Nigerian Big Banks Market Value Rises To N4.6Trn Or $3.15bn

According to data from the local exchange, the top big banks in Nigeria that are listed on the Nigerian Exchange, or NGX, had a surge in their total market value last week, reaching around N46 trillion.

Due to the volatile market values of the bellwether banks, investors initiated positions in large lenders in anticipation of the subsequent market upswing. In the midst of news of fund-raising for recapitalization, mixed trading improved the performance of the banking index.

The top big banks’ share prices have reverted after reaching the resistance level in spite of significant earnings releases, which was in line with certain analysts’ predictions.

The prior bearish trend was more accurately described as a market correction that gave some astute value seekers the opportunity to benefit early on the local exchange. Re-entry into the banking index has occurred as the negative waves have slowed, pushing the combined valuation higher from the previous week. Last week, Tier-1 banks market value dipped to N4.4 trillion, Bizwatch Nigeria reported.

FBN Holdings Trades at 48.6% Discount to 52-Week High

FBN Holdings Plc declined marginally to N22.6 per share from N22.75 despite buying momentum on the Nigerian Exchange. This left the elephant market valuation at N811.2 billion.

FBNH is trading at a 48.58% discount to its 52-week high. The stock had peaked at N43.95 before making a 360-degree U-turn in the second quarter of 2024 following an earnings delay and subsequent dividend cut.

In its latest update on Nigerian Banks, Fitch excluded FBN Holdings from lenders whose outlook were upgraded. FBN Holdings has surmounted various degree of crisis, internal and external, in the recent past. Analysts said they are not particularly pricing the elephant’s thick skin positive until the recapitalization program ends, with particular interest in the shareholding structure.

Zenith Bank Trades at 24% Discount to 52-Week High

Zenith Bank Plc is now the second most valuable financial institution in terms of stock market valuation as of Friday close. The Ajose Adeogun-based deposit money bank regained its grooves due to increased positioning in its stock.

Its market value had dropped below N1 trillion during the intermittent sell spree in the stock, which made the bank stock one of the targets for quick exits. At the close of trading session on Friday, Zenith Bank was valued at N1.130 trillion as share price rose to N36, gaining more than 9% over five trading sessions from N33 in previous week. Zenith Bank is trading at about 24% of its 52-week high.

The bank has seen its share price hitting the rooftop early in the year before the trend reversed. Its 52-week high was N47.35, while it has hit the bottom at N29.70 per share. Zenith Bank’s earnings performance has been healthy over the years, and it is among the top lenders with a stable dividend history.

GTCO Plc Trades at 21.8% Discount to 52-Week High

GTCO Plc tops the list as the most valuable among its banking peers. It is also less volatile banking stocks when compared with the performance of the big five on the Nigerian Exchange. The financial services behemoth and perhaps the cost leader in the banking sector, GTCO’s market valuation climbed to N1.24 trillion, according to data from the Nigerian Exchange.

Last week, the financial services group saw a spike to N42.2 per share in the stock market from N40. Bizwatch Nigeria reported that the Orange-branded financial services group is trading at a 21.77% discount to its 52-week high. The worst GTCO did was when bearish performance on the local bourse dragged its share price to N30.35 kobo in the last year.

Access Holdings Trades at 39% Discount to 52-Week High

Access Holdings PLC rallied to about N663 billion on the Nigerian Exchange. The largest lender by total assets is the least valued in the Tier 1 category in terms of valuation. Access share price rose by 8.43% week on week to close at N18.65 kobo per share, from N17.20.

In profitability, Access PLC ranked low compared with its peers on the Nigerian Exchange. Investors’ sentiment on the bank has increased following its ability to choose successor in much easier after its erstwhile GMD demise.

The stock is trading at a more than 39% discount to its 52-week high, according to data from the local bourse. Data show the company had hit N13.80, its lowest price in 52 weeks.

UBA Trades at 34% to 52-Week High

Pan African lender UBA Plc’s total market worth hit N764 billion on the Nigerian Exchange at the close of trading sessions on Friday. The financial services group registered moderate price surge, which closed the week at N22.35 per share from N21.

With 34.199 billion shares outstanding, its market valuation climbed to N764 billion over the last five trading sessions. At the current price, UBA is trading at a more than 34% discount to its 52-week high on the Nigerian Exchange.

UBA had hit the bottom at N11 per share during a bearish run on the Nigerian bourse. A slew of analysts’ estimates showed UBA earnings would surge further. In 2023, the lender’s earnings quality beat the industry’s average and ranked top among its peers.

Investors’ appetite for UBA has been strong, and it is projected to remain a money-making machine for shareholders. The market is expecting to see the group fund-raising plan implemented. Its pricing would further set direction for alpha seekers to either take position or exit the ring for the high and the mighty.

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