Stanbic IBTC Lost 8.5% in Day Trading

Stanbic IBTC Holding Plc. lost 8.5% of its market valuation in a sweep on Monday after following the group earnings announcement. For all it is worth, the result was good given double-digit earnings growth in its profitability with a moderate leverage position.

Of course, the financial service group declared mouthwatering profit performance in the financial year 2022 but market failed to reward the performance – on the first trading day of the week.

Daily Global News  reported that its share price has gained more than 19% in 2023 following expectations of better earnings, and more than N45 billion dividend – 50% of its after-tax profit in 2022.

The dividend failed to appeal to shareholders who rush to sell off amidst the US banking crisis; of which connection to Stanbic IBTC’s parent company – Standard Bank group has not actually been established.

It was a twisted mood and the Nigerian Exchange itself is bleeding currently after the previous momentum pushed the benchmark index above 55,000 points – a level seen last during the IPO rush pre-financial crisis of 2008.

For the market, 8.5% price down was massive for a financial services company worth about N520 billion in the local bourse.

Daily Global News gathered that the price down will recreate a re-entry for investors that will key into the dividend payments schedule for May, of which book will be closed in April. It’s expected that the stock market will rerate Stanbic IBTC when new buying momentum forms

# Stanbic IBTC Lost 8.5% in Day Trading.