Over the past week on the Nigerian Exchange, the combined market value of leading banks rose by N468.1 billion, contributing significantly to a total market gain of N835 billion, spurred by a five-day rally. MarketForces Africa reported this uptick, noting that positive investor sentiment followed the release of third-quarter 2024 earnings reports, with banks driving 58.44% of the market capitalization increase.
The Banking Index was the week’s standout performer, achieving a 7.86% rise, driven by strong investor confidence in major banking stocks. Key Tier-1 banks, including Zenith Bank, UBA, FBN Holdings (FBNH), Access Corporation, and GTCO, experienced heightened trading activity as investors anticipated robust financial results.
GTCO Nears Peak Market Value
GTCO, the most valuable banking group on the Nigerian Exchange, saw a market value increase of N58.862 billion, rising to N1.530 trillion. The bank’s stock price reached N52 by Friday, approaching its 52-week high, reflecting strong buying interest despite minor service disruptions. GTCO is currently trading at a 3.6% discount from its annual peak, drawing interest from investors focused on stability and growth potential.
This strong performance across the banking sector underscores investor confidence and sets a promising tone for further growth as additional earnings reports are anticipated.
UBA Highest with Record Gains
UBA was a standout, releasing its unaudited Q3 financials, which showed a 17% year-over-year increase in profitability, attracting significant investor attention. This led to an 18.5% rise in UBA’s market value, adding N16.737 billion and closing the week with its stock price at N30.1, just below its 52-week peak of N34. UBA’s outstanding shares, totaling 34.2 billion, reached a market valuation of N1.029 trillion by Friday’s close.
Zenith Bank Continues Strong Performance
Zenith Bank’s market value increased by N76.921 billion over five trading days, supported by positive investor outlook in anticipation of its earnings release. The bank’s stock saw a 6.54% increase to N39.90, positioning it with a market value of N1.252 trillion. Zenith Bank is currently trading at a 17% discount from its 52-week high, attracting interest from value-focused investors.
Access Holdings Rises Amid High Share Count
Access Holdings Plc added N72.867 billion to its market value, ending the week at N783.772 billion, up from N710.904 billion. Despite its vast balance sheet, Access Holdings’ stock price, which closed at N22.05 from N20 at the start of the week, remains at a 28.2% discount from its 52-week high. Investors are eagerly awaiting its Q3 earnings release to gauge future performance.
FBN Holdings Gains with Strategic Moves
FBN Holdings’ market value grew by N98.712 billion, largely due to favorable investor sentiment following announcements at its annual general meeting. Its share price rose 10.6%, closing at N28.75 from N26 at the start of the week. This came after FBN Holdings’ decision to divest from FBNQuest Merchant Bank in Q3 2024, which has faced regulatory challenges due to capital requirements. Analysts suggest the divestment is a strategic move to stabilize FBN Holdings’ overall capital health.
