Stanbic IBTC Bank Plc, a unit of Standard Bank Group Ltd., rose to its highest close in five weeks on speculation the stock’s decline is overdone.
The shares rose 5 percent, the daily limit, to 7.39 naira by the end of trading in Lagos, its highest since Jan. 23. That pares its decline for the year to 11 percent, compared with a 2.9 percent drop in the Nigerian Stock Exchange All-Share Index in the same period.
“The stock is attractive at current valuations given the weakness on the price in the last few weeks,” Abiola Rasaq, a Lagos-based analyst with Vetiva Capital Management Limited, said by phone today. Vetiva has a price target of 8.58 naira on the stock for the year, according to Razaq.
Earnings are climbing for the Lagos-based lender after Nigeria’s central bank implemented reforms following a debt crisis in 2008 and 2009 triggered by loans given to stock market speculators. Profit for the nine months through September rose 10 percent to 7.9 billion naira ($50 million) on higher revenue, Stanbic said on Oct. 28.