…the gains can be attributed to the recent impressive financial performance recorded by Zenith Bank
Zenith Bank Plc recorded the highest daily gain in over two months on Tuesday as investors gain N37.7 billion. It is the bank’s highest gain in a single trading session since the last circuit breaker on November 12, 2020.
Data from the Nigerian Stock Exchange (NSE) showed the share price of the bank rose by 4.84%, from N24.80 recorded at the close of trading on Monday, to N26. Market capitalization also gained N37.7 billion at the close of trading on Tuesday.
According to Nairametrics, the gains can be attributed to the recent impressive financial performance recorded by Zenith Bank, evident by its FY 2020 results, where the bank posted a Profit After Tax (PAT) of N230.6 billion which represents a 10.4% increase compared to N208.8 billion recorded in 2019 – A result that made it the first Nigerian bank to cross the N200 billion threshold at the time.
The impressive financial performance was also consolidated by a proposed final dividend payment of N2.7 for FY 2020. In lieu of this, it is understandable that the announcement effect might have triggered an increase in the demand for the Bank’s shares which resulted in upward pressure on price.
For example, while the bank traded 21,749,034 units of shares yesterday, comparatively, it recorded a total of 52,673,009 units’ today- the day the bank’s FY 2020 result was released.
