Nigeria’s top banks’ market value decreased to N7.6 trillion, a drop of over N40.666 billion amid weak sentiment. GTCO gained 2.5%, while others like Access and UBA faced significant losses. Expectations for market stabilization exist despite ongoing uncertainties.
The combined market value of Nigeria’s top banks has declined to approximately N7.6 trillion, as reported by MarketForces Africa, amidst unfavorable sentiments in the equities segment of the Nigerian Exchange (NGX). In the past week, tier-1 banks experienced a drop of over N40.666 billion, indicating weak market performance despite Zenith Bank Plc holding steady.
Most top lenders announced delays in their 2024 earnings, contributing to the declining banking index. Notably, GTCO managed a gain of 2.5%, valuing it at N2.082 trillion, attributed to an off-market block deal. Meanwhile, despite foreign investor interest, Zenith Bank’s market value remained unchanged at N1.963 trillion with a unit price of N47.80.
Sell pressure significantly impacted three major Nigerian lenders, resulting in a week-over-week decrease of N40.663 billion in tier-1 market value. Access Plc’s value fell to N1.247 trillion, with fluctuating shares closing at N23.40. UBA Plc experienced a decline to N1.251 trillion amid position exits, with shares priced at N36.60, down by 3.3%.
UBA’s market value decreased by approximately N43 billion as it trades at a discount from its 52-week high, with expectations for a rebound following a capital raise announcement. Similarly, FBN Holdings Plc’s valuation dropped to N1.026 trillion, losing more than N25 billion due to sell pressure. However, a recent stabilization in banking stocks indicates easing internal pressures.
The recent decline in the market value of Nigeria’s top banks reflects weak investor sentiment and significant sell pressure. While some banks like GTCO saw gains, others like UBA and Access Plc faced substantial losses. The prospect of further market volatility looms as delays in earnings reporting add to investor unease, although stabilization signs have begun to emerge.
Original Source: dmarketforces.com
