THE NATION FRIDAY, FEBRUARY 17, 2012
54
EQUITIES
Investors scramble for bank stocks in bearish market
NIGERIAN STOCK EXCHANGE DAILY SUMMARY AS AT 16-2-12
F
OR the third consecutive day, most banking stocks rode on the back of a surge in demand to close at higher prices, a trend divergent to developments in the market that had remianed bearish. The NSE Banking Index appreciated to 280.16 points yesterday as against its opening index of 277.07 points. It had risen from 270.83 points on Monday to 275.56 points on Tuesday and trended upward to 277.07 points on Wednesday. However, the benchmark index at the Nigerian Stock Exchange (NSE), slipped from the opening index of 20,329.62 points to a low of 20,314.08 points yesterday. It had opened the week at 20,623.63 points. Aggregate market capitalisation of all equities also dropped from N6.407 trillion to N6.402 trillion. It had opened the week at N6.500 trillion. Banks made up nearly half of the gainers yesterday as Access Bank led seven other banks on the bullish rally. There are 14 deposit-money banks quoted on the NSE and nearly all the major banking stocks advanced during the trading session. Access Bank gained 30 kobo to close at N6.43. Skye Bank chalked up 16 kobo to close at N3.51. Guaranty Trust Bank rallied 13 kobo to close at N14.18. First Bank of Nigeria added 10 kobo to close at N10.61. United Bank for Africa rose by 8.0 kobo to close at N1.80. Stanbic
• Honeywell profit rises 23% Taofik Salako and Tonia Osundolire
IBTC Bank gathered 6.0 kobo to close at N7.06. Sterling Bank added 4.0 kobo to close at 88 kobo while Zenith Bank gained 3.0 kobo to close at N12.26 per share. Banks are expected to announce their audited reports and accounts for the 2011 business year in the weeks ahead. Interim reports and accounts of nearly all banks had showed growths in incomes and profitability during the nine-month operational period ended September 30, 2011, which analysts said could increase dividends and boost the secondary market valuations of banking stocks. At third quarter earnings and current market considerations, most banking stocks carried double-digit earnings yields with yields as high as 21 per cent. Average industry yield stands at 11.4 per cent. Banks are known to be investors-friendly and generous in dividend policy. Average dividend payment policy ranged from 50 to 60 per cent but several banks may do better given their trimmed, fit and proper shapes, which require relatively lesser capital retention. With the third quarter 2011 reports, earnings per share within the banking industry was as high as 137
kobo with industry average of 53 kobo per share. Turnover at the NSE stood at 700.830 million shares valued at N2.28 billion in 3,513 deals. United Bank for Africa remained the most actively traded stock with 332.49 million shares valued at N593.56 million in 416 deals. Meanwhile, Honeywell Flour Mills Plc has released its third quarter report with a turnover of N27.9 billion for the nine-month period ended December 31, 2011. The company indicated that net profit rose by 23 per cent from to N1.7 billion. On the balance sheet side, total assets of Honeywell Flour grew by N7 billion in the last quarter as it reached advanced stages in the completion of its capacity expansion project. Total assets stood at N44.3 billion, a 33 per cent increase from N33.3 billion recorded in 2010. The twin mill facility of 500MT each, dubbed ‘Mills E & F’, being constructed at its Tincan Port, Apapa site will raise the Company’s daily milling capacity from 1,610Mt to 2,610 MT by September this year. Chief Executive Officer, Honeywell Flour Mills, Mr.Babatunde Odunayo stated that the new facilities being constructed as well as the equipment being installed would help to improve operational efficiency, ensuring that the company produces only high quality food products for its customers. He said the company expected the improving trend to continue well to the end of and beyond the financial year ending March 2012.
NIGERIAN STOCK EXCHANGE DAILY SUMMARY AS AT 16-2-12