Jaiz Bank Falls as Investors Exit Positions Amidst Earnings Forecast
Jaiz Bank Plc’s market value dropped by approximately N8.5 billion in the equity market, reflecting investors’ negative sentiment on the Islamic lender’s prospect.
Its share price closed at N4.37 on Friday following sell-offs, which is more than 20.5% below its highest market valuation in 52 weeks.
Based on data from the Nigerian Exchange, trading volumes were significant throughout, reflecting increased market activity driven by investors seeking to exit positions.
The Islamic lender traded against the stock market trend, lost N8.5 billion from its opening value on the Nigerian Exchange last week.
Trading data from the Nigerian Exchange showed that the non-interest bank share price reduced to N4.37 on Friday as 7.443 million units valued at N33.304 million were traded.
The transactions were driven by sell side investors who took early exit ahead of third quarter earnings release. At the close of trading session, the bank’s market value declined to N194.855 billion, spread over its 44.589 billion shares outstanding.
Jaiz Bank share price declined by 4% week on week to N4.37 from N4.56 at the beginning of trading session last week. Market analysts see curtailed upside due to tight shareholding structure.
Records revealed that more than 85% of Jaiz Bank shares outstanding is under the control of substantial and influential shareholders, with Alhaji (Dr.) Muhammadu Indimi maintains highest shareholding of 29.36%
In its earnings forecast, Jaiz Bank anticipated fourth quarter profit after the tax charge to settle at N8.66 billion. The bank forecasted its gross earnings for the period to reach N34.644 billion.
Its projection revealed that the bank anticipates significant earnings from financing and investment business. #Jaiz Bank Falls as Investors Exit Positions Amidst Earnings Forecast
