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The Nigerian Stock Exchange monthly stock market review for February 2008 shows that the penny stocks paid more returns to shareholders’ more than the blue chips . The review shows that investors who staked their funds in the low priced stocks during the month of February smiled home with handsome profits from their investments.
An instance of this, more of the low priced stocks are on top of the summary of price changes in the month of February 2008. Apart from Dangote Flour Mills that led on the price movement chart, opening the month at N15.00 per share but appreciated by N24.65 or 264.33 percent to close the month at N39.65 per share.
Avon Crowncaps and Containers opened the month at N5.48 and added N9.61 or 175.36 percent to close at N15.09 per share, while SCOA Nig. Plc that opened the February at N4.58 added N8.02 or 175.11 percent to close at N12.60 per share.
Tripple Gee and Co. plc started at N6.57 per share, it added N11.47 or 174.58 percent to close at N18.04 per share, when Afprint Nigeria plc with N3.85 per share at the end of January appreciated by N6.71 per share or 174.29 per cent to close at N10.56 per share. Also, in the same vein, Morison Industries plc opened the month at N4.35 made an appreciable profit of N7.57 or 174.02 percent to close the market at N11.92. These gains are what accrued to investors who would like to sell their shares of these stocks as the gains per share would be multiplied by the number of the investor’s holdings in the stock to get an appreciable bottom line.
Another penny stock that pulled great surprise in the way of price appreciation during the year under review is Arbico plc which opened the February transactions at N2.88 per share. The stock made N5.01 or 173.96 percent gains per share and closed the month at N7.89 per share.
Alumaco plc opened the month at N7.25 per share and added N11.80 or 162.76 per cent to close at N19.05 per share. Another penny stock, John Holt plc that opened the February transactions at N4.63 per share and added N7.52 or 162.42 per share to close the month at N12.15 per share.
In the same way, Adswitch plc sold at N3.59 per share in February, during the month’s transactions, it appreciated by N5.73 or 159.61 per share to close the market at N9.32 per share. Also Premier Paints plc opened the month under review at N2.31 per share and made gains of N3.38 or 146.32 percent to close the market at N5.69 per share.
Another stock that showed an impressive performance and which is among the emerging markets is Juli Pharm plc which has been lowly rated in terms of pricing. The stock that opened the February market a N0.78 added N1.13 or 144.87 per share to closed the month at N1.91 per share. Footwear & Accessories Manufacturing & Distribution plc opened the market in February at N3.11 per share, added N4.31 or 138.59 percent to close the market at N7.42.
DN Meyer plc started the month of February at N9.10, gained N11.56 which represents 127.03 percent to close the month at N20.66 per share. At this juncture, one of the blue chip stocks in the name of Skye Shelter Fund plc that opened the month at N100 added about 121.27 percent to close the month at N121.27 per share.
The stock was listed on Tuesday February 26, 2008 at N100.00 and added N5.00 to close at N105.00 but as at February 27, 2008 it has gained another N5.25 to close the day’s transaction at N110.25.
Skye Shelter Fund last week listed by introduction 20,000,000 million shares at the Nigerian Stock Exchange (NSE) at N100.00 per share. Stockbrokers at the listing said the stock was the first of its kind to be listed in Nigeria and Africa as a whole and wandered why no literature about the nature of business the company intends to transact is made available for operators.
During the day’s transaction, most of the sub-sectors in the Nigerian Stock Exchange (NSE) dropped in volume of transaction as a result of drop in individual stocks. An instance of this is a comparism of the market volume of transactions per sub-sectors for January 30, February 12 and March 17, 2008.
The market recorded a total of 1,114,026,799 billion units that value N10.426 billion traded in 14,408 deals in January 30 2008 while in February 12, a record of 1,401,673,561 billion shares that worth N29.143 billion exchanged in 20,482 deals were traded.
