INSIDE BANKING HALL

By Nume Ekeghe

With all the major leading banks situated at this busy GRA district, this branch of Ecobank has an intimidating structure, which makes it very attractive at first sight. On entering the banking hall, the first observation was the long queue. The four tellers attending to customers were slow. The apparently worried branch manager came to the hall to plead for patience and understanding from the aggrieved customers, who waited endlessly.
However, the aggressiveness from the customers could be attributed to the usual mad rush for cash, especially on last working days before public holidays.

The federal government had declared today and tomorrow public holidays to commemorate the celebration of Eid-El-Kabir by the Muslims.

Nevertheless, customer service personnel were fast and attended to customers politely and professionally.
Again, the branch manager in order to ensure effective service at this branch, offered assistance to customers that needed such.

It was however discovered that none of the ATMs was working as at the time of THISDAY's visit. This perhaps explained why there was long queue of customers in the banking hall.

In general, this branch has very friendly staff members even though banking services were slow on that particularly day.

The branch is well organised also. However, the management of Ecobank Nigeria should ensure that all its ATMs are functional at all times, in order to decongest the banking hall and encourage banking through alternative channels.

MARKET REPORT
Expectations for Q3 Results Lift Stock Market
Goddy Egene and Eromosele Abiodun

Notwithstanding the late push by the bears, the Nigerian equities market returned to positive territory last week following two days of massive gains driven by increased naira vote high expectations for the third quarter (Q3) corporate performance.

The market has remained unstable in the last few weeks following investors’ apathy and liquidity squeeze. However, Volatility was mild at the beginning of the week contrary to expectations that there will be massive sell off by some investors hoping to raise cash for the Muslim holiday.

The situation changed in the last two trading days of the week as the market witnessed massive sell pressure following investors’ drive to take profits and raise cash for Muslim celebration. Having resumed for the week on positive note in the market failed to react  positively to Ecobank Transnational Incorporated (ETI) notification to the Nigerian Stock Exchange (NSE) that South Africa based bank, Nedbank Group Limited is to acquire a 20 per cent shareholding in ETI.

Nedbank Group, according to ETI will subscribe in cash for 4,512,618,890 new ETI shares for $493.4 million (N79 billion).

It was a four-day trading week as the Federal Government of Nigeria declared Wednesday, October 1, 2014 as a public holiday to commemorate Nigeria’s 54th Independence Anniversary.

Despite the holiday,  at the close of business last week, the  NSE All-Share Index (ASI) and the market capitalisation  rose by 0.70 per cent to close on Friday at 41,103.94 and N13.572 trillion respectively.

Five of the market indices appreciated  while  three indices declined.

Those that declined include: The NSE Insurance Index (-0.51 per cent), NSE Lotus II Index (-0.36 per cent) and NSE Industrial Goods Index (-0.32 per cent).

Traders were divided over the direction the market will follow this week. While some believe there may be no significant rally in the days ahead as liquidity squeeze may bite harder others were upbeat that investors’ expectations for improved Q3 results would boost the market performance.  They added that the profit taking activities may reduce as more investors  go for undervalued stocks with strong full year results.

Summary of Daily Performance
The market had opened the week on a positive note as the benchmark index appreciated by 0.70 per cent to 41,105.38 points, compared to the appreciation of 0.10 per cent recorded the previous Friday. The appreciation in the Index on the day resulted from the gains recorded in the share prices of some highly capitalised stocks such as: Guaranty Trust Bank Plc, Nestle Nigeria Plc, Dangote Cement Plc, Nigerian Breweries Plc and Guinness Nigeria Plc amongst others.

Similarly, the market capitalisation appreciated by 0.70 per cent to close at N13.57 trillion, compared to the appreciation of 0.10 per cent recorded the previous Friday to close at N13.48 trillion. The total value of the stocks traded on the day on the floors of the NSE was N4.74 billion, up by 71.19 per cent from N2.77 billion traded the previous Friday.

The market maintained the positive trend on Tuesday as the index appreciated 0.25 per cent or 104.72  to close at 41,210.10  from 41,105.38 attained on Monday. Market capitalisation also increased to N13.61 trillion from N13.57 trillion the previous trading day. In the same vein, trading activities increased significantly as investors bought a total of 1.08 billion shares worth N8.08 billion, executed in 4,894.00 deals, compared to 245.92 million shares worth N2.77 billion, in 4,567.00 deals exchanged on Monday. Zenith Bank Plc, Chams Plc and Transcorp Plc were the most actively traded stocks on the exchange on Tuesday in terms of volume, while Zenith Bank Plc and Guaranty Trust Bank Plc topped in terms of value. A total number of 30 stocks gained on the bourse on the day while 24 stocks declined leaving 58 stocks unchanged. UPDC Plc emerged the toast of investors as it appreciated by 9.08 per cent to close at N15.85 kobo, per share followed by Nascon Plc with a 7.78 per cent gain to close at N9.70. Others on the gainers chart include: Guinness Nigeria Plc, P Z Cussons Plc and Stanbic IBTC Holdings Plc. On the flip side Seplat Petroleum Development Company Limited topped the losers chart with 3.30 per cent decline to close at N645.00, followed by Honeywell Flour Mill Plc which declined by 2.25 per cent to close at N3.91 kobo. Others on the losers table include; Glaxo Smithkline Consumer Nigeria Plc, FBN Holdings Plc and Skye Bank Plc.

