Nigerian Banks Outstrip Peers on Returning Dollar, Old Mutual Up

LAGOS (Capital Markets in Africa) – Since the Nigerian central bank eased a dollar shortage by opening a currency-trading window for foreign investors in April, lenders in Africa’s biggest economy have soared. The local banking index is up 35 percent this quarter, outstripping South Africa’s equivalent stock gauge and MSCI’s emerging-market financials index. Even after the jump, Guaranty Trust Bank is the sole Nigerian lender in the index to trade above its book value, while none of the six members of the South African index trade below that level.

Old Mutual Up; Trading Volume More Than Doubles
Old Mutual Plc rose 1.7 percent, the biggest move since April 24 compared with end-of-day price changes, and five times the country’s benchmark index. The shares climbed to 194 pence from 190.70p. Trading volume was 2.3 times the 30-day average of 983,162 for this time of day. Old Mutual’s move compares with the 0.3 percent gain in the FTSE 100 Index and the 0.6 percent advance in the Stoxx Europe 600 Index. The stock is 13 percent below the Bloomberg consensus one-year target price. Old Mutual trades at 21 times trailing 12-month earnings and 9.3 times its estimated profit for the coming year. The stock declined 6.4 percent so far this year and gained 9.5 percent in the past 52 weeks. Old Mutual plc is an international long-term savings, protection, and investment Group. The Company provides life assurance, asset management, banking, and general insurance to customers in Africa, the Americas, Asia, and Europe.

Source: Bloomberg Business News