Bank Stocks in Lagos Jump Most Since 2016 as Optimism Returns

LAGOS (Capital Markets in Africa) – An index of Nigerian banking stocks surged 5.8% Thursday, posting the biggest gain since May 2016; the move reflected some renewed optimism among investors and increased participation by foreigners, said Segun Oyenuga, a trader for Asset Resource Management Securities.

Guaranty Trust Bank, the country’s largest by market value, climbed 9.5% in Lagos, the most since January 2016; Zenith Bank +7.2%, Unity +9.8%, Sterling +5.9%, FCMB +4.2%, UBA +2%; sector index climbs for a fifth day, longest winning streak since September

“Gains are largely driven by renewed interest from foreign investors on the back of fresh inflows of FDI into the country,” Oyenuga said by phone

Investors are also taking positions before Nigeria’s elections this month and full-year results from the sector, which are expected to be strong, he said.