Fidelity Bank’s stock gets upgrade after 4 months of strong performance

The Nigerian Exchange (NGX) has upgraded Fidelity Bank Plc from a low-priced stock to medium-priced stock.

This follows the bank's recent strong predominance on the Nigerian exchange over the most recent six months.

A medium-priced stock typically refers to a stock that is priced at N5 per share or above but less than N100 per share for at least four of the last six months, Punch reports.

How companies stocks are classified

The NGX classifies quoted companies into three categories-high-priced, medium-priced, and low-priced stocks, based on their market price.

A company must have traded for at least four out of the most recent six-month period within a stock price group’s specified price band to be classified into the category.

The high-priced stocks consist of large-cap that are priced at N100 per share or above for at least four of the last six trading months, or new security listings that are priced at N100 or above at the time of listing on the Exchange.

Why Fidelity Bank was reclassified

Legit.ng checks show that Fidelity Bank traded above the N5.00 mark on February 20, 2023, and has remained above the N5 mark up until the close of business on June 30, 2023.

In a regulatory circular at the weekend, the NGX said: "This indicates that Fidelity Bank has been trading above N5 for at least four) months in the last six months"