Market Value of Nigerian Big Banks Jumps to N5.84Trn
The combined market value of Nigerian big banks surged by N12.656 billion to N5.84 trillion on Friday in the equities market as four out of five ended the week positive. Zenith, FBN Holdings, UBA, and Access Holdings Plc saw positive price movements while GTCO plunged as investors took profit.
According to data from the Nigerian Exchange, GTCO market value declined to N1.558 trillion, losing N48.561 billion week on week. The orange-branded financial services share price decreased to N52.95 on Friday in the equities market amidst weakening investors’ sentiment.
Investors have been rotating their portfolio to optimise return, causing fluctuation in the banking index. In the Tier-1 sector, GTCO remains category king with less than peers’ volatility counts. Stock market data showed GTCO is trading at 7% below the 52-week high as investors exited positions. The stock had peaked at N57.
Zenith Bank Plc saw a price uptick, which nudged its market value higher by N6.279 billion week on week. The bank market value jumped to N1.397 trillion on the Nigerian Exchange after the management announced a new branch office in Paris, France, last week.
The news boosted investors’ sentiment, and it share price surged from N44.50 at the beginning of the week to close at N44.50. Zenith Bank Plc, the second largest by market value, has enjoyed less volatility on the Nigerian Exchange.
In the equities market, the bank is trading at 6% discount to its 52-week high. The stock peaked at N47.35 before it retreated. UBA Plc has also been rerated on the Nigerian Exchange due to improved investors’ sentiment amidst rights issue offerings in the market.
The Pan African lender market valuation crossed N1 trillion mark, making it the third largest in the Tier-1 bank category. In the equities market, UBA share price surged to N32.7 last week from N32.35 at the beginning of the week as investors increased their bets.
UBA market valuation increased by N11.969 billion in five days, now trading at about 4% discount to its 52-week high in the local bourse. The market had valued the banking group share price at N34 before the stock plunged.
FBN Holdings happened to be the highest gainer in absolute terms among the top-tier banking names on NGX last week. The financial services group valuation in the equities market increased by N32.305 billion to settle at N944.046 billion.
The banking group share price rose to N26.3 on Friday, from N25.4 amidst capital raising via rights issue to shareholders.
Arguably one of the most volatile among tier-1 names, FBN Holdings is trading at more than 40% discount to its 52-week high.
Some equities analysts are of the view that the lower price has created an opportunity for investors to increase bets on the banking group after it divested Merchant Business and seeks to boost capital as approved by shareholders.
Access Holdings Plc, the largest group in the banking sector, attracts the lowest valuation. In the Tier-1 segment, Access Holdings Plc ranks from the bottom, valued at N824.649 billion on the Nigerian Exchange at the close of business on Friday.
The market arrived to its new valuation following a N10.663 billion weekly gain as a result of positive price movements. The banking group share price increased from N22.90 at the beginning of trading sessions last week to N23.2 in the equities market due to moderate buying interest amidst huge litigation claims of more than N11 trillion.
At the current market value, Access Holdings Plc is trading at more than 24% discount below its 52-week high on the Nigerian Exchange. It share price had peaked at N30.7 in the equities market. #Market Value of Nigerian Big Banks Jumps to N5.84Trn Naira Plunges on Suboptimal FX Intervention
