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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