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

As part of efforts to restore investor confidence in the stock market, the Federal Government announce the following steps:

1. NSE with effects from Wednesday, August 27, 2008 (today) will reduce its fees by 50 percent.
2. Stabilization fund will be established with its modalities to be worked out very soon.
3. The Office of the attorney general of the federation has been directed to issue an exemption to the provision of the relevant sections of the company and allied matter act, 1990 on share buy backs to permit quoted companies buy up to 20 percent of their shares.
4. Banks were also advised to restructure existing credit facilities extended to market players to allow for longer repayment periods.
5. CBN is also taking appropriate measures to review the liquidity situation in the economy and appropriate measures to improve the liquidity in the system if required.
6. NSE is also taking steps to review its trading rules and regulations. In the interim, effective from today; one per cent maximum downward limit on daily price movement whilst the current five percent limit on upward movement is retained.
7. SEC will also release guidelines for market makers on the NSE before the end of the week and delist moribund companies earlier advertised.
8. There will be strict enforcement of NSE listing requirement with zero tolerance for infractions.
9. Nigerian banks will also partner with market maker to inject fund into the capital market through appropriate structured credit facilities.

Share/Save

Here are the main business news of the week courtesy of the Research and Analysis department of CSL Securities:
Nigeria Targets N696bn FDI in 2008
The Nigerian Investment Promotion Commission has assured that the country would rake in more than $6bn (about N696bn) in Foreign Direct Investments by the end of this Fiscal year. Nigeria has received a total FDI of $40bn (N4.6trn) from 1999 to 2006; averaging about $5bn per annum.

Government Estimates $3bn GDP from Ethanol Production
The Federal government is anticipating about N351bn as gross domestic product earning from the biofuel industry when it finally takes off in 2011. The country hopes to cultivate about 65,000 hectares of land for cassava, sugarcane and palm oil to produce about 10 million litres of ethanol annually, beginning from that year.

Government withdraws report on revenue allocation review
The Federal Government has withdrawn the report on the draft revenue allocation formula submitted to the National Assembly for approval last month.President Umaru Yar’ Adua in a letter addressed to Senate President David Mark who same on the floor yesterday gave no reasons for his decision to withdraw the report.The letter reads ion part, ‘I write to formally withdraw the report on the review of the revenue allocation formula which I had forwarded to the distinguished Senate of the Federal Republic of Nigeria for consideration’.However, it was gathered that the President decided to withdraw the report to enable him to amend some aspects of the formula, following discussions between the Presidency and the National Assembly on some of the provisions.

2008 budget amendment splits lawmakers
Hopes of early passage of the amendment proposed by President Umaru Yar’Adua on the N2.74 trillion 2008 budget dimmed yesterday as Senate differed with the House of Representatives on some of its recurrent and capital provisions.Though the two chambers passed an overall N2.647 trillion amended budget as against the N2.567 trillion proposed by the President, they however approved different allocations for some sub heads resulting in differences in total amended recurrent and capital budget.A look at the budget summary as passed by the two chambers shows that while the House passed N1.327 trillion for recurrent expenditure and N785.1 billion for capital expenditure. Also while the lower house passed N162.6 billion for statutory transfers, the Senate approved N162.5 billion for the same purpose.

Constitution amendment to address Niger Delta problem
Honourable Henry Dickson, former chairman of the House of Representatives committee on justice declared that the impending constitutional amendment would present the opportunity to solve the problem of the Niger Delta politically.Dickson, while interacting with newsmen also decried the military option adopted by the Federal Government to confront the activities of the militants in the region insisted that political solution remains the only viable option by addressing certain salient issues in the constitution during the process of the amendment.

Yar’ Adua appoints board for Fiscal Responsibility Commission
President Umaru Yar’ Adua forwarded the name of Alhaji Aliyu Yelwa and others to the Senate for confirmation as chairman and members of the Fiscal Responsibility Commission (FRC).He also sent the confirmation by the Senate the name of former head of state, Chief Ernest Shonekan and seven others as chairman and members of the board of Infrastructure Concession Regulatory Commission (ICRC).

Zenith Bank Posts Massive Results
Zenith Bank Plc today released its results for the financial year ended 30th June, 2008. Turnover increased by 66.83% to N158.294 billion, PBT also increased by 95.84% to N50.284 billion while PAT jumped by 118.54% to N41.040 billion. In spite of this impressive performance, the stock lost 13kobo and closed at N40.76.   While these numbers from Zenith Bank look very impressive, it should be noted that the figures released are un-audited; and there was no explanation for the release of a full year unaudited results.  It might probably be due to the recent reversal of CBN’s common year end convergence policy for Nigerian banks.  There is market hearsay that Zenith Bank might come up with a New Year end different from 30th June.

