The banking index of the Nigeria Exchange Limited demonstrated a robust performance, recording the highest gain of 6.08 percent week-on-week, leading to a growth of N66 billion in investors’ wealth.

Banking stocks experienced significant investor interest during the week, propelling the industry to a 5.01 percent gain on Wednesday.

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However, a downturn occurred as sell-offs impacted stocks, triggered by news that certain Nigerian banks with international operations fell below the regulatory benchmark for capital adequacy ratios on Thursday.

According to the Central Bank of Nigeria’s second-quarter report on the financial soundness indicator, some banks with international operations exhibited a capital adequacy ratio below the regulatory threshold.

The apex bank attributed this development to a decline in total qualifying capital relative to an increase in risk-weighted assets due to the depreciation of the naira exchange rate, stemming from the adoption of a market-determined exchange rate policy.

In the broader market, the All-Share Index saw a 0.17 percent increase, closing at 71,541.74, and the market capitalization ending at N39.148 trillion.

This positive momentum was primarily driven by activities in the banking and consumer goods sectors, setting the stage for the anticipated Santa Claus rally, with the year-to-date return for the index reaching 39.59 percent.

Despite gains in most indices, NGX Main Board, NGX Insurance, NGX ASeM, NGX Oil & Gas, NGX Lotus II, and NGX Industrial Goods experienced depreciations.

Notable sell-offs in stocks like Oando, MRS Oil, Juli Plc, BUA Cement, Axa Mansard, and Mutual Benefit contributed to these declines.

Conversely, the Banking and Consumer Goods indexes recorded gains of 6.08 percent and 0.21 percent, respectively.

Key price increases in stocks such as Ecobank Transnational International, AccessCorp, FBN Holdings, Jaiz Bank, PZ Cussons, Northern Nigeria Flour Mills, and International Breweries fueled this upward trajectory.

The week saw a total turnover of 2.423 billion shares valued at N45.07 billion in 34,704 deals, reflecting a decrease compared to the previous week.

The Financial Services Industry led the activity chart, accounting for 71.23 percent of total equity turnover volume and 50.50 percent of value.

The top three equities traded during the week were Universal Insurance Plc, United Bank for Africa Plc, and Guaranty Trust Holdings Company Plc, contributing significantly to total equity turnover volume and value.

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Notable gainers for the week included Multiverse Mining and Exploration Plc, Thomas Wyatt, Infinity Trust Mortgage Bank Plc, ETI, Secure Electronic Technology Plc, and Daar Communications Plc.

Consolidated Hallmark Holdings, Oando, Abbey Mortgage Bank Plc, MRS Oil, Unity Bank, and BUA Cement faced declines in share prices.

Analysts anticipate further profit-taking activities and potential market corrections in light of the recent surge. Investors are likely to rebalance portfolios in anticipation of the reporting and dividend earnings season.