Union Bank share price bucks bearish trend, outperforms peers
Union Bank of Nigeria Plc.’s share price has bucked the persistent bearish trend on the floor of the Nigerian Stock Exchange, as its year to date return is settled at 25%.
The Bank share tops the list of best performing stock in the Tier II category, and in the banking sector in general.
At close of trading yesterday, its total market capitalisation pitched at N203.845 billion with 29,120,752,788 shares outstanding.
Equity analysts told MarketForces that bearish stock market performance could reverse any moment should government redirect policy strategies, otherwise market may be heading down to the lowest point ever.
“There will be no easy lift of getting double digit return on investment in the bearish market”, analysts stated.
At 25% year to date returns, the stock has surged more than twice the average inflation rate movement in the year.
It could be observed that very few of the quoted stocks fair better in weak macroeconomic conditions, as investors are unable to place prices on stocks.
Union Bank shares were quoted at N7.00 on Monday having peaked at N7.50 in the year and hit lowest price point when it traded at N5.60, which was the opening price.
“Though weak investors’ sentiments make it difficult to predict direction of the market, but intrinsic value of some stocks makes it a right choice for building portfolio.
“I would go for BUY as third quarter earnings season is already here”, an equity analysts who doesn’t want name in print told MarketForces.
In a related development, in compliance with the NSE rule book, Union Bank notified the Exchange about the board meeting for approval of the third quarter of 2019 unaudited accounts and commencement of closed period yesterday.
Consequently, there will be closed period in respect of which no insider at the bank may trade on the shares until 24 hours after filling of the unaudited financial statement with the Exchange.
Union Bank is expected to release third quarter financial statement in November, 2019.