Market Value of Tier-1 Banks Shrinks to N4.8 Trillion
Nigerian big banks combined market valuation shrank to N4.8 trillion on the Nigerian Exchange (NGX) amidst an ongoing recapilisation programme. The Tier-1 banks saw mixed performance on the local bourse, with negative trading activities on three out of five big banks.
Two of the Tier 1 banks recorded positive share price movement last week, three saw a valuation decline that plunged the banking index lower week on week. The ongoing public offer and rights issues have given investors opportunities to boost their stakes in banking stocks. The majority of the banks in this category have released their capital raising plans.
Details from the Nigerian market showed that FBN Holdings Plc has continue to face sell pressures from investors ahead of its earnings release. Its market value declined to N781.491 billion in the market on Friday.
Data from the Nigerian bourse showed that FBN Holdings stock market price ended the just concluded week at N22.05, down from N22.25 at the beginning of the week.
Analysts said its negative share price movement will affects market pricing of its public offer or rights issue amidst plan to raise N300 billion to augment capital base before the end of first quarter of 2026.
At the current market price, FBN Holdings is trading at 49.83% discount to its 52-week high on the Nigerian Exchange. This discount created a fresh entry points for investors at relative lower market price.
Zenith Bank
Zenith Bank sloped downward to N1.116 trillion on the Nigerian Exchange after sell pressures were witnessed on Ajose Adeogun based top lenders in the market. The risk-off sentiment was triggered in anticipation of the bank’s public or rights issue offer as part of efforts to meet recapitalisation deadline.
The bank opened at N37.05 but ended the week at N37 ahead of the second quarter of financial 2024 earnings release. At the current market price, Zenith bank is trading at 21.86% below its peak price. Data from the Nigerian bourse that the financial services company’s share price had reached N47.35 following a strong market rally early in 2024 before it retreated.
UBA Plc
On Friday, the market placed N781.456 billion as fair value of United Bank for Africa (UBA) Plc on the Nigerian Exchange. The pan African lender saw slightly gain in the equities market last week as investors’ sentiment remained upbeat.
UBA opened trading session at N22.75 per share and close at N22.85 on Friday, data from the local bourse revealed. The market is expecting UBA public offers and right issue as well as second quarter earnings release.
The market is expected to react to the group capital raise plan which some insiders told MarketForces Africa, will be release shortly after Q2-2024 earnings announcement. At the current market price, UBA is trading at 32.79% discount to its 52-week high in the equities market. The banking stock had hit N34 in the equities market before it retreated.
GTCO Plc
GTCO is in the market to raise N400.5 billion via public offer. Analysts said the orange branded financial services group remains audacious due to low key man risk profile its founders deliberately entrenched strategically.
MarketForces Africa reported that the group is out in the capital market to sell 9 billion shares to existing and new investors who believe in its vision and future earnings stream. At the end of the trading session on Friday, the market priced GTCO at N1.322 trillion as its share price dropped to N49.50 from N45.55 at the beginning of the week.
The group share price is trading at 16.68% discount to its 52 week on the Nigerian bourse. GTCO had hit N53.95 per share early in the year.
ACCESS Holdings
Access Plc remains the largest commercial banking group in Nigerian market with stock market valuation worth N689.577 in the local bourse on Friday. The group was among top performing in the banking segment in the just concluded.
It traded against banking index which shed 2%. According to data from the domestic bourse, Access Plc share price rose to N19.40 from N19.05 at the beginning of the week.
At the current market price, the largest banking group share price is trading at a 36.81% discount to its peak price. Trading data from the Lagos bourse showed Accescorp had hit N30.70 early this year, its 52 week high on the Nigerian Exchange. Market Value of Tier-1 Banks Shrinks to N4.8 Trillion Africa Prudential Gains 34% after Out of Ordinary Trading Volume