FG States Share N78bn Excess Crude Proceeds for July.
The three tires of government yesterday shared N78.71 billion from the Domestic Excess Crude Account to augment the shortfall in revenue generated in July. A communiqué signed by the Accountant General of the Federation, Ibrahim Dankwanbo, at the end of the Federation Accounts Allocations Committee (FAAC) meeting said revenue to the Federal Government suffered a decrease because of incessant attacks on oil installations by Niger Delta militants. The total revenue declared to be shared among the three tiers of government was N437.17 billion as against N450.59 billion distributed in June, showing a decrease of N13.42 billion or 2.98 percent.

FDI: Nigeria targets N696 billion in 2008
The Nigerian Investment Promotion Commission (NIPC) has assured that Nigeria would rake in more than $6 billion (about N696 billion) Foreign Direct Investment (FDI) by the end of the 2008 fiscal year. Mustapha Bello executive secretary of the NIPC said, that the quantum of FDI that Nigeria had got in the past few years has been very impressive, adding that the country got more than $5 billion in 2006.He continued to say that the turnover of investors at the commission’s One-stop Shop since March has hit 3000 with average record of 38 to 40 turnovers every week. He added that some of the investors came to visit while others have invested in the country and that by the end of the year, the turnover should be in the region of 30,000.

Sovereign bonds record N5 trillion
Federal Government bonds quoted on the Over-the-Counter (OTC) bond market soared above its 2007 full-year performance in July 2008 as investors staked more than N1 trillion on sovereign-backed fixed assets during the month.Investors staked N1.224 trillion on 1.22 billion bond units in 10,131 deals in July, which raised total turnover in the past seven months to N5.05 trillion on 4.95 billion bond units in 39,524 deals, representing an increase of more than 22 percent on aggregate turnover value of N4.13 trillion recorded for the whole of 2007.Sovereign bonds had recorded a turnover of n3.83 trillion on 3.734 billion units in 29,393 deals in the first half with average monthly turnover of about N638 billion on 622 million bond units in 4,899 deals.

The turnover value performance of the OTC bond market in the past seven months was 163 percent above turnover value in the equity segment, which had also recorded significant leap in value and volume of activities. Market analysts said investors were fleeing to sovereign bonds to hedge their risks against the background of sustained recession in the equity market. They pointed out that the nature of sovereign bonds as near risk-free assets with guaranteed returns made them to perfectly fit the need of many investors as hedging instruments. According to analysts, most fund managers were using bonds as hedging instruments against price volatility on the equity market with a view to ensuring uninterrupted stream of incomes that could sustain the resilience of their portfolios.

Banks introduce fresh charges on cash lodgements
Nigerian banks have introduced new charges on cash deposits made by their customers in what appears a veiled attempt to discourage cash transactions in the economy.In many of the banks, a new fee of 0.5 percent flat is charged on all cash lodgements of up to N1 million and above made in one day.While justifying the new fee which became effective in May this year, one of the banks remarked: “Nigeria remains a cash-driven society and the process of cash handling is time-consuming and costly, therefore it has become imperative to introduce a cash-handling fee of 0.5% flat on all cash lodgements of N1,000,000.00 and above in any day. This will enable us to recoup part of the processing and management fees for all cash lodgements with the CBN”.This new policy affects individual and corporate customers of the banks that have decided to add to the financial burden of their customers. Banking industry analysts see the fee as another veiled attempt by the involved banks to pinch money from their customers outside the conventional commission on turnover (COT) and routine charges on deposits.

Federal Government needs N12tr for infrastructure development
The Federal Government needs to invest $100 billion (about N11.7 trillion) in four critical areas of infrastructure in order to achieve Nigeria’s Vision 2020 agenda and the United Nations’ Millennium Development Goals (MDGs).Dr. Abraham Nwankwo, director-general of the Debt Management Office (DMO) said power would cost about $18 billion to $20 billion; rail tracks, $8 billion to $17 billion; roads, $14 billion and oil and gas, $60 billion. He continued to remark that these infrastructure and related investments are critical to the realization of 13 percent annual growth rate of gross domestic product (GDP) set by the government and for Nigeria to become one of the 20 largest economies in the world by 2020.
He said creation of the Nigeria Infrastructure Fund would be a step in the right direction, through which funds could be mobilized and deployed to address Nigeria’s huge infrastructure deficit.

