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Equities: Banking Sector Trades 4.1bn Shares In 5 Weeks

The Banking Sector traded a total of 4.1 billion shares valued N45 billion in 5 weeks.

Joy Onyemaechi

The banking sector which consists of 11 banks closed 5 weeks with total trades of 4.1 billion shares worth N37.07 billion. The period covered is the month of May and the first week of June. This transaction accounted for 54.8 and 82.24 per cent in terms of volume and value traded respectively of the total financial service sector transaction of 7.482 billion shares valued at N45.073 billion. The total transactions that took place in the capital market were N89.69 billion for 9.173 billion shares of which the banking sector accounted for 41.33 and 44.7 per cent of volume and value traded in the market respectively. Zenith Bank Plc led the trading table with a total value of N10.377 billion worth of 485.48 million shares.

Closely following is GTB with N10.167 billion shares worth of 351.195 million shares. United Bank for Africa sold 1.494 billion shares worth N7.788 billion to emerge the highest in terms of total quantity of shares traded and third highest in terms of value of the shares traded. Access Bank and Eco Bank traded N3.703 and N1.826 billion for 601.257 and 84.123 million shares respectively. Union Bank of Nigeria had the least trades in terms of quantity of stock traded with 18.843 million shares traded while Wema Bank Plc had the least value of trades after it could realize just N44 million for the value of shares it transacted.

Throughout the month of May, up till date the total transaction has shrunk in value. At the close of trades for the month of January only Union Bank of Nigeria gained value in terms of per share price all the others except Unity Bank which remained unchanged shed value in terms of their share price. Unity Bank experienced a turnaround in the month of April but it began to drop almost immediately and presently it has reduced to N2.60 from N3.68. Of the 11 banks in the banking sector, 8 banks gained value while only 3 banks lost value. Unity Bank topped the gainers list due to its 420 per cent appreciation in its share value to N2.60. UBA was next in second place with 19.76 per cent gain to close the 5 weeks with a share price of N5.15.

Union bank gained 18.82 per cent, Eco bank gained 16.79 per cent while Fidelity Bank gaind15.43 per cent. Other gainers include GTB with 9.21 per cent, Zenith Bank 8.47 per cent and Wema Bank with 6.25 per cent. Diamond, Sterling and Skye Bank shed their share value shedding 20.25, 16.54 and 2.63 respectively to close the 5 weeks with share price of N4.45, N2.03 and N2.59 respectively. The capital market has been experiencing drought in terms of transaction for some time now due to the state of the economy. Before the inauguration of the new government, experts attributed the drought to uncertainty existing in the economy as to what the outcome of the postinauguration would be.

Now they attribute it to investors waiting for the new government to settle down and release their own policies. The financial sector especially the bank sector has been the main driver of the capital market. Except for a few companies in the consumer goods industry and industrial sector,the banking sector has been the main driver of the capital market trades. This can be seen in the percentage of the total trading activity contributed by the banking sector. Most of the trades in terms of volume and value are contributed by the banks. This is because they have the best performance in terms of their financial reports. Only the banks experienced increase in their profit at the end of the first quarter irrespective of the harsh economic environment. Their ability to make profit and maintain stability in the market is why many investors have more confidence in them and so go for their stocks as they feel this would earn them better returns.

Retail Bonds

A total of 14,817 units of Federal Government Bonds valued at N17.586 million were traded this week in 5 deals compared with a total of 64,465 units of Federal and State Government Bonds valued at N69.372 million traded in 7 deals in the previous week. (See summary in the table below).


Also traded during the week were a total of 8,966 units of Exchange Traded Products (ETPs) valued at N5.556 million executed in 32 deals compared with a total of 3,474 units valued at N1.003 million transacted last week in 19 deals. (See summary in the table below).


A turnover of 1.221 billion shares worth N16.964 billion in 19,847 deals were traded this week by investors on the floor of The Exchange in contrast to a total of 1.799 billion shares valued at N22.105 billion that exchanged hands last week in 17,337 deals. The Financial Services Industry (measured by volume) led the activity chart with 935.233 million shares valued at N9.258 billion traded in 11,066 deals; thus contributing 76.58% and 54.58% to the total equity turnover volume and value respectively. The Consumer Goods Industry followed with a turnover of 77.298 million shares worth N5.048 billion in 3,144 deals. The third place was occupied by the Conglomerates Industry with 47.348 million shares worth N228.761 million in 1,182 deals. Trading in the Top Three Equities namely – Zenith International Bank Plc, Diamond Bank Plc and United Bank for Africa Plc., (measured by volume) accounted for 357.004 million shares worth N4.033 billion in 3,021 deals, contributing 29.23% and 23.77% to the total equity turnover volume and value respectively.

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