The market went down again in March 17 recording a total of 896,740,048 million shares that worth N13.518 traded in 19,192 deals. The implication of the growth is that the market was low in January as a result of so many investors selling to recoup for the yuletide expenses and to get some funds for children schools.
During the month of January, the Agriculture/Agro-Allied had a total of 12,373,893 units that value N75, 615,940.75 exchanged in 288 deals. In February 12, the same sub-sector traded a total of 8,739,206 units that value N55.330 million that changed hands in 315 deals. In March the same year, the same sub-sector recorded a total of 21,049,309 units that worth N196.639 million in 481 deals.
It could be recalled that the same scenario happened in the early years of 2007.Afribank Bank recorded significant increase in other fundamentals as total assets grew by 82 percent from N122.72 billion to N223.10 billion; gross earnings from N14.67 billion to N29.31 billion; while shareholders funds rose to N35.80 billion from N29.50 billion between December 2006 and December 2007.
Analysts praise the management of Afribank for the efficient utilisation of its N35 billion shareholders funds to achieve a level of performance that compares with financial institutions that have bigger shareholders funds. They predict that with the expected re-capitalisation to N135 billion, Afribank will post above industry returns and offer adequate rewards to shareholders in the years ahead.
The Third Quarter performance confirms the effectiveness of strategies being implemented by the bank. The bank has succeeded in sustaining its general positive outlook as it progressively grew profit level from N4.02 billion PBT in the first quarter, to N8.11 billion PBT half year, and N11.04 billion in the third quarter.
However banking industry has continued to maintain little attraction to investors even though the delight through its focus on shareholders’ welfare has reduced. In 2007, the industry, recorded good returns for investors paying dividends and issuing bonuses to them. There is anticipation that in the nearest future Insurance Companies will over take the banks in all spheres of investors delight.
Leading the banks in overall return is United Bank for Africa (UBA) which returned N35.09 per share to investors. At the beginning January 2007, UBA opened the market at a share price of N25.31. By December 31, 2007, it netted N24.19 to close at an appreciated share price of N49.50. During the year, it paid an average cash dividend of N1.00 per share to shareholders, a record no bank has surpassed. The bank issued share bonuses valued at N9.90 per share, with capital appreciation of 95.57 percent, and a total return on investment of 138.64 percent. For year 2007, volume of transactions in the bank’s share was 3,623,896,772 billion units.
During the year, 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 Stock Exchange during the month, with a total of 18,536,774,979 units worth 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.
Closely behind the UBA is Zenith Bank, which recorded N34.21 per share during the period under review. Zenith Bank opened the market at the Nigerian Stock Exchange, with shares selling for N24.40 per share; the value appreciated by N21.69 to close the year at N46.09. The bank paid an average dividend of N1.00 per share and a bonus issue that value N11.52. Zenith recorded an 88.89 percent capital appreciation and 140.22 percent total return to investors. It closed the year with a volume transaction of 1,989,645,464 billion shares.
Details of the first quarter result showed that the bank also recorded a profit before tax of N10.33 billion, up from N6.41 billion last year, while profit after tax amounted to N8.06 billion, a remarkable increase of 70 per cent over the N4.73 billion recorded for the corresponding period last year.
The bank has enjoyed high patronage on the floor of the Nigerian Stock Exchange (NSE) because of its consistently strong financial performance, and the successful raising of N53.63 billion from a public offer, early 2006.
Following the 2006 public offer, Zenith stocks rose gradually from N16.90 per share, to cross the N60 mark, making it the highest priced banking stock in the market. This represented a total gain of N49.24 per share or 291.36 per cent.
The bank’s capitalisation on the NSE appreciated by N451.7 billion within the period, meaning that an investor who bought a million shares at N16.9 million, during the bank’s last public offer would have made capital gains of N49.2 million within the period.
Zenith Bank remains the biggest bank in Nigeria on total assets plus contingents of N1.2 trillion. It is the most capitalised quoted company with a total market capitalisation of over N400 billion.
