Fidelity Bank Plc share price rose by 23% week-on-week as value hunters and shareholders queued behind the financial service stock.
The bank benefited from a fresh rally on the Nigerian Exchange, and led the gainers chart over a five day rally. Its market valuation increased by 22.89% in five trading sessions to ₦326.524 billion.
According to data from the Nigerian Exchange, Fidelity Bank surged to ₦10.2 on Friday from ₦8.30 per share at the beginning of the week. The bank stock price had peaked at ₦14.4, its 52-week high, details from the exchange showed. At the current rate, Fidelity Bank is trading more than 29% below its 52 week high.
The management team are optimistic and keeps their eyes on taking Fidelity Bank to Tier-1, its earnings performance came strong in the first quarter of the year. In an attempt to diversify its revenue streams, the bank, which is currently undergoing recapitalization, is looking to increase its footprints across African markets.
The plan is in top gear to raise funds through public offer, right issues and may be private placements, according to analysts. In the first quarter of 2024, the bank grew pretax profit by 132% year on year to ₦124.3 billion.
Fidelity Bank planned business expanstion with the acquisition of Union Bank. The bank has continued to see geographical diversification to reduce earnings volatility. Management would be required to raise N370 billion in capital to keep international authorisation.
“The stock had bled due to the latest poorly-received earnings reports and investors’ mood swings in the local bourse. Apel Asset Limited estimated that Fidelity Bank Plc shares would rise by roughly 35% at the ₦9.00 reference price when making its stock recommendation”.
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