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ISSN 1597 - 8842 Vol. 1 No. 27
The Monthly NCM Report for February 10
Issued on February 28, 2010
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Contents
Executive Summary 3
Introduction 5
All-Share Index Movement 6
Market Dynamics 7
Comparison of 2009 and 2010 Market Performance 8
Sectoral Index Movements 9
NSE -30 Index, NSE -Food Index, NSE -Banking Index, NSE -Insurance Index & NSE -Oil Index
Transactions Volume and Value Trend 15
Top Ten Trades in the month 17
Top Ten Traded Sectors in the month 18
Top Ten Gainers in the month 19
Top Ten Year to Date Appreciation 19
Top Ten Decliners in the month 20
Top Ten Year to Date Depreciation 20
Gainers and Losers Compared 21
Supplementary Listing in the Month 21
Corporate Declarations in the Month 22
Forecast Results in the Month 29
Dividends Declared 29
Sectoral Analysis 29
Outlook/ Analyst Opinion 37
Time Lines (February Market News/Information) 38
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The Monthly NCM Report for February 2010
ISSN 1597 - 8842 Vol. 1 No. 27
Executive Summary
Market rode on the back of blue chips to marginal gain of 1.79%
The NSE index which began 2010 with very promising up trend appears to be turning
into a whimper as activities in February 2010 indicates unless things change fast. From
an impressive and optimistic 8.5% ASI gain by January month end, the NSE finished the
month of February with a 1.79% gain suggesting that the index has gone into a holding
pattern by trading in a very tight range.
The review conducted revealed that the market outcome achieved in the month farremoved from the expectations at the beginning of the month from both ends of the
investment market spectrum investors and operators. Indeed, while most stocks have
picked up or either stopped their erosion, the rate of recovery has been hampered by
new volatilities; perhaps a distortion of trends owing to the re-entry of speculators in the
market.
Although, the NSE ASI is not increasing by leap and bounds, it appears that some
individual stocks within some sectors are being favoured by traders/investors as
indicated by volume and price.
February witnessed some activities which ought to have indicated a measure of
improved liquidity situation and investors interest in the market, as measured by the
rising profile of the volume and value of market transactions as seen in the upbeats
recorded on some days in the month. The market however could not sustain the uptrend
which appears to have been influenced by some investors selling into any uptrend to get
out of their old losing positions. Reviewing the charts, the trading volume does not
reflect convictions by traders. It seems that traders are unwilling to chase or buy stocks
above certain price thresholds.
This is becoming a market of selective performance rather than a broad base rally which
meant that trading in the market was motivated by a keen watch for stocks experiencing
increased volume and price with traders riding the trend.
It would appear that despite the occasional positive signals seen, suggesting an
imminent liquidity situation, the reality appears to be no more than an illusion at this
time as the rallies could not be sustained over the month (indeed year-to-date).
Investors, it would appear, are justifiably more careful with trusting the stock market
with their investible funds which explains the downward trends in the midst of the
upbeats.
The unaddressed loss of confidence in the market, accentuated by the increased
political, business and investment risk profile of the country has combined to impact the
markets expected upswing.
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Further, the unfulfilled promises of the regulators to improved the oversight and
operating environment in the market is yet to be seen, or perhaps has faltered with a
constant shifting of the goal post.
The operating environment is unsettling and provides little direction as to economic
policy, regulatory framework and financing of the productive sectors of the economy toprovide retail and institutional investors with the required liquidity.
The NSE current bearish market trend will be two years old on March 5, 2010, and
technically one would have expected that most of the aggressive sellers should have
been washed out by now, but evidence abounds that some sellers are still hanging on to
recoup some of their losses.
For the Nigerian capital market to get back on the road to recovery (a subject of our yet
to be released NCM 2010 report); we must have a situation where the buyers
overwhelm the sellers. It does not appear that a lot of investors are willing to or have
been sufficiently motivated to take a brave stand at this point.
Technically, certain positive indicators are beginning to emerge the movement of the
ASI is clearly indicative of a market that has bottomed out (though in danger of a major
reversal if the protracted political crisis cum stagnation of the economy is left
unaddressed), and the resurgence of the trading volumes.
The market in Q1 end and Q2 2010 is thus expected to move above the current levels as
we ensure a sustained oil production targets, take major structural changes that
encourages integrity and transparency at the NSE and SEC, reduce the country political
risk considerably and devote time to set a clear cut direction for the economy; any
capital market performance benchmarks.
Failure to develop a roadmap for achieving a market recovery and secure a buy-in of the
stakeholders, it appears that the anticipated speedy recovery from Q3 2010 may be
delayed or compromised.
The long bearish trend has left most investors badly wounded and unwilling to invest in
the capital markets.
The market regulators appear not to get this point.
We however remain hopeful and encourage investors to take the long view mindset in
reviewing their portfolios and new engagements.
This report allows you to appreciate the market in a more personal way; and empower
you to engage in a much more intelligent manner.
Thank you for reading and do take time to share with us your thoughts on the market,
especially your personal realities as a guide in better appreciating how to relate with
your professional financial advisers. E-mail our analyst at [email protected]
We value your feedback and comments.
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Introduction
In February 2009, we made the call that the year would be devoted to reconciling
ourselves with the obvious leadership meltdown plaguing our financial services
sector. We opined that 2010 would be the year we identify and empower the market to
embarkon the road to recoverywhich we forecasted to begin in Q2 2010. While weare yet to enter Q2 2010, we are concerned with the rate of recovery of the market
based on our assessment that indicates that the market is operating on the premise that
any road will lead us towards recovery; without a thought-led and economy-integrated
roadmap.
It appears that we have not fully resolved the leadership crisis that got us here in the
first place. The leadership challenge we described relates to the accumulated evidence of
failures in financial economy strategic planning, operational execution of plan and
mobilisation of stakeholders towards a common goal, one devoid of grandstanding.
These gaps still exist at all facets of our financial services sector, some worse off thanthe other and it seems that we are yet to deploy a plan that links the economic well
being of the nation to activities in the financial markets the CBN has at least
recognised its challenges and is dealing with them. Yet, this self reliant market continues
to inch its way through; only to falter with the slightest stress placed on it.
As we entered the second trading month in 2010 February, the performance showed a
true reflection of the health status of the nations economy volatile and uncertain.
The heightened political risk among the ruling class has created a stagnation of sorts for
the nations economy; and this, to a very large extent, dictated the trend of the market
for the month under review.
The market this month recorded a total of 7.905 billion units valued at N54.045 billion
exchanged in 145,887 deals compared with 8.63 billion units valued at N46.781 billion
exchanged in 302,901 deals in the previous month. Comparing the volume and value
traded in the month with the previous month showed -5.50% and +15.53% difference
for the volume and value for the month respectively.
In the course of the month, the All-Share index recorded a +1.79% performance
compared with +8.5% growth recorded in the preceding month. Market capitalisation
within the period appreciated by N105.723 billion compared with N452.202 billion
recorded in January.
This trend indicates a slow down in the rate of recovery; owning principally to the issues
raised above and a few ancillary ones, viz:
The re-entry of new speculators and holding out by old ones;
The unclear status/direction in the banking sector (including year-end issues);
The insufficient liquidity relative to market capacity (including the AMC issues);
Dearth of impressive corporate declarations by the quoted companies; and
Investors apathy and sustained negative news from regulators.
