The stock category of Fidelity Bank Plc has been reclassified and upgraded by the Nigerian Exchange Limited (NGX) in the equity market.
Fidelity Bank shares as well rose by 32 percent this year making it the nation’s best-performing bank share as of half year (June 30).
The bank is said to have moved from the small-price stock level to the medium-price stock region.
NGX noted that the reclassification became necessary because Fidelity Bank shares have been trading above N5.00 mark since February, 2023.
“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 30 June 2023.This indicates that Fidelity Bank has been trading above N5 for at least four months in the last six months. Therefore, it should be reclassified from small price stock to medium price stock,” the NGX pointed out.
Speaking on the development, Mr Boniface Okezie, the National Co-ordinator, Progressive Shareholders Association of Nigeria stressed that Fidelity Bank has paid its dues in the financial services sector.
Noting that the bank has contributed massively to the development of the small and medium enterprises (SME) sector and paid dividends to shareholders, Okezie said that investment in ICT and effective branch network had improved the the service delivery of the bank to customers and shareholders.
“Last year, it took the market by surprise by declaring a dividend of 50k per share which had not happened in previous years.”
Expressing his concern on the performance of the bank, the National Co-ordinator, Independent Shareholders Association of Nigeria (ISAN), Prince Anthony Omojola emphasised that “Fidelity Bank is moving up in terms of performance. They have joined those paying interim dividends and they have also dipped their hand into big money tills for huge investment. They have borrowed big to be able to handle bigger contracts and be able to reap big. The reclassification is welcomed and I hope they will not disappoint us. If they are able to meet expectations, the benefit will be for Nigeria”.
Similarly, a Doyen of Nigerian Stockbrokers and non-executive director at UIDC Securities Limited,Sam Ndata pointed out that Fidelity Bank that would be rewarded with earn investors’ confidence if it continues in present stride.
