Business

GTBank shareholders’ fund dips as stock market value declines

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3 years ago

May 24, 2021

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Investors in one of Nigeria’s biggest banks, Guaranty Trust Bank, lost a whopping N7.30bn following the decline in the bank’s market value by 0.84 percent at the close of trading last week as equity market capitalization crashed.

At the end of trading between May 17 and May 21, 2021, the market capitalisation of the Segun Agbaje-led company took a nosedive into N860.9 billion on Friday, failing to maintain or surpass the N868.2 billion it opened last week Monday with.

During this period, the stock value of GTBank dipped to N29.25kobo per share by end of trading on Friday last week, against the N29.5kobo per share it opened the week with.

This represents an N0.25kobo loss in the lender’s stock price which was unstable last week. It had traded flat on N29.5 kobo from Monday to Tuesday, before losing value on Wednesday, as investors priced it low at N29.35kobo.

GTBank’s share price however rose to N29.5kobo per share on Thursday, but it quickly depreciated again at the end of the week, as investors were not willing to purchase a share of GTBank at more than N29.25kobo.

Meanwhile Zenith Bank, Access Bank, and C&I Leasing made the stocks with their on and off capital market activities which made news in the business community.

Zenith Bank consolidated its stocks with an insider dealing by Zenith Bank’s Chief Executive Officer, Ebenezer Onyeagwu, which occured last week. He had purchased shares to boost his control at the firm.

Also shareholders of Access Bank Plc lost N8.9 billion after announcing the complete acquisition of Mozambique bank, African Banking Corporation.

After it purchased the bank from Atlas Mara, the market capitalisation of Access Bank dwindled to N293.2 billion on May 18, against the N302.1 billion it was valued as at May 14, 2021, as investors priced its stock.

Experts have advised that investors going into the capital market this week need to be cautious with C&I Leasing, as the firm topped the decliners for last week, reflecting it had a poor performance at the bourse.

It was gathered from Nigerian Stock Exchange market data that C&I Leasing stock value depreciated during the week, losing N0.94kobo to trade at a price of N4.06 per share at the end of Friday, against the N5 per share it opened the week with.