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The NSE All-Share Index Movement
The NSE index which began 2010 with very promising up trend appears to be turning
into a whimper. Although the NSE all share index gained 1,713 or 8.2% in January 2010,
approximately 1,233 or 72% of the gains were made in the first half of the month. Since
then and up till the end of February 2010, the index has struggled to get a traction onthe upswing envisaged, closing the month on a gain of 1.79%. This suggests that the
index has gone into a holding pattern by trading in a very tight range as highlighted in
the graph below:
Although, the NSE ASI showed intermittent signs of a breakout, it is having problems
breaking above its 200 day moving average. Breaking above the 200 day SMA and
sustaining it will demonstrate technically that the index is no longer in a bearish mode.
Source: Proshare Research
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From the Index moving averages graphically explained above, it is clear that the ASI at
the moment is trading below its 20 days and 200 Days Moving Averages, but above its
50 Days Moving Average.
The 20 Days Moving Average further lends credence to the declined performance of the
ASI in the month over the previous month trend. The 50 Days Moving Average trend isadduced to the recent upbeat (though not consistent) experienced in the market, mostly
boosted by the more pronounced upbeat recorded in January.
The fact that the Index is trading below its 200 Days Moving Average is an indication
that the bearish trend is still relatively apparent and existent, for trading above 200
Days Moving Average and maintaining the tempo would be suggesting a market
recovering from bears grip.
The index performance trend showed indications of decline in the market growth for the
month; revealing that the investors enthusiasm and optimism of the first month of the
year proved pyrrhic.
The enthusiasm could only be sustained for the first four trading days in the month of
February after which the bears-rule became the recurring pattern to everyones
consternation.
The appreciation recorded in the month was mainly facilitated by the trend in the blue
chips stocks in the Banking, Building, Food and Beverages and Conglomerate sectors.
Source: NSE, Proshare Research
February 2010 Market Dynamics
The market dynamics as graphically illustrated below showed the appreciation and
depreciations on the daily basis. The palpable fears and cloudy investment climate that
reigned in the month was responsible for the dynamics recorded.
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Source: NSE, Proshare Research
MARKET DYNAMICS IN THE PRECEDING YEAR COMPARABLE PERIOD (FEB,2009)
Source: NSE, Proshare Research
Comparison of 2009 and 2010 Market Performance
The market performance in February 2010 when compared with 2009 comparable period
showed a declining trend. In the period under review, ASI recorded +1.73%
appreciation compared with +7.17% appreciations recorded in 2009 February. The
scenario might be an attestation to the fact that the investment climate as at the
preceding year comparable period was better given the present precarious situation in
the financial system. More so, the political logjams and Banking sector shake up had not
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been, meaning that the climate was relatively friendly. The wide gulf is apparent as
shown in the graphs below.
Source: NSE, Proshare Research
Dates NSE ASIMarket Capitalisation
(trillion)Market Capitalisation
($ billions)
Jan-02-09 31,357.24 6.93 46.25
Feb-01-09 22,085.15 4.94 32.93
Feb-27-09 23,377.14 5.23 34.88
Year to Date Return -25.45% -24.53% -24.58%Monthly Return 5.85% 5.87% 5.92%
2010 Figures
Jan-02-10 20,838.90 4.99 33.28
Feb-01-10 22,865.16 5.51 36.71
Feb-25-10 23,033.02 5.55 35.98
Year to Date Return 10.53% 11.22% 8.11%
Monthly Return 1.79% 1.79% -1.99%
Source: NSE, Proshare Research
From the table above, the year to date performance of the year 2009 closing at -
25.45% indicated a woeful performance when compared with the positive year to date
performance for the year of+10.53% for the period under review. The negative trend
of the previous years period when compared with +5.85% appreciations recorded in
February showed that the 2009 January posted a serious negative trend. However, the
positive year to date of the month under review when compared with +1.79% monthly
returns indicated that the month recorded low growth.
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Sectoral Index Movements
DateNSE-30
% ChangeNSE-Food% Change
NSE-Banking
% Change
NSE-Insurance% Change
NSE-Oil% Change
01/02/2010 1.40 2.12 1.69 -0.22 0.0002/02/2010 1.31 0.70 1.32 -1.15 0.00
03/02/2010 2.38 1.47 3.37 -0.06 -0.83
04/02/2010 1.11 -0.39 1.79 0.80 0.23
05/02/2010 -2.81 -3.29 -3.62 -1.65 0.86
08/02/2010 -1.51 -2.12 -2.51 -1.10 0.00
09/02/2010 0.83 0.07 0.81 -0.71 0.00
10/02/2010 0.58 0.28 0.44 0.09 -0.61
11/02/2010 -0.44 0.38 -1.10 1.13 -1.13
12/02/2010 -0.18 0.51 -0.49 -1.31 -0.01
15/02/2010 0.45 0.39 0.51 0.30 0.00
16/02/2010 0.12 0.13 0.27 -1.30 0.03
17/02/2010 0.01 1.59 -0.38 -1.03 0.00
18/02/2010 0.44 0.13 0.94 -0.27 0.25
19/02/2010 0.14 0.27 -0.21 -0.08 0.42
22/02/2010 -0.65 1.03 -0.50 -1.21 0.69
23/02/2010 -0.44 0.48 0.02 -2.51 1.41
24/02/2010 0.64 0.25 0.18 -0.51 1.46
25/02/2010 -0.12 -0.18 -0.61 0.31 1.00
MonthyPerformance 3.20 3.75 1.76 -10.04 3.78
Source: NSE, Proshare Research
In the month under review, NSE-Oil and Gas index emerged the best performing sector
with +3.78% appreciation, followed by Food &Beverages index which appreciated by
+3.75% and Banking sector index followed with +1.76% appreciation. However, the
declining trend recorded in Insurance sector is clear in the table above with -10.04%
losses in the month.
Source: NSE, Proshare Research
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When compared with January trend of sectoral indexes, the performance in the month of
February was below the preceding month save only Insurance sector that recorded less
negative performance and Oil and Gas sector that closed with higher performance in the
month. The trend portrayed the true reflection of the entire market trend.
NSE-30INDEX
Source: NSE, Proshare Research
The upbeat trend recorded in the blue chips stocks in the early part of the month could
not be sustained as the growth waned and was on the waning trend in most of the
trading days of the month. The combinations of profit takings and investors passive
mood to the market contributed to the trend recorded. The sector Index eventually
closed with +3.20% appreciation in the month. The sector still shows signs of potential
ample returns to investors both in the short, medium and long term views.
NSE-FOOD INDEX
Source: NSE, Proshare Research
Food and Beverages stocks enjoyed strong investors patronage in the month. The sector
index recorded appreciations for fifteen out of nineteen trading days of the month, with
the aggregate index performance closing at +3.75%, though below the previous month
performance of+13.20%. There was a level of resilience against bears demonstrated
by the stocks in the sector during the month. Profit takings from the upbeat of the
previous month coupled with the decline in the investors commitment to the market
could be linked to the trend recorded in the month. The trend notwithstanding, the
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sector shows potentials for delivering returns, and could be eyed by investors in the
coming month.
