Download Recovery: Oil, Gas, Insurance Sub

Recovery: Oil, Gas, Insurance Sub-sectors Take Back Stage
Equities in the oil & gas and insurance sub-sectors of the nation’s stock
market lagged behind in the terms of recovery as at April 30, 2012.
THISDAY analysis of the market recovery so far showed that while the
benchmark index, the Nigerian Stock Exchange (NSE) All-share closed
with 6.6 per cent(between January and April), the Oil & Gas Index and
Insurance Index ended the period with decline of 13.5 per cent and
11.8 per cent respectively.
The Oil & Gas Index fell 220.11 and 190.43, just as NSE Insurance
Index declined from 143.54 to 126.60. An analysis of the oil and gas
sub-sector indicated that most of the equities declined with only Mobil
Oil Nigeria Plc and Eterna Oil Plc recording growth. Others such as
Oando Plc, MRS Oil Nigeria Plc and Forte Oil Plc declined.
Similarly, only three equities in the insurance sub-sector witnessed
growth while the rest either lost or remained static.
On the other hand, Consumer Goods Index recorded the highest the
highest year-to-date growth of 203.2 per cent as it rose from 589.60
to close 1,787.99. The NSE Banking Index also gained 15.6 per cent,
growing from 274.26 to 317.03.
Market analysts said that the banking sub-sector had a good rally on
the back of impressive results for the 2011 full year and 2012 first
quarter results.
Apart from six banks that witnessed decline, the remaining banks
recovered significantly. First City Monument Bank Plc led with 31 per
cent. Diamond Bank Plc led the sub-sector rose by 30 per cent, while
Access Bank Plc, Zenith Bank Plc went up by 22 per cent and 16.2 per
cent respectively.
First Bank of Nigeria Plc and Guaranty Trust Bank Plc appreciated by
12 per cent apiece, while Sterling Bank Plc and 3.1 per cent in that
order.
While shareholders of Zenith Bank, Access Bank and Guaranty Trust
Bank have approved the various dividends recommended by the
boards of the banks, those of First Bank and Sterling Bank would soon
approve their own dividends.
First Bank recommended a dividend of 80 kobo per share. The bank
posted gross earnings of N296.3 billion for the year ended December
31, 2011, showing an increase of 27 per cent above the N232 billion
posted in 2010.
Profit rose by 48 per cent from N33.8 billion to N50.1 billion. Hence,
the directors recommended a dividend of 80 kobo per share.
Commenting on the results, Group Managing Director of First Bank,
Mr. Bisi Onasanya said: “We have made significant progress in
achieving our strategic goal of being the number one financial services
group in Nigeria. Our results are reflective of the benefits being reaped
from the implementation of our transformation agenda which has
improved customer focus, acquisition, satisfaction, business generation
and enhanced the sustainability of our earnings base.
This has brought about considerable improvements in our interest and
non-interest earnings generation capabilities, margin expansion,
operational efficiency as well as reduced funding costs. Testament to
this is the decline in our cost to income ratio by over 10 percentage
points to 56.8 per cent.”
By Goddy Egene
This Day 02 May 2012