The benchmark index of the NSE declined by 0.18 per cent on Thursday weighed down by profit taking by investors. Thus the ASI settled at 41,135.56  while market capitalisation stood at N13.58 trillion, a N24.6 billion decline from its previous level.  Market activity showed a 40.5 per cent rise in terms of total volume traded while total value traded mildly dipped by 4.9 per cent. Consequently, 673.97 million units of shares valued at N6.32 billion were transacted in 4,967 deals. The trio of Zenith Bank Plc, Guaranty Trust Bank Plc and FBN Holdings Plc accounted for 52 per cent of turnover in the trading session. With the exception of the Banking sector, all sectors closed negative.  The positive sentiment towards the banking sector was reflected in the advancers chart which featured Fidelity Bank Plc and UBN Plc as well as those earlier mentioned. The top decliners however included PZ Industries Plc, Guinness Nigeria Plc and Nestle Nigeria Plc.

The equities market closed on a negative note at the close of business on the last day of the week, as the index depreciated by 0.08 per cent to 41,103.94 compared with the depreciation of 0.18 per cent recorded Thursday. The depreciation in the Index was as a result of the losses recorded in the share prices of Guaranty Trust Bank Plc, Access Bank Plc, Zenith Bank Plc, Dangote Sugar Plc and Dangote Cement Plc. Similarly, the market capitalisation depreciated by 0.08 per cent to close at N13.57 trillion, compared with the depreciation of 0.18 per cent recorded the previous day to close at N13.58 trillion.

Market Turnover
Analysis of trading activity for the week under review showed that a total of 2.588 billion shares worth N24.902 billion in 18,750 deals were traded last week by investors on the floor of the Exchange in contrast to a total of 1.586 billion shares valued at N26.921 billion that exchanged hands the previous week in 22,238 deals.

The Financial Services Industry (measured by volume) led the activity chart with 1.898 billion shares valued at N13.886 billion traded in 9,889 deals; thus contributing 73.34 per cent and 55.77 per cent to the total equity turnover volume and value respectively.

The Natural Resources Industry followed with a turnover of 202.167 million shares worth 101.130 million in 8 deals. The third place was occupied by Services Industry with 128.071 million shares worth N255.342 million in 746 deals.

Trading in the top  three equities-Skye Bank Plc, Multiverse Plc and Zenith International Bank Plc (measured by volume) accounted for 1.392 billion shares worth N6.394 billion in 1,845 deals, contributing 53.80. per cent and 25.68 per cent to the total equity turnover volume and value respectively.

Also traded during the week were a total of 3,597 units of Exchange Traded Products (ETPs) valued at N147,560.65 executed in 15 deals compared with a total of 113,744 units valued at N2.427 million transacted the previous week in 22 deals.

Similarly, there were a total of 10 units of Federal Government Bond valued at N11, 630.89 executed in 1 deal compared with a total of 100 units valued at N104, 398.48 executed in 1 deal transacted the previous week.

Gainers and Losers
Meanwhile, the price movement chart of the NSE displayed a total of 40 equities that appreciated compared with 33 equities of the preceding week. Conversely, 34 equities depreciated in prices lower than 45 equities of the preceding week, while 126 equities remained unchanged higher than121 recorded in the preceding week.

Stanbic IBTC Plc  led the chart with N3.00 Champion Breweries Plc  followed with N2.65, while  CCNN Plc and  UACN PDC Plc chalked  up N1.60 and N1.35 respectively. Other top price gainers were Ikeja  Hotel Plc (48 kobo), Skye Bank Plc(23 kobo), Sterling Bank Plc(15 kobo), UBA Capital Plc(13 kobo),International Energy Insurance Plc (8 kobo), and  Royal Exchange Plc (4 kobo).

Conversely, the top 10 losers included: RT Briscoe Plc (12 kobo), May & Baker Plc (19 kobo), Vono Plc (14 kobo), Academy Press Plc (8 kobo), Learn Africa Plc (8 kobo), Costain Plc (5 kobo), Premier Breweries Plc(23 kobo), UPDC REIT Plc (45 kobo), Interlinked Technologies (254 kobo) and Custodian and Allied Insurance Plc (21 kobo).

Culled from thisdaylive.com