June 08, (THEWILL) – Trading in top three equities led the gains recorded in the first trading week of June, 2025, as recorded by the NGX.
The top three stocks namely Fidelity Bank Plc, Legend Internet Plc and Guaranty Trust Holding Company Plc (measured by volume) accounted for 1.545 billion shares worth N34.446 billion in 4,939 deals, contributing 48.06 percent and 45.12 percent to the total equity turnover volume and value respectively.
The NGX All-Share Index and Market Capitalization appreciated by 2.57 percent to close the week at 114,616.75 and N 72.275 trillion respectively.
The market opened for four trading days last week as the Federal Government declared Friday June 6, 2025 and Monday June 9, 2025 as Public Holidays to commemorate the 2025 Eid-el-Kabir celebration.
Meanwhile, a total turnover of 3.214 billion shares worth N76.348 billion in 64,156 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 3.794 billion shares valued at N119.394 billion that exchanged hands last week in 89,636 deals.
The Financial Services (measured by volume) led the activity chart with 2.313 billion shares valued at N52.241 billion traded in 27,326 deals; thus contributing 71.96 percent and 68.43 percent to the total equity turnover volume and value respectively.
The ICT industry followed with 301.996 million shares worth N5.026 billion in 4,137 deals. Third place was the Consumer Goods Industry, with a turnover of 144.538 million shares worth N5.632 billion in 8,093 deals.
Fidelity Bank is the #1 most traded stock on the Nigerian Exchange over the past three months (Mar 4 – Jun 5, 2025). The stock has traded a total volume of 3.95 billion shares—in 35,905 deals—valued at NGN 75.2 billion over the period, with an average of 62.7 million traded shares per session.
A volume high of 830 million was achieved on June 5th, and a low of 6.54 million on March 12th, for the same period.
The current share price of Fidelity Bank Plc is N19.25. The stock closed its last trading day (Thursday, June 5, 2025) at N19.25 per share on the NGX, recording a 1.3 percent gain over its previous closing price of N19.00. Fidelity began the year with a share price of N17.50 and has since gained 10 percent on that price valuation.
There has been a massive hunt for Fidelity stocks in recent times as investors position strategically for the outcome of the ongoing banking recapitalisation with March 31, 2026 as the deadline.
“Fidelity is strong; the bank’s recent performance points in that direction. It was the first to embark on the recapitalisation outing while the others were yet to commence. Its shares were oversubscribed and its successful acquisition of the Union Bank UK subsidiary positions it for a greater deal”, said Adewale Braimoh, a financial analyst.
The renewed rally in the lender’s stock hinges on the FY2024 impressive performance.
Fidelity Bank Plc consolidated its place in the top industry leadership league with its shareholders’ funds surging to N897.87 billion in FY 2024, from N437.30 billion in the previous year, constituting a 105.32 percent growth.
The surge was driven by an expansion in share capital and premium accounts which recorded an increase of 133.58 percent to N305.55 billion.
This stellar performance suggests that Fidelity is making significant advancement toward meeting the Central Bank of Nigeria (CBN) new capital requirement of N500 billion for banks with international licence.
Fidelity Bank completed its acquisition of 100 percent equity in Union Bank UK, a subsidiary of Union Bank Plc, in September 2023.
It explained that the acquisition aimed at strengthening its strategic initiatives on international expansion as it planned to expand into five African countries via acquisition.
The stellar performance deepens the Capital Adequacy Ratio by 23.5 percent – a positive result from the capitalisation of its half year result.
The bank completed the first phase of its capital raising exercise through a Public Offer and Rights Issue in 2024, which were oversubscribed by 237.92 percent and 137.73 percent, respectively.
A total of N175.9 billion was recognised as fresh capital in 2024 financial year from the exercise, which had a positive impact on its Capital Adequacy Ratio (CAR) at 23.5 percent.
The bank says it plans to conclude the second phase by Q3 2025, ahead of the March 31, 2026 CBN’s recapitalisation deadline.
THEWILL reports that Fidelity Bank surpassed its capital-raising target of N127.1 billion, marking the completion of the first phase of its recapitalisation efforts.
The combined offer, which marked the first phase of the bank’s capital raising, was judged a resounding success according to analysts.
The bank further stated that it also received shareholders’ approval to accept surplus monies arising from potential oversubscription subject to the Company’s issued share capital.
The 2024 CAR of 23.5 percent points to the bank’s determination to remain in the industry leader cycle in the post-recapitalisation environment that would redefine the financial services space as technology dominates operations.
Fidelity’s financial ratios improved with rising profitability ratios, stronger cost efficiency, and higher asset utilisation.
Analysis of the 2024 audited financial statement showed that return on equity and assets increased to 41.70 percent and 3.15 percent, respectively.
Similarly, net profit margin and net interest margin increased to 26.65 percent and 12.00 percent, respectively. The cost-to-income ratio and cost of risk declined to 42.90 percent and 1.50 percent respectively.
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
