Bank Stocks Slip as Foreign Exchange Gains Lose Momentum

Story: written by Myra Chinonso September 15,2025
Banking sector stocks are trading at a discount as earlier gains driven by foreign exchange reforms begin to fade.

Analysts say profit-taking and cooling FX inflows have slowed the rally that lifted lenders in recent months. With currency markets showing signs of stabilization, investors are reassessing the sector’s short-term growth potential.

Market watchers noted that while banks remain fundamentally strong, sentiment has softened as traders await fresh policy signals and clearer direction from monetary authorities.

The shift has left some bank stocks undervalued compared to their recent highs, creating opportunities for long-term investors, according to brokers.

However, analysts caution that the sector’s outlook will depend heavily on foreign exchange liquidity, interest rate trends, and broader economic reforms.