Investors lost confidence on the Nigerian Exchange (NGX) on Thursday after banks delivered underwhelming half-year results.
By 12:30 PM WAT, the All-Share Index had dropped 0.37% to 141,743.18 points as traders dumped financial stocks.
Zenith Falls Short
Zenith Bank set the tone early.
It reported an 8% decline in net income to ₦531.8 billion and slashed earnings per share to ₦12.95 from ₦18.41 last year.
Although the bank lifted its interim dividend to ₦1.25, investors dismissed the move and pushed its shares down nearly 3% by mid-day.
UBA Faces Backlash
Meanwhile, UBA shocked the market.
The bank posted a 6% rise in net income, but it slashed its interim dividend by 85%.
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Traders reacted instantly and unloaded the stock in large volumes.
By mid-day, UBA had plunged 8.51% with trades worth more than ₦2.75 billion.
As the selling deepened, the pressure quickly spilled over into other lenders.
Access Holdings fell 4.63%, while GTCO lost 1.8%.
Consequently, the broader index mirrored the banks’ struggles.
Ultimately, investors showed that they care less about marginal earnings growth and more about steady dividends.
For now, their swift reaction underscores one reality: the fortunes of the NGX still rise and fall with its heavyweight banks.