Sanusi Succeeds Ajekigbe as First Bank MD
A major change of baton will, effective January 1, 2009 take place in Nigeria’s premier financial institution, FBN, as Mr Sanusi Lamido Sanusi, the Executive Director, Risk and Management Control, takes over from Mr. Jacobs Moyo Ajekigbe as Managing Director/Chief Executive of the bank. Mr Ajekigbe will be retiring from the Bank on December 31, 2008 after a meritorious career spanning over three decades in the Bank. This succession plan is in sync with First Bank’s corporate governance practice, as  Sanusi will be understudying Ajekigbe, with a view to assuming office in a seamless maner. As is well known, the bank’s corporate governance posture has won it much recpect and awards both locally and internationally.

Share/Save

Here is the latest chart of the performance of the Nigerian Stock Exchange. It is currently at one of the lowest levels in the past year.

Share/Save

Here are the analysis of the results of UBA, Diamond Bank, Conoil, Oando, and UAC Properties.

FSDH Analysis of UBA’s Q3′ 2008 Results:

1. Improvements in the quality of the bank’s assets.
2. Non-performing loans decreased slightly to N14.66bn.
3. The non-performing loan to gross loan margin decreased from 12.6% to 4.37%.
4. Projects PAT of N52.66bn, N78.99bn, N114.54bn, and N160.36bn for 2008, 2009, 2010, and 2011 respectively.
5. Estimate a fair value of N56.23 for the stock price. So the stock is a rated a BUY.

ZSL Analysis of Oando’s Q2 ‘08 Results

1. PAT increased 59%.
2. 161.94% growth in earnings per share.
3. Expects that the deregulation of the gas industry will provide an opportunity for the company to purchase part of the unbundled Nigerian Gas Company.
4. The $500m in rigs (started in 2007) to develop a stong offering in the upstream services sector is expected to impact the company’s bottom line in the medium to long term.
5. Oando’s marketing unit, Oando Marketing is expected to be quoted on the NSE.
6. The stock is valued at N176.98 in the near term and N222.99 in the long-term.
7. Recommendation of HOLD.

Meristem has a BUY recommendation for Diamond Bank.
Meristem has a BUY recommendation for Conoil.
Meristem has a HOLD recommednation for UAC Properties.

FSDH - UBA Q3 Analysis (7)
Meristem - Conoil Q2 ‘08 Analysis (5)
Meristem - Diamond Bank ‘08 Results Analysis (6)
Meristem - UAC PDC Equity Report (6)
ZSL - Oando Q2 ‘08 Analysis (4)

Share/Save

Here is a nice article on Business Day’s website on stocks to consider during the bear run in the NSE. It is based on a study by Afrinvest WA using projected gross earning, profit after tax, earning per share dividend per share, return on equity, price earning ratio and dividend yield. Their top stocks are Oceanic Bank, Bank PHB, Afribank, Dangote Sugar and International Engergy.

Oceanic Bank
As at the close of trading August, 2008, Oceanic Bank finished at N21.27 per share. This compared with N 24.54 as at the end June 27, 2008. The bank’s gross earning during the 2007 first year was N74. 5 billion and is expected to rise to N138.24 billion by the end of 2008 profit after tax was N17.55 billion and is expected to grow to N34.1 billion. Each investor earned N1.50 and dividend of N1.02 both of which are expected to rise to N1.76 and N1.21 respectively. Price earning ratio and is currently 20.22 times projected to drop to 13.44 times. The stock’s price is expected to close higher at N38.00 per share by the end of the year.

Bank PHB
Price at N20.79 per share August 11, Bank PHB is expected to appreciate to N38.0 per share. The forecast based on its current and expected performance indicators. The bank’s gross earning as at the close of business in the 2007 first half was N36.16 billion which is expected to grow to N75.4 billion, at the end of the 2008. Profit after tax which was N7.75 billion may grow to N28.7 billion by the end of the second half. Earning per share is expected to increase to N1.37 from N1.20 while dividend per share may hit 80 kobo from 70 kobo. Return on equity is projected to decline from 21.4 percent to 16.5 percent.