NSE-BANKING INDEX
Source: NSE, Proshare Research
Profit taking and a level of confidence crisis and general market sentiment affected the
performance of the stocks in the sector. Investors are yet to reasons or clear signals to
the end of the policy direction of the Central Bank of Nigeria. This to a very large extent
informed the high level of speculative trading in the sector as there are no reasons or
rationale yet for holding the banking stocks for long term. Though the sector has
undervalued stocks, the status quo may remain until the issue of policy direction for the
sector is ascertained and some outstanding issues affecting the sector are resolved. The
sector recorded +1.76% appreciation in the month, lower of+10.30% recorded in the
preceding month.
NSE-INSURANCE INDEX
Source: NSE, Proshare Research
Despite the fact that over 55% of the stocks in the sector are either at or close to their
nominal value, the investors sentiment for the stocks still seems to be in the negative.
Also, that the sector is not known for delivering good returns to investors coupled with
the fact that the shares in issue of some companies in the sector seem overblown may
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inform the investors mood. The sector repeated negative trend of -10.04% in the
month compared with -10.30% of the previous month.
NSE-OIL INDEX
Source: NSE, Proshare Research
Oil and Gas sector of the capital market looks good for consideration as the performance
trend remains northward at the close of the month. The performance growth at the end
of February closed at +3.78%, higher than +3.56% growth recorded in the preceding
month. The sectors trend in the last six trading days of the month boosted the
performance recorded. The sector looks like a safe haven for investors, most especially
those with long term view.
LAST TRADING DAY -SNAPSHOT
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SECTORAL ANALYSIS
SECTOR PERFORMANCE
Symbol YTD %Change
HOTEL & TOURISM 29%
REAL ESTATE 5.00%
AGRICULTURE 4.80%
PETROLEUM(MARKETING) 3.60%
THE FOREIGN LISTINGS 3.40%
CONGLOMERATES 3.10%
PACKAGING 2.18%
BUILDING MATERIALS 1.50%
COMMERCIAL/SERVICES 1.40%
PRINTING & PUBLISHING 1.36%
FOOD/BEVERAGES & TOBACCO 0.00%
LEASING 0.00%
CONSTRUCTION -0.60%
BREWERIES -0.70%
HEALTHCARE -0.80%
SECOND-TIER SECURITIES -1.30%
INFORMATION & COMMUNICATION TECHNOLOGY -1.50%
MEDIA -1.86%
OTHER FINANCIAL INSTITUTIONS -2.58%
BANKING -3.30%
MARITIME -3.88%
INSURANCE -4.05%
CHEMICAL & PAINTS -4.30%
MORTGAGE COMPANIES -4.91%
ENGINEERING TECHNOLOGY -5.90%
COMPUTER & OFFICE EQUIPMENT -6.10%
AIRLINE SERVICES -8.50%
INDUSTRIAL/DOMESTIC PRODUCTS -8.71%
AUTOMOBILE & TYRE -16.00%
ROAD TRANSPORTATION -21.82%Source: NSE, Proshare Research
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Transactions Volume and Value Trend
Market Jan-10 Feb-10
%
ChangeAverage Daily Volume of stocks inMillions 418.264 416.05 -0.53Average Daily Value of stocks in N'Millions 2,339.05 2,844.46 21.61Average Daily Value of stocks in $'Millions 15.59 18.96 21.61
Total Volume of stocks traded in Million 8,365.28 7,904.94 -5.50
Total Value of stocks traded in N' Million 46,781.02 54,044.74 15.53
Total Value of stocks traded in $' Million 311.873 360.298 15.53Source: NSE, Proshare Research
New Listing and Delisting Jan-10 Feb-10%
Change
Number of Equities Delisted 0 1
Number of New Listings 0 0
Supplementary Listing 1 2Market Capitalisation of New Listings at
Listing Price(N million) 0 0
Market Capitalisation of New Listings atListing Price($ millions) 0.00 0.00
Source: NSE, Proshare Research
The transaction volume in the month of February when compared with the preceding
month closed lower marginally by -5.50% to close at 7.905 billion units compared
with 8.365 billion units traded in the preceding month. This couldbe an indication thatthe investors patronage of the market in the month under review was not significantly
different. But for the bid trend that reigned in the preceding month, the volume margin
would probably have been higher.
However, the transaction value in the month under review closed higher by +15.50% at
N54.045 billion ($360.298 million) compared with N46.781 billion ($311.873
million) of the preceding month. The reason that could be adduced to the upward trend
in transaction value was the fact that the blue chips stocks dominated the market
appreciation for the month.
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Source: NSE, Proshare Research
Source: NSE, Proshare Research
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Top Ten Trades for the Month of February
First Inland Bank Plc topped the transaction volume for the month and as well for the
preceding month. Banking stocks generally dominated the charts for both months. The
price movement of these stocks does not suggest a commitment on the part of the
investors, but rather indications of speculative trading on most of these stocks.
With the exceptions of IHS and Skye bank (February), BAGCo and CapOil (January)
were the only stocks that made the top 10 trades in the year-to-date.
Company Total Trades Total Volume Total Value
FIRSTINLND 2569 551,775,485.00 429,007,344.89
IHS 40 488,698,625.00 1,969,443,956.75
ZENITHBANK 4878 468,812,491.00 7,380,615,475.04
FIRSTBANK 16214 340,771,006.00 5,117,075,253.83
ACCESS 4113 292,172,797.00 2,657,484,093.72
DIAMONDBNK 2243 258,602,667.00 2,360,976,418.64
GUARANTY 8085 251,929,949.00 4,581,704,224.72
UBA 5069 251,145,746.00 3,360,695,616.11
SKYEBANK 3551 224,831,699.00 1,693,515,809.98
FIDELITYBK 3111 202,874,338.00 540,592,033.78
Source: NSE, Proshare Research
RECALL TOP TEN TRADES FOR THE MONTH OF JANUARY
Company Total Trades Total Volume Total Value
FIRSTINLND 2545 816,820,770.00 524,161,024.60
ZENITHBANK 5606 606,957,367.00 9,258,388,760.02
FIRSTBANK 17050 485,226,109.00 7,074,917,737.98
CAPOIL 138 393,614,166.00 201,494,963.64
FIDELITYBK 3083 309,830,185.00 781,113,307.59
ACCESS 3565 233,430,135.00 1,890,839,585.51
GUARANTY 7613 227,019,282.00 3,768,237,736.64
BAGCO 176051 222,523,637.00 365,614,961.49UBA 4394 209,800,647.00 2,402,014,918.94
DIAMONDBNK 1605 209,795,442.00 1,628,529,084.56
Source: NSE, Proshare Research
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Top Ten Traded Sectors for the Month of February
Banking sector traded more than half of the total volume transactions for the month,
followed by Insurance sector. The volume traded in the banking sector closed at 4.032
billion units valued at N32.853 billion ($219.020 million) exchanged in 70,301 deals,
the volume traded in the sector represented 51% of the entire market volumetransactions for the month. The volume traded in Insurance sector closed at 1.179
billion units valued at N1.185 billion($7.904 million), and the volume accounted
for 15% of the market volume exchanged in the month. This shows that the volume
transactions in the financial sectors combined together accounted for 65% of the market
transaction.
