ZENITH Bank Plc has emerged as the most traded stock by volume and value on the Nigerian Exchange (NGX), commanding a 26.67 percent share of the total traded volume for the week ended February 28, 2025. This performance highlighted the bank’s strong appeal to investors as Nigeria’s banking sector navigates its ongoing recapitalisation exercise.
According to trading data from the NGX, Zenith Bank’s stocks were the most sought after by investors, reflecting robust investor confidence in the bank’s financial performance and growth prospects. The bank recorded 122.23 million units traded, valued at N5.87 billion, making it the highest contributor both in volume and value to the total market turnover.
The week’s overall trading volume on the NGX advanced by 8.23 percent to close at 458.26 million units, valued at N14.08 billion across 12,213 deals. Zenith Bank accounted for the largest portion of the total traded volume, followed by FCMB with 10.95 percent and Access Holdings (ACCESSCORP) with 6.25 percent. In terms of value, Zenith Bank also led the market with a 41.70 percent share, outpacing Transcorp Power and Access Holdings.
Despite Zenith Bank’s dominance in market activity, the NGX Banking Index closed the week bearish, declining by -3.08 percent week-on-week to settle at 1,165.71 points. However, all Tier 1 banks posted positive year-to-date (YTD) returns, led by Ecobank Transnational Incorporated (ETI) with 8.57 percent, followed by United Bank for Africa (UBA) with 8.24 percent, and Guaranty Trust Holding Company (GTCO) with 7.37 percent.
Tier 2 banks delivered mixed performances, with Wema Bank recording the highest gain of 30.77 percent, followed by FCMB at 12.77 percent and Stanbic IBTC at 11.11 percent, while Sterling Bank declined by -1.79 percent.
Meanwhile, Access Holdings and Sterling Bank notified the public of a delay in the release of their 2024 full-year audited financial results, citing ongoing regulatory processes.
The heightened trading activity comes as Nigerian banks gear up for the second tranche of their CBN-mandated recapitalisation exercise. Market analysts continue to monitor how banks are deploying the capital raised during the first tranche to strengthen their balance sheets and enhance sector stability.
Zenith Bank recently concluded its own capital-raising initiative, which involved a Rights Issue of 5.23 billion ordinary shares at N36.00 per share and a Public Offer of 2.76 billion ordinary shares at N36.50 per share. The offer recorded a 160.47 percent subscription rate, with 4.44 billion shares allotted following the CBN’s capital verification exercise.
Similarly, Fidelity Bank Plc successfully completed the first tranche of its capital raise through a Public Offer and Rights Issue, raising approximately N231.7 billion at a 237 percent subscription rate. Wema Bank is set to launch the second tranche of its capital-raising initiative on April 1, 2025, targeting N200 billion through a Rights Issue and Special Placement.
Analysts expect market activity in the banking sector to remain robust as investors position themselves ahead of full-year financial results and the second phase of recapitalisation. The next few weeks will be crucial in assessing how the fresh capital injections will impact banks’ financial health, lending capacity, and overall sector stability.
Zenith Bank’s emergence as the most traded stock underscores investor optimism about the bank’s prospects and its strategic positioning in Nigeria’s evolving financial landscape.
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