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Unity Bank adopts financial statements amid low investor confidence



Five Nigerian banks ignored by foreign investors in 2020

Investors’ confidence haven’t been stable with Unity Bank in the last two weeks. Amid this period the Bank plans to release its financial statements for full year 2020.

On July 1, 2021, Unity Bank held its annual general meeting where it proposed and received its Audited Accounts for the Year ended December 31, 2020.

Analysis of the company’s trading activities shows that the announcement raised Unity Bank’s stock value, which gained N0.04 to hit N0.57kobo the next day of the AGM.

More gains were recorded on Monday, July 5, after the share price rose to N0.61kobo, but that magic seems to be wearing off as shareholders quickly engaged in profit-taking to cover their previous losses.

Read also: Nigeria gets $700m World Bank loan to tackle open defecation, water crises

The selloff crashed Unity Bank’s market value again, depreciating by 8.06 percent the next day of trading as the lender’s market value heads towards post-announcement value.

It reflected a poor valuation of the equity as investors’ confidence is still low towards the commercial bank in the stock market, considering 6.18 million shares were sold at a lower price of N0.57kobo on July 6, compared to 736,905 shares sold at N0.62kobo the previous day.

Last week, Unity Bank’s share price had mostly traded flat after falling from N0.55kobo [528,000 shares traded] on June 28, to N0.53kobo on June 29 when 2.39 million shares were traded.

It remained flat throughout as interest dropped significantly to five figure share volume, before gaining on Friday, July 2.

By Fakoyejo Ayodeji…

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