By NKIRUKA NNOROM

The recently released banks’ results, especially that of Zenith, Access and Guaranty Trust Bank, as well as other positives expected in the second quarter of the year will combine to boost equities performance in the remaining part of the year, the Chief Executive Officer, Financial Derivatives Company (FDC), Mr. Bismark Rewane, has said.

Making the postulation in the company’s monthly review of the economy for March, 2012, titled “Beyond the Fuel Subsidy,” Rewane explained that within the period in question, bargain hunters would make a comeback in search of low valuation, a development that will also impact positively on market performance.

The Financial expert further stated that the new National Pension Commission (PENCOM)’s draft guideline that has mandated the Pension Fund Administrators (PFAs) to invest up to 50 per cent of their Fund under Management in the capital market will boost liquidity in the coming months.

He said, “With new PFA regulations increasing equity contribution to 50 per cent, it is likely to boost market liquidity in coming quarters. Also, improved performance of banks’ stocks in first quarter, 2012, is likely to boost market performance.”

During the period, Zenith Bank plc had posted gross earnings of N244.07 billion in 2011, a 26.8 per cent increase over N192.48 billion recorded in the same period of 2010, while after tax profit jumped to N44.18 billion from the previous N37.41 billion.

GTB recorded gross earnings of N188.8 billion for the financial year, while Profit after Tax and Extra-ordinary item for the period was N52.7 billion, representing a 35.4 per cent improvement over 2010’s N38.3 billion.

Access bank on the other hand posted gross earnings of N138.9 billion, up 53 per cent over N91.1 billion recorded in 2010, while PAT was up 49 per cent to N16.7 billion from N11.2 billion in 2010. Though he said that return on equities was negative in the month of March, he remarked that investors are likely to shift focus to equities following fall in interest rate which would negatively affect return on fixed income securities.