Access Holdings Rises as Investors Look Out for Interim Dividend

The market priced Access Holdings Plc at N696.686 billion at the close of the trading session on the Nigerian Exchange trading platform on Friday. The financial services group’s market valuation increased by 6.811% over the last seven trading sessions due to renewed buying interest.

Access Plc is in the market to raise capital via rights issues, and the group earnings scorecard is expected to be released in no time. Data from the local bourse showed that Ticker: ACCESSCORP rose to N19.60 per share (versus N19.75 for rights issue) in the equities following huge volume shares that exchange hands among investors.

Its lowest market price over the last seven trading sessions was N18.35 per share.  The financial company share price peaked at N30.7 during the early boom on the Nigerian Exchange in 2024. Compared with the current price, Access PLC is trading at a huge discount, which has effectively created fresh entry points for investors seeking to buy the financial stock.

The stock was 36.15% below its 52-week high on Friday. The group is in the midst of raising funds from shareholders, offering 17,772,612,811 at N19.75 per share. In a regulatory notice, Access Holdings Plc told the Nigerian Exchange that its board of directors has approved the group’s audited financial statement and payment of dividends to shareholders.

The board hints that the group has transmitted the financial statement to the Central Bank of Nigeria, the banking sector regulator, for final approval. Dividend payment is also subject to CBN approval amidst ongoing discussion over windfall tax on FX gains.

Access Holdings Plc said it would announce its first half of 2024 to the public once CBN approval is obtained. Apel Asset Limited kept Access Holdings Plc on its buy recommendation in the just concluded week. Investment experts at the firm see 72.28% upside potential in ACCESSCORP at the reference market price of N18.60.

Already, the financial services group with the largest total assets in the banking sector is already heading toward analysts fair value estimate of N32.04 per share,  up by more than 6% in the last seven trading sessions to N19.60 on Friday. Access Plc’s return on equity is expected to improve in the first half of 2024, following a sustained increase in the benchmark interest rate.

Based on its latest financial scorecard, Access Holdings Plc return on equity and assets settled at 28.34% and 2.32%, respectively, in the first quarter.  Boosted by higher earnings, the group’s regulatory capital adequacy ratio stood at 23.3% at March 31, 2024, on the sharp naira depreciation.

The management commenced its capital raising through a rights issue in July 2024. The N351 billion issue will bring its paid-up capital to about N599 billion, S&P global said in a rating note. This will strengthen the bank’s balance sheet and loss absorption capacity and support its geographic diversification strategy.

“We anticipate the bank will outperform sector average profitability, with a return on equity of about 30% in 2024, in line with its first-quarter 2024 results. This is supported by strong net interest margins and lower credit loss provisions,” S&P said in note. #Access Holdings Rises as Investors Look Out for Interim Dividend Zenith Bank Spikes by 11% Ahead of Q2 EarningsThe post Access Holdings Rises as Investors Look Out for Interim Dividend appeared first on MarketForces Africa.