UBA Rises by 6.5% on Huge Trade Volume Ahead of Earnings
UBA Plc gained traction on the floor of the Nigerian Exchange (NGX) following significant share volume that exchanged hands in the local bourse. The huge buying interest was driven by improved sentiment in the local bourse.
Investors are expecting interim dividend payments by the banking group after the release of earnings results in couple of days, weeks.
According to data from the domestic bourse, UBA became expensive after its popularity among investors pushed the Pan African lender share price higher by 6.54% to N24.45 from N22.95. Analysts raised UBA’s target price on the projection that its earnings would come strong in the first half of 2024.
In the market, about 55 million shares of UBA exchanged hands in the equities market on Monday, data from the Nigerian Exchange revealed. On Friday, UBA shares traded were also significant, suggesting stronger earnings expectations.
At the close of the trading session, the market value of the third largest banking group in the tier-1 category increased to N836.175 billion, spread over its 34.199 billion shares outstanding in the market. The group recorded a strong earnings scorecard in the first quarter, and analysts expect the momentum to continue due to its strong geographical diversification.
In the first quarter of the year, GTCO led the banking industry top performers in terms of return on equity (ROE) of 36.53%, followed by UBA (29.93%), Zenith (29.13%), Access (28.34%), and FBNH (18.23%).
Last month, UBA told the Nigerian Exchange that the board had approved the audited results for half year 2024 and declared an interim dividend. The banking group stated the board decision is subject to the Central Bank of Nigeria (CBN). Ticker: UBA is trading at a 28% discount to its 52 week high on the Nigerian Exchange. Access Holdings Rated Buy on 56% Upside Potential
