Market Value of Nigeria’s Top Banks Declines to N7.6 Trillion

The market value of Nigeria’s leading banks has fallen to N7.6 trillion, with tier-1 banks collectively down over N40.666 billion due to weak sentiment. GTCO and Zenith Bank showed slight resilience, while Access Bank and UBA experienced notable declines. Investors are cautiously awaiting outcomes from upcoming earnings releases and capital raises.

The combined market value of Nigeria’s top big banks has decreased to approximately N7.6 trillion on the Nigerian Exchange (NGX), reflecting a decline of over N40.666 billion last week among tier-1 banks. This decline is indicative of a weak market sentiment, resulting in a decrease in the banking index. Regulatory filings have indicated a delay in 2024 earnings for many top lenders, contributing further to investor apprehension.

Despite the overall downward trend, Guaranty Trust Holding Company Plc (GTCO) experienced a surge of 2.5%, reaching a market value of N2.082 trillion, thanks to a block deal completed off-market. Over the last five trading sessions, GTCO added N51.205 billion in value on the NGX. Conversely, Zenith Bank Plc remained relatively stable with a market capitalization of N1.963 trillion, sustaining strong interest from foreign investors despite no significant price changes this week.

The sell pressure faced by three major Nigerian banks resulted in a collective market decline of N40.663 billion. Access Bank Plc reported a decrease of approximately N24 billion, concluding with a market value of N1.247 trillion, while its share price settled at N23.40. Meanwhile, United Bank for Africa (UBA) Plc experienced a decrease to N1.251 trillion as investors moved to exit some positions ahead of its earnings release. Analysts suggest that UBA’s market value may recover following an anticipated capital raise announcement.

FBN Holdings Plc also saw a decline in market value, dropping to N1.026 trillion after shedding over N25 billion due to sell pressures. However, the situation appears to be stabilizing as selloffs have lessened, suggesting a potential rebound for the banking stocks in response to reduced internal pressures.

In summary, Nigeria’s top banks have witnessed a significant decline in market value, now standing at N7.6 trillion. Key players like GTCO demonstrated resilience, while others like UBA and Access Bank faced losses as investors reacted to earnings delays and broader market sentiment. Although some banks are stabilizing post-selloff, the outlook remains cautious as investors await further developments.

Original Source: dmarketforces.com