Kayode Tokede:
In the past three days of trading, the Nigerian Exchange Limited (NGX) saw its market capitalization rise by an impressive N529.9 billion as investors demonstrated renewed interest in several banking and oil & gas stocks listed on the exchange. The market opened the week at N59.425 trillion and closed yesterday at N59.955 trillion, marking a gain of 0.89%.
The NGX All-Share Index also saw an uptick of 0.89%, climbing 874.14 basis points from an opening value of 98,070.28 to close at 98,944.42. Month-to-Date and Year-to-Date returns were reported at 0.4% and 32.3% respectively.
According to information obtained by THISDAY, the banking index witnessed a significant increase of 4.3% over the three-day trading period, closing at 966.46 basis points, up from 926.39. Meanwhile, the NGX Oil & Gas Index appreciated by 3.8%, closing at 2,275.78 basis points compared to 2,192.84 points the previous week.
Notably, stocks of United Bank for Africa Plc (UBA), FBN Holdings Plc, and Zenith Bank Plc have experienced substantial increases in their prices over the past three days. Additionally, Oando Plc and Seplat Petroleum Plc have shown gains that positively influenced the NGX Oil & Gas index.
Specifically, UBA’s stock price climbed from N25.40 per share at the week’s outset to N28.40, marking an 11.8% increase, fueled by the company’s impressive corporate earnings for the third quarter ended September 2024. UBA reported a remarkable 83.2% growth in gross earnings, reaching N2.398 trillion compared to N1.308 trillion in Q3 2023. Its net interest income surged by 149%, rising from N443 billion in Q3 2023 to N1.103 trillion this quarter.
The group’s financial report filed with the NGX indicated a 20.2% increase in profit before tax (PBT) to N603.48 billion, up from N502.09 billion a year prior. Furthermore, profit after tax rose by 16.9% from N449.26 billion to N525.31 billion during the same period.
UBA’s Group Managing Director/CEO, Mr. Oliver Alawuba, expressed his satisfaction with the group’s ability to achieve sustainable growth across various revenue streams, building on a strong performance earlier in the year. He attributed this success to consistent growth in all core banking income lines, stating, “Our substantial investments in technology are yielding tangible business value, enhancing customer experiences and optimizing operational efficiency.”
For both Zenith Bank and FBN Holdings, their stock prices rose by 4.9% and 7.3% respectively, closing at N39.30 and N27.90 per share.
In the Oil & Gas sector, Seplat Energy’s stock price surged by 9.25% over the three-day period, closing at N5,700.00 per share after opening at N5,217.20. Oando’s share price also appreciated significantly by 16.4%, rising from N77 to close at N89.65.
The surge in demand for Seplat Energy shares comes in light of the Federal Government’s approval for the sale of ExxonMobil’s onshore assets to the company, a deal that was originally agreed upon over two years ago for $1.28 billion. In 2022, Seplat announced its intent to acquire all shares of Mobil Producing Nigeria Unlimited from ExxonMobil Corporation. This transaction would include the takeover of ExxonMobil Nigeria’s offshore shallow water operations, although the Nigerian National Petroleum Corporation (NNPC) claimed its Right of First Refusal regarding the asset sale.
