Jaiz Bank, Unity Bank emerge worst performing stocks on NSE

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ADEBISI ADEMOLA

Jaiz bank Plc and Unity Bank Plc have emerged the worst performing stocks in percentage on the Nigerian Stock Exchange (NSE) for the month of October.

Data obtained by InsideBusiness from NSE for the month of October showed that the share of Jaiz Bank dropped by 17 per cent or N0.12 to N0.58 from N0.70 while share price of Unity Bank depreciated by 15 per cent or N0.09 to N0.51 from N0.60 it opened for trading in October.

Others price losers in October include, Diamond Bank Plc, 8.2 per cent; Skye Bank Plc, 5.7 per cent; Sterling Bank Plc, 4.8 per cent and Ecobank Transnational Incorporated that dropped by 2.9 per cent to N17.00 per share.

Meanwhile, Fidelity Bank Plc emerged the best performing stock in October, followed by United Bank for Africa Plc (UBA).

Aside the two commercial banks, Stanbic IBTC Holdings Plc, Zenith Bank Plc, First Bank of Nigeria Holdings Plc and Guaranty Trust Bank Plc also recorded marginal increase in share prices last month.

Other gainers in October include Union Bank of Nigeria Plc and Access Bank Plc.

According to InsideBusiness Online, six others commercial bank were the major price losers in October, while share prices of First City  Monument Bank Group Plc and Wema Bank Plc remained flat in October closing of the equities market.

The share price of Fidelity Bank appreciated by 13.4 per cent or N0.18 from N1.34 it opened for trading to N1.52 per share it closed for trading while UBA share price’s added 11 per cent or N0.96 to close October at N9.60 from N8.64 per share.

Fidelity Bank’s had reported a growth of 65.1 per cent to N16.2billion in nine months of 2017 from N9.8billion in nine months of 2016.

Historically, the bank in nine months ended September 30, 2017 hits N130.1 billion in gross earnings from N110.3 billion reported in nine monthsended September 30, 2016.

MD/CEO of Fidelity Bank Plc, Nnamdi Okonkwo, in a statement said, “We remain focused on the execution of our medium term strategic objectives and targets while we look forward to sustaining the momentum and delivering a strong set of results for the 2017 financial year”.

For UBA, it share price added 11 per cent or N0.96 to close at N9.60from N8.64 per share.

The Pan African financial institution also delivered an impressive profit before tax (PBT) of N78.3 billion, marking a significant growth of 33.2 per cent as against N58.8 billion recorded in the similar period of 2016.

In the same vein, Profit after Tax (PAT) grew to N60.9 billion representing an impressive 23per cent growth over the N49.5 billion recorded in the nine months of 2016.

“This profitability further reflects the strong earnings capacity of the Group and its capability to progressively deliver superior returns to shareholders,” the bank said in a statement.

The Group Managing Director/CEO, said, Mr. Kennedy Uzoka, “These extremely positive third quarter results are an attestation of our ability to sustainably grow earnings and market share, notwithstanding the challenging operating environment. They are a tribute to our enhanced customer engagement and focus on continuous improvement in service quality.”

The share price appreciation of the above eight commercial banks thrust the NSE Banking Index by 23.44 basis points or 5.3per cent to 463.61 basis point from 440.17 basis points the equities market opened for trading in October.

Meanwhile, the NSE Banking Index has gained 189.29 basis points or 69 per cent in 10 months from 274.32 basis points it opened in 2017.

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