Get all the latest information on businesses and companies in Nigerian Stock Exchange.

Picture The Steep Drop

This image will better help you to picture the drastic drop in the NSE:

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Company Results for week of Oct 27th - 31st

Here are the company results that were released this week:

ACCESS BANK PLC
PERIOD 30-09-2008 (2ND QUARTER)

PREMIER PAINTS PLC
PERIOD 2-01-2007 TO 31-12-2007

NEM INSURANCE PLC
PERIOD 30-09-2008

COSTAIN (W.A) PLC
PERIOD 31-03-2008 (YEAR ENDED)

PRESCO PLC
PERIOD 9 MONTHS ENDED 30-09-2008

LASACO ASSURANCE PLC
PERIOD 1ST QTR 31-03-2008

LASACO ASSURANCE PLC
HALF YEAR ENDED JUNE 2008

UACN PROPERTY PLC
PERIOD 3RD QUARTER

RED STAR EXPRESS PLC
2ND QUARTER

OASIS INSURANCE PLC
PERIOD NINE MONTHS ENDED 30-09-2008

COSTAIN (W.A) PLC
PERIOD 31-03-2008 (YEAR ENDED)

ECOBANK TRANSNATIONAL INCORPORATED PLC
9 MONTHS ENED 30-09-2008

THE STOCK IS CURRENTLY ON TECHNICAL SUSPENSION DUE TO THEIR PUBLIC OFFER

UAC OF NIGERIA PLC
PERIOD ENDED 30-09-2008

ASO SAVINGS AND LOANS PLC
6 MONTHS ENDED SEPTEMBER 30, 2008

ASO SAVINGS & LOANS PLC
9 MONTHS ENDED 31-12-2008
FORECAST PPROFIT AND LOSS ACCTS INFORMATION 2008

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Afrinvest’s Release On The +5%/-5% Circuit Breaker

Afrinvest has prepared a well written report on the reinstated 5% circuit breaker. Here is an excerpt:

Going Forward: What are the Opportunities?
Overall, Afrinvest Research expects  that a return to +5%/-5% will lead to a significant sell-off in Nigerian equities, and a sharp decline in market valuations. However, we expect that the return to previous levels of daily trading liquidity will encourage long term value investors  to focus on bargain acquisitions of stocks with healthy operating fundamentals, high cash generative businesses, and a good dividend history. Similarly, we believe that book value based trading multiples will likely provide the basis for a floor on commercial bank market prices. While we do expect that market reactions to the re-instated trading boundaries will be swift and potentially outsized, we recommend a continuous and careful evaluation of selected stocks going into 2009. Further, we expect that as prices begin to test new lows, and dividend yield thresholds begin to approach the same level as corporate Return on Equity (ROE) targets for many cash rich companies; defensive share buy-back programs will begin to appear even more attractive to several of these companies. We expect that some of these buy-back programs will be financed by a cut back on dividend pay-out  ratios, as effective yields continue to improve with declining prices.

Afrinvest Nigeria Market Alert October 2008 (36)

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NSE reverses maximum decline on equity prices to 5%

Today, the NSE reversed the maximum decline policy that went into effect August-ending. The maximum price decline was reduced from 5% to 1% on August 27th. But the policy has been reversed to again.  This policy had helped to stem the downward spiral of the stock market. Even with that, there has been little gains in stock prices.

Here is UBA Capital’s press release on the reversal of NSE’s maximum price decline policy.

NSE reverses maximum decline on equity prices to 5%

Today, the management of The Nigerian Stock Exchange (NSE) reversed its policy on the maximum price decline in equity prices to 5%. It will be recalled that on August 27, 2008, the NSE announced that equity prices could only drop by 1% in any trading session. This was one of the measures applied by the exchange in stemming the tide of the sustained decline in the market. Prior to the 1% review, equities were allowed to trade within a band of +/-5% in any trading session. This position has now being restored in view of this latest review.

