Insight: How Tier-1 Capital Banks Stock Prices Move
As Nigerian banks are warming up to release third quarter of financial year 2020 earnings results, their stock market performance have been uptrend.
Thus, good results would probably support equities market rally further, which means the Nigerian Stock Exchange may hit N20 trillion by year end.
It appears that banks have become market shy given that 43 days after the end of third quarter period, no result has come in from Tier-1 category.
A bad signal though, as analysts have predicted to see Tier-I banks impairment charges on credit losses coming in higher due to exposures to oil and gas.
Amidst ongoing rally, Guaranty Trust Bank Plc has joined trillion naira gang listed stocks on the Nigerian Stock Exchange (NSE).
As at yesterday, with shares outstanding of 29.431 billion, the bank share price closed at ₦38.20 leaving its total market capitalisation at ₦1.124 trillion.
Lender share price has maintained an uptrend in the last 7-trading session, rising from ₦32.10 to ₦38.20 per share on Thursday.
What this means for investors or the company’s shareholder is a 19% returns within the short period.
Meanwhile, Zenith Bank Plc has been trailing; as it market capitalisation printed at ₦883.811 billion on 31.396 billion shares outstanding.
In the last 7-trading session, Zenith bank share price has also maintained vertical trend, rising from ₦21.85 to close at 28.15 on Thursday.
The trend around Zenith bank shows that its share price has appreciated by about 29% in 7 trading session.
Meanwhile, equities investors in the market currently value United Bank for Africa at ₦333.444 billion on 34.199 shares outstanding.
Last 7-day trading record shows that UBA share price printed at ₦9.75 Thursday, rising from ₦7.60.
This means that the lender’s share value has increased by 28.3% over the short period amidst stable market rally.
Access Bank Plc share price has appreciated 25% in the last 7-trading session. On the local bourse, investors valued the bank at ₦355.452 billion on 35.545 billion shares outstanding.
Its 7-day trading data also shows that lender has stock maintained growth trajectory in the period as market awaits third quarter earnings result.
Equity investors that bought First Bank of Nigeria Holding’s share last 7-day would have gained more than 33% of initial outlay as at close of trading session on Thursday.
Apparently, the holdings has the lowest market capitalisation in the Tier-1 class, but its stock raced ahead its peers strongly.
In the period, FBNH share price has surged 33.33% from ₦6.30 to ₦8.40 per share as investors valued its 35.895 billion shares outstanding at ₦301.520 billion.
Banks in the tier-1capital category have combine market capitalisation of ₦2.999trillion. Of this, GTBank account for 37.5% of the sum.
Zenith Bank Plc accounted for 29.5% of the Tier-I class stock market value as at yesterday. Both however accounted for 67% of the big 5 banks combined market value as at Thursday.
Read Also: Zenith Bank: How Cash-Rich Lender Defied Gloomy Estimates
Insight: How Tier-1 Capital Banks Stock Prices Move
