- Banking Stocks Rebound as Equities Appreciate Marginally
The Nigerian equities market closed on a positive note on Wednesday, albeit marginally, as banking stocks recorded a quick rebound.
Stocks, thus, extended gains from the previous session as the All-Share Index rose by 0.02 per cent to close at 42,158.32 basis points from 42,148.40 basis points.
A total of 570.259 million shares worth N5.326bn exchanged hands in 5,794 deals.
The year-to-date return maintained a flat close at 10.2 per cent as investors gained N3.6bn with equities market capitalisation rising to N15.129tn from N15.125tn.
The Wednesday’s positive performance was on the back of a rebound in banking stocks- as Guaranty Trust Bank Plc, Zenith Bank Plc and United Bank for Africa Plc appreciated respectively by 1.6 per cent, 1.5 per cent and 3.3 per cent.
In the same vein, activity level strengthened as volume and value traded rose by 11.8 per cent and 15 per cent to 570.259 million units and N5.326bn, respectively.
Sector performance was mixed as two of the five major indices trended northwards, while three slumped. The banking and insurance indices advanced by 1.1 per cent and 0.7 per cent, respectively due to gains in GTBank, Zenith Bank, Continental Reinsurance Plc and Prestige Assurance Company Plc by 1.6 per cent, 1.5 per cent, 0.1 per cent and 0.02 per cent, accordingly.
However, the oil/gas index declined the most, shedding 1.2 per cent as investors sold off positions in Conoil Plc and 11 Plc (Mobil), which dropped respectively by 9.6 per cent and 4.5 per cent.
The consumer and industrial goods indices followed, depreciating by 0.9 per cent apiece, following price drops in Nestle Nigeria Plc, Nigerian Breweries Plc, Lafarge Africa Plc and Cement Company of Northern Nigeria Plc, which shed 0.7 per cent, 2.7 per cent, 1.8 per cent and 4.3 per cent, accordingly.
Thus, investor sentiment improved compared to Tuesday as 27 stocks advanced against 30 losers.
The top performing stocks were Japaul Oil and Maritime Services Plc, Champion Breweries Plc and Continental Reinsurance Plc, which appreciated respectively by 5.7 per cent, 4.8 per cent and 1.6 per cent.
On the flip side, the worst performers were Conoil, Unic Diversified Holdings Plc and Fidelity Bank Plc, which plummeted by 9.6 per cent, 6.2 per cent and 5.7 per cent, respectively.
Commenting on the state of the market, Afrinvest analysts said, “Despite the marginal gain, the improvement in sentiment shows the market is gradually stabilising. Thus, we expect performance in subsequent trading sessions to remain positive.”
Also commenting, analysts at FSDH Research said, “Market outlook remained positive with the possibility of a rebound as investors take advantage of low valuations.”
Insider Dealing: Paul Miyonmide Gbededo Adds Another 612,326 Shares of Flour Mills to His Stake
Paul Miyonmide Gbededo, the Group Managing Director, Flour Mills of Nigeria Plc bought an additional 612,326 shares of the company.
The management stated this in a disclosure statement sent to the Nigerian Stock Exchange on Monday.
The managing director purchased the shares at N27.75 per share on November 20, 2020 at the Nigerian Stock Exchange in Lagos, Nigeria. Meaning, Gbededo has invested another N16,992,046.5 into the company.
This was in addition to the 3,284,867 shares valued at N91,642,269 and 4,200,852 shares worth N117.62 million purchased by Gbededo earlier in the month of November. Bringing his recent purchases to 8,098,045 million shares worth N226,254,315.5. See the details of the latest transaction below.
FCMB Reports 16.4 Percent Increase in Profit After Tax in Q3 2020
FCMB Group Plc, one of the leading financial institutions in Nigeria, reported a 16.4 percent increase in profit after tax for the third quarter of the year.
In the unaudited financial statements released through the Nigerian Stock Exchange (NSE), the lender’s profit before tax grew by 10.2 percent year-on-year to N4.8 billion while profit after tax increased by 16.4 percent to N4.2 billion.
FCBMB Group Plc expanded gross earnings by 4.8 percent to N48.3 billion during the period under review. Similarly, the bank’s net interest income rose by 30.03 percent year-on-year to N22.7 billion.
The strong performance continued across the board as net fee and commission income increased by 0.29 percent to N5.2 billion. Net trading income rose by 39.4 percent year-on-year to N1.82 billion.
Personnel expenses dropped by 7.9 percent to N6.9 billion during the quarter while general and administrative expenses declined by 7.52 percent year-on-year to N7.6 billion. Largely due to the COVID-19 lockdown.
Loans and advances to customers rose by 10.8 percent to N793.14 billion between December 2019 and September 2020. Total desposits from customers during the same period grew by 26.7 percent to N1.2 trillion.
The bank’s total assets increased by 22.12 percent to N2.04 trillion.
Stanbic IBTC Obtains Approvals, License to Establish Life Insurance Subsidiary
Stanbic IBTC Holdings Plc on Friday announced that it has obtained all required Regulatory Approvals and a license from the National Insurance Commission to establish a wholly-owned Life Insurance subsidiary, Stanbic IBTC Insurance Limited (SIIL).
In a statement signed by Chidi Okezi, Company Secretary, Stanbic IBTC and released on Friday, the bank said “The establishment of this new subsidiary essentially complements the bouquet of product offerings by Stanbic IBTC as it continues its goal of being the leading end-to-end financial solutions provider in Nigeria. In this regard, SIIL will aim to facilitate long term insurance for already financially included individuals and will seek to become the preferred Insurer in the Life Insurance Business.
“Stanbic IBTC Holdings PLC, a member of Standard Bank Group, is a full-service financial services group with a clear focus on three main business pillars – Corporate and Investment Banking, Personal and Business Banking and Wealth Management. The group’s largest shareholder is the Industrial and Commercial Bank of China (ICBC), the world’s largest bank, with a 20.1% shareholding. In addition, Standard Bank Group and ICBC share a strategic partnership that facilitates trade deals between Africa, China and select emerging markets. Standard Bank Group is the largest African financial institution by assets. It is rooted in Africa with strategic representation in 21 countries on the African continent.
“Standard Bank has been in operation for over 158 years and is focused on building first-class, on-the-ground financial services institutions in chosen countries in Africa; and connecting selected emerging markets to Africa by applying sector expertise, particularly in natural resources, power and infrastructure.”
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