As low sentiment persists in the nation’s capital market, sell pressure witnessed on shares of Zenith Bank Plc, Access Holdings Plc, FBNH Plc and UBA Plc in four trading sessions has resulted in investors of the banks losing about N35.685 billion at the close of trading on 15th August.
Checks by TrackNews Nigeria showed that FBN Holding Plc dropped by 4.25% to N10.15 per share, from N10.60, which was the opening share price on 12th September, while Zenith Bank Plc shed 1.99% to N19.65 per share, from share price of N20.05 at the commencement of the current year trading on September 12. UBA Plc dropped by 1.32% to N7.45 per share, from N7.55 per share it opened trading on Monday 12 September. Access Holdings trailed with a decline of 1.13% to N8.75 per share, from N8.85 per share during the period under review.
Shareholders In Four Tier-1 Nigerian Banks Lose N35.7 Billion As Sell Pressure Deepens
Investors in the stock market had hoped that the release of the half-year 2022 results of the nation’s leading banks, which witnessed improved performances on various parameters like credit growth, asset quality, and profitability would boost market sentiment.
Pre-election years are usually characterized by negative sentiments, which also result in the exit of foreign investors.
Market experts believe that domestic investors’ sentiment is usually weak as they seek to reduce their market exposure when elections draw closer. The intensity of the impact is usually a function of the degree of political tension and uncertainty generated by political activities.
Also, the relentless sale pressure by foreign portfolio investors (FPIs) is on the back of high commodity inflation that happened due to the Russian-Ukraine War, which led to a spike in interest rates and, in turn, led to a jump in bond yields in the US and other developed markets.
Foreign institutional investors invest in Nigeria’s stocks or other emerging markets’ when they have excess liquidity (low borrowing costs). However, if bond yields rise in the US, money will move away from emerging markets.
FBN Holding Plc closed its last trading day (Thursday, September 15, 2022) at N10.15 per share and N364.337 billion in market capitalisation on the Nigerian Stock Exchange (NGX) as against N10.60 per share and N380.490 billion in market capitalisation at the beginning of trading on September 12, hence has earned a loss of N16.152.88 billion or 4.25%.
Zenith Bank Plc also closed its last trading day (Thursday, September 15, 2022) at N19.65 per share and N616.941 billion in market capitalisation on the Nigerian Stock Exchange (NGX) in contrast to the opening figure of N20.05 per share and N629.499 billion in market capitalisation at the beginning of trading on 12th September. The bank has since lost 1.99% and N12.558 billion in market capitalisation.
UBA Plc also closed the last trading day at N7.45 per share and N254.785 billion in market capitalisation, compared to the opening figure of N7.55 per share and N258.205 billion in market capitalisation, hence has earned a loss of N3.419 billion or 1.32%.
Access Holding closed its last trading day at N8.75 per share and N311.020 billion in market capitalisation on the Nigerian Stock Exchange (NGX) as against N8.85 per share and N314.575 billion in market capitalisation at the beginning of trading on September 12, hence has earned a loss of N3.554 billion or 1.13%.
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