The market value of Nigeria’s top tier-1 banks has declined to N7.6 trillion, reflecting a loss of over N40.666 billion. GTCO’s market value increased by 2.5%, while Access Plc and UBA experienced substantial losses. The overall banking index settled lower amid weak investor sentiment and anticipation of forthcoming earnings.
The combined market value of Nigeria’s top tier-1 banks has declined to approximately N7.6 trillion, as reported by transaction reviews from MarketForces Africa. In the preceding week, these banks suffered a collective loss exceeding N40.666 billion, indicative of subdued sentiment within the Nigerian Exchange, NGX. Although Zenith Bank Plc reported a steady performance, the overall banking index faced a week-on-week downturn due to these negative price movements.
GTCO experienced a notable increase of 2.5%, reaching a market value of N2.082 trillion thanks to a significant off-market block deal. The bank showcased a remarkable gain of N51.205 billion over the last five trading days on the Exchange. Conversely, Zenith Bank’s market position remained unchanged, attracting foreign interest, and it retained a market value of N1.963 trillion, trading at N47.80 per share.
Sell pressure impacted three key Nigerian lenders, contributing to a cumulative decline of N40.663 billion in the tier-1 banking category. Access Plc faced a degradation of approximately N24 billion, settling at a market value of N1.247 trillion, with shares priced at N23.40. Similarly, UBA Plc’s value fell to N1.251 trillion as investors withdrew from certain positions ahead of its impending earnings announcement, reflecting a 3.3% decline in share price to N36.60.
Week on week, UBA experienced a loss of around N43 billion in market value, concluding the week at N1.25 trillion and trading at a discount compared to its 52-week peak. FBN Holdings Plc also saw a reduction in value, ending with a valuation of N1.026 trillion as it lost more than N25 billion. Despite these challenges, the banking stocks have shown signs of stabilization due to decreased selling pressures as internal financial dynamics improve.
In summary, the Nigerian banking sector has witnessed a significant decline in the combined market value of its tier-1 banks, dropping to N7.6 trillion. Key players such as GTCO displayed resilience with an increase in market value, while others like Access Plc and UBA observed considerable losses. The market sentiment remains cautious, prompting fluctuations in share prices and investor behaviors as they anticipate future earnings disclosures.
Original Source: dmarketforces.com
