By Ayomide Otitoju
After a sluggish week, Nigeria’s stock market witnessed a modest rally on Friday morning, driven by renewed investor interest in Fidelity Bank Plc shares. As of 11 a.m., the NGX All Share Index (ASI) rose by 0.19 percent to 109,385.94 points, buoyed by a 6.63 percent jump in Fidelity Bank’s share price to ₦18.60, up ₦1.255.
The rally followed Thursday’s negative market close, which had prompted analysts at Vetiva to advise caution amid weakened market breadth and pressure on key sectors. “Unless renewed buying interest emerges in oversold key names, the market looks set to close the week on a softer note,” the firm noted in its post-trading commentary.
However, BusinessDay had earlier urged investors to consider taking advantage of the recent market dip, particularly highlighting Fidelity Bank as a strong hold or buy option.
Investor confidence in the stock appears to have been boosted by the bank’s robust first-quarter performance. Fidelity Bank reported a Profit Before Tax (PBT) of ₦105.8 billion for Q1 2025, marking a 167.8 percent increase compared to the same period in 2024. Gross earnings surged by 64.2 percent year-on-year to ₦315.4 billion, underpinned by strong growth in both interest and non-interest income.
The bank’s balance sheet also reflected solid fundamentals, with total deposits rising to ₦6.6 trillion—an 11.1 percent increase year-to-date. Net loans and advances grew by 5 percent to ₦4.6 trillion, signaling sustained liquidity and lending capacity.
Friday’s rally underscores the market’s responsiveness to strong corporate earnings, particularly in the banking sector, and suggests investor sentiment may strengthen if other key stocks follow suit.
