FBN Holdings Plc recorded the highest traded shares volume in the first trading week of 2023, among the four Financial Services equities of the outstanding NGX-30 group.
Data by the Nigerian Exchange Limited (NGX) showed that FBN Holdings witnessed huge investors’ interest leading to a total share volume of 261,744,724 ahead of three others in the Financial Services category in the week ended January 6th, 2023.
Access Corporation followed with 54,774,234 while Zenith Bank and United Bank of Africa (UBA) posted 20,757,134 and 39,242,402 respectively. The four equities recorded a total share volume of 376,518,494,
The NGX-30 index tracks the top 30 companies in terms of total value of equities listed on the NGX (market capitalization) and liquidity.
The indices, according to the NGX, were developed to allow investors track market movements and properly manage investment portfolios. Designed using the market capitalisation methodology, the indices are rebalanced on a semi-annual basis on the first business day in January and in July.
The Nigerian bourse began publishing the NGX 30 Index in February 2009 with index values available from January 1, 2007. On July 1, 2008, the NGX developed five sectoral indices with a base value of 1,000 points, designed to provide investable benchmarks to capture the performance of specific sectors.
The sectoral indices comprise the top fifteen most capitalised and liquid companies in the insurance and consumer goods sectors; the top ten most capitalised and liquid companies in the banking and industrial goods sector; and the top seven most capitalised and liquid companies in the oil & gas sector.
BUA Foods Plc and Wema Bank Plc have joined the list of most liquid stocks in the Nigerian Exchange Limited (NGX) leading to their inclusion in the NGX-30 index, while Union Bank and … exited, according to an update announced on the NGX website.
The market opened for four trading days last week as the Nigerian government declared Monday 2nd January 2023 a Public Holiday to mark the New Year celebration.
A total turnover of 921.856 million shares worth N27.154 billion in 15,601 deals was traded in the week by investors on the floor of the Exchange, in contrast to a total of 1.880 billion shares valued at N18.988 billion that exchanged hands in the previous week in 12,036 deals.
The Financial Services Industry (measured by volume) led the activity chart with 616.527 million shares valued at N6.452 billion traded in 7,208 deals; thus contributing 66.88% and 23.76% to the total equity turnover volume and value respectively. The Industrial Goods
Industry followed with 138.314 million shares worth N13.356 billion in 1,063 deals.
The third place was the Conglomerates Industry, with a turnover of 55.931 million shares worth N92.845 million in 502 deals.
Trading in the top three equities namely FBN Holdings Plc, BUA Cement Plc and Guaranty Trust Holding Company Plc (measured by volume) accounted for 450.338 million shares worth N17.203 billion in 1,862 deals, contributing 48.85% and 63.35% to the total equity turnover volume and value respectively.
The NGX All-Share Index and Market Capitalization depreciated by 0.06% to close the week at 51,222.34 and N27.899 trillion respectively.
All other indices finished higher with the exception of NGX Main Board, NGX Industrial Goods and NGX Sovereign Bond indices which depreciated by 0.54%, 0.58% and 0.09% respectively, while the NGX ASeM index closed flat.
Thirty-eight (38) equities appreciated in price during the week, lower than forty-four equities in the previous week. Seventeen equities depreciated in price higher than sixteen in the previous week, while one hundred and two equities remained unchanged, higher than ninety-seven equities recorded in the previous week.
Investors’ appetite for financial services’ stocks resonated on the first trading day of the year – January 4, with UBA and Access Corp. emerging among the five most traded equities. The trend reflects investors’ attitude during earning seasons preceding the publication of annual reports and dividend declaration.
Investigation by THEWILL in December showed that Access Corp[oration, Zenith Bank, FBNH and UBA were set to raise the banking industry’s total assets with a minimum of N15 trillion based on their performance trajectory in the year.
The four Nigeria’s largest deposit money banks (DMBs) by assets, showed from their Q3 reports that they could raise the banking industry’s total assets with a minimum of N15 trillion in 2022,
The four DMBs, all Tier-1 banks, showed Access Corporation with N11.73 trillion, Zenith Bank N9.44 trillion, FBN Holdings N8.93 trillion and United Bank for Africa N8.54 trillion – as of December 31, 2021.
Data from the four banks’ Q3 2022 (nine months) interim reports showed a remarkable growth trajectory between FY 2021 and Q3 2022, as well as Q3 2022 numbers compared with the corresponding period (Q3 2021).
In Q3 2022, Access Corporation grew assets to N13.41 trillion from N10.33 trillion in the corresponding period, representing a 30 percent rise. Zenith Bank’s assets rose to 11.34 trillion from N8.75 trillion in Q3 2021 or 30 percent increase. FBN Holdings (FBNH) recorded a balance sheet strength of N9.85 trillion against N8.51 trillion in the corresponding period. United Bank for Africa (UBA)’s assets jumped by 10.6 percent to N9,22 trillion from N8.34 trillion in Q3 2021.
To arrive at the projected N15 trillion, each bank’s Q3 figures were divided by three (quarters) and totaled. The average outcome was N4.47 trillion, N3.78 trillion, N3.28 trillion and N3.1 trillion for Access Corporation, Zenith Bank, FBNH and UBA respectively.
By implication, Access Corporation’s balance sheet growth was projected at N16.25 trillion in FY 2022, while Zenith’s was expected to hit N13.22 trillion. FBNH would record a balance sheet growth to N12.21 while UBA’s assets was projected to hit N11.44 trillion. This newspaper had earlier reported that Africa’s Global Bank (UBA) would hit and exceed the N10 trillion assets mark in 2022.
About the Author
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
