Nigeria Content Online

At
the Nigerian Stock Exchange on Wednesday, Access Bank posted
significant improvement in its audited financial result for the second
quarter ended June 30.

The
bank, which recorded a loss after tax of about N11.952 billion in the
period in view, 2009, posted a profit after tax of N6.666 billion this
year, reflecting a 155.77 percent increase. Access Bank also recorded a
3.61 percent growth in its total net asset during the quarter, from
N168.346 billion to N174.429 billion.

However, the bank’s gross earnings for the period declined by 19.47 percent, from N61.351 billion to N49.408 billion.

Meanwhile,
the company’s board of directors has proposed an interim dividend of 20
kobo per share for its shareholders. The bank’s share will be marked
for payment on September 3 while the cash will be disbursed on
September 14. The stock price of Access Bank went up yesterday by 4.12
percent, “most probably on the back of the dividend declared,” some
analysts said.

Also
on Wednesday, Royal Exchange, an insurance company, released its
audited accounts for the period ended 31st December, 2009. The result
shows a 9.60 percent increase in turnover, from N3.314 billion to
N3.632 billion. The profit after tax inched up by 106.57 percent from a
loss of N2.435 billion to N160.07 billion, just as net asset for the
period went up by 29.27 percent from N6.084 billion to N7.865 billion.

Decline continues

The decline in the value of equities at the nation’s capital market on Wednesday cuts across all sectors of the bourse.

The
resilient nature seen in sectors like the breweries, conglomerates,
food and beverages, since the current downturn started last week, could
not be sustained after yesterday’s trading session.

The
All-Share Index declined by 1.60percent to close at 24,111.51 basis
points, from the previous day’s figures of 24,503.61. Market
capitalisation also followed with N96 billion losses, to close at
N5.896 trillion from Tuesday’s N5.992 billion.

The
number of gainers at the close of trading session closed at 20,
compared with the 16 gainers recorded on Tuesday, while losers closed
lower at 50, compared with the 57 losers recorded the previous trading
day.

Egbo
Amaechi, an executive member of the Shareholders Association of
Nigeria, attributed the current poor performance at the Exchange to
“profit taking by institutional investors.” Mr. Amaechi, however,
expressed satisfaction with efforts by some companies to give their
shareholders returns on investment.

The
NSE, yesterday, marked down the share price of Honeywell Flourmills for
a dividend of 11 kobo per share, declared by the board of the company.

The
banking subsector led the market transaction volume on Wednesday with
115.437 million units, valued at N909.02 million exchanged in 3,387
deals. Transactions in the shares of First Bank, Access Bank, Diamond
Bank, Guaranty Trust Bank, and Zenith Bank, boosted the volume traded
in the sector.

The
total volume of 62.346 million units, valued at N677.413 million,
traded in the shares of the five banks, accounted for 54.01 percent of
the entire sector volume.