Investors Lose N36 Billion In Access Bank, UBA, GTCO As Sell Pressure Increases
Investors Lose N36 Billion In Access Bank, UBA, GTCO As Sell Pressure Increases
Access Bank, UBA, GTCO Sell Pressure Increases
Investors in the three banks lost nearly N35.523 billion at the end of trading on August 18 as a result of sell pressure seen on shares of Access Holdings Plc, GTCO Plc, and UBA Plc over the course of six trading days.
Nairametrics’ checks revealed that UBA Plc lost 2.78% to N7.00 per share from a share price of N7.20 at the start of the current year’s trading on August 11 while Access Bank Plc lost 6.70% to N8.35 per share from N8.95 which was the starting share price.
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GTCO Plc lagged with a drop of 1.22%, from N20.55 per share during the reviewed period to N20.30 per share.
This comes at a time when stock market investors are expecting these nation’s top banks to do better than expected on a number of metrics, including loan growth, asset quality, and profitability, when they announce their half-year 2022 results.
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Foreign Portfolio Investors (FPIs) are exerting constant pressure to sell due to rising commodity inflation brought on by the Russian-Ukrainian War, which in turn caused interest rates to rise and, as a result, a rise in bond yields in the US and other developed markets.
When they have extra liquidity, foreign institutional investors invest in Nigerian stocks or other emerging markets (low borrowing costs). However, if US bond yields increase, investors would pull their money out of emerging markets.
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As a result of the negative sentiment from FPIs, analysis from the NGX has revealed that, from January to May, foreign transactions totaled N201.29 billion, or 13.37 percent of all transactions, while domestic transactions totaled N1.304 trillion, or 86.63 percent of all transactions, outperforming foreign investment.
Share Prizes Breakdown
- 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%.
- 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 capitalisation.
- 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%.
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Highlights
- Access Holdings Plc Q1 2022 financial result revealed a profit of N57.40 billion in Q1 2022. This reflects a 9.23% increase year on year.
- The group also reported earnings per share of N1.63, a 9.40% growth from the N1.49 reported a year earlier in Q1 2021. Access Bank Plc has grown its Q1 profits by 160% in 4 years since hitting N22 billion in Q1 2018 with the profit now touching roughly N57.40 billion.
- The statement revealed that in Q1 2022, Net interest income declined by 7.03% from N93.96 billion to N87.36 billion in the current period. Access Holdings’ profit performance is on the back of margin growth as income from interest, foreign exchange gains and fees and commission income all appreciated year on year.
- Guaranty Trust Holding Co Q1 2022 financial result showed a profit of N43.21 billion during the period. This reflects a 5.13% decline year on year.
- The bank also reported earnings per share of N1.51, a 5.63% drop from the N1.60 reported a year earlier in 2021.
- The statement revealed that in Q1 2022, Net interest income grew by 9.09% from N52.43 billion to N57.20 billion in the current period. Guaranty Trust’s profit performance is on the back of margin growth as income from interest and fees and commission income appreciated year on year. However, net trading income declined y-o-y by 5.03%, subduing bottom-line profit, as well as other expenses.
- United Bank for Africa Plc Q1 2022 financial result, which showed a profit of N41.50 billion during the period. This reflects an 8.76% growth year on year.
- Earnings per share for the period was reported as N1.14, a 9.62% increase from the N1.04 reported a year earlier in 2021.
- The report revealed that in Q1 2022, Net interest income grew by 14.10% from N74.38 billion to N84.87 billion in the current period. UBA’s profit performance is on the back of all margin growth as income from interest, trading income and fees and commission income all appreciated year on year.
I Am a financial analyst, Economist, Entrepreneur, Blogger and Businessman. With 10 years of Consultancy Experience in Finance, Management and Insurance. I write on finance tips, news, journals and how to article that will aid your decision in making the right investments and insurance policies for your personal and business financial security.
