The combined market value of Nigeria’s top-tier banks has fallen to approximately N7.6 trillion in the equities segment of the Nigerian Exchange (NGX), according to transaction data. Over the past week, all banks in the tier-1 category experienced a significant decline, losing over N40.66 billion in market capitalization. This reflects weak investor sentiment on the Exchange.
The banking index recorded a weekly decline, although Zenith Bank Plc remained stable. Most of the top banks have informed regulators of a delay in their 2024 earnings reports, affecting investor confidence.
However, GTCO bucked the trend, gaining 2.5% to reach N2.082 trillion after a major block deal was executed off-market. In just five trading sessions, GTCO added N51.2 billion to its market value on NGX.
Zenith Bank’s market capitalization remained steady at N1.963 trillion by Friday, with its share price holding at N47.80. Despite foreign investors showing interest in Zenith Bank’s shares, the market sentiment remained largely negative for the sector.
Pressure on Banking Stocks
The combined value of tier-1 banks dropped by N40.66 billion week-on-week, driven by sell-offs in three major lenders.
Access Bank Plc: Fell by approximately N24 billion, closing at N1.247 trillion. Its share price fluctuated before settling at N23.40 on Friday.
UBA Plc: Market value declined to N1.251 trillion as investors offloaded shares ahead of the group’s earnings release. UBA lost about N43 billion within the week, with its share price dropping by 3.3% to N36.60.
FBN Holdings Plc: Also saw its market value decrease, closing at N1.026 trillion after losing more than N25 billion due to sell pressure. However, banking stocks have stabilized recently as internal pressures eased. Stockbrokers anticipate that UBA’s market value may recover following its recent capital raise announcement.