Following the announcement, information we gathered from stockbrokers on the floor of the exchange indicates that equity prices are currently down by about 5% as investors are still putting in sell orders with most equities still on offer. However, it was observed that there were a few bids in the market as a few brokers and/or investors reacted positively to the announcement. Overall, most stocks – even the ones with bids – were trading at net offer positions as at the time of putting this report together.

Our opinion: We are of the view that the policy adjustment is a decision in the right direction as stated in our report “Introducing market making to the Nigerian equity market”. Therefore, we expect the market to slide over the next few trading days, shedding between 15 and 20% for the existing offers to be eliminated as the bids increase gradually. To this end, we might see a reverse in the market between 32,000 and 35,000 points, which represents about 20% decline.

Thanks and regards.

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FSDH and ZSL Report on Nigeria Bottling Company

Here are the reports by ZSL and FSDH on Nigeria Bottling Company’s recent quarterly results:

ZSL - Company Spotlight - NBC - Oct 2008 (28)
FSDH - Company Spotlight - NBC - Oct 2008 (19)

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Weekly Report for Week Ended October 24th

Courtesy of Meristem Securities, here is the weekly report for the week ended Friday, October 24th 2008:

Investing Potentials in a Bear Raided Market
As expectation for resurgence swells while bearish moments roll by, mixed feelings and reactions from investors trail activity as market nears bottom. The week opened and ended with trading pointing southward. NSE All Share Index plummeted 2.50 percent to settle at 41,884.10 point. Number of listed shares increased with the listing of 4.2 billion shares of Abbey Building Society and supplementary offer of Custodian & Allied Insurance Plc which prop up total market capitalisation of the 212 listed equities by 0.22 percent to stand at N9.188 trillion.

A hitch in activities was noted as total volume for the week plunged by 2.31 percent culminating into trading in shares of over 987 million with a market value of N8.44 billion in 19,886 deals in contrast with 1.01 million shares valued at N7.56 billion executed in 26,395 previous weeks.

Unusual Volume: There was a jostling for the shares of ACCESS BANK PLC as over 346 million shares worth N3.45 billion were transacted in 173 deals

Bid and Offer: The shares of SPRINGBANK (6.90m units), FIRSTBANK (1.14m units), and MULTIVERSE (86, 259 units) surprisingly closed on bid by end of trading session on Friday while IAINSURE led on the supply side with over 272.8m units on offer. LASACO (82.35m units), FIDELITYBK (69.63m units), FIRSTINLD (89.68m units) and NEM Insurance (47.62m units) followed.

FIRSTBANK Pulls Weight to emerge Leader in Gainers’ Camp: Friday saw FIRSTBANK and MULTISERVE in the gainers camp. FIRSTBANK rose N1.18k to N24.90k and MULTISERVE gained 10 kobo to N2.13k. On the other side of the camp, CAP slid 49 kobo to N49.41k. NB plunged 38 kobo to N38.44k and UBN was down 37 kobo to N36.91k.

Banking Sector Lead Sectoral Performance: With a 62 percent take of the total market volume, the banking sector emerged most active sector for the week with 613 million valued at N6.62 billion executed in 11,076 trades. This feat is not unconnected to spiky movements in the shares of ACCESS (356 units), SPRINGBANK (118 million units) and FIRSTBANK (25 million). Driven by IAINSURE (53million units), UNIVINSURE (16million units) and AIICO (13million units), the insurance sector ranked next accounting for 124 million shares exchanged in 1,625 deals worth over N195 million. Conglomerates sector clinched third most active sector with 114 million shares transacted in 386 trades valued at N212.

