Access Holdings Surges 16% in Pre-Earnings Bets
Access Holdings Plc surged by about 16% in pre-earnings bets in the equities market last week, rising to N29.2 per share from N25 at the beginning of the week.
With a market capitalisation of about N1.59 trillion, the largest Nigerian financial institution remains the cheapest in the local bourse.
Access Holdings continues to see investors coming and leaving due to weak dividend and earnings performance compared with its immediate rivals.
Holdco share price opened at N25 and saw consecutive positive price appreciation for four trading sessions in the domestic bourse before it flattened.
Reflecting this pattern, Access Holdings experienced huge trading volume that barely moved the needle; most of the time, this was as a result of block transactions.
More than 128 million shares of Access Holdings were traded on Friday at a transaction value of N3.818 billion – with no effect on its share price.
At the beginning of the trading session last week, more than 190 million units of the financial services company were traded, and its share price only rose from N25 to N25.50 – usually a post-transaction effect of an off-market trade.
The huge volume has always been anchored on its relatively lower price in the stock market compared with its peer with a higher price.
Still, Access Holdings remains a risky bet with limited capital appreciation and usually an unimpressive and relatively stagnant dividend rate.
A slew of analysts expressed views that Access Holdings Plc is undervalued, with some claiming the group’s valuation mirrors that of a bank rather than a conglomerate.
As a result, its shares attract a buy recommendation, with the expectation of a price re-rating after the Holdco began to scale back its acquisition-driven expansion on account of regulatory requirements for holding financial services companies.
Access Holdings Plc reached a 52-week high of N36 per share on the local bourse, meaning it is now trading about 18% below its peak value. #Access Holdings Surges 16% in Pre-Earnings Bets# Access Holdings: Nigeria’s Biggest Bank Value Dips to N1.24trn
