Weekly Market Review & Stock Recommendations – November 1, 2021
Dear Client/Reader,
Global Economic Roundup
US growth slows to just 2% as Delta hits economy
US economic growth slowed sharply in the third quarter of the year, as the fast-spreading Delta variant of coronavirus dampened consumer spending.The economy expanded at an annualised rate of just 2% in the three months to September – down from 6.7% in the previous quarter. It came as the US faced supply chain issues, rising inflation and new Covid restrictions in some places.But infection rates are falling and some experts think growth will pick up.On a non-annualised basis, the growth figure was 0.5%.
South Korea’s Q3 GDP grows at slower pace, misses forecast
South Korea’s economy grew at a slower pace in the third quarter, as robust exports were offset by weak domestic demand and construction and facility investments, data from the Bank of Korea showed on Tuesday. South Korea’s Q3 GDP grows at slower pace, misses forecast. Gross domestic product (GDP) grew a seasonally adjusted 0.3% in the third quarter, , the slowest in five quarters and following a 0.8% rise in the preceding three months. It also fell short of the 0.6% growth
Pension funds invested in banks rise to N2.05tn
The total amount of pension funds invested in banks by Pension Fund Administrators rose to N2.05tn at the end of July from N1.48tn in January. The National Pension Commission disclosed this in its report, titled ‘Unaudited report on pension funds industry portfolio for the period ended 31 July 2021’. It said total assets under the Contributory Pension Scheme stood at N12.78tn as of the period under review.
Some of our recommended stocks are mentioned below;
UBA PLC:
UBA Plc Q3 2021 result showed that Interest income advanced by 8.38% from N317 bn in Q3 2020 to N343bn in the current period. Net interest income increased by 23.25% to N229 bn in Q3 2021 from N186 bn in Q3 2020. The increase in net interest income was driven by the rise in interest income and a 12.75% drop in the interest expense. In a similar tune, operating income increased by 16.28% from N282 bn in Q3 2020 to N328 bn in the current period. Likewise, profit after tax advanced by 36.35% from N77 bn in Q3 2020 to N104 bn in Q3 2021 despite a 41.67% increase in tax expense. Consequently, earnings per share went up by 36.11% from N2.16 in Q3 2020 to N2.94 in Q3 2021. UBA has a BVPS of N23.34, P/BV of 0.36x and P/E ratio of 1.45x.
WAPCO PLC:
Wapco Plc Q3 2021 results showed that revenue grew by 21.86% from N179bn in Q3’2020 to N219bn in Q3’2021. Similarly, gross profit went up by 13.53% to N63bn in Q3’2021 from N56 bn in Q3’2020. Profit from operations rose by 17.09% from N41 bn in Q3’2020 to N48 bn in Q3’2021. Profit before tax grew by 28.02% to N43 bn in Q3’2021 from N34 bn in Q3’2020, on the back of a 25.30% decline in finance cost. Profit after tax rose by 43.26% from N28 bn in Q3’2020 to N40.39 bn in Q3’2021. Consequently, Earnings per share increased by 43.43%, from N1.75 in Q3’2020 to N2.51 in Q3’2021. Wapco has a BVPS of N23.83, P/BV of 1.01x and P/E ratio of 5.37x.
Please find here our Weekly Market Review & Stock Recommendations for this week.