Company News and Results

1. JaPaul Oil and Maritime PLC and Wapco (Lafarge) Cement PKC released their unaudited Q3’08 results for the period ended September 30. Also, National Sports Lottery Plc posted its unaudited Q3’08 results for the period ended October 30.
2. Cap Plc Declares Interim dividend: CAP PLC proposed an interim dividend of N2.00k per share alongside the release of its un-audited Q3’08 results for the period ended September 30. Closure date is November 03 to 05, 2008 and payment date November 20, 2008.
3. Custodian & Allied Insurance Plc declared an interim dividend of N0.075k (7.5 kobo) per share which coincidentally the closure date was scheduled for today, October 20, 2008 and payment date October 23, 2008.
4. The share prices of 7UP Plc and CUTIX Plc were adjusted for dividend payment of N1.50k and 12 kobo respectively while NESF was marked for coupon payment of N152.00k.
5. 4.2 billion Shares of ABBEY BULIDING SOCIETY PLC were on Tuesday, October 21, 2008 introduced into the fold of listed equities on the daily official list of the stock exchange.
6. The supplementary offer of 40,744,328 ordinary shares of CUSTODIAN & ALLIED INSURANCE PLC was on Friday, October 24, 2008 listed on the daily official list. This brings the shares outstanding of the Insurance Company to 4.79 billion.

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Stock Broker Reports For Week Of October 24th

Here are the stockbroker reports from Zenith Securities, FSDH and Forte Asset:

Forte - Weekly Report - Oct 24th 2008 (20)
FSDH - Weekly Report - Oct 24th 2008 (22)
ZSL - Weekly Report - Oct 24th 2008 (20)

And this is the full stock analysis for the week (with input from CSL Securities and Meristem)

download: Market Analysis for Week Ended October 24th (146.5KB) added: 28/10/2008 clicks: 29 description: Market Analysis for Week Ended October 24th

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Major Biz News From Nigeria

Here are the main news stories for this week. Since some are very long, I decided to use highlight and bullet the main points to make for easier reading:

Foreign Banks Grant Intercontinental Bank $2 Billion Confirming Line
Source - AllAfrica Posted to the web on Oct 20, 2008

1. More leading global financial institutions have established confirming lines of credit with Intercontinental Bank Plc, just as several existing lines are also being increased bringing its portfolio of such resources to $2.1billion.
2. The Belgium financial giant, ING, has opened a confirming line of $50 million with the Nigerian bank just as its German partner, BHF Bank, increased its credit lines for the bank to $15 million.
3. Among major global banks with similar relationships with Intercontinental Bank are, Citibank, Deutsche Bank, BNP Paribas, ANZ, Commerzbank, HSBC etc.
4. This development came at the heels of the bank’s impressive financial results for the half year ended August 31, 2008, which show gross earnings rising to N121 billion, representing a growth of over 99 per cent against the N60.9 billion achieved in the corresponding period of 2007.
5. Shareholders funds also rose to N213 billion, while deposit base stands at about N1 trillion.
6. The results, which were approved by the Nigerian Stock Exchange (NSE), last week also show a profit before tax of N24 billion, an increase of 63 per cent from N14.7 billion in the previous year.
7. Fitch Ratings, a leading global financial rating agency, has recently affirmed Intercontinental Bank Plc’s National Long-term ratings at A+. The interpretation, according to analysts, is that the bank is a low risk and very safe financial institution.
8. The agency also affirmed the bank’s international rating at B+, which is the highest for any Nigerian bank as at date by Fitch Ratings.
9. Standards & Poor (S &P), another leading international rating agency, has also pronounced the bank’s international rating as BB-, which is the highest for any Nigerian bank as Nigeria’s sovereign rating is capped at BB-.
10. The S & P Rating statement in London listed Intercontinental Bank’s strength as strong market position, robust funding and liquidity as well as good capitalisation.
11. According to S & P, “Intercontinental Bank is a tier 1 Nigerian bank with a good presence in the high end corporate, commercial, public and retail sectors. It was the first Nigerian bank to reach the N1 trillion deposit mark due to a strong retail deposit portfolio. Intercontinental funding and liquidity profile is robust with a large liquid asset cushion”.

