Kayode Tokede
Following a bullish run in the stock market in recent months, the Nigerian Exchange Limited (NGX) has announced the reclassification of Fidelity Bank Plc from small price stock to medium price stock.
The stock price of Fidelity Bank, among others listed banks, have benefited from the Central Bank of Nigeria (CBN) foreign exchange policies that has contributed to foreign and domestic investors’ surge demand.
The stock price of Fidelity Bank has appreciated by 79.77per cent Year-till-Date (YtD) from N4.35 per share it opened for trading in 2023 to N7.82 per share it closed for trading as of July 21, 2023.
So far, the stock price of Fidelity Bank has reached a peak of N9.82 per share high this year and N2.87 per share low.
The lender’s market capitalisation closed July 21, 2023 at N226.58 billion
A statement by the NGX said the reclassification became necessary because Fidelity Bank shares have been trading above the N5.00 mark since February 2023.
“Rule 15.29 of the Rulebook of The Exchange, 2015 (Dealing Members’ Rules) notes that equities priced above N5 per share for at least four of the most recent six months of trading, or new security listings priced above N5 per share at the time of listing on NGX are classified as medium price stock,” the statement said.
“According to NGX, Fidelity Bank. traded above the N5.00 mark on February 20, 2023 and has remained above the N5 mark up until close of business on June 30 , 2023.
“This indicates that FIDELITYBK has been trading above N5 for at least four (4) months in the last six months. Therefore, it should be reclassified from small price stock to medium price stock.”
The Nneka Onyeali-Ikpe-led bank has continued to post commendable financial performance every quarter as it cements its position amongst tier-one banks in the country