At the end of its last financial year ending June 30, 2007, Zenith paid out a dividend of N9.26 billion, representing one naira per share, in addition to a four (4) for one (1) bonus issue.
Another stock that recorded noticeable returns to investors is Oceanic International Bank which returned N31.78 to investors during the year. Early 2007, the bank opened at N15.39 per share and appreciated by N22.01 to close the year at N37.40. It paid an average dividend of 42 kobo to shareholders, and gave out bonus issues worth N9.35 per every share held by every investor. It recorded a 143.01 percent capital appreciation and 206.50 percent total returns to investors. At the end of the year 2007, the bank amassed 2,542,784,491 total volumes of shares.
Union Bank also made impressive returns to investors during the year. It recorded N29.76 returns to investors. The bank opened market, January 2007, at N22.91 and closed at N43.06. It paid an average dividend of N1.00 to shareholders and gave bonus issues value at N8.16 per share.
The fact that the bank posted huge half year results proved bookmakers, who think that the bank is no longer keeping up with its history of impressive results, wrong. Total deposits for the group grew by 34.62 percent as at March 31, 2007, from N320.957 billion during the 2005/2006 financial year to N432.084 billion in the 2006/2007 financial year.
Union Bank’s gross earning for the group also increased by 32.32 percent, from N66.58 billion in 2006 to N88.10 billion in the year 2007. The total lending by the bank also increased by 28.71 percent from N116.06 billion to N149.38 billion, while that of the group increased 26.04 per cent from N127.20 billion to N160.33 billion.
The total assets of the bank increased by 19.75 percent from N517.56 billion in 2005/2006financial year to N619.800 billion in the review period, while that of the group grew marginally from N667.77 in 2005/2006 financial year to N699.25 billion in the review period, representing an increase of 4.71 percent.
The group’s shareholder’s funds increased from N102.54 billion, at the end of the 2006/2007 financial year, while that of the bank increased from N95.69 billion to N96.63 billion. During the year under review, the bank recorded an impressive profit before tax of N15.32 billion, up 24 percent increase over the N12.35 billion recorded in the preceding financial year. Similarly, group profit before tax increased from N13.54 billion in the 2005/2006 financial year to N17.39 billion in the reporting year.
The bank’s after tax profit increased from N10.04 billion in the 2005/2006 financial year to N12.13 billion in the 2006/2007 financial year, while after tax profit for the group increased by 27.31 percent from N10.87 billion to N13.77 billion.
Another bank that made impressive returns to investors is Guaranty Trust Bank (GTBank) which opened the year at N18.15. It appreciated by N16.48 to close at N34.63. During the year, GT Bank paid an average of 75 kobo dividend to shareholders. It issued bonus issues worth N8.66 average per share, to shareholders, with an average capital appreciation percentage of 90.80. It recorded a total return percentage on investment of 142.63. The Bank, due to its foreign listing attracted the patronage of many investors. This activity on the floor of the Nigerian Stock Exchange got increased to 3,204,146,114 volumes of shares.
Most investors believe that being the first Nigerian bank to be listed in a foreign stock exchange is an indication that the bank is solidly on ground.
Investors have chased the GT Bank’s stock causing noticeable surge in both share appreciation and volume of activities.
Afribank is another bank that made surprises. Its stock made impressive appreciation. Afribank’s stock on December 29, 2006 was selling at N11.51 per share. It closed the year ending December 31, 2007 at N30.49 after appreciating N18.98, more than 100 percent increase. It paid an average cash dividend of 30 kobo per share and a bonus issue worth N6.10 with capital appreciation percentage of 164, and percentage total return of 220.49 for the period under review. It accumulated a total volume of transactions of 3,548,972,507 giving it an edge over most of its peers.
Afribank Nigeria Plc has recorded N11.04 billion profit before taxation (PBT) for the financial year third quarter ending December, 2007. The bank’s shareholder’s fund also rose to N35.80 billion indicating a sustained tempo of growth. The performance is 207 percent increase from the N3.59 billion it recorded in the corresponding period of last year.
