Demand for Banking, Oil & Gas Stocks Lift Stock Market by N529.9bn

Kayode Tokede 

The market capitalisation of Nigerian Exchange Limited (NGX) gained N529.9 billion in three days trading this week as investors renewed interest in some listed banking and Oil & gas stocks quoted on the Exchange. 

Following investors’ keen interest in some banking and oil & gas stocks on NGX, the market capitalisation that opened the week at N59.425 trillion gained 0.89per cent or N529.9 billion to close yesterday at N59.955 trillion.

Consequently, the NGX All-Share Index appreciated by 0.89per cent or 874.14basis points from 98,070.28 basis points the market opened for trading to close at 98,944.42basis points, with  Month-to-Date and Year-to-Date returns printed at  0.4per cent and +32.3per cent, respectively.

As gathered by THISDAY, Banking index in three days trading this week has gained 4.3per cent to close yesterday at 966.46basis points from 926.39basis points it opened for trading, while the NGX Oil & gas Index appreciated by 3.8 per cent to close yesterday at 2,275.78 basis points from 2,192.84 basis points the index closed for trading last week. 

THISDAY also gathered that United Bank for Africa Plc (UBA), FBN Holdings Plc and Zenith Bank Plc have witnessed significant increase in stock price in three days.

Oando Plc, and Seplat Petroleum Plc have gained in the stock market that impacted positively on the NGX Oil & gas index.

Specifically, the stock price of UBA that opened the week at N25.40 per share has gained 11.8per cent to close at N28.40 per share amid the pan-African financial institution’s impressive third quarter (Q3) ended September 2024 corporate earnings.

UBA’s gross earnings grew significantly by 83.2 per cent to N2.398 trillion in Q3 2024 up from N1.308 trillion recorded in Q3 2023, while its net Interest income which stood at N443.0 billion at Q3 2023, rose impressively by 149 per cent to N1.103 trillion in Q3  2024.

The Group’s  financial report filed with the NGX, also indicated a 20.2 per cent increase in Profit before Tax (PBT) to close at N603.48 billion compared to N502.09billion recorded at the end of the third quarter of 2023, while profit after tax also rose remarkably by 16.9 per cent from N449.26 billion recorded a year earlier to N525.31 billion in the period under review.

Commenting on the result, UBA’s Group Managing Director/CEO, Mr. Oliver Alawuba in a statement, expressed pleasure that the Group continues to record strong and sustainable growth in its various revenue streams, building on its strong performance earlier in the year.

According to the GMD, the Bank’s performance has been underpinned by consistent strong growth on all core and sustainable banking income lines, as he added that “Our substantial investments in technology are yielding tangible business value. This commitment is instrumental in delivering enhanced customer experiences and optimizing operational efficiency.”

For Zenith Bank and FBN Holdings, both financial institution stock prices gained 4.9per cent and 7.3per cent to close at N39.30 per share and N27.90 per share, respectively, in three days. 

In the Oil & Gas Index, the stock price of Seplat Energy gained 9.25per cent in three days to close at N5,700.00  per share yesterday from N5,217.20 per share, while Oando’s stock appreciated by 16.4 per cent  from N77 per share to close yesterday at N89.65 per share.

Investors’ soar demand for Seplat Energy is on the backdrop of the Federal Government approving  the sale of ExxonMobil’s onshore assets to Seplat Energy, more than two years after the $1.28 billion deal was initially agreed.

 In 2022, Seplat Energy announced its plan to acquire all shares of Mobil Producing Nigeria Unlimited from ExxonMobil Corporation, Delaware, for $1.28 billion.

The deal involved taking over ExxonMobil Nigeria’s offshore shallow water operations. However, the Nigerian National Petroleum Corporation (NNPC) exercised its Right of First Refusal (RFR) regarding the sale of these assets.