Hottest banking stocks
January 23rd, 2007 Ogbuotobo Chuks || chuks@stockmarketnigeria.com
By Ogbuotobo Chuks
The banking sector is no doubt the hottest sector in the capital market. Much more that they just concluded their first year post-merger operations, most investors are now convinced that the banks have what it takes to deliver good returns to investors.
We will briefly be taking a look at some of the hottest selling banking stocks and what they hold in store for investors, both humane and foreign.
UNITED BANK for AFRICA (UBA). The bank has indeed proved itself by crossing the N30.00 mark. After announcing a balance sheet in excess of N1 trillion, the first ever to be achieved by any financial institution in Nigeria and West Africa, the shares of this company has become the toast of all. The company opened this year at about N25.00 and closed last week at N34.44.The price was also marked down for dividend payment of N1.00 and a bonus of 1 for 5. it is expected that the company will most likely cross the N40.00 mark in 2007.
INTERCONTINENTAL BANK. The bank just concluded an offer in December 2006, which was oversubscribed. The opening price for the year was N13.50, while the closing price at the end of trading last week was N17.20. The bank is known to have good fundamentals as well as technicals. It is also one of the stocks to watch in 2007.
GUARANTY TRUST BANK. The bank is one of the leading third generation banks in Nigeria. The institution paid about N1.00 as dividend (interim and final) last year to shareholders. The share price as at the beginning of the year stood at N18.15. The closing price at the end of trading last week was N22.02. The bank is indeed a must buy for short, medium and long term investors. The price is likely to hit N25.00 and above in 2007.
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This is indeed the dividend of consolidation in the banking industry.