An instance of this, more of the low priced stocks are on top of the summary of price changes in the month of February 2008. Apart from Dangote Flour Mills that led on the price movement chart, opening the month at N15.00 per share but appreciated by N24.65 or 264.33 percent to close the month at N39.65 per share.
Avon Crowncaps and Containers opened the month at N5.48 and added N9.61 or 175.36 percent to close at N15.09 per share, while SCOA Nig. Plc that opened the February at N4.58 added N8.02 or 175.11 percent to close at N12.60 per share.
Tripple Gee and Co. plc started at N6.57 per share, it added N11.47 or 174.58 percent to close at N18.04 per share, when Afprint Nigeria plc with N3.85 per share at the end of January appreciated by N6.71 per share or 174.29 per cent to close at N10.56 per share. Also, in the same vein, Morison Industries plc opened the month at N4.35 made an appreciable profit of N7.57 or 174.02 percent to close the market at N11.92. These gains are what accrued to investors who would like to sell their shares of these stocks as the gains per share would be multiplied by the number of the investor’s holdings in the stock to get an appreciable bottom line.
Another penny stock that pulled great surprise in the way of price appreciation during the year under review is Arbico plc which opened the February transactions at N2.88 per share. The stock made N5.01 or 173.96 percent gains per share and closed the month at N7.89 per share.
Alumaco plc opened the month at N7.25 per share and added N11.80 or 162.76 per cent to close at N19.05 per share. Another penny stock, John Holt plc that opened the February transactions at N4.63 per share and added N7.52 or 162.42 per share to close the month at N12.15 per share.
In the same way, Adswitch plc sold at N3.59 per share in February, during the month’s transactions, it appreciated by N5.73 or 159.61 per share to close the market at N9.32 per share. Also Premier Paints plc opened the month under review at N2.31 per share and made gains of N3.38 or 146.32 percent to close the market at N5.69 per share.
Another stock that showed an impressive performance and which is among the emerging markets is Juli Pharm plc which has been lowly rated in terms of pricing. The stock that opened the February market a N0.78 added N1.13 or 144.87 per share to closed the month at N1.91 per share. Footwear & Accessories Manufacturing & Distribution plc opened the market in February at N3.11 per share, added N4.31 or 138.59 percent to close the market at N7.42.
DN Meyer plc started the month of February at N9.10, gained N11.56 which represents 127.03 percent to close the month at N20.66 per share. At this juncture, one of the blue chip stocks in the name of Skye Shelter Fund plc that opened the month at N100 added about 121.27 percent to close the month at N121.27 per share.
The stock was listed on Tuesday February 26, 2008 at N100.00 and added N5.00 to close at N105.00 but as at February 27, 2008 it has gained another N5.25 to close the day’s transaction at N110.25.
Skye Shelter Fund last week listed by introduction 20,000,000 million shares at the Nigerian Stock Exchange (NSE) at N100.00 per share. Stockbrokers at the listing said the stock was the first of its kind to be listed in Nigeria and Africa as a whole and wandered why no literature about the nature of business the company intends to transact is made available for operators.
During the day’s transaction, most of the sub-sectors in the Nigerian Stock Exchange (NSE) dropped in volume of transaction as a result of drop in individual stocks. An instance of this is a comparism of the market volume of transactions per sub-sectors for January 30, February 12 and March 17, 2008.
The market recorded a total of 1,114,026,799 billion units that value N10.426 billion traded in 14,408 deals in January 30 2008 while in February 12, a record of 1,401,673,561 billion shares that worth N29.143 billion exchanged in 20,482 deals were traded.
The market went down again in March 17 recording a total of 896,740,048 million shares that worth N13.518 traded in 19,192 deals. The implication of the growth is that the market was low in January as a result of so many investors selling to recoup for the yuletide expenses and to get some funds for children schools.
