigerian Stock Exchange (NSE) according the fact that the Banking Index has appreciated by 39.03 per cent as at Monday, outperforming the NSE benchmark index which only gained 21.2 per cent; in a context of expectation of economic recovery and improvement of macroeconomic fundamentals.Banking stocks are clearly leading on the Nigerian bourse as indicated by the Nigerian Stock Exchange (NSE) Banking Index, which has appreciated by 39.03 per cent as at Monday, outperforming the NSE benchmark index that has so far gained 21.2 per cent. Findings by THISDAY showed that banking stocks are becoming investors toast on hopes that the economy is recovering from recession and the development would impact positively on the performance of the banks at the end of the current financial year. Some market operators said while the economy faced serious headwinds that pushed it into recession in 2016, some banks still posted impressive results and declared significant dividends. "It is therefore instructive for discerning investor to take position in the banking sector now that there are strong indications that the economy would recover. When this happens, it means better performance for banks and higher returns to shareholders at the end of the year," a stockbroker said. Read more on All Africa.
Source: All Africa