As Nigerian stocks recovered from a run of losses yesterday, Access Holdings Plc was the most sought-after share on the stock market. The bank saw transactions that made up 16.4% and 20.4% of the market’s turnover volume and value, respectively.
The Nigerian Exchange (NGX) benchmark indexes showed an average rise of 0.17 per cent, representing a net capital gain of N95 billion. Widespread optimism supported the market’s overall performance, as three out of every four transactions closed higher.
Access Holdings rose by 0.27 per cent to N18.80 per share, 10 basis points higher than the market’s average return for the day, combining its chart-leading operations with above-average gain.
The Nigerian stock market uses a volume-driven pricing model, meaning that a certain amount of shares must be traded for the price to change. Price therefore decreases when there is a large supply without a corresponding demand, and vice versa.
Market analysts agreed that price appreciation in large trading underlines the relative strength of a stock.
The bullish rally on Access Holdings came as the board of the company indicated it would be paying interim dividends to shareholders on the first half results of the group, continuing a longstanding tradition of twice dividend payments.
The board of Access Holdings is scheduled to meet on July 30, 2024, to review the audited report and accounts for the half-year ending June 30, 2024. Interim dividend payment is also on the agenda of the meeting.
Under the extant rules, payment of interim dividends is subject to profitability, audit of the accounts and general state of the company, especially banks that require the Central Bank of Nigeria (CBN)’s regulatory approval for their financial results.
Access Holdings paid a total dividend of N74.65 billion for the 2023 business year, representing a dividend per share of N2.10. This included a final dividend of N63.98 billion or N1.80 per share and an interim dividend of N10.66 billion or 30 kobo per share.
The dividend payment was against the background of significant growth in the operations of the bank, with gross earnings rising to N2.595 trillion in 2023, the highest within the banking industry. Access Holdings’ net profit had jumped by 306.9 per cent to N619.32 billion in 2023.
Access Holdings had grown net profit by 121.8 per cent in the first quarter of 2024 to N159.29 billion as against N71.80 billion recorded in the corresponding period of 2023, raising expectations that the bank might surpass its previous performance.
Total turnover at the NGX stood at 276.364 million shares valued at N4.120 billion in 7,597 deals. AIICO Insurance followed Access Holdings with a turnover of 23.955 million shares valued at N22.906 million. Guaranty Trust Holding Company (GTCO) placed third with 13.850 million shares valued at N608.119 million. Fidelity Bank followed with 13.231 million shares worth N133.746 million while Skyway Aviation Handling Company recorded 12.0 million shares worth N244.804 million.
The All Share Index (ASI)- the common, value-based index that tracks all share prices at the NGX, rose from its opening index of 99,217.60 points to close at 99,385.44 points.