Zenith Bank and Access Bank are two of the top banks in Nigeria offering financial services.
They’re also regarded as high-performing financial institutions, hence why their shares are readily bought by investors.
But which one of Zenith Bank and Access Bank Shares should you buy at this time, considering their prices and recent performances?
Well, in this article, we’ll look at both Zenith Bank shares and Access Bank shares to forecast future profit and make a choice of which one we should buy.
Let’s dive in.
Access Bank PLC. (ACCESS) Shares
Access Bank is ranked at the Premium Board of the Nigerian Stock market, with daily trade volume of over 6 million shares worth over 50 million Naira.
Access Bank has a mid-range market capitalization of approximately 305 Billion Naira, which is reflected in its share price that hovers below 10 Naira per share.
For the last 30 days, Access bank share price has been on a heavy bearish run as seen below.
Starting the month at a share price of 9 Naira, Access bank share price peaked at 9.45 Naira earlier on, before falling to 8.6 at close of trade.
From the price graph, it seems like the price will be consolidating before a new trend emerges.
Zenith Bank PLC. (ZENITHBANK)
Zenith Bank is ranked on the Premium Board of the Nigerian Stock Market, with daily trade volume of over 9 million shares, valued at over 210 million Naira.
Zenith Bank has a high market capitalization of approximately 717 Billion Naira, which is reflected in its share price hovering around the 25 Naira mark.
For the past 30 days, Zenith Bank share price has been trending low, as seen below.
Starting the month at a share price of 24 Naira per share, Zenith Bank share price continued to drop until 22.85 Naira at the close of trade.
From the look of things, the downtrend is set to continue when the market reopens, and the share orit may drop further.
ACCESS or ZENITHBANK?
When you analyze the data for both Access Bank shares and Zenith Bank shares, you can see that both are ranked on the Premium Board of the Nigerian Stock Exchange, so you cannot go wrong with any.
But there are indications that one may be better than the other, considering recent market performances.
Recent Price Trends
When you consider that in the last 30 days, Zenith bank shares have been on a free fall compared to that of Access bank that trended high before going bearish, and now consolidating.
What does that tell you?
Well, the losses for both shares in the last 30 days aren’t too far apart; 4.4% loss for Access bank and 4.7% loss for Zenith Bank.
But the most important thing is their next price movements. Will the losses continue? Or will there be a reversal?
Access Bank shares is giving more confidence, as it is currently consolidating. It might fall further after the price consolidation, that we cannot tell.
However, Zenith bank shares is almost set in stone to fall further. The downtrend is a heavy one and could represent heavier losses if you buy.
Difference in Buy Prices
Access Bank at a share price of 8.6 Naira is an easier entry than the 22.85 Naira price share of Zenith Bank.
Considering that both shares are not currently on a positive run, you have to consider the possibility of incurring losses.
In my opinion, it is easier for a share price of 22.85 to fall harder than a share price of 8.6 Naira.
Remember that the plan is always to buy low and sell higher.
Access Bank shares represent an opportunity for price growth, especially when you look at its market capitalization.
The risk seems lower with Access Bank and the ceiling for profit in the future is higher.
Final Verdict
In my view, Access Bank shares represent a higher opportunity for profit down the road.
In the last 30 days, it has shown signs of rallying, which proves that it could rally again sooner rather than later.
The current price consolidation of Access Bank shares, even though still at early stage, also give hope that the previous bearish run has ended and a new trend is in the offing.