SectorTotal
TradesTotal Volume Total Value
BANKING 70301 4,032,381,421.00 32,853,008,942.78
INSURANCE 10069 1,179,356,236.00 1,185,619,424.02
INFORMATION &
COMMUNICATION
TECHNOLOGY
1197 735,152,033.00 2,433,233,661.74
FOOD/BEVERAGES &
TOBACCO12425 290,822,691.00 4,811,401,907.48
MORTGAGE COMPANIES 1413 236,988,125.00 159,180,924.50
CONGLOMERATES 4603 208,629,936.00 2,542,200,012.64
BUILDING MATERIALS 4482 135,353,273.00 3,189,465,230.21
CHEMICAL & PAINTS 321 121,829,081.00 579,520,089.75
OTHER FINANCIALINSTITUTIONS 563 117,067,823.00 108,335,842.03
MARITIME 2348 100,574,642.00 124,215,058.58
Source: NSE, Proshare Research
Source: NSE, Proshare Research
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Source: NSE, Proshare Research
Top Ten Gainers in the month
COMPANY 29-Jan-10 25-Feb-10N
Change%
ChangeYear to Date( App/Dep)
IKEJAHOTEL 0.99 1.54 0.55 55.56% 77.01%
CAPHOTEL 1.98 2.75 0.77 38.89% 99.28%
AP 36.4 47.46 11.06 30.38% 41.63%
BAGCO 1.9 2.34 0.44 23.16% 53.95%
PRESCO 4.37 5.32 0.95 21.74% -5.00%
FTNCOCOA 0.72 0.87 0.15 20.83% 61.11%
FLOURMILL 38.85 45.1 6.25 16.09% 24.59%
DAARCOMM 0.58 0.67 0.09 15.52% 15.52%
UNITYBNK 1 1.15 0.15 15.00% 32.18%
FIDSON 2.09 2.4 0.31 14.83% 29.03%
Top Ten Year to Date Appreciation
COMPANY 04-Jan-10 25-Feb-10 Change % ChangeCAPHOTEL 1.38 2.75 1.37 99.28%
IKEJAHOTEL 0.87 1.54 0.67 77.01%
FTNCOCOA 0.54 0.87 0.33 61.11%
BAGCO 1.52 2.34 0.82 53.95%
CADBURY 10.49 15.8 5.31 50.62%
ASHAKACEM 11.39 16.2 4.81 42.23%
AP 33.51 47.46 13.95 41.63%
PLATINUM 1.38 1.91 0.53 38.41%
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STERLNBANK 1.26 1.73 0.47 37.30%
NASCON 4.56 6.2 1.64 35.96%
The top ten appreciations for the month and for the year to date further explain the
dominance of blue chips stocks in the gainers list for the month. The same trend wasindicated in the year to date appreciation, as only two banking stocks emerged in the
class. This shows that investors enthusiasm and sentiments did not swing more
favourably towards the sector in the light of the sustained cycle of negative news from
the sector and the number of unresolved issues therefrom. Blue chips stocks in the non-
financial sectors may most likely enjoy more rally in the coming month.
Top Ten Decliners in the month
COMPANY 29-Jan-10 25-Feb-10 NChange
% Change Year to Date( App/Dep)
DNMEYER 5.13 3.1 -2.03 -39.57% -42.49%
UNITYKAP 1.7 1.1 -0.6 -35.29% -53.78%
AFRINSURE 0.7 0.5 -0.2 -28.57% -42.53%
ECOBANK 8.24 5.99 -2.25 -27.31% -40.69%
RTBRISCOE 6.23 4.54 -1.69 -27.13% -26.18%
ALUMACO 21.47 15.8 -5.67 -26.41% -42.98%
STDINSURE 0.67 0.5 -0.17 -25.37% -12.28%
BOCGAS 13.48 10.39 -3.09 -22.92% -22.92%
Source: NSE, Proshare Research
Top Ten Year to Date Depreciation
COMPANY 04-Jan-10 25-Feb-10 Change % ChangeUNITYKAP 2.38 1.1 -1.28 -53.78%
INCAR 4.12 1.97 -2.15 -52.18%
GOLDINSURE 0.91 0.51 -0.4 -43.96%
ALUMACO27.71 15.8 -11.91 -42.98%AFRINSURE 0.87 0.5 -0.37 -42.53%
DNMEYER 5.39 3.1 -2.29 -42.49%
ECOBANK 10.1 5.99 -4.11 -40.69%
CRUSADER 1.5 0.95 -0.55 -36.67%
STACO 1.19 0.79 -0.4 -33.61%
AFROMEDIA 0.8 0.55 -0.25 -31.25%Source: NSE, Proshare Research
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Gainers and Losers Compared
The gainers and losers trend in the year compared with the previous year (comparable
period) did not show much disparity.
Source: Proshare Research
Supplementary Listing in the Month
Supplemetary Listing in the Month Units Listed
African Paints Plc 130,000,000
CI Leasing Plc(Redeemable Convertible Loan Stock) 471,580,000
Source: NSE, Proshare Research
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Corporate Declarations in the Month
CHELLARAMS PLC
SECOND QUARTER RESULT FOR THE PERIOD ENDING 30-SEP-09
2009 Nm 2008 Nm % Change
Gross Earnings 9,060.00 7,742.00 17.02
Profit Before Tax 268.45 222.70 20.54
Profit After Tax 247.79 199.72 24.07
Balance Sheet Information
Fixed Assets 2,794.00 2,814.00 -0.71
Cash and Bank Balances 44.50 80.57 -44.77
Other Debit Balances 932.82 760.22 22.70
Trade Credit 993.70 858.63 15.73
Other Credit Balances 3,375.00 4,244.00 -20.48
Working Capital (316.31) (589.67) -46.36
Net Assets 2,592.00 2,200.00 17.82
http://www.proshareng.com/investors/company.php?ref=CHELLARAMS
VITAFOAM NIGERIA PLC
AUDITED RESULT FOR THE PERIOD ENDING 30-SEP-09
2009 Nm 2008 Nm % Change
Gross Earnings 9,758.00 8,172.00 19.41
Profit before tax& After Exep. Items 780.92 1,013.00 (22.91)
Profit/Loss After Tax 510.78 698.30 (26.85)
Balance Sheet Information
Fixed Assets 1,615.00 1,345.00 20.07
Cash and Bank Balances 174.04 410.08 -57.56
Other Debit Balances 995.40 433.44 129.65
Trade Credits 808.83 583.69 38.57
Other Credit Balances 1,460.00 1,600.00 -8.75
Working Capital 2,160.00 1,895.00 13.98
Net Assets 2,161.00 1,895.00 14.04
http://www.proshareng.com/investors/company.php?ref=VITAFOAM
NORTHER NIGERIA FLOURMILL PLC
THIRD QUARTER RESULT FOR THE PERIOD ENDING 31-DEC-09
2009 Nm 2008 Nm % Change
Gross Earnings 7,920.00 6,589.00 20.20
Profit Before Tax 522.71 107.42 386.59
Profit/Loss After Tax 388.31 99.41 290.63
Balance Sheet Information
Fixed Assets 371.65 352.43 5.45
Cash and Bank Balances 1,157.00 1,120.00 3.30
Other Debit Balances 379.13 294.71 28.64
