Banking Index Sinks as 12 Nigerian Listed Banks Lose N2.5trn
The banking index dipped sharply by about 10.5% as bears held the Nigerian stock market by the jugular, with a N5.64 trillion decline in market cap due to all-week sell pressure.
According to stock market data analysed by MarketForces Africa, the market value of all the 12 listed banks declined to N21.153 trillion, losing about N2.5 trillion over five trading sessions last week.
This decline was part of a broader sell-off in mid- and large-cap stocks on the Nigerian Exchange, resulting in a significant market dip of N5.64 trillion. Investors’ sentiment turned negative, particularly towards financial stocks, causing the banking index to drop by 10.49%.
Tier-1 banks, which represent 67% of the total value of all listed banks, suffered a loss of N2.221 trillion over five bearish trading sessions. Tier 2 banks lost N276.32 billion in combined losses, closing at N6.981 trillion on Friday.
Fidelity Bank (-10%), FCMB (8%), Sterling Holdings (-2%), Stanbic IBTC (-1%), Ecobank Transnational Inc. (-2%), Wema Bank (-3%) and Jaiz Bank (-1%).
Notable drops also included GTCO at -15%, Zenith Bank at -11.64%, and First Holdco at -20.28%, reflecting a marked correction in previously high-valued stocks.
GTCO, which has 36.55 billion shares outstanding, saw its share price decline from N135.55 to N115.55 over the week, resulting in a market cap reduction of roughly N746 billion.
Access Holdings and UBA experienced less severe selloffs, though Access Holdings’ market value fell to N1.239 trillion, trading at a steep discount to its 52-week high. First Holdco faced substantial losses as investor sentiment worsened, particularly after its chairman increased his holdings.
The company lost over 20% of its market value, closing at N2.444 trillion, while Zenith Bank recorded a loss of N596 billion, bringing its market cap to N4.517 trillion. Despite the downturn, several analysts maintained buy recommendations for Zenith and UBA, citing their strong upside potential amidst market volatility.
Overall, this period of decline illustrates a significant shift in investor behaviour on the Nigerian Exchange, marked by substantial trading volumes and a keen focus on banking sector profitability.
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