The combined market value of Nigeria’s top banks has decreased to N7.6 trillion, with notable declines in tier-1 banks reflecting weak market sentiment. GTCO reported gains while Access Plc, UBA, and FBN Holdings experienced market value decreases. The outlook suggests potential recovery for UBA post-capital raise announcement.
The combined market value of Nigeria’s top banks has fallen to approximately N7.6 trillion on the Nigerian Exchange (NGX), according to recent transaction data from MarketForces Africa. In the past week, the tier-1 banks experienced a decline of over N40.666 billion in their market value, indicating a weak sentiment in the equities market.
Despite the overall decline, GTCO experienced a notable increase of 2.5%, reaching N2.082 trillion, attributed to a block deal executed off-market. GTCO recorded a significant gain of N51.205 billion over the last five trading sessions, showcasing resilience amidst the general downturn.
Zenith Bank’s market value remained stable at N1.963 trillion, with a share price of N47.80, despite a lack of fluctuation week on week, possibly due to sustained foreign investor interest. Conversely, sell pressure on Access Plc contributed to a reduction in its market value to N1.247 trillion, as its share price settled at N23.40 after fluctuating.
UBA Plc also witnessed a decrease in market value, which dropped to N1.251 trillion as investors exited positions prior to the group earnings release. Market analysts predict that the UBA’s market value could recover following an announcement regarding capital raise, despite its share price falling by 3.3% to N36.60.
Similarly, FBN Holdings Plc’s market value declined to N1.026 trillion, reflecting sell pressure that lost over N25 billion from its valuation. However, the banking sector has shown signs of stabilization due to reduced selloffs as internal pressures have eased.
The market value of Nigeria’s top banks has decreased to N7.6 trillion, highlighting weak investor sentiment in the equities market. Notably, GTCO showed resilience with a significant gain, while banks like Access, UBA, and FBN Holdings suffered declines. Analysts suggest possible recovery for UBA following a capital raise, indicating the volatile nature of the banking sector amidst shifting investor confidence.
Original Source: dmarketforces.com