Trade Credits 422.96 502.69 -15.86
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Other Credit Balances 993.66 1,256.00 -20.89
Working Capital 1,605.00 888.45 80.65
Net Assets 1,490.00 865.17 72.22
http://www.proshareng.com/investors/company.php?ref=NNFM
RESORT SAVING AND LOANS PLC
THIRD QUARTER RESULT FOR THE PERIOD ENDING 30-SEP-09
2009 Nm 2008 Nm % Change
Gross Earnings 854.72 423.23 101.95
Profit Before Tax 330.51 114.13 189.59
Profit/Loss After Tax 231.36 79.89 189.59
Balance Sheet Information
Fixed Assets 245.56 161.61 51.94
Cash and Bank Balances 802.36 647.61 23.90
Other Debit Balances 7,107.00 7,124.00 -0.24
Other Credit Balances 1,048.00 1,461.00 -28.27
Net Assets 7,016.00 6,722.00 4.37
http://www.proshareng.com/investors/company.php?ref=RESORTSAL
ASO SAVINGS AND LOANS PLC
THIRD QUARTER RESULT FOR THE PERIOD ENDING 31-DEC-09
2009 Nm 2008 %
Gross Earnings 7,906.00 8,021.00 (1.43)
Profit before tax and excpt. items 788.52 1,734.00 (54.53)
Profit/Loss After Tax 551.96 1,214.00 (54.53)
Balance Sheet Information
Fixed Assets 1,722.00 1,272.00 35.38
Cash and Bank Balances 15.64 8,107.00 -99.81
Other Debit Balances 49.65 53.25 -6.75
Other Credit Balances 61.58 57.31 7.45
Net Assets 5,595.00 5,477.00 2.15
http://www.proshareng.com/investors/company.php?ref=ASOSAVINGS
NIGERIAN BAG MANUFACTURING PLC
THIRD QUARTER RESULT FOR THE PERIOD ENDING 31-DEC-09
2009 Nm 2008 Nm % Change
Gross Earnings 7,553.00 7,391.00 2.19
Profit Before Tax 545.88 116.49 368.60
Profit/Loss After Tax 371.20 79.22 368.60
Balance Sheet Information
Fixed Assets 6,664.00 7,170.00 -7.06
Cash and Bank Balances 229.08 176.57 29.74
Other Debit Balances 5,676.00 4,575.00 24.07
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Trade Credits 287.25 963.22 -70.18
Other Credit Balances 3,947.00 4,525.00 -12.77
Working Capital 5,978.00 5,830.00 2.54
Net Assets 9,331.00 9,239.00 1.00
http://www.proshareng.com/investors/company.php?ref=BAGCO
JULIUS BERGER NIGERIA PLC
THIRD QUARTER RESULT FOR THE PERIOD ENDING 30-SEP-09
2009 Nm 2008 Nm % Change
Gross Earnings 97,500.00 84,350.00 15.59
Profit Before Tax 3,900.00 3,370.00 15.73
Profit/Loss After Tax 2,300.00 1,970.00 16.75
Balance Sheet Information
Fixed Assets 46,179.00 28,381.00 62.71
Cash and Bank Balances 86,943.00 109,384.00 -20.52
Other Debit Balances 46,447.00 52,462.00 -11.47
Trade Credits 5,318.00 5,293.00 0.47
Other Credit Balances 111,493.00 121,812.00 -8.47
Working Capital (35,797.00) (16,597.00) 115.68
Net Assets 6,416.00 6,563.00 -2.24
http://www.proshareng.com/investors/company.php?ref=JBERGER
ROYAL EXCHANGE PLC
THIRD QUARTER RESULT FOR THE PERIOD ENDING 30-SEP-09
2009 Nm 2008 Nm % Change
Gross Earnings 2,822.00 2,935.00 (3.85)
Profit Before Tax 383.62 (202.79) (289.17)
Profit/Loss After Tax 602.41 132.75 353.78
Balance Sheet Information
Fixed Assets 5,281.00 3,949.00 33.73
Cash and Bank Balances 1,084.00 1,632.00 -33.58
Other Debit Balances 4,567.00 3,108.00 46.94
Other Credit Balances 4,879.00 5,382.00 -9.35
Working Capital 1,086.00 399.39 171.91Net Assets 8,116.00 11,706.00 -30.67
http://www.proshareng.com/investors/company.php?ref=ROYALEXCHANGE
ADSWITCH PLC
SECOND QUARTER RESULT FOR THE PERIOD ENDING 31-OCT-09
2009 Nm 2008 Nm % Change
Gross Earnings 100.52 22.21 352.59
Profit Before Tax 10.87 (1.50) 824.67
Profit After Tax 7.61 (1.50) 607.33
http://www.proshareng.com/investors/company.php?ref=ADSWITCH
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Other Credit Balances 5,730.00 8,382.00 -31.64
Working Capital 3,351.00 1,094.00 206.31
Net Assets 11,023.00 6,084.00 81.18
http://www.proshareng.com/investors/company.php?ref=ROYALEXCHANGE
SOVEREIGN TRUS PLC
THIRD QUARTER RESULT FOR THE PERIOD ENDING 30-SEP-09
2009 Nm 2008 Nm % Change
Gross Earnings 3,806.00 3,037.00 25.32
Profit before tax 126.26 617.09 (79.54)
Profit/Loss After Tax 107.33 529.73 (79.74)
Balance Sheet Information
Fixed Assets 561.47 530.19 5.90
Cash and Bank Balances 97.68 44.49 119.56
Other Debit Balances 4,251.00 4,203.00 1.14
Other Credit Balances 792.50 714.05 10.99Working Capital 2,874.00 2,783.00 3.27
Net Assets 3,730.00 3,619.00 3.07
http://www.proshareng.com/investors/company.php?ref=SOVEREIGNTRUST
THOMAS WYATT NIGERIA PLC
THIRD QUARTER RESULT FOR THE PERIOD ENDING 30-DEC-09
2009 Nm 2008 Nm % Change
Gross Earnings 114.31 150.00 (23.80)
Profit before tax 1.37 2.52 (45.60)
Profit/Loss After Tax 0.52 1,786.00 (99.97)
Balance Sheet Information
Fixed Assets 415.19 416.35 -0.28
Cash and Bank Balances 793.85 449.00 76.80
Other Debit Balances 69.66 89.72 -22.36
Trade Credits 22.92 6.05 279.14
Other Credit Balances 347.78 385.42 -9.77
Working Capital (221.16) (225.84) 2.07
Net Assets 194.60 191.07 1.84
http://www.proshareng.com/investors/company.php?ref=THOMASWYATT
RED STAR EXPRESS PLC
THIRD QUARTER RESULT FOR THE PERIOD ENDING 31-DEC-09
2009 Nm 2008 Nm % Change
Gross Earnings 3,148.00 3,036.00 3.69
Profit before tax 359.80 367.14 (2.00)
Profit/Loss After Tax 251.86 257.00 (2.00)
Balance Sheet Information
Fixed Assets 754.79 680.64 10.89
Cash and Bank Balances 333.25 365.88 -8.92
Other Debit Balances 273.54 238.54 14.67
