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Stock Market

GTBank retains N977 billion market capitalization at close of trade for November

GTBank Plc retains its market capitalization at N977 billion on the local bourse after crossing the N1 trillion mark.

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Finding Balance: GTB’s impeccable gains versus its notable losses, GTB donates medical facility for COVID-19, GTBank, others have begun fulfilling pledges towards fight against Covid-19 (coronavirus), COVID-19: GTBank suspends loan repayment for small businesses, GTBank Releases Q1 2020 Unaudited Results…….. Reports Profit Before Tax of ₦58.2Billion

Guaranty Trust Bank Plc has retained its market capitalization of N977.12 billion on the local bourse, after crossing the N1 trillion mark amid renewed buying interests in November.

  • At the close of trade yesterday, the last trading session in the month of November, the market capitalization of the bank stood at N977,115,150,236.80.
  • The shares of the bank closed at N33.2 per share, with total shares outstanding is 29,431,179,224.

The drive behind these gains

Buying interests in the shares of the bank were renewed as a result of the long-term fundamental strength of the bank, its impressive financial results in the third quarter of 2020, as well as, the expectations of the bank’s transition into a Holding Company structure.

A structure that will enable the bank to look into other businesses outside its core business segment, such as payment, asset management, and pension fund administration, in a bid to boost the company’s intrinsic value and returns to shareholders.

This reality and expectation, coupled with the optimism from the Covid-19 vaccines and the bearish state of the money market in the month of November, triggered buying interests in the shares of the bank, as the market capitalization of the bank crossed the N1trillion mark in November.

However, widespread profit-taking and portfolio rotation by institutional investors on NSE, led to the retracement of the bank’s market capitalization to the tune of N977billion to close below the trillion-naira mark in November.

(READ MORE: GTBank shores Nigerian stocks up)

What you should know

At the start of 2020, the widespread pessimism over the performance of equities due to the negative impact of the Covid-19 pandemic on the global economy and performance of equities in the global markets, which impacted the Nigerian Stock Exchange, triggered a huge sell-off on the local bourse in the month of March.

This development affected the valuation of companies on the Nigerian Stock Exchange, as their share prices declined markedly.

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  • During this period the share price of GT Bank plummeted, owing to the huge sell-offs by investors on the NSE.
  • The market capitalization of the bank fell below N660 billion in March 2020 as a result.
  • Market capitalization is the aggregate valuation of a company, based on its current share price and the total number of outstanding stocks.
  • Market capitalization tells how much investors value a company, and gives an idea of what a company is worth on the stock exchange, as well as investors’ perception of a company’s future prospects.

Omokolade Ajayi is a graduate of Economics, and a certificate holder of the CFA Institute’s Investment Foundation Program. He is a business analyst, and equity market researcher, with wealth of experience as a retail investor. He is a business owner and a stern advocate of Financial literacy, who believes in the huge economic prospect of the Nigerian Payment channels and Fintech space.

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    Markets

    GUINNESS, UNITYBNK plunge as HONYFLOUR surges

    The All-Share Index increased by +0.17% to close at 38,866.39 from 38,799.83 index points.

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    The Nigerian Stock Exchange market made a bullish run at the end of the trading session today. The All-Share Index increased by +0.17% to close at 38,866.39 from 38,799.83 index points. Overall, a total volume of 160 million shares valued at N1.28 billion in 3,507 deals was exchanged on the floor of the Nigerian Stock Exchange.

    • Nigerian Stock Exchange market value currently stands at NGN 20.31Tr. Its Year-to-Date (YTD) returns currently stands at -3.49%.
    • The market closed in profit today as HONYFLOUR led 14 Gainers, and GUINNESS topped the list of 14 Losers, showing a bullish movement by the NSE ASI.

    READ: NSE fines Mortgage bank, Conoil, others over N1 billion for account filing default

    Top gainers

    1. HONYFLOUR up +8.85% to close at N1.23
    2. SOVRENINS up +8.70% to close at N 0.25
    3. JAPAULGOLD up +8.62% to close at N0.63
    4. LIVESTOCK up +7.22% to close at N1.96
    5. FCMB up +6.57% to close at N2.92

    Top losers

    1. GUINNESS down -10.00% to close at N29.70
    2. UNITYBNK down -9.86% to close at N0.64
    3. ABCTRANS down -9,09% to close at N0.30
    4. MBENEFIT down -7.14% to close at N0.39
    5. UAC-PROP down -6.25% to close at N0.75

    READ: S&P 500 sets record highs on the back of tech stocks

    Outlook

    Nairametrics had a chat with an expert in the stock market Ogunwale Oluwadamilola, Research Analyst, Edgefield Capital Management Limited. She opines that the bullish momentum will continue on Monday saying, “We expect another positive trend in the overall performance of the market by next week, since today marks the end of trade this week.”

    She also drew attention to stocks in the Consumer and financial services saying, “Stocks in the consumer and financial services sector seem to be performing well. However, in the meantime, our watchlist remains unchanged, the following stocks are on our watchlist: Zenith Bank Plc, Guaranty, Access bank, UCAP, and Flourmills.”

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    Nairametrics, however, advises cautious participation in the stock market in this era of growing uncertainties.

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    Markets

    WEMA plunges as NSE Banking Index rises

    At the close of the trading session today, banks posted profits as the NSE banking index gained (+0.41%) to settle at 348.28 index points.

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    At the close of the trading session today, banks posted profits as the NSE banking index gained (+0.41%) to settle at 348.28 index points. This profit was less than the previous day’s (+2.19%). The NSE banking index started today’s trading session on a bullish note as predicted by market sentiments and experts. The market saw 6 gains, 3 stalemates, and 1 loss.

    Wema Bank cancelled out some of its (+3.45%) gains to post a loss of (-1.72%) settling its price at N0.58 from the previous day’s N0.60.

    After Access Bank saw an increase of (+ 1.90%) to put its price at N8.10, it then posted a stalemate to close at N8.05.

    UBA also held a stalemate after its previous day gains of +0.72% holding its price at N7.00. Union Bank saw another stalemate putting its share price at N5.10 as opposed to the closing price of N4.90 held the previous day.

    Ecobank broke out from its previous trading day stalemate to post significant gains of (+2.04), leading the gainers in the NSE Banking index. Ecobank’s share price increased to N5.00 from N4.90 held previously. Jaiz bank recovered slightly from the loss of -6.06% held at the previous trading session, posting a profit of (+1.61%) to put its price at 0.61 in today’s trading session.

    Fidelity Bank reverted from its bearish momentum by posting a profit of (+0.81%) cancelling the previous day’s loss of -1.60% to put its price at N2.49, above the opening price of N2.46. Zenith Bank posted a profit of (+0.69%), supporting the profit of +3.81% held at the previous trading session, settling its price at N21.95 from N21.80.

    Guarantee Trust Bank continued its bullish momentum to post a profit of +0.52% supporting the +0.68% held in the previous trading session to put its price at N28.80. Sterling Bank made a gain of +0.65% to settle its price at N1.59 from N1.56.

    Outlook

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    • Market sentiment trends bullish as 6 companies in the NSE Banking Index made 6 gains as opposed to 3 stalemates and 1 loss at the end of the trading session today.
    • Nairametrics counsels cautious participation in the market amid growing uncertainties in Nigeria.

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