Given Nigeria’s 17.75% inflation rate in June 2021, it would be prudent to look at the NGX Banking index to determine which stocks have outperformed inflation in the last few months.
The Exchange’s all-share index declined -5.77% (YTD) to 37,947.18 index points, according to the latest statistics. Investors lost over N25 billion last week, as the market capitalization fell from N19.79 trillion the week before to N19.77 trillion on July 16th, 2021.
NGX Banking index currently stands at 383.30 index points, up +0.99% at the end of the last trading session. Technical analysis shows that the trend is trying to attain the level that was seen towards the end of last year.
Why this matters: Investors can use stock performance to determine if their own financial assets are performing well or poorly especially due to rising inflation. It also gives an investor the necessary information to either change or maintain their tactics.
Methodology: Nairametrics, with the assistance of other prominent financial data providers, classified financial assets in specific categories based on their price evaluation performance in percentage terms.
Zenith Bank
Zenith Bank completed its last trading day at N24.45 per share, up 0.6% from its previous closing price of N24.30. It started the year with a share price of N24.80, but it has since lost 1% of that value. It now has a profit of +51.9% over a one-year period, thereby surpassing inflation.
Zenith Bank was the most traded stock on the NGX over the past three months (Apr 12 – Jul 16, 2021). It has traded a total volume of 1.22 billion shares in 22,049 deals valued at N28.2 billion over the period, with an average of 18.5 million traded shares per session.
Wema Bank
Wema Bank completed its previous trading day at N0.80 per share. It started the year with a share price of N0.69 and has subsequently increased its share price by 16%.
The bank’s shareholders might be encouraged because the stock has gained +45% in the last four weeks, which is the second-best on the NGX ASI. It has made a profit of +48.2% during the last year, outperforming inflation.
Wema Bank is the 11th most traded stock on the NGX over the past three months (Apr 12 – Jul 16, 2021). It has traded a total volume of 418 million shares in 3,424 deals valued at N265 million over the period, with an average of 6.33 million traded shares per session.
Access Bank
Access Bank completed the last trading day at N9.20 per share, up 2.2% from its previous closing price of N9.00. It started the year with a share price of N8.45 and has since increased its value by 9%. Shareholders can be enthusiastic about ACCESS because the stock has gained 8% in the last four weeks alone. Over the last year, It has made a profit of +40.5%, outperforming inflation.
Access Bank is the second most traded stock on the NGX over the past three months (Apr 12 – Jul 16, 2021). ACCESS has traded a total volume of 1.21 billion shares in 14,959 deals valued at N9.74 billion over the period, with an average of 18.3 million traded shares per session.
Fidelity Bank
Fidelity Bank completed its last trading day at N2.40 per share. It started the year with a share price of N2.52, but has subsequently dropped 5% from that level. The 6% increase in FIDELITYBK share price since June 18th, which is the 35th best on NGX may assuage shareholders’ anxieties. Fidelity Bank is now profitable, with a one-year profit of +37.9%, outperforming inflation.
Fidelity Bank is the third most traded stock on the NGX over the past three months (Apr 12 – Jul 16, 2021). It has traded a total volume of 1.16 billion shares—in 8,139 deals—valued at N2.63 billion over the period, with an average of 17.5 million traded shares per session.
Sterling Bank
Sterlin Bank completed its last trading day (Friday, July 16, 2021) at N1.56 per share, up 0.6% from its previous closing price of N1.55. STERLNBANK started the year with a share price of N2.04, but it has already lost 24% of that value. However, the bank has posted profits of 24.8% within one year, outpacing the Inflation rate.
Sterling Bank is the 12th most traded stock on the NGX over the past three months (Apr 12 – Jul 16, 2021). It has traded a total volume of 413 million shares—in 4,469 deals—valued at N652 million over the period, with an average of 6.26 million traded shares per session.
UBA
UBA completed last Friday’s trading day at N7.75 per share, up 2% from its previous closing price of N7.60. UBA started the year with a share price of N8.65 but has since lost 10% of that value, putting it in 129th place on the NGX in terms of year-to-date performance. The 6% improvement in UBA’s share price since June 18th, may assuage investors’ anxieties. UBA presently has a profit of +24% over a one-year period, outperforming inflation.
United Bank for Africa is the seventh most traded stock on the NGX over the past three months (Apr 12 – Jul 16, 2021). UBA has traded a total volume of 646 million shares in 10,599 deals valued at N4.7 billion over the period, with an average of 9.78 million traded shares per session.
It will be nice to also factor in the impact of exchange rate on the overall performance of the shares. Yes, it might have surpassed inflation, but when exchange rate is considered, the narrative might be different.