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Trade Creditors 226.65 104.50 116.89
Other Credit Balances 705.67 811.22 -13.01
Working Capital 793.04 743.42 6.67
Net Assets 1,353.00 1,278.00 5.87
http://www.proshareng.com/investors/company.php?ref=REDSTAREX
C &I LEASING PLC
THIRD QUARTER RESULT FOR THE PERIOD ENDING 31-OCT-09
2009 Nm 2008 Nm % Change
Gross Earnings 5,771.00 4,767.00 21.06
Profit before tax 284.45 304.87 (6.70)
Profit/Loss After Tax 236.09 230.52 2.42
Balance Sheet Information
Fixed Assets 2,174.00 2,187.00 -0.59
Cash and Bank Balances 402.71 383.29 5.07
Other Debit Balances 8,499.00 7,871.00 7.98
Other Credit Balances 1,099.00 1,911.00 -42.49
Working Capital (7,653.00) (7,566.00) -1.15
Net Assets 2,626.00 2,152.00 22.03
http://www.proshareng.com/investors/company.php?ref=CILEASING
ACADEMY PRESS PLC
THIRD QUARTER RESULT FOR THE PERIOD ENDING 31-DEC-09
2009 Nm 2008 Nm % Change
Gross Earnings 1,390.00 1,106.00 25.68
Profit before tax 106.68 73.88 44.41
Profit/Loss After Tax 74.68 51.71 44.41
Balance Sheet Information
Fixed Assets 961.85 526.54 82.68
Cash and Bank Balances 2.31 28.34 -91.84
Other Debit Balances 410.97 478.28 -14.07
Other Credit Balances 146.36 131.30 11.47
Working Capital 274.74 139.53 -1.15
Net Assets 597.93 463.15 29.10
http://www.proshareng.com/investors/company.php?ref=ACADEMY
NEIMETH INTERNATIONAL PLC
THIRD QUARTER RESULT FOR THE PERIOD ENDING 31-DEC-09
2009 Nm 2008 Nm % Change
Gross Earnings 1,352.00 1,228.00 10.10
Profit before tax 54.17 (123.76) 143.77
Profit/Loss After Tax 36.84 (123.76) 129.77
Balance Sheet Information
Fixed Assets 225.85 189.90 18.93
Cash and Bank Balances 19.93 14.34 38.93
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Forecast Results in the Month
Company Year End PeriodGross Earnings
in N' billionPAT in N'
billion
Nigerian Breweries Plc December Q1 2010 40.841 7.967
Gold Link Insurance Plc December Q2 2010 1.968 0.495Skye Bank Plc December Q2 2010 27.189 3.457
Capital Hotel Plc December Q1 2010 1.257 0.944
Nampak Plc September Q2 2010 1.062 0.549
Nampak Plc September Q3 2010 1.278 0.636
National Sport Lottery December Q1 2010 2.128 0.263
Tantalizer Plc December Q1 2010 1.355 0.278
Tantalizer Plc December Q4 2010 6.198 0.421
Cornerstone Insurance Plc December Q1 2010 1.980 0.297
Sovereign Insurance Plc December Q1 2010 1.458 0.342
Neimeth Plc December Q1 2010 1.905 0.655
Livestock Plc December Q1 2010 0.802 0.324Bagco Plc December Q1 2010 10.452 0.557
Julius Berger Plc December Q1 2010 36.400 0.920
Presco Plc December Q1 2010 0.900 0.125
Aso Savings Plc December Q1 2010 3.882 0.506Source: NSE, Proshare Research
Dividends Declared
CompanyDividendDeclared AGM Date
Price AdjustmentDate
Nestle Plc N10.60 April 27th, 2010 April 16th, 2010
Nigerian Breweris Plc N0.89k May 19th, 2010 March 12th, 2010
Vitafoam Plc N0.25k March 4th, 2010 March 15th, 2010
Afromedia Plc N0.05k March 3rd, 2010 February 5th, 2010Source: NSE, Proshare Research
Sectoral Analysis
SECTOR ANALYSIS
Symbol 25-Feb 1-Feb YTD YTD %
Price Price Change ChangeAGRICULTURE
AFPRINT 0.86 0.86 0 0.00%
ELLAHLAKES 4.26 4.26 0 0.00%
FTNCOCOA 0.87 0.75 0.12 16.00%
LIVESTOCK 0.69 0.73 -0.04 -5.50%
OKITIPUPA 6.53 6.53 0 0.00%
OKOMUOIL 21.62 22.75 -1.13 -5.00%
PRESCO 5.32 4.16 1.16 27.90%
Average 4.80%
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CONGLOMERATES
AGLEVENT 2.99 2.81 0.18 6%
CHELLARAM 14.13 14.13 0 0%
JOHNHOLT 9.28 9.28 0 0%
PZ 26 26 0 0%
SCOA 8.71 8.71 0 0%
TRANSCORP 0.54 0.5 0.04 8%
UACN 43.29 41.5 1.79 4%
UNILEVER 25 23.56 1.44 6%
Average 3.10%
CONSTRUCTION
ARBICO 26 26 0 0%
CAPALBETO 95.49 95.49 0 0%
COSTAIN 5 5.12 -0.12 -2%
GCAPPA 14.46 14.46 0 0%
JBERGER 28 28.5 -0.5 -2%
MULTIVERSE 0.5 0.5 0 0%
ROADS 3.46 3.46 0 0%
Average -0.60%
ENGINEERING TECHNOLOGY
CUTIX 2.89 3.28 -0.39 -12%
INTERLINK 5.15 5.15 0 0%
NIWICABLE 0.9 0.94 -0.04 -4%
Average -5.90%
FOOD/BEVERAGES & TOBACCO
7UP 30.6 30.6 0 0%
BIGTREAT 0.81 0.78 0.03 4%
CADBURY 15.8 15.58 0.22 1%
DANGFLOUR 12.7 13 -0.3 -2%
DANGSUGAR 16 15.75 0.25 2%
FLOURMILL 45.1 40.78 4.32 11%
HONYFLOUR 7.4 7.77 -0.37 -5%
FOREMOST 0.51 0.51 0 0%
MANDRID 5.95 5.95 0 0%
NNFM 23 21.8 1.2 6%
NASCON 6.2 6.66 -0.46 -7%
NESTLE 270 260 10 4%
NBC 27 28 -1 -4%
TANTALIZER 0.99 0.95 0.04 4%
UTC 0.78 0.9 -0.12 -13%
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UNIONDICON 5.71 5.71 0 0%
Average 0.00%
FOOTWEAR
LENNARDS 3.85 3.85 0 0%
Average 0.00%
HEALTHCARE
ABOSELAB 4.92 4.92 0 0%
EKOCORP 5.58 5.58 0 0%
EVANSMED 1.07 1.1 -0.03 -3%
FIDSON 2.4 2.09 0.31 15%
GLAXOSMITH 27.3 26 1.3 5%
MAYBAKER 5.04 5.23 -0.19 -4%
MORISON 11.67 12.28 -0.61 -5%
NEIMETH 1.47 1.7 -0.23 -14%
PHARMDEKO 4.97 4.97 0 0%
UNIONDAC 0.63 0.65 -0.02 -3%
Average -0.80%
HOTEL & TOURISM
CAPHOTEL 2.75 2.07 0.68 33%
IKEJAHOTEL 1.54 0.99 0.55 56%
TOURIST 5.28 5.28 0 0%
Average 29%
INDUSTRIAL/DOMESTIC PRODUCTS
ALUMACO 15.8 20.4 -4.6 -22.55%
ALEX 13.04 13.04 0 0.00%
BOCGAS 10.39 13.48 -3.09 -22.92%
ENAMELWA 52.85 52.85 0 0.00%
FIRSTALUM 0.5 0.5 0 0.00%
VITAFOAM 4.72 5.3 -0.58 -10.94%
VONO 0.63 0.66 -0.03 -4.55%
Average -8.71%
INFORMATION & COMMUNICATION TECHNOLOGY
CHAMS 0.71 0.74 -0.03 -4.05%
ETRANZACT 5.23 5.23 0 0.00%
IHS 4.03 4.24 -0.21 -4.95%
MTECH 0.91 0.91 0 0.00%
MTI 0.5 0.5 0 0.00%
