Zenith Bank displaces Dangote Sugar as most capitalised company

Dangote Sugar Refinery Plc has lost the position of the most capitalised company quoted on the Nigerian Stock Exchange to Zenith Bank Plc.

DSR, which was listed in March at N18 per share, became the stock with the highest market capitalisation in April due to a consistent rise in its price.

The stock rose from N18 to N56, amounting to a market capitalisation of N560bn two weeks ago.

However, the bears swooped on the company in a bid to reap part of the capital growth. As a result, the high supply depressed it to close at N43.04 per share on Monday and translated into a capitalisation of N430bn.

This has made Zenith Bank, which had been occupying the second position since April 19, the company with the highest market capitalisation with N461bn.

Consequently, First Bank of Nigeria Plc, which occupied the number one position before DSR took over, fell to the third place with about N420bn.

The reduction in the capitalisation of DSR has been attributed to profit takers, while Zenith Bank�s positive outing was due to consistent demand for the stock.

The Managing Director, Mission Securities Limited, Mr. Samuel Oguntayo, had said that the rising profile of Zenith Bank was expected, given its nine months results and other positive developments.

The bank posted profit before tax of N17.64bn for the nine months ended March 2007, indicating a 59 per cent increase over the N11.08bn recorded for the same period in 2006. Profit after tax rose by 69 per cent from N8.86bn to N15bn.

The stock has recorded price gains of almost 150 per cent within the past year and is one of the most actively traded.

Since the public offer of early last year, Zenith has risen gradually from N16.90, to close at the current price, representing a capital appreciation of about 193 per cent.

Apart from the capital appreciation, investors who bought into Zenith Bank have also reaped from the dividend payout in line with the bank�s promise to pay N6.6bn dividend or N1.10 per share.

Analysts believe that the capital appreciation of almost 193 per cent and the impressive nine-month results were indicative of what to expect when the full year result is announced at the close of the bank�s financial year in June 2007.

To interact with stock experts/analyst and share your own ideas, quickly join to become member of nairakobo forum and started posting today. Registration is free.

nairakobo forum is an Investor's friend.

Once again, you are welcome to nairakobo forum..
see you there....