BusinessDay... the voice of business: UBA, Intercontinental Bank, Access Bank buttress investors’ returns

UBA, Intercontinental Bank, Access Bank buttress investors’ returns
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MADUKA NWEKE on 09 January, 2008 01:00:00
 
The banks made great lifts during the month of November 2007 with investors that
staked their money in them smiling home with pockets filled with profits from
their investments. During the month under review, Intercontinental Bank resumed
trading at N27.00, appreciated N4.50 or 16.67 percent to close at N31.50. The
same month, Access Bank appreciated by N1.32 or 6.88 percent from N19.19 to
close at N20.51 while UBA Plc closed at N50.15 from N50.11 after gaining 4 kobo
or .08 percent.
During the month, United Bank for Africa (UBA) recorded a total supplementary
listing of 2,709,851,409 billion additional shares through its Right Offering
and Initial Public Offering while Intercontinental Bank listed 549,452,531
million shares through Right Offering and Initial Public Offering.
Intercontinental Bank was the most capitalized stock listed on the exchange
during the month with a total of 18,536,774,979 units that value N583.908
billion at N31.50 per share. United Bank for Africa (UBA) followed behind with
11,290,279,980 units worth N566.207 billion at N50.15 per share.
The report of the stock market for the week ended December 14, 2007 indicated a
total turnover of 2.4 billion shares worth N39.62 billion in 55,435 deals in
contrast to a total of 3.5 billion that was exchanged the preceding week in
59,639 deals.
Although, the Insurance sub-sector led other sub-sectors in activity that was
measured by turnover volume with 1.12 billion shares worth N3.22 billion that
changed hands among investors in 10,840 deals. Volume of activity in the shares
of International Energy Insurance Plc, Lasaco Assurance Plc and NEM Insurance
Co. Plc. Trading in the share of the three Insurance companies accounted for
563.9 million shares, representing 50.5 percent of the sub-sector’s turnover.
As in the preceding week, the Banking sub-sector, boosted by activity in the
shares of Intercontinental Bank Plc, Unity Bank Plc and Guaranty Trust Bank Plc
followed on the week’s activity chart with a turnover of 775.23 million shares
that value N21.7 billion in 25,346 deals.
During the week ended Friday, January 4, 2008 the banking sub-sector took over
the lead of sector turnover recording a total of 1.32 billion shares worth N39.5
billion exchanged by investors in 19,704 deals.
Intercontinental Bank Plc, Access Bank Plc activities in collaboration with the
activities in the shares of Unity Bank Plc and Oceanic Bank International Plc
accounted for 667.91 million shares which represents 50.45 percent of the
sub-sector’s total turnover.
As at January 7, 2008 the price of Access Bank Plc has risen to N25.50meaning
that those who entered the bank early last year when it was selling at N6.50 may
have made more than 408 percent gains. Intercontinental Bank Plc on the other
hand also recorded maximum profit because the share which was selling at N17.00
as at May 2007 now sells at N40.50 which is about 225 percent from its previous
price. In similar manner, United Bank for Africa (UBA) has remained the banking
industry leader in terms of share price selling presently at N48.79 per share.