May & Baker - Strengthened On Diversification, Scale
Source - AllAfrica

1. In its latest audited reports to December 31, 2007 May & Baker recorded a turnover of N3.859 billion from N2.253 billion achieved in the comparable period of 2006.
2. That represents positive variance by 71.3 percent. Profit before tax advanced by 49.5 percent to attain N398 million in 2007 against N266 million the previous year.
3. From principally pharmaceutical company status, M&B has spread tentacles to manufacturing, food production, diagnostics and medical equipment.
4. The new growth areas are expected to leapfrog the company’s earnings. Its instant noodles brand, Mimee was launched in March last year. It was followed by the launch of Crunchmee snack noodles. The two products have since penetrated many homes across the country and serving as revenue booster to M & B.
5. The acquisition of WHO standard drug production facility is another plus for the company, being in the WHO list of international suppliers. The organization can now bid and supply WHO sponsored drugs in Nigeria and offshore markets.
6. M & B became Africa’s first private vaccine production company in 2005 by acquiring 51 percent share in Biovaccines Nigeria Limited, a partnership with the Nigerian Federal Government.
7. Last year, it invested heavily in setting up an Anti-retroviral AVR plant to produce drugs for the HIV/AIDS pandemic. The plant has since commenced production and showing great prospects.
8. The pharmaceutical component of the company’s business generated a turnover of N2.6 billion at the end of the 2007 financial year, thereby passing a Gross Profit of N1.3 billion to the consolidated income statement.
9. The Food business driven by the fast selling Mimee and Chrunchmee recorded sales worth N1.2 billion on a gross profit of N224.5 million. The third income stream - water, released N70 million by turnover and N19 million in gross profit to the consolidated profit and loss account.
10. Net profit margin declined from 9.40 percent to 5.40 percent thereby shedding 24.60 for the full year.
11. The value of trade debtors increased almost two folds from N249 million to N734 million.
12. Bank overdrafts almost doubled from N395 million to N735 million just as the value of trade creditors increased by 60 percent to N341 million against N134 million the previous year.
13. May & Baker’s working capital position declined by 16.7 percent to N1.094 billion against a higher N1.313 billion in 2006. It was also noticed that cash balances at year end also dropped from N1.019 billion to N622 million.
14. Nevertheless, the company’s balance sheet remained strong during the review period with total assets less current liabilities of N2. 877 billion (2006: N2.977 billion) and a net worth of N2.615 billion (2006: 2.617 billion).
15. Profit after tax declined, to close at N208.3 million against N211.4 million in 2006.

Market capitalisation drops by N2.84trn in six months -SEC
Source - Businsses day

1. Financial crisis that hit the capital market has left in its trail a loss of N2.84 trillion or 23.5 percent between March and October, Securities and Exchange Commission (SEC) Monday told House of Representatives.
2. Prior to the crisis, market capitalisation of Nigerian Stock Exchange (NSE) was N12.1 trillion.
3. Alfaki Musa al-Faki, SEC director-general during a presentation on the “Capital market: Recent developments” to the House Committee on Capital Market, noted that during the six month period market capitalisation dipped by 23.5 percent from N12.1 trillion in March, when the price drop started to N9.26 trillion by October 15. Between January and October 15, it had gone down by 13.4 percent.
4. According to him, the NSE All Share Index also dropped from 63,016.6 point in March to 43,492.56 points, representing a decline of 31 percent as at October 15, while 25.7 percent was lost between January to October 15; loss of 25.7 percent was recorded between January and October 15.
5. Al-Faki, who argued that the slide was the normal trend in the capital market, emphasized the need for investors to engage in long-term investment rather than short-term.
6. The director general however noted that the market capitalisation grew from N2.5 trillion in 2005 to N12.1 trillion by March 2008, a five fold increase in five years, while the trading value also increased from N254.7 billion, a daily average of N1.06 in 2005 to N2.086 trillion, a daily average of N8.62 billion in 2007.
7. According to him, All Share index moved from 24,085 point as at December 2005 to 63,017 points at the end of March 2008, representing 161.64 percent, while new issues rose from N405.84 billion in 2005 to N1.34 trillion in 2007, representing 230.86 percent.
8. Udo Udoma, NSE chairman, while responding to questions on the ‘Market Makers’ from the members of the committee, explained that participation was open to banks and interested private sector operators, adding that the guidelines was not limited to only banks.
9. Statistics on the world stock exchanges index monitored by NSE between December 31 2007 and October 8, revealed thus: US (-30.2); China (-57.4); Japan (-32.8); France (-41.1); Germany (-42); Poland (-41.6); Russia (-66.7) while Turkey (-53.9), while Nigeria recorded -23.5 losses.
10. Other countries on the loser??s chart are South Africa (-46.4; Saudi Arabia (-44.5; Egypt (-43.6); Mexico (-44); Chile (-37.1); Brazil (-54.5); Singapore (-42.4); Malaysia (-36.5) India (-54.2); Nairobi -28.2; Congo -24.4, except Ghana which recorded a positive index of 64.
11. Some of interventions taken by government to address the lingering crisis include the inauguration of presidential advisory committee; issuance of an exemption to the provisions of relevant sections of the Companies and Allied Matters Act 1990, on share buy-backs to permit quoted companies to buy-back up to 20 percent of their shares by the office of attorney-general of the federation.
12. This, according to him, would require the approval of the SEC before any quoted company is allowed to undertake any share buy-back.
13. On its part, NSE had on Wednesday, August 27, slashed downward its fees by 50 percent, while arrangements are ongoing to establish a capital market stabilisation fund in order to effectively and prudently intervene in the nations stock market.
14. Aliyu Wadda, chairman of the House Committee, insisting on the need for government??s intervention, however warned government against use of tax money.
15. Wadda also explained that the Commission had no statutory right to jerk up the 15 percent share buy-back without the existing law, which regulates the operations of the commission.

