EcoBank Losing Steam On Ranking, Drops To 9th Spot – Over time, Ecobank has lost its place as one of the least volatile stocks on the Nigerian Stock Exchange (NSE), ranking ninth where it ranked second in February 2018 and eight by July of same year. This indicates that the bank is leaving the least volatile stock segment to a volatile one.
By Friday, January 25,2019 the Ecobank stock had beta of 1.1801 to retain the tenth spot from last week in a week where once again the top spot was clinched by Wema Bank with beta of 0.7447.
On the heels of Wema Bank is Union Bank that has shown a desire to lead the pack on least volatility several times in the past, with bet of 0.8112. By this move upwards, Union Bank displaced Unity Bank that has had a traditional and recurring repose on the second spot. Unity Bank managed a beta of 0.8619.
The most volatile banking stock on the Nigerian Stock Exchange (NSE) turned out to be Diamond Bank in a no surprise ranking since the bank has retained that spot since rankings began. UBA, as United Bank for Africa is called, followed as the second most volatile bank stock with beta of 1.6716. The next heavy ranking, at number 13 based on a much higher beta score is FCMB with beta of 1.6284.
# Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole-Investopedia.
Risk adverse investors may want to put their money in less risky stocks while investors with a high risk tolerance may want to invest in the riskier stocks or stocks with high betas.
Industry Analysis
21/1/2019 beta Rank
WEMA Bank 0.7178 1
Unity Bank 0.8435 2
Union Bank 0.9542 3
GT Bank 0.992 4
STANBIC IBTC 1.0074 5
Zenith Bank 1.0315 6
Access Bank 1.1005 7
ECO Bank Transnational 1.166 8
Sterling Bank 1.2174 9
First Bank 1.3303 10
Fidelity Bank 1.3967 11
FCMB 1.603 12
UBA 1.6085 13
Diamond Bank 1.9092 14
22/1/2019 beta Rank
WEMA Bank 0.7447 1
Union Bank 0.8109 2
Unity Bank 0.8614 3
GT Bank 1.0045 4
STANBIC IBTC 1.0195 5
Zenith Bank 1.0473 6
Sterling Bank 1.0638 7
Access Bank 1.0949 8
ECO Bank Transnational 1.1801 9
First Bank 1.334 10
Fidelity Bank 1.3492 11
FCMB 1.6273 12
UBA 1.6723 13
Diamond Bank 1.8662 14
23/1/2019 beta Rank
WEMA Bank 0.7178 1
Unity Bank 0.8435 2
Union Bank 0.9542 3
GT Bank 0.992 4
STANBIC IBTC 1.0074 5
Zenith Bank 1.0315 6
Access Bank 1.1005 7
ECO Bank Transnational 1.166 8
Sterling Bank 1.2174 9
First Bank 1.3303 10
Fidelity Bank 1.3967 11
FCMB 1.603 12
UBA 1.6085 13
Diamond Bank 1.9092 14
24/1/2019 beta Rank
WEMA Bank 0.7447 1
Union Bank 0.811 2
Unity Bank 0.8615 3
GT Bank 1.0038 4
STANBIC IBTC 1.0212 5
Zenith Bank 1.0475 6
Sterling Bank 1.0651 7
Access Bank 1.0947 8
ECO Bank Transnational 1.1801 9
First Bank 1.3339 10
Fidelity Bank 1.3491 11
FCMB 1.627 12
UBA 1.6722 13
Diamond Bank 1.8684 14
25/1/2019 beta Rank
WEMA Bank 0.7447 1
Union Bank 0.8112 2
Unity Bank 0.8619 3
GT Bank 1.0029 4
STANBIC IBTC 1.0219 5
Zenith Bank 1.0476 6
Sterling Bank 1.0636 7
Access Bank 1.095 8
ECO Bank Transnational 1.1801 9
First Bank 1.335 10
Fidelity Bank 1.3486 11
FCMB 1.6284 12
UBA 1.6716 13
Diamond Bank 1.8687 14
Source: Financial Times
Company Analysis
Access Bank
Access Bank did not see rising volatility all week except for the bump on the second day of trade
Diamond Bank
After a jump on day two, volatility stayed flat all week
ECOBANK
Ecobank was flat from midweek after dealing with a midweek slump
FCMB
After a dip on day two, volatility rose to stay horizontal to last day of trade
Fidelity Bank
Rising with a kink on day two, volatility dipped to stay flat for rest of week
FBN Holdings
Volatility dipped on day two but trended upwards in steady motion for rest of week
GT Bank
Volatility started the week on a high, tempered on day two only to rise afterwards to end of week
Stanbic IBTC
Volatility jumped to stay high all week after a slump on day two
Sterling Bank
Volatility was subdued to the end of the week after a leap on day two
UBA
After a trough on day two, volatility stayed high and horizontal for the rest of the week
Union Bank
Volatility was horizontal to the last day of trade save for a jump on day two
Unity Bank
Volatility was high on day one but rolled down value on day two only to climb and stay high for rest of week
Wema Bank
Volatility sank on day two but trudged out to stay high for rest of week
Zenith Bank
After a high start on day one, volatility sank on but managed to come out to stay flat for rest of week
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