Investors lose billions in Access Bank, UBA, GTCO as sell pressure intensifies

Sell pressure witnessed on shares of Access Holdings Plc, GTCO Plc and UBA Plc in six trading sessions has resulted in investors of the banks losing about N35.523 billion at the close of trading on 18, August.

Checks showed that Access Bank Plc dropped by 6.70% to N8.35 per share from N8.95 which was the opening share price on 11th August, while UBA Plc shed 2.78% to N7.00 per share from a share price of N7.20 at the commencement of the current year trading on August 11.GTCO Plc trailed with a decline of 1.22% to N20.30 per share from N20.55 per share during the period under review.

This is just as investors in the stock market are hoping that the impending release of the half-year 2022 results of these nation’s leading banks will see an improved performance on various parameters like credit growth, asset quality, and profitability.

The relentless sell pressure by Foreign Portfolio Investors (FPIs) is on the back of high commodity inflation 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.

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Foreign institutional investors invest in Nigeria 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.

Following low sentiment from FPIs analysis from the NGX has shown that foreign transactions stood at N201.29 billion, accounting for about 13.37 per cent of the total transactions carried out from January to May, while domestic transactions constituted N1.304 trillion, and representing 86.63 per cent of the total transaction, outperforming the foreign investment during the same period.

Access Holding closed its last trading day (Thursday, August 18, 2022) at N8.35 per share and N296.802 billion in market capitalisation on the Nigerian Stock Exchange (NGX) as against N8.95 per share and N318.129 billion in market capitalisation at the beginning of trading on August 11, hence has earned a loss of N21.327 billion or 6.70%.

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GTCO Plc also closed its last trading day (Thursday, August 18, 2022) at 30 per share and N597.452 billion in market capitalisation on the Nigerian Stock Exchange (NGX) in contrast to the opening figure of N20.55 per share and N604.810 billion in market capitalisation at the beginning of trading on 11th August. The bank has since lost 1.22% and N7,357 billion in market capitalization.

UBA Plc also closed the last trading day at 00 per share and N239.395 billion in market capitalisation compared to the opening figure of N7.20 per share and N246.235 billion in market capitalisation, hence has earned a loss of N6.839 billion 0r 2.78%.