Sell pressure witnessed on shares of the top two Nigerian banks in market capitalisation Zenith Bank Plc and GTCO Plc since the beginning of the year has resulted in investors of both banks losing about N247.623 billion at the close of trading on 22nd June.
Checks by Nairametrics showed that GTCO Plc dropped by 19.23% to N21.00 per share N26.00. While Zenith Bank Plc shed 12.72% to N21.95 per share from share price of N25.15. At the commencement of the current year trading in January.
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% of the total transactions carried out from January to May. While domestic transactions constituted N1.304 trillion, representing 86.63% of the total transaction, outperforming the foreign investment during the same period.
Performance of the banks’ share prices
GTCO closed its last trading day (Wednesday, June 22, 2022) at N21.00 per share and N689.153 billion in market capitalisation on the Nigerian Stock Exchange (NGX)
Zenith Bank Plc also closed its last trading day (Wednesday, June 22, 2022) at N21.95 per share and N689.153 billion in market capitalisation on the Nigerian Stock Exchange (NGX) in contrast to opening figure of N25.15 per share and N789.621 billion in market capitalisation at the beginning of the year on January. The bank has since lost 12.72% and N100.467 billion in market capitalisation.
Key results highlights
Guaranty Trust Holding Co’s Q1 2022 financial result showed a profit of N43.21 billion during the period. This reflects a 5.13% decline year on year. However, net trading income declined y-o-y by 5.03%, subduing bottom-line profit, as well as other expenses.
Also, Zenith Bank Plc’s Q1 2022 financial result revealed a profit of N58.20 billion in Q1 2022. This reflects a 9.68% increase year on year.
The statement revealed that in Q1 2022, net interest income grew by 20.89% from N83.17 billion to N100.54 billion in the current period.