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Stock Market

Zenith Bank’s investors gain N37.7 billion, as it records highest daily gain in over 2 months

Zenith Bank Plc recorded the highest daily gain in over two months on Tuesday as investors gain N37.7 billion

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Zenith Bank reaffirms market dominance and leadership with Q3 2019 results, Zenith Bank Plc, Access Bank Plc and United Bank for Africa Plc, Zenith Bank reports 7.9% profit increase for full-year 2019

Zenith Bank Plc has posted the highest gain in a single trading session, in over two months since the famous circuit breaker on November 12, 2020.

According to data from the Nigerian Stock Exchange (NSE), the share price of the bank rose by 4.84%, from N24.80 recorded at the close of trading yesterday, to N26. Market capitalization also gained N37.7 billion as at the close of trading today.

The gains can be attributed to the recent impressive financial performance recorded by Zenith Bank, evident by its FY 2020 results, where the bank posted a Profit After Tax (PAT) of N230.6 billion which represents a 10.4% increase compared to N208.8 billion recorded in 2019 – A result that made it the first Nigerian bank to cross the N200 billion threshold at the time.

The impressive financial performance was also consolidated by a proposed final dividend payment of N2.7 for FY 2020. In lieu of this, it is understandable that the announcement effect might have triggered an increase in the demand for the Bank’s shares which resulted in an upward pressure on price.

For example, while the bank traded 21,749,034 units of shares yesterday, comparatively, it recorded a total of 52,673,009 units’ today- the day the bank’s FY 2020 result was released.

What you should know:

  • Nairametrics had earlier reported a circuit breaker, when the NSE All-Share Index rose beyond the threshold of 5% in November 2020.
  • On the circuit breaker day, Zenith Bank share price gained 9.96% in just one day.
  • Based on its recent financials, Zenith Bank Plc recorded a 34% surge in its asset base, from N6.35 trillion to N8.48 trillion, making it Nigeria’s biggest bank by asset so far.
  • Investors will be anticipating the results of Access and GT Bank who over the past few years have proved to be heavy competitors to Zenith Bank.

Chidi Emenike is a graduate of economics, a Young African Leadership Initiative Fellow and an Investment Foundations certificate holder. He worked as a graduate Teaching Assistant in the Federal College of Education Kano and is also a trained National Peer Group Educator on Financial Inclusion

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Spotlight Stories

Bears claw on Nigerian stocks, Sterling Bank, Nestle tumble

The Nigerian stock market breadth closed negative as 26 stocks posted 28 declines while 17 stocks appreciated.

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Nigerian stocks ended Tuesday’s trading session negative. Consequently, the NSE All-Share Index fell 0.59% to settle at 39,697.62 points, hence, the YTD performance retracted to 1.17%.

  • A total of 222.5million shares, worth N5,390 billion were traded in 4,470 deals. Transactions in the shares of Zenith Bank topped the activity chart with 48.10 million shares valued at N1.23 billion.
  • Across coverage sectors, the performance was mostly negative as all tracked indices closed negative for the day save for the NSE insurance which gained +0.21%.
  • The NSE consumer goods, oil & gas, industrial, and banking indexes fell by 3.86%, 0.88%, 0.41%, and 0.12%, respectively.
  • The Nigerian stock market breadth closed negative as 26 stocks posted 28 declines while 17 stocks appreciated.

Top gainers

  1. ACADEMY up 9.76% to close at N0.45
  2. PZ up 9.38% to close at N5.25
  3. BETAGLAS up 8.00% to close at N54
  4. ROYALEX up 8.00% to close at N0.27
  5. REGALINS up 7.69% to close at N0.28

Top losers

  1. MBENEFIT down 10.00% to close at N0.36
  2. ARDOVA down 9.97% to close at N16.25
  3. CHAMPION down 9.69% to close at N2.05
  4. INITSPLC down 9.62% to close at N0.47
  5. STERLNBANK down 8.75% to close at N1.46

Outlook

Nigerian bourse suffered significant losses as investors sold ARDOVA (-9.97%), STERLNBANK (-8.75%), WAPCO (-7.08%), and NESTLE (-6.90%).

  • That being said, Nairametrics envisages cautious buying on the account that certain market indicators reveal investors are taking some of their gains across the market spectrum.

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Companies

Dangote Sugar proposes N18.2 billion as final dividend for 2020

Dangote Sugar Refinery Plc has proposed a sum of N18.2 billion as the final dividend for shareholders.

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Dangote Sugar proposes N18.2 billion as final dividend for 2020

The Board of Directors of Nigeria, Dangote Sugar Refinery Plc has proposed a sum of N18.2 billion as the final dividend for shareholders for the period ended 31st December 2020.

This announcement was contained in the audited financial statement of the leading integrated sugar company.

In line with the statement of the Board of DSR, the approval of this proposed dividend at the forthcoming Annual General Meeting will see Dangote Sugar pay out a final dividend of N1.50 for each of the outstanding 12,146,878,241 ordinary shares of the company, held by its shareholders.

The proposed dividend is 36.36% higher than the final dividend of N1.1 per share (N13.36 billion) the sugar company paid its shareholders in 2019.

What you should know

  • Dangote Sugar Refinery declared in its audited statement for the period ended 31st December 2020 that its profit for the year climbed to N29.8 billion, from N22.4 billion in 2019.
  • According to these figures, DSR’s earnings per share for 2020 are pegged at N2.45. Hence, with a dividend of N1.50 per share, Dangote Sugar is set to payout 61.2% of its profits for 2020.
  • At the close of trading activities on the floor of the Nigerian Stock Exchange today, shares in Dangote Sugar Refinery declined by 0.83% to close lower at N17.85.
  • At this price, the dividend yield of Dangote Sugar shares is 8.40%.

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