The nation’s local bourse closed the month of November on a bullish note as the NGX All-Share Index and Market Capitalization appreciated by 8.72% to close the month at 47,660.04 and N25.959 trillion respectively despite the rising inflation and interest rate hike.
This is the first time the All-Share Index, which is the broad index that measures the performance of Nigerian stocks, has rose past the 47,000 mark since 14th October this year.
The ASI rose to as high as 54.085.30 on May 27 2022 but has since in the past six months dropped by 6,425.26 basis points or 11.88%.
Market performance: Data obtained by the Nairametrics showed that activities on the Nigerian Exchange which opened the month at N23.877 trillion in market capitalisation and 43,839.08 in the index at the beginning of trading on November 1, 2022, closed on November 31, 2022, at N25.959 trillion and 47,660.04 index points, hence has earned a month to date gain of about N2.082 trillion or 8.72%.
- Banking Index followed with a growth of 5.79% to 396.71 points from 375.01 points it opened for trading in November.
- Historically, the banking sector has always been one of the sectors that benefit from an inflation and rate hike environment. So, market experts believe that from a macro standpoint, things are set for the better in the sector.
- The banking index which measures the performance of the banks quoted on the floor of the Nigerian Exchange however appreciated by 5.79% to 396.71 points from 375.01 points it opened for trading in November.
In the meantime, Nairametrics analysed how the share prices of five-tier banks quoted on the floor of the Nigerian Exchange Group performed in the month of November 2022. Notable among the banks are Zenith Bank Plc, Access Holdings Plc, FBNH Plc, UBA Plc , and GTCO Plc.
Data obtained from the NGX showed that the stocks of the five banks recorded a combined gain of N207,050 billion during the month under review.
These stocks were selected based on their price-performance from month to date and are represented by the percentage gained.
United Bank for Africa (UBA) Plc- 7.25%
- The share of UBA Plc, a pan-African bank enjoyed a positive run during the month. The stock gained 7.25% in share price during the month, rising from N7.15 to N7.25 per share.
- The company enjoyed considerable buy-interests which drove up the market capitalization to gain N3.420 billion to stand at N247.945 billion at the close of trading on November 30, 2022, from the opening figure of N244.525 billion at the beginning of trading on November 1.
- United Bank for Africa consolidated and separate financial statement for the period ended September 2022 shows that the bank raised its profit in the third quarter of the year by 10.95% to record N116.0542 billion from the N104.597 billion in the third quarter of last year.
- UBA closed the last trading day of Friday, December 9, 2022, at N7.40 per share on the Nigerian Stock Exchange (NGX), recording a 1.4% gain over its previous closing price of N7.30.
Access Holdings Plc- 8.97%
- Access Holdings Plc also witnessed positive sentiment during the month. The lender gained 8.97% in price during the month, from N7.80 to N8.50. The bank witnessed buy pressure which drove up the market capitalization to earn N24.882 billion to close at N302.134 billion at the close of trading on November 30, 2022, from the opening figure of N277.252 billion at the beginning of trading.
- Access Holdings Plc’s gross earnings for the nine months ended September 30, 2022, rose by 30.9% to N906.9 billion from the N693.1 billion recorded in the same period of 2021.
- This was boosted by the higher revenue from its corporate and investment banking segment, as well as the commercial banking business.
- Access Holdings closed the trading day at N8.55 per share, recording a 0.6% gain over its previous closing price of N8.50
Zenith Bank Plc -9.5%
- The share of Zenith Bank Plc enjoyed a positive run during the month. The stock gained 9.5% in share price during the month, rising from N20.00 to N21.90 per share.
- The company enjoyed considerable buy-interests which drove up the market capitalization to gain N59.654 billion to stand at N687.583 billion at the close of trading on November 30, 2022, from the opening figure of N627.929 billion at the beginning of trading on November 1.
- During the nine months that ended September 30, 2022, the bank raised its profit in the third quarter of the year by 8.55% to record N174.331 billion from N160.594 billion in the third quarter of last year.
- The bank reported a 19.66% growth in gross earnings to N620.574 billion from N518.574 billion in 2021.
- Zenith Bank closed the weekend at N22.10 per share, recording a 0.2% gain over its previous closing price of N22.05.
GTCO Holdings Plc-13.648%
- The shares of GTCO Holdings Plc witnessed a considerable rally during the month. The banking stocks gained 13.64% in share price during the month, from N17.60 to N20.00. The positive sentiment drove up the market capitalization to earn N70.635 billion to stand at N588.623 billion at the close of trading on November 30, 2022, from the opening figure of N517.988 billion at the beginning of the month’s trading.
- Guaranty Trust Holding Co Plc released its third quarter 2022 financial result posting a pretax profit of N169.724 billion, representing a growth of 11.73% year-on-year over N151.907 billion reported in 2021.
- Analysis of the results indicates that the group’s Profit after tax stood at N130.348 billion from N129.400 billion posted in 2021, representing a marginal growth of 0.73%.
- GTCO closed its last trading day at N21.00 per share, recording a 0.5% gain over its previous closing price of N20.90.
FBN Holdings Plc –13.7%
- FBN Holdings Plc’s stocks gained 13.7% during the period under review, from N9.85 per share to N11.20 per share, increasing the market capitalisation to gain N48.459 billion or 13.7% to close at N402.027 billion in market capitalization on November 30, 2022, from the opening figure of N353.568 billion.
- During the nine months period, FBN Holdings Plc reported a profit for the year to date to the tune of N91 billion, a 123% high compared to the amount in the same period of 2021.
- In spite of the presence of inflation during the period, the report shows that the group improved its interest income massively by 42.3% to stand at N370 billion from N260 billion in the previous year. This was majorly driven by an increase in investment securities as well as loans and advances to customers which during the period.
- FBNH closed trading on the weekend at N10.80 per share), recording a 0.9% gain over its previous closing price of N10.70.
