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ETI relishes impact of results


November 06, 2006/punch




Investors who bought the shares of Ecobank Transnational Incorporated two Fridays ago at N191 per share and would want to sell them on Monday (today), would reap a return of 19 per cent in form of capital growth.

This follows a rise in the price of ETI to N227 on Friday. The banking conglomerate, which was listed simultaneously on three stock exchanges including Nigeria, Ghana and Ivory Coast on September 11, 2006, had suffered a bear run at the Nigerian stock market.

The equity dipped from a year’s high of N337.73, to a low of N191. Market operators had attributed the bear run to lack of information about the financial performance of the bank.

According to them, earlier favourable sentiments by investors were dampened by the non-fulfilment of the promise by the management that it would make the bank’s financial records available.

However, the stock began a price recovery last week when the bank announced its third quarter result of the year ended September 30, 2006.

ETI posted gross earnings of N35.9bn in 2006, showing an increase of 35 per cent above the N26.54bn recorded in the corresponding period of 2005. Profit after tax rose by 40 per cent from N4.8bn in 2005 to N6.7bn in 2006.

Consequently, the renewed demand for the ETI shares lifted the equity price from N191 to close at N227 on Friday, while investors traded 2.86m of ETI shares valued at N576.21m in 77 deals.

Meanwhile, Fidelity Bank Plc recorded a profit after tax of N854.13m for the first quarter ended September 30, 2006, up from N388.32m recorded in 2005.

Conoil Plc had also announced a profit after tax of N2bn for the third quarter ended September 30, 2006, showing an increase of 30 per cent above the N1.54bn recorded in the corresponding period of 2005.

Tripple Gee and Company Plc joined the companies that declared interim dividend, when it announced a dividend of N0.03 per share on its results for the half year ended September 30, 2006. The company posted a net profit of N25.6m, compared to N2.7m recorded in 2005.

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