Zenith Bank Spikes by 11% Ahead of Q2 Earnings
The equities market priced Zenith Bank Plc.’s 31.396 billion shares outstanding higher by 11% ahead of the second quarter of 2024 earnings release. Investors trading highs and lows on the Nigerian Exchange appear to have started taking positions; huge volumes of Zenith Bank shares were traded in the market last week.
At the close of the week, the banking index grew by more than 5% as the market awaited the earnings releases of major banks. Zenith Bank share price rose to N38.85 on Friday from N35 at the beginning of the week as shareholder buying sentiment improved in anticipation of a better earnings performance in Q2.
Details showed its market valuation climbed to N1.219 trillion amidst strong volumes of Zenith Bank shares that exchanged hands in the market last week. Zenith Bank share price peaked at N47.35 during the buying festival experienced early in the year before it retraced. Further review indicates that the bank is now trading at about 18% below its 52-week high.
The share volume traded was heavy throughout last week, suggesting some investors were rebalancing their portfolios. Analysts also explained that there is a possibility that Zenith Bank will pay an interim dividend to shareholders in line with its existing dividend payment policy – not minding the 70% windfall tax.
Investment firm Apex Asset Limited placed the bank shares on buy rating in its latest stock recommendation. Atlass Portfolios Limited also kept the bank on buying buckets with expectation of strong potential upside.
Investment experts at Apex Assets Limited specifically stated that Zenith Bank has 36.57% upside potential at reference market price of N36. The Ajose Adeogun top lender is already climbing toward the investment firm’s fair value estimate sets at N49.19 per share.
Zenith bank return on equity is expected to improve in the first half of 2024 following increase in benchmark interest rate by the Central Bank of Nigeria. This will boost net interest margin, analysts said.
Latest data showed that Zenith Bank return on equity was 29.13% with 3.32% return on asset, ranking relative higher among peers in the banking industry. #Zenith Bank Spikes by 11% Ahead of Q2 Earnings FBN Holdings Rises by 10% to N808bn Ahead of ‘Offers’ Pricing
