Zenith Bank Emerges Best Performing Stock In July as Unity Bank Turns Worst

August 3, 2017
zenith bank plc

By Leadership Newspaper

The best performing stocks in the banking sector in the month of July were led by Zenith Bank Plc, Ecobank Transactional Incorporated Plc, and Guaranty Trust Bank Plc (GTBank).

According to Leadership Newspaper, as at the close of trading on Monday, July 31, the stock price of ETI added 18.1 percent or N2.25k per share to close at N16.50k from opening figure of N13.97k.

Similarly, prices of Zenith Bank and GTBank shares appreciated by 17.8 percent and 12.1 percent in July respectively.

Price appreciation in banks leveraged Nigerian Stock Exchange Banking Index growth of about percent from 397 basis points to 445.33 basis points in July, an increase of 12.2 percent or 48.33 basis points.

It implies that the NSE banking Index has appreciated by 63.3 percent and 171.01 basis points in seven months from 274.32 basis points it opened for trading in 2017.

Data collected by LEADERSHIP revealed that Zenith Bank’s stock opened the month under review at N20.89k and closed at N24.61k while GTBank, the third highest price gainer in the banking sector, closed July at N39.05k from N34.82k it opened for trading.

For the month under review, GTBank recorded the highest market capitalisation of about N1.15 trillion, behind Dangote Cement Plc that has N3.8 trillion in market last month.

Zenith Bank, on the other hand, has a market capitalisation of N772.8 billion while ETI has N302.8 billion in market capitalisation in July 2017.

Ironically, investors on the Nigerian Stock Exchange (NSE) continued to buy stock prices of these financial institutions over speculation of proposed interim dividend, Zenith Bank and GTBank specifically.

The above banks are yet to announce their earnings to the Exchange, LEADERSHIP can exclusively report.

A stockbroker who spoke with LEADERSHIP that does want his name in print said, “Zenith Bank and GTBank have a model that is working and delivering returns shareholders.

“If you look at their books, you will realize that they have delivered value over the years, and with them, it’s a steady growth, that’s what the investors are looking at,” he noted.

Other financial institution with stock price appreciation includes Skye bank Plc, United Bank For Africa Plc, Access Bank Plc and Stanbic IBTC Holdings Plc.

The stock price of Skye Bank added 13 percent or N0.08k to close at N0.68k while United Bank for Africa rose by 10.7 percent or N0.94k to close in July at N9.70k from N8.76k it opened.

Access Bank stock’s price added 8.1 percent or N0.75k to close at N10.05k per share.

Furthermore, the stock price of Stanbic IBTC Holdings increased by 8.8 percent or N2.90k to close July at N35.90k.

Despite impressive profitability in the half year ended June 2017, the stock price of Diamond Bank inched up by 4 percent or N0.05k to close at N1.29k.

The interim report and accounts of Diamond Bank showed significant growth in all key financial parameters as profit before tax surged year-on-year by 2.8 percent to N10.8 billion, this followed the leapfrogging of gross income over total expenses during the period under review.

Commenting on the bank’s stock performance, chief executive officer, Diamond Bank, Uzoma Dozie stated that despite the economic headwind, the Bank would remain resilient and sustain the positive growth throughout the two remaining business quarters.

Further investigations by LEADERSHIP revealed that Unity Bank Plc and Union Bank of Nigeria recorded the highest decline in July, followed by Fidelity Bank Plc.

The stock of Unity Bank fell by 8.9 percent or N0.06 to close at N0.61k from N0.67 in June.  The stock price of Union Bank of Nigeria shed 14.4 percent to N5.24k from N6.12k it opened in July while Fidelity Bank dropped by 4.6 percent to close July at N1.25k.

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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