CBN orders banks to submit account details of wonder banks
Source - Vanguard Posted to the web on Oct 22, 2008

1. The Central Bank of Nigeria (CBN) has directed banks to submit the account details of 28 fake finance companies/ fund managers also known as wonder banks
2. The companies are:
   Art Master & Co. Ltd;
   Cyber International Ltd;
   Fortune Access Interlinks Network;
   Gold Power Unique Services Ltd;
   Gorutrans Nigeria Co. Ltd;
   Interglobal Investment Ltd;Money Field Ltd;
   New Freedom Diversified Investment Ltd;
   Open Gate Multipurpose Investors Ltd;
   Orion Express Global Services Ltd;
   Pennywise Investment Ltd;
   Positive Move International Nigeria Ltd;
   Precious Golden Profile;
   Real and Cool Wealth International Ltd;
   Shola Olanrewaju Ayinke (Sefteg Nigeria Company);
   Silvertrust Global Investment;
   Successpoint International Investment Ltd;
   Torid Investment Ltd;
   Treasured Fund Assets Ltd;
   Vikel Petroleum Ltd;
   Wealth Concepts Global Ltd;
   Wealthgage Multibiz Int. Ltd;
   Wealth Interlink Agency Ltd;
   Wealth Solution Ltd;
   Wealth Transfer and Logistic Ltd;
   Wilson O. Wilson (Doing business in the name and style of Wilamas Ventures) Wisdom Investments Nigeria Ltd;
   Nospetco Oil and Gas Ltd.”

Okitipupa reduces debt profile
Source - Guardian Newspapers

1. DESPITE a low capital base of N48 million, Okitipupa Oil Palm Plc has succeeded in reducing its accumulated losses from N241.6 million as at December 31, 2003 to N147.4 million as at December 31, 2007.
2. The chairman of the company, Vice Admiral Akin Aduwo (rtd), while addressing shareholders at its yearly general meeting in Akure recently, explained that the company, which has been under receivership until April 15, 2004, during which income and expenditure of the company were prepared by limited liability companies, has returned to profit making in 2004, eight months after the repositioning exercise.
3. By the new management of the company in rehabilitating the plantations, as well as the Ipoko Mills-in-house to consolidate on this, the chairman said the company is putting measures in place to rescue the company’s plantation from being exploited by unauthorised persons.
4. He added that the board of directors of the company could not recommend dividend to the shareholders due to the losses incurred in the past years.
5. On the future plans of the company, Aduwo said the company would commence a complete elimination of unwanted trees in more than 8,000 hectares of plantation, after which the company would company would embark on the modernisation of the Okitipupa and Ipoko Mills cable, which according to him is capable of processing 25 tones of fresh fruit bunches in at tour.
6. The energy saving project of the company, made through the conversion of wastes to generate steam and electricity would also be included.
7. The project, when completed would generate profit; enhance steady growth and help to reduce the accumulated losses of the past years.

