Sterling Bank plc in upswing as 18 stocks wobble

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Sterling Bank Nigeria plc recorded a second day of stock price increase as the market got information on how the bank arrived at its 60 per cent rise in profit in 2011.

The stock closed at N1.26 kobo, to be among the 13 that rose at the close of dealings on the Nigerian Stock Exchange Friday.

Exceptional and extra-ordinary incomes were however the two revenue horses that boosted the bank’s PAT to N6.7 billion in 2011, from the N4 billion recorded in 2010. Both items netted the bank N2.55 billion. Before the additions of the two items, the bank had recorded a fall of 21 per cent in its PBT of N2.9 billion, compared with the N3.7 billion recorded in 2010, according to the audited accounts made available to the NSE today.

On Thursday, the bank had sparked interests in its stocks with the announcement that it was paying out N1.6 billion in cash dividends, translating to 10 kobo per share. The stock price jumped.

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Seventeen other stocks led by Nigeria’s most priced, Nestle plc joined Sterling on the gainers table today. Nestle was boosted by N19.99, to close at N434.99 from its opening price of N415. CAP plc, Okomu Oil, GlaxoSmith were other notable gainers.

In contrast, the market still inflicted severe punishment on Oando for the write-down of N9billion out of its profit level in 2011.

The stock went down again by 70kobo to close the day at N17.70. It opened the day at N18.40. Mobil, UACN, Guinness and Presco plc also shed some value, along with 17 other stocks.

The market capitalization dipped for the third day, closing at N6.61 trillion, with the value of transactions standing at N2.2 billion