STARCOMMS 1.95 1.95 0 0.00%
Average -1.50%
INSURANCE
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AFRINSURE 0.5 0.7 -0.2 -28.57%
AIICO 1.03 0.98 0.05 5.10%
CONFDINS 0.64 0.64 0 0.00%
CONTINSURE 0.95 0.91 0.04 4.40%
CORNERST 0.5 0.55 -0.05 -9.09%
CUSTODYINS 2.95 2.8 0.15 5.36%
EQUITYASUR 0.5 0.5 0 0.00%
GOLDINSURE 0.51 0.52 -0.01 -1.92%
GNI 0.5 0.5 0 0.00%
GUINEAINS 0.5 0.5 0 0.00%
HMARKINS 0.5 0.5 0 0.00%
WAPIC 0.99 1 -0.01 -1.00%
INTENEGINS 0.57 0.61 -0.04 -6.56%
IAINSURE 0.5 0.5 0 0.00%
LASACO 0.51 0.55 -0.04 -7.27%
LAWUNION 0.55 0.53 0.02 3.77%
LINKASSURE 0.5 0.5 0 0.00%
MBENEFIT 0.64 0.64 0 0.00%
NEM 0.51 0.53 -0.02 -3.77%
NIGERINS 0.74 0.88 -0.14 -15.91%
OASISINS 1.23 1.49 -0.26 -17.45%
PRESTIGE 3.61 3.8 -0.19 -5.00%
REGALINS 0.5 0.5 0 0.00%
SOVRENINS 0.5 0.5 0 0.00%
STACO 0.79 0.99 -0.2 -20.20%
STDINSURE 0.5 0.64 -0.14 -21.88%
UNIC 0.82 0.77 0.05 6.49%
UNIVINSURE 0.5 0.5 0 0.00%
Average -4.05%
LEASING
CILEASING 2.7 2.7 0 0.00%
Average 0.00%
MARITIME
JAPAULOIL 1.24 1.29 -0.05 -3.88%
Average -3.88%
MEDIA
AFROMEDIA 0.55 0.65 -0.1 -15.38%
DAARCOMM 0.67 0.6 0.07 11.67%
Average -1.86%
MORTGAGE COMPANIES
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ABBEYBDS 1.61 1.61 0 0.00%
ASOSAVINGS 0.65 0.68 -0.03 -4.41%
UNHOMES 0.87 0.97 -0.1 -10.31%
Average -4.91%
OTHER FINANCIAL INSTITUTIONS
CRUSADER 0.95 1.07 -0.12 -11.21%
DEAPCAP 2.02 2.02 0 0.00%
FIRSTCAP 0.45 0.45 0 0.00%
NESF 552.2 552.2 0 0.00%
ROYALEX 0.59 0.6 -0.01 -1.67%
Average -2.58%
PACKAGING
ABPLAST 3.98 3.98 0 0.00%
AVONCROWN 7.65 7.65 0 0.00%
BETAGLAS 12.88 14.26 -1.38 -9.68%
NAMPAK 6.99 6.99 0 0.00%
POLYPROD 4.23 4.23 0 0.00%
BAGCO 2.34 1.81 0.53 29.28%
STUDPRESS 2.92 2.92 0 0.00%
VANLEER 15.03 15.03 0 0.00%
WAGLASS 0.63 0.63 0 0.00%
Average 2.18%
PETROLEUM(MARKETING)
AP 47.46 36.4 11.06 30.38%
AFROIL 20.71 20.71 0 0.00%
BECOPETRO 2.24 2.08 0.16 7.69%
CHEVRON 69.79 69.79 0 0.00%
CONOIL 34.17 33.57 0.6 1.79%
ETERNAOIL 6 6 0 0.00%
MOBIL 97.51 99.95 -2.44 -2.44%
OANDO 93.99 93.99 0 0.00%
TOTAL 142.5 150 -7.5 -5.00%
Average 3.60%
PRINTING & PUBLISHING
ACADEMY 6.85 7.21 -0.36 -4.99%
DTIMES 0.69 0.69 0 0.00%
LONGMAN 9.76 8.58 1.18 13.75%
UPL 5.5 5.69 -0.19 -3.34%
Average 1.36%
REAL ESTATE
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Outlook /Analyst Opinion
Based on the market intelligence available as at the time of concluding this report, we
expect for there to be a means-enabled resolution of the political impasse within the
leadership in the nation; a conscious attempt to address the economic issues through a
work-out arrangement between the Ministry of Finance and the Central Bank of Nigeriathat should help improve the operating environment.
While this may take time to reflect upon the market, the clarity and sense of direction it
would provide should trigger an interest in the market prior to the announcement of the
election timetables for the 2011 elections in Q2 2010.
Combined, we expect that announcement of the long awaited fourth quarter 2009 results
of the banks will likely push the market in either direction, but definitely there will be a
reaction. We expect for the Lamido 8 banks to present only marginal variations to the
huge loss positions given that most of the provisioning were made as at the 11 month
(November 2009 when the status of the debts remained at the same levels in theirbooks) and the recovery efforts in December would not have been that significant to
warrant a rapid turn-around (unless write-backs representing post balance sheet
adjustments take place).
Any positive news is welcome at this stage, having exhausted all the negativity
imaginable for a financial institution. The key areas of impact should see the other banks
that gained from increased deposit intakes (flight to safety) and smart lending show an
improvement in earnings which should be welcome news. Information from the market
concerning the bonds that have been offered as well as rights issue suggests that the
market did not warm up to them indicating resistance yet to be breached.
As the market awaits the enough stimulus for its full recovery, we are of the opinion that
that recovery is hinged on basic fundamentals, which appear not to be in place at the
moment. Opportunities however abound for investing cautiously and long term we
have a market of selective performance rather than a broad base rally which means that
trading in the market would be driven by stocks of firms in less uncertain sectors.
Yet, the good money remains on some of the stocks shown above that have shown
resilience in the face of market difficulties all through 2009 and the last two months.
Clearly, the market can achieve some quick wins by quickly gaining a resolution of the
following issues; to signal a new era of lessons learnt, viz:
The AMC issue and Sale of banks to new owners and the unaddressed huge
debt overhang of stock brokers.
The many unresolved market transactions and service issues untimely
resolution of infractions, underwriting issues, private placements and non-
payment of dividends issues pending at the SEC, NSE and EFCC.
Clarity on the governance and succession concerns affecting the leadership of the
SEC and NSE.