Chams set to make world record in ICT market
Source - Guardian Newspapers

1. IN a strategic move to attain the Vision 2020 goal of the Federal Government in the ICT sector, Chams Nigeria Plc, in Lagos, launched ChamsCity Network into the ICT market.
2. According to the Assistant General Manager, ChamsCity, Chams Plc, Mr. Sola Bickersteth explained that the company was set to commission the world’s largest ICT centres, starting with Lagos and Abuja before the end of this year and every major city across Nigeria before end of 2009.
3. Sola said that the centres would demonstrate various futuristic services such as digital identity management and electronic payment solutions that the company was well known for.
4. Sola explained that each centre will be equipped with about 1,000 computers, which are higher than the present record setting location in New York City that contains 850 computers, according to the Guinness book of world records.
5. The Managing Director of Supercard, Mr. Femi Williams said access to each centre would be only after registering your fingerprint in the centre’s database and using a bank card to create a virtual wallet for payment of services within the ChamsCity location.
6. Williams added that regarding the registering of biometrics information of all visitors to ChamsCity, the challenges posed by 419 will be easily addressed as every visitor would be accounted for, right from the time of entrance to the computer used and online activities.
7. “The same biometric technology has been successfully used by the company in partnership with some European embassies to weed out fraudulent visa applicants,” he said.
8. The network is designed to empower government agencies, education institutions, professional organisations and associations, financial institutions, IT service providers, corporate organisations and even small businesses to experience economic growth by being able to provide more efficient services to large populations and customers using information and communications technology, specifically, identity management, electronic payments and online transactions system.
9. ChamsCity locations are ideal for state governments, who wish to conduct digital citizen registration, mass social service enrolments, electronic payment collections etc.
10. Educational institutions, who wish to conduct online classes and entrance tests and regular examinations, large corporations conducting pre-qualification employee tests and staff training, utility and telecoms services providers wishing to provide online bill payment and pre-paid services, service providers wishing to extend their services to multiple locations, embassies that wish to conduct visa screening exercises, event managers wishing to sell tickets online, Conference managers using modern ICT tools.
11. Chams Plc, the largest provider of digital identification systems in Nigeria and an operator of the new General Multi-Purpose Identification Card in partnership with the Federal Government of Nigeria.

SEC, NSE meet to review capital market
Source - Guardian Newspapers

1. The Board of the Securities and Exchange Commission (SEC) and the Council of the Nigerian Stock Exchange (NSE), yesterday, met to review the situation in the Nigerian capital market.
2. In a statement made available to The Guardian in Lagos yesterday by the SEC’s spokesman, Mr Lanre Oloyi, stakeholders in the Nigerian capital market, met yesterday to review the current meltdown in the Nigerian Stock Exchange.
3. According to him, the meeting, which was held at the Commission’s corporate headquarters in Abuja, yesterday, saw the stakeholders reviewing the performance of listed companies on the Exchange.
4. “The Board of the Securities and Exchange Commission (SEC) led by its Chairman, Senator Udoma Udo Udoma accompanied by the Director-General, Musa Al-Faki and other Executive and Non-Executive Commissioners yesterday, met with the Council of the Nigerian Stock Exchange (NSE) to review the situation in the Nigerian capital market”, he said.
5. The meeting also had in attendance, the President of the Council of the Exchange, Chief Oba Otudeko, the Vice President, Alh. Aliko Dangote, the Director-General, Prof. Ndi Okereke-Onyiuke and other members of the council.
6. The statement reads: “At the end of the meeting, the SEC and the NSE expressed satisfaction with the performance of the companies listed on the Exchange as shown by their various results up to the last quarter”.
7. “The SEC and the NSE are of the view that the capital market will soon pick up in response to the positive performance of the companies”, it added.

