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HI’20 Earnings: Buying interest in GTB, Stanbic IBTC, Seplat boost equity performance

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Nigerian Stock Exchange

By Peter Egwuatu

Investors continued to react to better than expected half year, HI’20, corporate earnings as renewed interest in Guaranty Trust Bank Plc (GTB), Stanbic IBTC and   Seplat Petroleum Development Company Plc boost equities’ performance last week.

Consequently, investors gained N181.6 billion as the Nigerian Stock Exchange, NSE, market capitalisation rose to N13.1trillion from N12.9 trillion at the beginning of the week while Year-to-Date, YtD, loss moderated to -6.7 percent.

In the same vein, the NSE All Share Index, another performance indicator, closed the week 1.4 percent higher at 25,041.89 points from 24,766.12 points.

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However, reacting to the market positive development, analysts at Cordros Research said:   “Our view continues to favour cautious trading as risks remain on the horizon due to a combination of the increasing number of COVID-19 cases in Nigeria and weak economic conditions. Thus, we continue to advise investors to seek trading opportunities in only fundamentally justified stocks.”

In similar manner, analysts at Afrinvest Research said: “. In the coming week, we anticipate a mixed performance as investors react to more corporate earnings releases. However, we expect to see some profit-taking activities given the bullish performance last week.

Meanwhile, analysis of trading last week showed that activity level strengthened as average volume and value rose 51.5 percent and 21.4 percent to 213.0million units and N2.2billion respectively supported by the three trading sessions from last week.

Specifically, GTBank (+8.2 percent), Stanbic (+10.0 percent), Seplat (+12.8 percent) and Zenith Bank (3.7 percent) were the primary drivers of the overall market’s gain. Performance across sectors was broadly positive with the Banking (4.9 percent), Oil & Gas (4.8 percent), Consumer Goods (0.7 percent), and Industrial Goods (0.1 percent) indices recordings gains. The Insurance (-0.3%) index was the sole loser.


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