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Investments in telecoms sector now $18bnFrom $50m in 2001-
Investments in Nigerias telecommunications sector have reached $18 billion
since 2001,a figure that represents a massive growth from $50 million in
2001.Also,the growth recorded has leap-frogged the country to the enviable
position of Africas largest telecoms market. In the same vein, the countrys
subscriber base has now reached 75 million active connected lines.Senate panel petitions minister on Udoma's chairmanship of SEC-The
Senate Committee on Capital Market has forwarded a petition to the Minister
of State for Finance, Mr. Remi Babalola, seeking the removal of the
Chairman of the Securities and Exchange Commission (SEC), Senator Udoma
Udo Udoma. According to the petition, Udoma, who, recently, emerged
Chairman of UAC of Nigeria Plc and Vice Chairman of Linkage Assurance Plc,
should resign his chairmanship of the commission if he wants to continue to
occupy his position in the two quoted companies.
Cadbury Pays N15bn Debt-Cadbury Nigeria Plc announced it had paid off
all the outstanding N15.2b bank debts that weighed on its bottom line in
recent years. The company said in a statement that the repayment followed
the successful conclusion of its Rights Issue and the listing of its new shares
by the Nigerian Stock Exchange.
Banking crisis: Sanusi blames Soludo for CBNs failings-Central Bank
of Nigeria (CBN) Governor, Mallam Lamido Sanusi, has come down hard on
his predecessor, Professor Chukwuma Soludo, blaming the former CBN
helmsman for most of the perceived failings of the apex financial institution
which resulted in it being unable to prevent the ongoing crisis in the
industry.
CBNs second phase reform to focus on bank categorisation- The
evolution of a healthy financial sector with varying niches and capital
requirements would be the plank of the second phase of the sector reforms,
according to Sanusi Lamido Sanusi, Central Bank of Nigeria (CBN) governor.
Searchlight will also be beamed on the desirability of the current universal
banking model which he regarded as an obsession with rapid growth but
without the right frameworks to manage risks. There will also be inquiry into
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the use of depositors funds for margin trading in a bid to shield the funds
and avoid a repeat of the crisis that nearly brought the industry to its knees.
Global economic growth to rise by 3.1 per cent in 2010-The
International Monetary Fund (IMF) has estimated a 3.1 per cent increase in
global growth in 2010, following the recent data improvement in the global
economy, which was led by Asia and supported by vigorous and coordinatedfiscal and monetary policy stimulus including a wide range of measures to
enhance credit flow.
CBN targets April for sale of rescued banks-The 10 troubled banks
recently rescued with a N620 billion bailout fund may be sold by April to new
investors, going by a hint from the Governor of Central Bank of Nigeria
(CBN), Lamido Sanusi. Sanusi, said necessary preparations had been
concluded to ensure transparent ownership switch of the banks.
FG Demands CBNs Blueprint on Bank Reforms-The Federal Government
has asked the Central Bank of Nigeria (CBN) to furnish it with the blueprint
on the banking reforms to allow assessment of the direction of its policies
and also ensure that they are in line with governments long-term economic
programmes.
Week 3 Feb15-19
Custodian announces Nigerias first share buy-back-Custodian and
Allied Insurance Plc announced the nations first share buy-back , a move
expected to be followed by other companies with depressed share prices and
flush with cash.
NSE urges quoted companies to embrace share buy-back-The Nigerian
Stock Exchange urged quoted companies to engage in the buy-back of their
shares to create more market for the stocks.
Oil price rises sharply on weak dollar-The price of oil has risen sharply
as the dollar, the currency in which the commodity is priced, weakened
against the pound and the euro.US light crude rose $3.06 to $77.19 a barrel
at one point on Tuesday, its biggest daily rise in more than four months. It
finished the day at $77.01.Meanwhile, London Brent settled up $3.17 at
$75.68 a barrel.
Nigerias domestic debt hits N3.228trn, foreign debt $3.95bn-Four
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years after exiting the infamous $30 billion Paris and London Clubs debts,
Nigerias external debt profile stands at $3.947 billion, the Minister of
Finance, Alhaji Mansur Muhtar said .The Minister who made this known at a
public hearing organized by the House of Representatives ad-hoc Committee
on Foreign Loans, also affirmed that Nigeria would borrow more this year,
but in a sustainable wayNigeria spent N1.8 trn on petroleum subsidies in four years-Nigeria
has spent a total of N 1.8 trillion to subsidised petroleum products in the last
four years which the federal government has said is not sustainable said Mr
Remi Babalola.
Oteh resumes as IOSCO's chairman -The Director-General, Securities
and Exchange Commission (SEC), Ms Arunma Oteh, has resumed duties as
the Chairman of Africa and Middle East Regional Committee (AMERC) of the
International Organisation of Securities Commissions (IOSCO).
Inflation Increases 12.3% in January; Trend uncertain in 2010
Citigroup Nigeria's inflation rate (year on year) rose to 12.3 per cent in
January from 12 per cent the previous month. According to the datareleased yesterday by the National Bureau for Statistics (NBS), growth in
food prices, which form the bulk of the inflation index basket rose to 14 per
cent year-on-year from 13.6 per cent in December.
CBN issues fresh guidelines on margin lending-The Central Bank of
Nigeria (CBN) said it would soon issue guidelines on margin lending to avert
future crisis in the banking sector, in which reckless lending by banks to
stockbrokers, subsidiaries and individuals for stock purchase contributed
immensely to banking crises. The CBN Governor, Sanusi Lamido Sanusi has
said.
World Bank rates Nigeria low in trade logistics index-Nigerias capacity
to move and connect manufacturers with international markets around the
world was still low, the World Bank has said. In its 2010 Logistics
Performance Index (LPI) released in Abuja, recently, Nigeria is ranked 100th
among 155 countries in the bank in a survey on trade logistics, despite
various reforms in the countrys economy.
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restructuring in the operations of registrars in the market as part of efforts
to make the market more attractive to investors.
Inflation: CBN May Reduce Support to Banks-There are indications that
the Central Bank of Nigeria (CBN) may in the course of this year move
monetary policy away from addressing problems in the banking sector to
other macro-economic challenges, especially fighting inflation.Court Endorses Afprint De-listing Plans-The Federal High Court Lagos
has approved the scheme of arrangement of Afprint Nigeria Plc earlier
passed by the shareholders at a Court Ordered Meeting preparatory to
delisting of the company from the Nigerian Stock Exchange (NSE).
Anti-Sanusi group seek suspension of banking reforms- There are
intense and sustained pressures on the CBN to modify or outrightly dump
the current reforms in the banking sector.
Oil prices inch near $80 as traders eye low interest rates-Oil prices
rose to just below $80 a barrel after a three-week rally, as investors expect
the Federal Reserve of the United States of America (U.S.) to keep interest
rates near zero to help fuel economic growth, which would boost crude
consumption.
Market loss: SEC boss blames regulators-The new Director-General of
the Securities and Exchange Commission (SEC), Ms. Arunma Oteh, said all
regulators in the equities market were responsible for the monumental loss
in the market.
CBN asks troubled banks to repay N620bn loan May-The Central Bank
Governor, Mr. Lamido Sanusi, has said that the apex bank expects the N620
billion it injected into the eight troubled banks to be repaid. Sanusi, who
spoke in Pretoria, South Africa, said: We expect that by April, May, the
exposure with the banks should have been paid back by the banks.The CBN
boss said the repayment was envisaged on the passage of the Asset
Management Company, AMC, bill by the legislature, by March.
Banks jostle for Q4 good outing as investors expectations rise-The
leadership of the countrys banks are scratching their heads to come up with
new and legitimate devices to achieve impressive fourth quarter results for
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