IFC converts Access Bank’s debt into equity
Source - Guardian Newspapers

1. THE Nigerian capital market has received a boost with the International Finance Corporation (IFC) converting its debt stake in Access Bank Plc into equity.
2. The News Agency of Nigeria (NAN) reports that the regulatory agents of the capital market have welcomed the announcement by IFC of the decision to convert the debt to equity.
3. The IFC had in 2006 advanced a $15-million Unsecured Variable Rate Redeemable Convertible Loan Stock to Access Bank. The conversion saw additional 71,756,590 new shares of Access Bank added to the existing shares of the bank quoted on the Nigerian Stock Exchange.
4. NAN gathered that the move by the IFC followed the growing profile of Access Bank and its prospects in the Nigerian economy.
5. Reacting to the conversion, the National Co-ordinator of the Independent Shareholders Association (ISAN), Mr. Sunny Nwosu said that the conversion was a remarkable development for Access Bank and the Nigerian capital market.
6. “ISAN appreciates the position of IFC in the emerging markets, particularly the Nigerian capital market. The conversion will also go a long way to attest to the nation’s good economic fundamentals and the need for investors’ confidence,” Nwosu said.
7. “If IFC is converting its debt to equity in Access Bank now, it shows the highest sense of confidence on the Nigerian economy in the international arena,” he said.
8. NAN recalls that Access Bank had last week opened its UK office, following authorisation in August by the Financial Services Authorities (FSA) to operate a full service-banking subsidiary in the UK.
9. The Governor of the Central Bank of Nigeria (CBN), Prof. Chukwuma Soludo had endorsed the offshore banking of Access Bank and assured that the bank would go places given its pedigree and reputation in terms of the quality of its staff and exceptional services of the bank.
10. He said that the bank would soon become a role model to other banks in view of its acceleration locally and internationally within a very short period of operation.

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Some research reports

You can read the following reports:

1. Afrinvest’s Weekly Report for the week ended October 17th.
   Afrinvest - Weekly Report - Oct 17 2008 (35)
2. FSDH’s analysis of Oceanic Banks recent results.
   FSDH - Oceanic Bank - Q4 2008 (31)
3. Lead Capital’s Quarterly Economic Report.
   Lead Capital- Economic Market Review (Sept 2008) (36)
4. Renaisance Capital’s Research Report on the Nigerian Economy.
   Renaisance Capital Report on the Nigerian Stock Exchange (32)

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Stockbrokers’ Weekly Reports

Here are the weekly stock market reports from CSL Securities, Zenith Securities, FSDH, Investor Delight, and Forte Assets:

CSL - Weekly Report - Oct 17 2008 (18)
Forte - Weekly Report - xOct 17 2008 (19)
FSDH - Weekly Report - Oct 17 2008 (12)
Investor Delight - Weekly Report - Oct 17th 2008 (16)
ZSL - Weekly Report - Oct 17 2008 (20)

download: Market Analysis for Week Ended October 17th (132KB) added: 22/10/2008 clicks: 28 description: Market Analysis for Week Ended October 17th

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Brief summary of NSE for the week ended October 17th

Courtesy of Meristem Securities, here is the brief summary of the activities on the Nigerian Stock Exchange for the week ended Friday October 17th:

