The Nigerian Exchange Limited (NGX) is set to close the first half of 2024 on a positive note, driven by renewed investor confidence in listed companies.
Nigerian banking stocks have experienced a dismal second quarter thus far. This downtrend follows the Central Bank's announcement on banking recapitalization, which has set expectations for further declines in share prices.
Recall that on March 28, 2024, the CBN revised the minimum capital requirements for banks. And since then, the market capitalization of banking stocks in the NGX has declined by 26.7%. Between March 28 and April 18, the cumulative market cap of banking stocks in the NGX declined from N8.08 trillion to N6.34 trillion.
