UBA Jumps by 16.16% as Investors Await Q2 Earnings
Pan-African lender, United Bank for Africa (UBA) Plc saw a flood of buying interest in the last seven trading sessions, which shifted its market value higher by more than 16% to N786.56 billion. Investors showed interest in the banking group ahead of the Q-2024 earnings release.
A review of banking sector performance showed that the PanAfrican financial services group was second most profitable in terms of return on shareholders’ equity, which settled above 29% in the first quarter of 2024.
UBA will continue to enjoy pan-African earnings diversification, with more upside than downside expectations in the second half of 2024, according to some notable analysts at Broadstreet.
On the Nigeria Exchange, data showed that UBA Plc was priced at N23 per share after a sustained daily price surge spanning 7-trading sessions from N19.8. The increase in buying interest stems from the expectation that the pan-African lender would deliver impressive earnings in the second quarter of 2024, stockbrokers told MarketForces Africa in a chat.
Starting this week, the market expects UBA to release its financial scorecard for Q2-2024 as part of the regulatory requirements for listed entities. UBA is trading at a huge discount below its 52-week high in the stock market.
Huge Volume
UBA was among the top actively traded stocks in the equities market last week. The banking group experienced strong transaction volume over the last seven trading sessions in the market. With each day’s gain suggesting investors are on the buy side in anticipation of interim dividends,. UBA’s high trading volume signifies greater equity investors’ interest, which results in higher liquidity.
Equity Analysts
Apel Asset Limited kept UBA on its buying rating with the expectation that the pan African lender would deliver value to shareholders at the reference market price. Equity analysts at the investment firm set UBA’s fair value estimate at N32.56, with more than 62% upside potential. UBA is among the top performers in terms of return on equity in the banking sector.
Data showed that UBA return on equity was 29.93%, trailing GTCO (36.53) but ahead of ACCESS (28.34%), FBNH (18.23%) AND Zenith (29.13%). #UBA Jumps by 16.16% as Investors Await Q2 Earnings
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