Decline in Market Value for Nigeria’s Major Banks Reaches N7.6 Trillion
Nigeria’s top banks have seen their combined market value drop to approximately N7.6 trillion, reflecting a decline of over N40.666 billion attributed to weak market sentiment. Notably, GTCO experienced growth while other banks, including Access and UBA, faced losses amid investor sell-offs. Market dynamics indicate potential stabilization as internal pressures ease.
The combined market value of Nigeria’s top big banks has fallen to approximately N7.6 trillion within the equities segment of the Nigerian Exchange (NGX). This decline, amounting to over N40.666 billion, is indicative of the weak sentiment prevailing in the market, as confirmed by recent transaction details from MarketForces Africa.
The decline in market value of tier-1 banks has affected the banking index week on week, although Zenith Bank Plc managed to maintain a stable position throughout the week. Several of these financial institutions have announced delays in their 2024 earnings according to regulatory filings, contributing to the downturn.
On a positive note, GTCO experienced a growth of 2.5%, reaching a market valuation of N2.082 trillion due to a significant off-market block deal completed last week. Over the past five trading sessions, GTCO gained N51.205 billion on the NGX.
Zenith Bank’s market value remained steady at N1.963 trillion despite foreign investors showing interest, with the unit price closing at N47.80. Conversely, sell pressures on three of the major Nigerian banks further contributed to a week-on-week decline of N40.663 billion within the tier-1 category.
Access Bank Plc saw its market value drop by approximately N24 billion, concluding at N1.247 trillion, with a closing share price of N23.40. Similarly, UBA Plc’s market value decreased to N1.251 trillion as investors exited positions ahead of an upcoming earnings release. Analysts anticipate an uptick in UBA’s value following a planned capital raise announcement.
Lastly, FBN Holdings Plc experienced a reduction in market value to N1.026 trillion due to sell pressures removing over N25 billion. However, banking stocks have begun to stabilize as internal pressures diminish, leading to a cautiously optimistic outlook in the market.
In summary, the market value of the leading banks in Nigeria has experienced a noteworthy decline to N7.6 trillion amidst a climate of weak market sentiment. Significant fluctuations were observed across various banks, with GTCO showing resilience amidst the downturn, while pressures affected major players including Access Bank and UBA. The market looks forward to potential improvements, particularly with transformative actions such as capital raises. Consequently, stakeholders and analysts will closely monitor further developments and market responses, as the banking sector navigates these challenges.
Original Source: dmarketforces.com
