According to statistics from the domestic market, sell-side activity on Nigerian Tier-1 banks’ equities caused the banking index to fall 12 basis points. This week, all of the big banks failed in the hands of investors trading highs and lows on the Nigerian Exchange (NGX) platforms due to risk-off attitude.
At the end of Friday’s closing session, all of the large banking names, including GTCO, Zenith, UBA, FBN Holdings, and Access Holdings, were worth N4.776 trillion, or $2.9 billion, in the market.
Last week, stock tracking data revealed that Nigeria’s Tier-1 banks’ total market value had hit N4.81 trillion on the stock market. A review of the market value revealed that these banks lost over N31 billion in the just finished week as investors dumped GTCO, Zenith, FBNH, and Access Bank Plc.
On the sell side, investors cut their interest in Access Holdings and GTCO Plc, with both concluding the week lower, in line with the stocks market. Some Broadstreet analysts predicted that investors would begin wagering on the earnings prospects of large banks that have yet to report their financial results.
Surprisingly, the market atmosphere has remained unchanged. Investors liquidated Zenith Bank shares despite a large profit and an interim dividend. MarketForces Africa believes that banks with higher earnings per share and stocks returns will likely capture investors’ attention in the next weeks, despite concerns about windfall tax.
Apart from the better fundamentals of these big banks, sentiment is another thing that can drive their share prices higher. “There are other reasons why investors acquire company shares—for control and for share and capital gain—it depends on the motive.”
Based on their results, GTCO led the industry in terms of return on equity (ROE) of 36.53%, followed by UBA (29.93%), Zenith (29.13%), Access (28.34%), and FBNH (18.23%). In the just concluded week, one out of the five big banks in the tier-1 category ended the week with positive price movement.
UBA total weekly gain of N18.809 billion reduced the pressure on the tier-1 category market value. GTCO lost N2.943 billion, FBNH value reduced by N16.152 billion, Zenith slumped by N23.547 billion and Access Plc dropped by N7.109 billion.
With mixed activities seen from both the sell and buy side equities traders in the Nigerian, the banking index fell by 0.12% week on week. The largest bank by total assets, Access Holdings Plc, plunged due to sell pressure, partly due to a delay in group earnings released for the first half of 2024.
The tempest of sell side trading activities on the banking index was moderate, as UBA gained slightly offset losses incurred by Zenith, GTCO, FBNH and Access Bank Plc. Still, the negative price movement in these four bid lenders was not sharp enough to shift their combined market value lower significantly.
In terms of valuation, GTCO, Zenith Bank Plc, and UBA rank stronger, while FBNH and Access Plc remain the most volatile stocks, trading at a steep discount from their peers.
Data from the local bourse suggests that the tier-1 lenders are trading at a steep discount to their respective 52-week high stock market performance amidst expectation of their earnings release.
Market price to 52 week high discount gets wider for FBN Holdings ahead of its annual general meetings. The financial services group that warehoused FBNQuest merchant bank has released a plan to divest 100% interest in merchant business.
GTCO Plc still ranked ahead of its rival lenders in terms of market value. The group ended trading session on Friday at N1.336 trillion, down from N1.339 trillion, after it market price slumped to N45.4 from N45.5 at the beginning of the week.
GTCO is trading at a 15.85% discount to its 52-week high at the close of the trading session on Friday amidst 9 billion shares offered for subscription at N44.50.
Zenith Bank Plc market declined to N1.177 trillion in the market from N1.200 trillion last week due to negative price movement which plunged the stock price down to N37.50 from N38.25 per share in the local bourse.
The bank share is now trading at a 20.80% discount to its 52-week high amidst N290 billion in capital raise via rights and public offers. UBA Plc’s market value increased to N803.686 billion in the equities market from N785 billion in the previous week as price rose by 50 kobo.
The Pan African lender opened the week at N22.95 per share but ended at N23.50 on Friday. UBA is trading at a 30.88% discount to a 52-week high as of Friday’s close. Access Holdings fell to N668 billion on Friday, according to data from the Nigerian Exchange from an opening value of N675 billion.
The largest bank in Nigeria by total asset lost its popularity among investors amidst delayed earnings release. Its share price declined further in the week to N18.80 from N19 at the beginning of the week. At the current stock market price, Access Holdings Plc is trading at 38.76% below its 52-week high. The share price of the financial services group had climbed to N30.7 before it retreated
FBN Holdings Plc market value declined to N791 billion, moved along the banking index negative direction. Last week, the elephant branded financial services company market valuation slumped to N791 billion due to selloffs from N808 billion. According to data from the Nigerian Exchange, FBNH share price dipped to N22.05 on the Nigerian Exchange from N22.25 at the beginning of the week.
Ticker: FBNH is trading at about 49.82% to its 52 weeks after a persistent price decline amidst an ongoing battle between the group and Barbican Capital over shareholdings. The financial stock had peaked at N43.95 during a good time on the Nigerian Exchange before it retreated.
https://bizwatchnigeria.ng/nnpcl-to-begin-lifting-from-dangote-refinery
