Investors of FUGAZ, tier-1 banks lose over N100 billion in one week

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The market capitalization of the top five banks, referred to as the Tier-1 banks or FUGAZ, decreased to N2.51 trillion at the close of business on November 19, 2021, as investors in these banks lost a total of N100.62 billion during the trading week.

After the 5 trading days of the week, all 5 tier-1 Nigerian banks suffered negative market sentiments, with GTCo leading the decline. According to data from the Nigerian Exchange (NGX), the market capitalization of the top five banks declined to N2.51 trillion to depreciate by 3.8% during the week.

A summary of the performance of each bank is captured below.

FBNH Plc

The share price of First Bank of Nigeria Holdings (FBNH) Plc depreciated to close the week at N11.55, losing N16.15 billion, and taking its market capitalization to N414.59 billion at the end of the week. Amid sell-offs and buy-interests, at the end of the trading week, FBNH share price depreciated by 3.7% from N12.00 to N11.55

During the week, investors traded 415,361,490 units of the bank’s shares valued at N5.11 billion, making the bank’s stock the most traded in volume and value amongst the FUGAZ.

The volume of shares traded appreciated by 80.07%, when compared to 230.67 billion units traded the previous week. The bank traded the highest number of shares in volume amongst the FUGAZ, trading its highest on Tuesday with 223.58 million units of shares, valued at N2.76 billion.

FBNH Plc’s third-quarter result is yet to be released.

UBA PLC

United Bank for Africa Plc shares depreciated by 3.00% as its market capitalization closed the week at N280.44 billion, with its share price standing at N8.20.

UBA Plc traded a total of 28,435,542 units valued at N236.98 million at the end of the trading day.

In comparison, the bank’s share volume depreciated by 0.32%, from 28.53 million traded last week.

UBA Plc released its Q3 2021 financials, revealing that net interest income appreciated by 23.25% to N229.27 billion from N186.02 billion, while total assets grew to N8.35 trillion from N7.7 trillion. In addition, the company’s profit after tax rose by 35.61% to N104.60 billion, up from N77.13 billion in the same period of 2020.

GT Holding Company Plc

GTCO Plc lost a total of N60.33 billion after its market capitalization depreciated to N747.55 billion from N807.89 billion at the end of the week’s trading session.

The decline can be attributed to the decrease in its share price, from N27.45 traded at the end of last week, to N25.40 at the close of business, reflecting a decrease of 7.50%.

During the trading week, Investors traded a total of 123,728,038 units of the bank’s shares, valued at N3.25 billion.

In contrast with the volume traded last week, share volume for this week advanced by 121.86% from 55.77 million.

In Q3 2021, the Group reported a decline of 7.48% in interest income from N74.52 billion recorded in the corresponding period of September 2020 to N68.94 billion in the current period. However, post-tax profit appreciated by 4.11% from N48.01 billion in 2020 to N49.99 in the current period.

Access Bank Plc

Access Bank Plc’s share price declined by 3.7% to close the week at N9.00, and the market capitalization stood at N319.91 billion.

At the end of the week, investors had traded a total of 89,690,820 units of the bank’s shares valued at N831.68 million. The total volume traded for the week grew by 66.83%, from a total of 53.76 million traded in the previous week.

Access Bank Plc released its Q3 2021 financial result which revealed a decline in net interest income by 3.43% to N67.66 billion, while profit after tax dropped by 9.11%, from N38.46 billion in September 2020 to N34.95 billion in September 2021.

Zenith Bank Plc

Zenith Bank Plc lost N3.14 billion after its market capitalization depreciated to N750.38 billion from N753.52 billion at the end of the week. This depreciation can be attributed to the 0.4% decline in its share price, from N24.00 traded at the end of the previous week, to N23.90 at the end of the week in review.

Hence, a total of 40,710,717 units of the bank’s shares were traded during the week, valued at N980.49 million. The total volume, in comparison with the previous week, depreciated by 51.37%, from 56.14 million units.

The bank released its nine-month financial result for the period ended September which revealed that interest income for the period declined by 3.13% to N308.84 billion from N318.82 billion in the corresponding period of 2020. However, post-tax profit for the period reported a marginal growth of 0.80% from N159.32 billion in 2020 to N160.59 billion in the current period.

What you should know

The Nigerian Exchange Limited (NGX) closed negative week-on-week as ASI depreciated by 0.12% to close at 43,199.27.

The FUGAZ banks make up over 70% of the NSE Banking sector index, hence, strongly influence the growth or otherwise of the index.

The NGX Banking Index closed negative to depreciate by 1.60% and close at 391.61.