Access Bank Shares Attract Over N8bn Despite Bearish Run
Equities investors have poured a whopping N8.46 billion into Access Corporation in a renewed scramble for the bank’s shares, setting up an outlook for an improved performance this second quarter despite bear rattle since last few weeks.
For five consecutive trading sessions between Friday, May 5, and Thursday, May 11, the Tier 1 lender topped transaction volume and value as bargain-hunting investors seeking good returns grabbed a total of 774.74 million units of the stock valued at about N8.46 billion.
Access Corporation, the Holding Company of Access Bank, is yet to explain the heavy activities, stockbrokers however said some directors of the bank might be consolidating their position by buying more stakes despite market uncertainties and signs of bear dominance.
“This extraordinary trend of heavy activities on the stock over a while is a significant indication that something is going on. It may be that some key stakeholders are consolidating positions in expectation of good returns. Prospects partly drive market activities. Don’t forget that Access Corporation is one of the undervalued equities on NGX,” says David Adonri of Highcap Securities Limited.
On Friday, May 5, Access Corporation led volume and value of transactions with 168.78 million units traded in deals worth ₦1.85 billion. This accounted for about 34.9 percent of the total trade turnover of 482.59 million shares valued at ₦5.64 billion and exchanged in 5,298 deals. Consequently, the share price of the stock surged +5.14 per cent closing at N11.25 per share.
The stock further rose by +2.67 percent to close at N11.55 per share on Monday, May 8 as investors scrambling for the stock grabbed 167.62 million units in deals worth ₦1.92 billion, the highest traded volume and value for that day.
On Tuesday, May 9, Access Corporation also led volume and value charts with 129.73 million units traded in deals worth ₦1.48 billion while a total of 139.29 million units were traded in deals worth ₦1.47 billion the following day, with the share price rising by +4.95 percent.
Extending its lead as top traded stock in volume and value on Thursday, May 11, investors mopped up 169.32 million units in deals worth ₦1.74 billion, this time at a -3.77 percentage loss in share price.
A close look at the price movement in the last five days revealed that the price depreciated by 9.3 percent from N11.25 per share on Friday, May 5, to N10.20 on Thursday, May 11 and thus creating room for new entry.
On Thursday, Access Holdings Plc closed at N10.20, about -12.82 percent below its 52-week high of N11.70, set on May 09, 2023.
“When the share price of a value stock goes down, then it is an opportunity to take a position for prospects of its intrinsic value and returns on equity. I expect the price to rise above N15 per share any time soon,” says Ashagwu Evans, a retail investor.
Meanwhile, the Lagos bourse extended losses as the benchmark Index closed 0.09 percent weaker at 52,161.24 points. The market’s weak performance was driven by losses in Tier 1 banking names, ZENITHBANK (-2.05%), GTCO (-2.44%), and ACCESSCORP (-3.77%). The loss puts the index on track for a weekly loss.
As a result, the year-to-date (YTD) return of the All Share Index fell to 1.78 percent while the market capitalization shed ₦26.04 billion to close at ₦28.40 trillion.
Analysis of market activities showed trade turnover settled lower relative to the previous session, with the value of transactions down by 12.04 per cent. A total of 477.37m shares valued at ₦5.24 billion were exchanged in 5,539 deals. ACCESSCORP (-3.77%) led volume and value charts with 169.32 million units traded in deals worth ₦ 1.74 billion.
With a maximum +10 percent daily gain, ARDOVA led 14 others on the gainers’ table while FCMB (-5.66%) topped 17 others on the loser’s table.
Related Posts
Comments are closed.