1. Low dealer and investors’ participation, loss of market confidence and massive bears runs further drove down equity prices into the red.
2. Shares remain extremely on offer all week through with no bid volume to match the quantum of offer.
3. Driven by unknown vigour, the shares of SPRINGBANK PLC defiled market forces keeping its head high up on bid.
4. As market participants watch with frail certainty and hope for a quick revival, market indicators continue to dip day by day.
5. Virtually all stocks were on offer and most trades executed were largely cross deals.
6. Total volume declined 50 percent for the week as 1.01 million shares valued at N7.56 billion (down by 42 percent) executed in 26,395 (plunged 22 percent) in contrast to 2.03 billion shares valued at N13.00 billion (US$110 million) transacted in 34,233 deals previous week.
7. Number of gainers fluctuated between 1 to 2 throughout the week while, Thursday saw the advancers’ camp completely deserted as the bears took control of activities.
8. Consequently, MULTIVERSE closed the week as the only stock on the gainers’ table. MULTIVERSE surged 2 kobo to N2.09k on Friday.
9. 22 stocks remained flat, without movement. On the flip side, where the bears have been so active, 92 stocks depreciated in price.
10. CHEVRON led the losers’ table sliding N3.94k to N390.06k. MOBIL followed, slumping by N3.52k to N348.62k and TOTAL dipped N2.43k to N241.56k.
    SPRINGBANK (188 million units) was the only stock on bid throughout the week, drove the banking sector to emerge as the most active sector. Investors exchanged stake in a total of 515 million shares worth over N5.86 billion (USD$49.24 million) in 14,940 deals. Ranking second, the insurance sector boosted by huge transaction in the shares of IAINSURE PLC representing 37 percent of sector’s turnover.
11. The insurance sector traded over 290 million valued N470.98 million (USD$3.96 million) in 2,349 trades.
12. Trailing behind the insurance sector and ranking third is the Conglomerate sector with 34 million shares transacted in 604 trades valued at N34.75.
13. Prestige Assurance Plc released its un-audited Q3’08 results for the period ended August 30. University Press Plc and Nigerian Energy Sector Fund both made public their results for their respective periods end.
14. Sequel to the change of the accounting year end of Nigerian Enamelware Plc from September 30 to April 30, the company declared its 7 months audited account for the period ended April 30, 2008 on the floor of the Exchange on Friday October 17, 2008. The Company’s Board recommended a dividend of 60 kobo per share and a bonus issue of 1 for 5. Closure date is scheduled for November 13 to 27, 2008.
15. DN Meyer Plc, Beta Glass Plc, Law Union & Rock Insurance Plc, and Livestock Feeds Plc both made public their forecast profit & loss accounts for their respective period end. JOHNHOLT Plc and OASIS Insurance Plc also released their forecast profit and loss accounts.
16. The shares of ECOBANK PLC which was on August 19, 2008 placed on full trading suspension, was during the trading week lifted off the full suspension although still on technical suspension on conclusion of a one for three (1 for 3) shares reconstruction exercise. The share price was therefore adjusted to N27.96k.
17. The share prices of Roads Plc and Cornerstone Insurance Plc were both adjusted for a dividend of 30 kobo and 3 kobo per share respectively.

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Union Bank Explains Reason For Suspending Public Offer

As expected,the dip in share prices is blamed for Union Bank’s suspension of its offer:

UNPRECEDENTED drop in the share prices of companies which led to a major dip in stocks indices on the Nigerian Stock Exchange may have prompted the postponement of the N300 billion public offering of Union Bank of Nigeria Plc, the bank’s Managing Director, Mr. Bath Ebong revealed yesterday.
Ebong who briefed journalists on the postponed offering explained that the bank’s board decided to suspend the public offering because of the bearish trend in the stock market currently.

He, however, said that the bank’s growth plans is on course and it is geared towards ensuring adequate returns to shareholders and giving excellent service to customers.

Ebong said: “The phenomenon today is not what anybody envisaged. Nobody would have taught the United States and United Kingdom government would intervene in their markets.”

On the bank’s offering, he said: “Our offering came when the price started falling in the market place. So we thought it was necessary to sit back and reassess the situation and step back and look at strategies of raising funds.

“Happenings in the market makers is necessary for us to sit back and restrategise. The technical suspension on our sock had to be lifted so that we can restrategise.
“A wise general who goes to war and sees that the war is not favourable will have to retreat and restrategise.”

On the situation in the stock market currently and the impact the global trend would have on quoted companies, Ebong said: “As far as Union Bank is concerned, we are comfortable with our strategies and where we are going. We look at value addition to investors when we go to the market to raise funds.

“Our stock is always liquid. Our investors get divided from time to time and bonus. The situation is precarious, so we are doing our best to put on a thinking cap to ensure theinvestors and customers get value.”

On moves by banks to correct general market meltdown, Ebong said: “We are on discussion with the Stock Exchange, and CBN on ways banks can extend credit to revamp the market through interim money market arrangement. It is not concluded yet, until we get regulatory approvals.

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