Business
Market capitalization of Nigerian top banks drop by N19.42bn
Market capitalization of Nigeria’s five biggest banks dropped to N2.49 trillion at the weekend as investors in these banks lost N19.42 billion during the trading week, according to data from the Nigerian Exchange (NGX).
The loss can be attributed to the sell-off witnessed in the share prices of the banks, during last week trading days.
According to the report, First Bank Holdings Nig. Plc lost a total of N14.35 billion after its market capitalization dropped from N276.39 billion to N262.04 billion due to a sharp decline in its share price which closed at N7.30, shedding about 5.2 percent in a day.
During the week, investors traded about 18,632,436 units of the bank’s shares valued at N137.11 million. The volume of shares traded depreciated immensely by 597.64 percent, when compared to 129.90 million units traded the previous week.
READ ALSO: Failed banks depositors leap for joy as NDIC begins payment
United Bank for Africa Plc gained N8.55 billion as its market capitalization appreciated from N256.50 billion to N265.05 billion, due to the increase in its share price from N7.50 to N7.75, reflecting a growth of 3.30 percent.
UBA Plc, during the week, traded a total of 71,218,494 units valued at N536.88 million. In comparison, the bank’s share volume appreciated by 18.25 percent, from 60.23 million traded last week.
GTB Holding Company Plc lost a total of N1.47 billion after its market capitalization dropped to N865.28 billion at the end of trading session.
The marginal loss can be attributed to a slight decrease in the share price, from N29.45 traded at the end of last week, to N29.40 at the close of business, reflecting a marginal decline of 0.20 percent.
READ ALSO: Zenith, GTB, Access Bank among top 7 Banks in Nigeria
During the trading week, Investors traded a total of 120,899,602 units of the bank’s shares valued at N3.57 trillion, making the bank the most traded stock amongst the FUGAZ during the week.
Access Bank Plc appreciated by N3.55 billion as its market capitalization increased to N327.02 billion at the end of the trading week. The gain was due to a 1.1 percent increase in its share price from N9.10 traded earlier to N9.20.
At the end of the week, investors had traded a total of 54,443,124 units of the bank’s shares valued at N494.46 million. The total volume traded for the week declined by 19.69 percent, from a total of 67.79 million traded in the previous week.
Zenith Bank Plc lost N15.70 billion after its market capitalization declined to N767.64 billion from N783.34 billion at the end of the week. This decline is a result of the 2.00 percent decrease in its share price from N24.95 traded at the end of last week, to N24.45 at the end of this week.
READ ALSO: FG’s borrowing saves Nigerian banks from collapsing – Fashola
Hence, a total of 69,822,966 units of the bank’s shares were traded during the week, valued at N1.70 trillion, making the firm’s stock the second most traded stock amongst the FUGAZ during the week.
The total volume, in comparison with the previous week, depreciated by 19.22 percent, from 86.43 million units traded last week.
The FBN, UBA,GTB, Access and Zenith banks make up over 70 percent of the NSE Banking sector index, hence, they strongly influence the growth or otherwise of the index.