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Access Bank's shares drop by 7.5%, worst in the industry

By The Citizen

At the close of equity trading activities on the Nigerian Stock Exchange on Wednesday, Access Bank fell by 7.47 per cent, dropping to a three-month low.

The bank's shares, which opened for trading at N9.91 per share, lost 74 kobo or 7.5 per cent to close at N9.17 per share.

Analysts said that the significant loss was on the back of unimpressive financial results declared by the bank last week.

The bank's first quarter result released to the NSE on Friday showed that its profit for the period from continuing operations fell by 18 per cent from N12.114bn in December 2012 to N9.9bn in March 2013, while its revenue fell from N53.05bn to N52.70bn in the same period.

'The bank's first quarter results were below expectations and have weakened its chances of meeting return-on-equity forecasts for this year,' an analyst at FBN Capital Limited, Ms. Bunmi Asaolu, said in an  e-mailed report on Wednesday.

At the close of equity trading, a total of 41.86 million Access Bank shares, worth N399m, were exchanged by investors in 398 deals.

Meanwhile, a total of 39 stocks recorded price depreciation on Tuesday, as against 22 stocks which gained.

Diamond Bank Plc led the price losers, shedding 10 per cent or 70 kobo to close at N6.30 per share.

United Bank for Africa Plc shed 9.9 per cent or 80 kobo to close at N7.21 per share.

Eterna Plc and AG Leventis Plc also lost 9.9 per cent each to close at N3.16 and N1.45 per share, respectively while Costain (West Africa) Plc and Japaul Oil and Maritime Services Plc shed 9.7 per cent each to close at N2.40 and 65 kobo per share in that order.

Thus, the market captialisation dropped from N11.141tn recorded on Monday, to close at N10.910tn, while the NSE All-Share Index fell to  34,089.01 basis points, from 34,810.25 points recorded the previous day.

IPWA Plc led the price gainers' chart, rising by 10 per cent or six kobo to close at 66 kobo per share.

BOC Gases Plc followed with an appreciation of 9.9 per cent or 79 kobo to close at N8.73 per share.

Prestige Plc and Paints and Coatings Manufacturers Plc also gained 9.6 per cent and 9.4 per cent to close at 68 kobo and N1.74 per share in that order.