The Nation (Nigeria)

Investors stake N5.81b on banks in dividend rush

- By Taofik Salako

INVESTORS are jostling to take positions in major banks ahead the release of half-year results and interim dividends of those with the tradition of paying dividends twice in a year.

Trading data at the weekend showed that about half of the total value traded at the stock market in recent period were related to half-year position in anticipati­on of interim dividends.

At the Nigerian Exchange (NGX) Limited, NSE’S post-demutualis­ation name, more than N5.81 billion were staked on the shares of three leading banks- Guaranty Trust Holding Company, the new name of Guaranty Trust Bank; United Bank for Africa (UBA) and Zenith Bank.

Market analysts were unanimous that the transactio­ns on the three banks, which represente­d more than 53.22 per cent of total transcatio­n value at the NGX during the past five-trading sessions, were due to expectatio­ns of interim dividends.

Five banks, including Guaranty Trust Holding Company, United Bank for Africa (UBA), Zenith Bank, Stanbic IBTC Bank and Access Bank usually pay interim dividends on their half-year re

sults.

The post-listing rules at the NGX require quoted companies to submit interim or unaudited quarterly report not later than 30 calendar days after the end of the relevant period. Most quoted companies including all banks, major manufactur­ers, oil and gas companies, breweries and cement companies use the 12month Gregorian calendar year as their business year. The deadline for the six-month period ended June 30, 2021 is thus Friday, July 30, 2021.

However, where a company chooses to audit its quarterly accounts, it shall be required to file such accounts not later than 60 calendar days after the relevant quarter. All the five leading banks also undertake audit of their half-year accounts. The deadline for the submission of their accounts is thus Monday, August 30, 2021.

Submission of half-year results for the six-month period ended June 30, 2021 is expected to gather momentum this week, with early filers among the interim dividendpa­ying stocks expected to make announceme­nts within the next few days.

“In the coming week, we expect increased volatility in market performanc­e as more companies release their halfyear 2021 earnings results,” Afrinvest Securities stated.

Analysts at Cordros Securities said they expected investors “to trade cautiously while taking positions in stocks with attractive dividend yields ahead of halfyear 2021 dividend declaratio­ns, which intermitte­nt profit-taking activities would match”.

“Notwithsta­nding, we advise investors to take positions in only fundamenta­lly justified stocks as the unimpressi­ve macro story remains a significan­t headwind for corporate earnings,” Cordros Securities stated.

The trio of Guaranty Trust Holding Company, United Bank for Africa (UBA) and Zenith Bank ranked as the three most active stocks at the NGX in latest weekly analysis, accounting for 261.741 million shares worth N5.813 billion in 3,498 deals, representi­ng 25.95 per cent and 53.22 per cent of the total equity turnover volume and value respective­ly.

Total turnover at the NGX at the weekend stood at 1.008 billion shares worth N10.923 billion in 17,297 deals last week as against a total of 1.348 billion shares valued at N12.140 billion traded in 21,581 deals two weeks ago.

Led by banking stocks, the financial services sector remained atop the activity chart with 732.418 million shares valued at N7.213 billion traded in 9,131 deals; representi­ng 72.62 per cent and 66.04 per cent of the total equity turnover volume and value respective­ly.

 ??  ?? •From left: Chief Executive Officer, Cote D’ivoire Export Promotion Agency & Vice President ECOWAS Trade Promotions Organisati­on (TPO) Network; Guy M’bengue; Chief of Staff to the President, Prof. Ibrahim Gambari, and President, ECOWAS TPO Network, Mr. Olusegun Awolowo, when the ECOWAS TPOS CEOS were received at the State House Abuja by Gambari on behalf of President Muhammadu Buhari...at the weekend
•From left: Chief Executive Officer, Cote D’ivoire Export Promotion Agency & Vice President ECOWAS Trade Promotions Organisati­on (TPO) Network; Guy M’bengue; Chief of Staff to the President, Prof. Ibrahim Gambari, and President, ECOWAS TPO Network, Mr. Olusegun Awolowo, when the ECOWAS TPOS CEOS were received at the State House Abuja by Gambari on behalf of President Muhammadu Buhari...at the weekend

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