During the month of January, the Agriculture/Agro-Allied had a total of 12,373,893 units that value N75, 615,940.75 exchanged in 288 deals. In February 12, the same sub-sector traded a total of 8,739,206 units that value N55.330 million that changed hands in 315 deals. In March the same year, the same sub-sector recorded a total of 21,049,309 units that worth N196.639 million in 481 deals.
It could be recalled that the same scenario happened in the early years of 2007.Afribank Bank recorded significant increase in other fundamentals as total assets grew by 82 percent from N122.72 billion to N223.10 billion; gross earnings from N14.67 billion to N29.31 billion; while shareholders funds rose to N35.80 billion from N29.50 billion between December 2006 and December 2007.
Analysts praise the management of Afribank for the efficient utilisation of its N35 billion shareholders funds to achieve a level of performance that compares with financial institutions that have bigger shareholders funds. They predict that with the expected re-capitalisation to N135 billion, Afribank will post above industry returns and offer adequate rewards to shareholders in the years ahead.
The Third Quarter performance confirms the effectiveness of strategies being implemented by the bank. The bank has succeeded in sustaining its general positive outlook as it progressively grew profit level from N4.02 billion PBT in the first quarter, to N8.11 billion PBT half year, and N11.04 billion in the third quarter.
However banking industry has continued to maintain little attraction to investors even though the delight through its focus on shareholders’ welfare has reduced. In 2007, the industry, recorded good returns for investors paying dividends and issuing bonuses to them. There is anticipation that in the nearest future Insurance Companies will over take the banks in all spheres of investors delight.
Leading the banks in overall return is United Bank for Africa (UBA) which returned N35.09 per share to investors. At the beginning January 2007, UBA opened the market at a share price of N25.31. By December 31, 2007, it netted N24.19 to close at an appreciated share price of N49.50. During the year, it paid an average cash dividend of N1.00 per share to shareholders, a record no bank has surpassed. The bank issued share bonuses valued at N9.90 per share, with capital appreciation of 95.57 percent, and a total return on investment of 138.64 percent. For year 2007, volume of transactions in the bank’s share was 3,623,896,772 billion units.
During the year, 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 Stock Exchange during the month, with a total of 18,536,774,979 units worth 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.
Closely behind the UBA is Zenith Bank, which recorded N34.21 per share during the period under review. Zenith Bank opened the market at the Nigerian Stock Exchange, with shares selling for N24.40 per share; the value appreciated by N21.69 to close the year at N46.09. The bank paid an average dividend of N1.00 per share and a bonus issue that value N11.52. Zenith recorded an 88.89 percent capital appreciation and 140.22 percent total return to investors. It closed the year with a volume transaction of 1,989,645,464 billion shares.
Details of the first quarter result showed that the bank also recorded a profit before tax of N10.33 billion, up from N6.41 billion last year, while profit after tax amounted to N8.06 billion, a remarkable increase of 70 per cent over the N4.73 billion recorded for the corresponding period last year.
The bank has enjoyed high patronage on the floor of the Nigerian Stock Exchange (NSE) because of its consistently strong financial performance, and the successful raising of N53.63 billion from a public offer, early 2006.
Following the 2006 public offer, Zenith stocks rose gradually from N16.90 per share, to cross the N60 mark, making it the highest priced banking stock in the market. This represented a total gain of N49.24 per share or 291.36 per cent.
The bank’s capitalisation on the NSE appreciated by N451.7 billion within the period, meaning that an investor who bought a million shares at N16.9 million, during the bank’s last public offer would have made capital gains of N49.2 million within the period.
Zenith Bank remains the biggest bank in Nigeria on total assets plus contingents of N1.2 trillion. It is the most capitalised quoted company with a total market capitalisation of over N400 billion.
At the end of its last financial year ending June 30, 2007, Zenith paid out a dividend of N9.26 billion, representing one naira per share, in addition to a four (4) for one (1) bonus issue.
