Business
Shareholders of UBA, FBNH, 2 others lose N35.7 billion as sell pressure deepens
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 Thursday.
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 when 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.
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.
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.
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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.
Chairman of the senate committee on finance, Senator Solomon Olamilekan Adeola, called on the Securities and Exchange Commission to find solution that will change the investment apathy that is making the Nigerian Capital market lose steam and explore ways to further deepen the capital market in a bid to attract more local investors, especially young Nigerians.
According to him, “You have done well, I must commend you. I commend you for your efforts in repositioning that agency from a point of deficit after paying salaries to a point of profit now and to the extent of contributing to the coffers of the government, I commend you.
Temi Popoola, Chief Executive Officer, NGX said: “The Exchange is positioned to solve challenges in the capital market, a step we believe sets us ready for the future. Through technology, we are repositioning the Exchange in our interaction with issuers and other capital market stakeholders. In December 2021, we successfully introduced the first digital offer platform that attracted a large amount of retail participation from the younger Nigerian demography”.
Popoola also noted that the strategic direction for the Exchange is to attract the underbelly of the Nigerian economy and Nigerians in Diaspora, giving other product options to those interested in digital assets and not stocks.
