FUGAZ stocks investors lose N50.45 billion during the week

The market capitalization of the top five banks, referred to as the Tier-1 banks decreased to N2.46 trillion at the close of business on the 30th of July 2021, as investors in these banks lost N50.45 billion during the trading week.

According to data from the Nigerian Exchange (NGX), the market capitalization of the top five banks declined to N2.46 trillion, a 2% depreciation during the week.

The loss can be attributed to the sell-off witnessed in the shares of the banks during the five trading days. A summary of performance for each bank is captured below;

First Bank Holdings Nigeria Plc (FBNH Plc)

First Bank Holdings Nig. Plc lost a total of N3.60 billion after its market capitalization declined from N269.21 billion to N265.63 billion as at the close of business on Friday.

The decline is due to the depreciation in its share price which closed at N7.40, losing about 1.3% at the end of the week.

During the week, investors traded about 36,670,439 units of the Bank’s shares valued at N272.48 million. The volume of shares traded appreciated immensely by 126.64%, when compared to 16.18 million units traded the previous week.

The bank released their second-quarter result which revealed that interest income for the period decreased by 19.36%. However, net profit for the period reported a growth of 79.76% from N12.50 billion in Q2 2020 to N22.47 billion in Q2 2021.

United Bank for Africa Plc (UBA Plc)

United Bank for Africa Plc lost N6.84 billion as its market capitalization depreciated from N266.76 billion to N259.92 billion, due to the decrease in its share price from N7.80 to N7.60, reflecting a decline of 2.6%.

UBA Plc, during the week, traded a total of 65,364,954 units valued at N507.81 million, making the bank’s stock the most traded stock amongst the FUGAZs during the week, with the highest number of shares traded on Wednesday at 19.35 million units, valued at N150.75 million at the end of the trading day.

In comparison, the bank’s share volume appreciated by 170.75%, from 24.14 million traded last week.

UBA Plc is yet to release its second-quarter financial statements for Q2 2021.

GT Holding Company Plc

GTCO Plc lost a total of N32.37 billion after its market capitalization depreciated to N838.79 billion at the end of Friday’s trading session.

The decline can be attributed to the decrease in its share price, from N29.60 traded at the end of the previous week, to N28.50 at the close of business, reflecting a drop of 3.70%.

During the trading week, investors traded a total of 55,017,679 units of the bank’s shares valued at N1.60 billion, making the bank the most traded stock in value amongst the FUGAZ during the week.

In contrast with the volume traded last week, share volume for this week increased by 127.92% from 24.14 million.

GT Holding Company is yet to release its second-quarter financial statements for Q2 2021.

Access Bank Plc

Access Bank Plc appreciated by N1.78 billion as its market capitalization increased to N327.02 billion at the end of the trading week. The gain can be attributed to the 0.5% increase in its share price from N9.15 traded earlier to N9.20.

At the end of the week, investors had traded a total of 65,279,186 units of the bank’s shares valued at N607.04 million. The total volume traded for the week grew by 232.89%, from a total of 19.61 million traded in the previous week.

Earlier this month, Fitch Ratings revised the outlook on Access Bank Plc’s Long-Term Issuer Default Rating (IDR) from Negative to Stable and also confirmed the rating at ‘B.’

Access Bank Plc is yet to release its Q2 financial result for the year.

Zenith Bank Plc

Zenith Bank Plc shares lost N9.42 billion after its market capitalization dropped to N770.78 billion from N780.20 billion at the end of the week. This decline can be attributed to the 1.20% decrease in its share price from N24.85 traded at the end of the previous week, to N24.55 at the end of the week ended 30th June 2021.

Hence, a total of 34,846,068 units of the bank’s shares were traded during the week, valued at N859.70 million. The total volume, in comparison with the previous week, depreciated by 8.14%, from 37.94 million units traded.

Zenith Bank Plc is yet to release its Q2 financial result for the year which has been approved by the Board of Directors but still awaiting approval by the CBN.

What you should know

The Nigerian Exchange Limited (NGX) closed negative week-on-week as ASI depreciated by 0.31% to close at 38,547.08.

The FUGAZ banks make up over 70% of the NSE’s Banking Sector Index, hence, they strongly influence the growth or otherwise of the index. The NGX Banking Index closed negative to decrease by 0.95%.