Thursday, June 28, 2012 / The Analyst / Proshare Research
 

Companies in the NEWS Today – Transcorp Plc, Unity Bank Plc, Access Bank Plc and Union Bank of Nigeria Plc

Transcorp Plc’s management has been advised to get honest and focus on its strengths as well as exit those areas that are not its core strength, such as its oil concession. Believing in the stabilisation capabilities of the CEO, tony Elumelu, Victor Ogiemwonyi, a columnist in of the dailies suggests that the firm should reduce its stake in oil and to a minority one. It must sell its majority interest to raise quick cash and focus on the two major areas it already has footprints - hospitality and food processing.

The share price of Transcorp Plc declined by -74.84% and -36.71% in 2008 and 2009 while it closed flat in 2010. The stock recorded price appreciation of +14% in 2011 while it has recorded +103.51% gains so far in 2012. The firm’s 2011 Audited result shows that it recorded positive growth in turnover and negative growth in PAT.

Unity Bank Plc will on Saturday in Abuja held its 1st National draw of the ongoing ‘AIM, SAVE & WIN’ promo that will have a lucky winner going home with the star prize of a brand new car as well as consolation prizes such as generators, mobile phones, school bags, bicycles and refrigerators for other winners. According to the bank’s Head of communication, Mr. Ndu Eke, the promo is aimed at rewarding customers whose patronage has supported the growth of the bank over the years and to instil savings culture in every Nigerian.

The stock price went down by -67.50% and -70.63% in 2008 and 2009 respectively while +42.86% gains was recorded in 2010. 2011 saw -54.17% losses as the 2012 YTD performance stands at -9.09% losses and the price currently trades at 0.50k nominal value. The promo has no direction relationship with the stock price and as such might not have impact on it.

Union Bank Plc emerged most active stock on the Nigerian Stock Ex-change yesterday as the core investor in the bank, Union Global, in-creased its stake. Union Bank gained 18 kobo or 4.92 per cent to close at N3.84 per share. A turnover of 4.33 billion shares valued at N15.83bn were exchanged in 55 deals in a cross deals from Asset Management Corporation of Nigeria, which had 19 per cent stake in the bank. The deal vindicated the promise by the corporation that it would realise values from its investments.

The financial institution recorded price depreciation of -64.70% and -60.53% in 2008 and 2009 respectively while it further went down by -30% in 2010. Part of the losses was erased in 2011 as it recorded +152.38% price appreciations. The stock has so far recorded -63.77% YTD price depreciations while it also recorded negative growths in its latest Q3 ’11 financials. The increase in stake by the core investor shows the bank’s share still remain the toast of some of its investors.

Fitch ratings recent upgrade of Nigeria’s Access Bank, amidst the gale of rating downgrades witnessed by some of the world’s largest banks, highlights the resilience of the Nigerian banking sector. 

The bank witnessed -69.26% loss in 2008. It resumed uptrend in 2009 with +7.50% gains while another +25% gain was also recorded in 2010. However, it lost -49.47% in 2011 and with an improvement in 2012, the stock has recorded +32.50% YTD gains so far.
 

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