The nation’s local bourse closed the month of November on a bullish note as the NGX All-Share Index and Market Capitalization appreciated by 8.72 per cent to close the month at 47,660.04 and N25.959 trillion respectively despite the rising inflation and interest rate hike.
This is the first time the All-Share Index, which is the broad index that measures the performance of Nigerian stocks, has rose past the 47,000 mark since 14th October this year.
The ASI rose to as high as 54.085.30 on May 27 2022 but has since in the past six months dropped by 6,425.26 basis points or 11.88 per cent.
Data obtained showed that activities on the Nigerian Exchange which opened the month at N23.877 trillion in market capitalisation and 43,839.08 in the index at the beginning of trading on November 1, 2022, closed on November 31, 2022, at N25.959 trillion and 47,660.04 index points, hence has earned a month to date gain of about N2.082 trillion or 8.72 per cent.
Banking Index followed with a growth of 5.79 per cent to 396.71 points from 375.01 points it opened for trading in November.
Historically, the banking sector has always been one of the sectors that benefit from an inflation and rate hike environment. So, market experts believe that from a macro standpoint, things are set for the better in the sector.
The banking index which measures the performance of the banks quoted on the floor of the Nigerian Exchange however appreciated by 5.79 per cent to 396.71 points from 375.01 points it opened for trading in November.
In the meantime, the share prices of five-tier banks quoted on the floor of the Nigerian Exchange Group performed in the month of November 2022. Notable among the banks are Zenith Bank Plc, Access Holdings Plc, FBNH Plc, UBA Plc, and GTCO Plc.
Data obtained from the NGX showed that the stocks of the five banks recorded a combined gain of N207,050 billion during the month under review.
These stocks were selected based on their price-performance from month to date and are represented by the percentage gained year-on-year over N151.907 billion reported in 2021.
Analysis of the results indicates that the group’s Profit After Tax stood at N130.348 billion from N129.400 billion posted in 2021, representing a marginal growth of 0.73 per cent.
GTCO closed its last trading day at N21.00 per share, recording a 0.5 per cent gain over its previous closing price of N20.90.
FBN Holdings Plc’s stocks gained 13.7 per cent during the period under review, from N9.85 per share to N11.20 per share, increasing the market capitalisation to gain N48.459 billion or 13.7 per cent to close at N402.027 billion in market capitalisation on November 30, 2022, from the opening figure of N353.568 billion.
During the nine months period, FBN Holdings Plc reported a profit for the year to date to the tune of N91 billion, a 123 per cent high compared to the amount in the same period of 2021.
In spite of the presence of inflation during the period, the report shows that the group improved its interest income massively by 42.3 per cent to stand at N370 billion from N260 billion in the previous year. This was majorly driven by an increase in investment securities as well as loans and advances to customers which during the period.
FBNH closed trading on the weekend at N10.80 per share, recording a 0.9 per cent gain over its previous closing price of N10.70.