The market value of Nigeria’s top banks has fallen to N7.6 trillion, dropping over N40.666 billion due to weak sentiment. While GTCO experienced a gain of 2.5%, other banks, including UBA and Access Bank, faced significant declines. Delays in reporting 2024 earnings were reported as a key factor for this downturn.
The combined market value of Nigeria’s top banks has experienced a significant decrease, now standing at approximately N7.6 trillion on the Nigerian Exchange (NGX). This decline, amounting to over N40.666 billion, reflects a prevailing weak sentiment within the equities segment, affecting the banking index negatively for the week. While Zenith Bank Plc remained stable in its valuation, most tier-1 banks indicated delays in reporting their 2024 earnings as per regulatory filings.
Amidst this downward trend, Guaranty Trust Holding Company (GTCO) exhibited a remarkable increase of 2.5%, achieving a market value of N2.082 trillion due to a substantial off-market block deal. Over the past five trading sessions, GTCO gained N51.205 billion, showcasing resilience compared to other banks. Conversely, Zenith Bank’s market valuation steadied at N1.963 trillion despite interest from foreign investors, with its share concluding at N47.80.
Sell pressure adversely affected three major Nigerian lenders, contributing to a weekly loss of N40.663 billion in the tier-1 category. Access Bank Plc’s market value dropped to N1.247 trillion, with a share price of N23.40 after experiencing fluctuations. Additionally, United Bank for Africa (UBA) Plc’s market value fell to N1.251 trillion as investors moved away before anticipated group earnings; its shares declined by 3.3% to N36.60.
UBA lost approximately N43 billion week on week, closing at N1.25 trillion, trading at a significant discount relative to its 52-week high. FBN Holdings Plc also saw a decrease, with its market valuation now at N1.026 trillion after shedding more than N25 billion due to selling pressure. Despite these declines, banking stocks are stabilizing as selloffs decrease due to alleviating internal pressures.
The recent decline in the market value of Nigeria’s top banks indicates a challenging environment influenced by investor sentiment and anticipated earnings delays. While certain banks, like GTCO, have shown resilience, others like UBA and Access Bank have faced significant declines. This situation underscores the dynamic nature of the banking sector and the impact of market pressures on financial valuations.
Original Source: dmarketforces.com
