Nigerian Top 5 Banks Market Value Hits N7.8trn or $5.2bn
Amidst ongoing recapitalisation in the banking sector, the Nigerian top five (5) banks have gained significant weight on the Nigerian Exchange (NGX) amidst valuation attraction, strong earnings, and sustained dividend payments.
With a steady positive price movement, market value of Nigerian top 5 banks grew by more than N410 billion over five trading sessions last week According to data obtained from the local bourse, the combined market value of the top lenders surged to N7.833 trillion on Friday, up by N410.364 billion week on week.
Boosting the banking index, all the banks in the tier-1 category witnessed a price surge that lifted their individual market value. In US dollars, the top five banks combined market settled at $5.22 billion at the closing rate in the foreign exchange market last week.
The big lenders rally explained a significant boost posted by the Nigerian Exchange banking index. The Banking Index led the gainers charts in the local bourse last week with a 4.66% increase.
Still, GTCO maintained its leadership position as the most valuable financial institution in the local bourse. The orange-branded holding company share price climbed to N64 after successive rallies, from N61.05 at the beginning of the just concluded week.
On Friday, the Nigerian Exchange priced GTCO Plc.’s 34.136 billion shares outstanding for N2.184 trillion, trading at a fair discount to its latest record high.
Zenith Bank ranked second among top lenders that have gained popularity among value hunters in the Nigerian market. Zenith Bank share price reached 52-week high last week, priced at N52 due to rising investors’ appetites ahead of its earnings release.
MarketForces Africa reported that the Ajose Adeogun-headquartered Nigerian lender’s attractive valuation attracted foreign investors in the local bourse.
This triggered a rally that pushed its market value higher to N1.632 billion, spread over its 31.396 billion shares outstanding in the equities market. Zenith Bank is expected to reach N2 trillion after listing its recently completed offer and earnings announcement.
As of Friday, Access Holdings Plc ranked third in terms of market value in the equities segment of the Nigerian Exchange. The financial services company price increased to N28 per share due to increased demand for banking stocks on NGX.
The Nigerian Exchange valued Access Holdings Plc.’s 53.317 billion shares outstanding for N1.492 trillion. Access Holdings became the first financial institution to meet its new capital base of N500 billion.
This feat came following a successful capital raise, which has listed its numbers of shares above 53 billion. Analysts maintain that the financial services company is among the lowest priced in the equities market despite being the largest among banking peers in terms of total assets.
UBA Plc gained 3.8% week on week to settle at N39.15 in the stock market ahead of the group earnings. With the best dividend yield of 13.11% over the last five, the Pan African lender continues to attract investors’ attention.
In the equities market last week, UBA share price surged as market anticipates release of financial scorecard for 2024. The mild increase in price lifted UBA market value to N1.338 trillion, spread across its 34.199 billion shares outstanding.
Analysts said UBA is among the top Nigerian financial institutions with strong earnings diversification on the back of its geographic advantage. UBA traded at a fair discount to its 52-week high on the Nigerian Exchange and ranked higher as preferred stock for dividend hunters in the local bourse.
FBN Holdings saw a significant rally that pushed its market valuation higher by more than 10%. The Nigerian oldest lender in the stock market price raced higher by 10.2% week on week to N33, from N29.95.
The improved investors’ sentiment followed the Holdings impressive earnings performance as revealed by its unaudited financial scorecard. Despite the rally, FBNH traded at a significant discount to its 52-week, creating an entry point for alpha seekers.
FBN Holdings gained N109.408 billion due to bullish sentiment ahead of recapitalisation of its banking arm, First Bank of Nigeria Limited, having divested interest in merchant business. #Nigerian Top 5 Banks Market Value Hits N7.8trn or $5.2bn Naira Dips as Nigeria’s Foreign Reserves Fall by $1.34bn
