Zenith Bank Shares hits all new high
January 27th, 2007 Ogbuotobo Chuks || chuks@stockmarketnigeria.com
By Ogbuotobo Chuks
Zenith Bank stock has been on the upward bound following the half year results announced last week. Recent events one the trading floor of the market have indicated that the bank is set for a whole new level this year.
Thursday, it gained N0.40 per share to close at N27.90 per share. Friday, it appreciated by N1.10 per share to finish at N129.00 per share. On Monday, it was N0.99 stronger having traded N29.90 per share. Dealers attributed this to the half year result for the period ended December 31, 2006.
The bank recorded gross earning of N40.492 billion for the half year ended December 31, 2006, 54 per cent up from N26.356 billion same period in 2005.Profit after tax increased by 62 per cent from N5.147 billion to N8.359 billion.
For the full financial year ended June 30, 2006, it reported gross earning of N58.221 billion as against N34.913 billion in 2005. Profit before tax increased by 65 per cent from N9.154 billion to N15.154 billion as profit after tax grew from N7.145 billion to N11.488 billion. Out of the profit after tax, it paid dividend of N6.6 billion or N1.10 per share.
Deposits increased by 68 per cent from N233.413 billion to N392.863 billion as loans and advances grew from N122.492 billion to N199.707 billion.
The stock positively reacted to the impressive performances as it traded N24.54 October 16, 2006 ; N25.00 January 8, 2007 and N28.80 January 19, 2007. The stock recorded a high of N26.88 per share and low of N16.50 in 2006.
Three weeks into the New Year, it traded at a highest price of N29.00 and low of N24.00 per share. Stock brokers believe, the stock would continue on the upward trend for some time in view of the fact that the half year profit is already chasing the 2006 final profit after tax.
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