Another stock that recorded noticeable returns to investors is Oceanic International Bank which returned N31.78 to investors during the year. Early 2007, the bank opened at N15.39 per share and appreciated by N22.01 to close the year at N37.40. It paid an average dividend of 42 kobo to shareholders, and gave out bonus issues worth N9.35 per every share held by every investor. It recorded a 143.01 percent capital appreciation and 206.50 percent total returns to investors. At the end of the year 2007, the bank amassed 2,542,784,491 total volumes of shares.
Union Bank also made impressive returns to investors during the year. It recorded N29.76 returns to investors. The bank opened market, January 2007, at N22.91 and closed at N43.06. It paid an average dividend of N1.00 to shareholders and gave bonus issues value at N8.16 per share.
The fact that the bank posted huge half year results proved bookmakers, who think that the bank is no longer keeping up with its history of impressive results, wrong. Total deposits for the group grew by 34.62 percent as at March 31, 2007, from N320.957 billion during the 2005/2006 financial year to N432.084 billion in the 2006/2007 financial year.
Union Bank’s gross earning for the group also increased by 32.32 percent, from N66.58 billion in 2006 to N88.10 billion in the year 2007. The total lending by the bank also increased by 28.71 percent from N116.06 billion to N149.38 billion, while that of the group increased 26.04 per cent from N127.20 billion to N160.33 billion.
The total assets of the bank increased by 19.75 percent from N517.56 billion in 2005/2006financial year to N619.800 billion in the review period, while that of the group grew marginally from N667.77 in 2005/2006 financial year to N699.25 billion in the review period, representing an increase of 4.71 percent.
The group’s shareholder’s funds increased from N102.54 billion, at the end of the 2006/2007 financial year, while that of the bank increased from N95.69 billion to N96.63 billion. During the year under review, the bank recorded an impressive profit before tax of N15.32 billion, up 24 percent increase over the N12.35 billion recorded in the preceding financial year. Similarly, group profit before tax increased from N13.54 billion in the 2005/2006 financial year to N17.39 billion in the reporting year.
The bank’s after tax profit increased from N10.04 billion in the 2005/2006 financial year to N12.13 billion in the 2006/2007 financial year, while after tax profit for the group increased by 27.31 percent from N10.87 billion to N13.77 billion.
Another bank that made impressive returns to investors is Guaranty Trust Bank (GTBank) which opened the year at N18.15. It appreciated by N16.48 to close at N34.63. During the year, GT Bank paid an average of 75 kobo dividend to shareholders. It issued bonus issues worth N8.66 average per share, to shareholders, with an average capital appreciation percentage of 90.80. It recorded a total return percentage on investment of 142.63. The Bank, due to its foreign listing attracted the patronage of many investors. This activity on the floor of the Nigerian Stock Exchange got increased to 3,204,146,114 volumes of shares.
Most investors believe that being the first Nigerian bank to be listed in a foreign stock exchange is an indication that the bank is solidly on ground.
Investors have chased the GT Bank’s stock causing noticeable surge in both share appreciation and volume of activities.
Afribank is another bank that made surprises. Its stock made impressive appreciation. Afribank’s stock on December 29, 2006 was selling at N11.51 per share. It closed the year ending December 31, 2007 at N30.49 after appreciating N18.98, more than 100 percent increase. It paid an average cash dividend of 30 kobo per share and a bonus issue worth N6.10 with capital appreciation percentage of 164, and percentage total return of 220.49 for the period under review. It accumulated a total volume of transactions of 3,548,972,507 giving it an edge over most of its peers.
Afribank Nigeria Plc has recorded N11.04 billion profit before taxation (PBT) for the financial year third quarter ending December, 2007. The bank’s shareholder’s fund also rose to N35.80 billion indicating a sustained tempo of growth. The performance is 207 percent increase from the N3.59 billion it recorded in the corresponding period of last year.
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