The market value of Nigeria’s top banks has fallen to N7.6 trillion due to weak sentiment on the Nigerian Exchange. Key banks like GTCO gained, while others like UBA and FBN Holdings suffered losses. Delays in 2024 earnings reports may impact investor confidence moving forward.
The combined market value of Nigeria’s top banks has decreased to approximately N7.6 trillion on the Nigerian Exchange (NGX). Recent data indicates that all tier-1 banks collectively lost over N40.666 billion in value last week due to prevailing weak market sentiment. Despite this downturn, Zenith Bank Plc’s value remained unchanged week over week. Regulatory filings have indicated that several leading banks expect delays in reporting their 2024 earnings.
GTCO observed a notable increase of 2.5%, reaching N2.082 trillion, following off-market transactions last week. In the last five trading days, GTCO gained N51.205 billion on the NGX. Conversely, Zenith Bank’s market value stood at N1.963 trillion as of Friday, with its share priced at N47.80, showing stagnation despite interest from foreign investors.
Sell pressure across three major Nigerian lenders contributed to a significant drop in tier-1 market valuations, amounting to N40.663 billion. Access Plc recorded a reduction of approximately N24 billion, ending at N1.247 trillion with a per share value of N23.40. Similarly, UBA Plc experienced a decreased market value of N1.251 trillion, driven by profit-taking ahead of an anticipated earnings release. Stockbrokers predict that UBA’s value could rebound following its forthcoming capital raise announcement.
UBA’s market valuation dropped about N43 billion week-on-week, ultimately closing at N1.25 trillion, indicating a notable discount from its 52-week high. FBN Holdings Plc, as the oldest publicly listed banking group, witnessed a decline to N1.026 trillion after experiencing a sell-off that resulted in a loss of over N25 billion from its market value. Yet, banking stocks are stabilizing as internal sell pressures appear to be easing.
In summary, the market value of Nigeria’s leading banks has seen a significant decline to N7.6 trillion due to weak investor sentiment and profit-taking behavior. While certain banks like GTCO have shown resilience with notable gains, others like UBA and FBN Holdings have faced substantial losses. The anticipated delays in earnings reports may continue to influence market dynamics. Overall, the current figures reflect the ongoing volatility and complex market conditions affecting the banking sector in Nigeria.
Original Source: dmarketforces.com
