Spring Bank shares have emerged as one of the most sought after on the Nigerian Stock Exchange (NSE) with demand spiraling price appreciation to 82% in the last three and half weeks of trading on the floor of the NSE.
Data from the NSE shows that Spring Bank share price opened the year at 95 kobo per share and closed Wednesday, January 25, 2010 at N1.73, an appreciation of 82%.
Analysis shows that the appreciation ranks among the top five share price gains of the NSE listed firms in the first three weeks of the year, making it one of the most rewarding shares to hold on the stock exchange.
According to findings by ProShare, a leading research firm in the Nigerian capital market, Spring Bank shares have appreciated by 50% in the last one month and 125% in the last six months.
A breakdown of the share price movement this year alone also indicates that Spring Bank shares shot up 8% in the first week of trading in 2011; rose another 17% in the second week and 25% in the third week when it closed at N1.40.
Analysts who spoke on the sharp price appreciation of Spring Bank shares in the last two weeks said it is a sign that strong investor confidence has returned to the bank, which is clearly based on the bank’s increasing transformation and stellar performance last year.
It will be recalled that the bank launched itself on the path of profitability for the first time since its inception six years ago, when in its unaudited results for last year, it posted a profit before tax of N636million in the first quarter and subsequently maintained the trend with N2.35billion and N3.35billion. PBT in the second and third quarters respectively.
Market watchers believe that the present trend of improved performance will continue this year, especially, buoyed by the recent intervention by Assets Management Corporation of Nigeria (AMCON) which saw an injection of over N23billion into the bank. The expectation is that the bank’s profit after tax for this year may hit above N5 billion.
The current outlook of Spring Bank has resultantly placed it in a stronger position in its discussions with the equity investors presently speaking with the bank in its recapitalization programme.