International Energy
As at the close of trading August 8, International Energy finished at N3.24 per share, a 69.6 percent increase compared to N1.91 per share June 27, 2008. And the stock may rise to N7.50 if current market sentiment is sustained. The company’s gross earning for 2007 first half is N2.68 billion to increase to N4.7 billion or 76.2 percent by the year end . Profit after tax is expected to rise by 99.3 percent to N1.5 billion from N0.752billon. Earning per share would grow by 75.0 percent to 28 kobo from 16 kobo. Dividend per share by the end of 2008 would be 18 kobo, up from 9kobo while return on investment is projected to rise by 12.9 percent. The price earning ratio would improve from 29.9 times to 13.1 times. Dividend yield is expected to grow by 4.3 percent from 4.7 percent in 2007.

Dangote Sugar
Dangote Sugar Refinery traded at N27.20 per share August 11, compared with N24.80 June 27, 2008. In the light of some recent performance indicators, Dangote could rise to N40 by the end of the year.
The company’s gross earning for 2007 first half was N80.64 billion and is expecte4d to climb by 4.5 percent to N84.3 billion by the end of December 2008. Profit after tax is to leap by 26.6 percent to N27.2 billion from N21.4 billion in 2007 while earning per share which was N2.15 would rise by 26.5 percent to N2.72 billion. Dividend per share is expected to be N2.00 from N1.7. Return on investment is expected to grow by 79.7 percent. The price earning ratio which was 18.1 times in 2007 should drop to 11.7 times.

Afribank
As at the close of business on Monday, Afribank closed at N25.00 per share, as against N22.60 in June. The stock is forecast to rise to N32.00 per share. Afribank is expected to grow gross earning by 72 .2 percent from N27,5 billion in the 2007 first half to N 47.4 billion .Profit after tax is to rise by 77.1 percent from N5.2 billion to N9.2 billion. Earning per share is to drop by 12 percent from N1.02 to N0.89. Dividend would grow from 30 kobo to 50 kobo. Return on investment is to decline by 5.8 percent while price earning ratio would rise from 11.4 times to 27.0 times.

Share/Save

A turnover of 3.25 billion shares worth N43.71 billion in 72,486 deals was recorded this week, in contrast to a total of 3.11 billion shares valued at N38.16 billion exchanged last week in 72,680 deals.

There were no transactions in the Federal Government Development Stocks, State Government Bonds and Industrial Loans/Preference Stocks sectors.

The Insurance subsector was the most active during the week (measured by turnover volume), with 1.4 billion shares worth N2.25 billion exchanged by investors in 10,836 deals. Volume in the Insurance subsector was largely driven by activity in the shares of Investment and Allied Assurance Plc. Trading in the shares of the Insurance Company accounted for 880.7 million shares, representing 63.7% of the subsector’s turnover.

The Banking subsector, boosted by activity in the shares of First Bank of Nigeria Plc, First City Monument Bank Plc and Afribank Nigeria Plc, followed on the week’s activity chart with a turnover of 1.3 billion shares valued at N30.22 billion in 38,082 deals.

Last week, the Insurance subsector led on the activity chart and was followed by the Banking subsector.

Price Movement
The All-Share Index dropped by 5.6% to close on Friday at 49,703.56. The market capitalization of the 209 First -Tier equities closed lower at N10.12 trillion.

Seventeen (17) stocks appreciated in price during the week, lower than the eighty (80) in the preceding week. Chevron Oil Nigeria Plc led on the gainers’ table with a gain of N10.68 to close at N224.44 per share while Mobil Oil Nigeria Plc followed with N10.00 to close at N264.00 per share. Other price gainers in the Top 10 category include:
+ BOC Gases Plc - N3.15
+ UACN Plc - N2.44
+ Intercontinental WAPIC Insurance Plc - N1.66
+ 7-Up Bottling Company Plc - N1.24
+ Presco Plc - N1.03
+ Red Star Express Plc - N0.75
+ IPWA Plc - N0.49
+ Academy Press Plc - N0.47

Eighty - Eight (88) stocks depreciated in price during the week, higher than the twenty - six (26) in the preceding week. Julius Berger Nigeria Plc led on the price losers’ table, dropping by N103.12 to close at N43.12 per share while Nestle Nigeria Plc followed with a loss of N17.26 to close at N199.50 per share. Other price losers in the Top 10 category include:
- First Bank of Nigeria Plc - N11.44
- Benue Cement Company Plc. - N6.40
- Costain (WA) Plc - N3.58
- PZ Cussons Nigeria Plc - N3.44
- Cadbury Nigeria Plc - N3.31
- Nigerian Aviation Handling Co. Plc - N3.02
- Guinness Nigeria Plc - N3.02
- Conoil Plc - N2.75

Eight equity prices were adjusted for dividend and or bonus as recommended by the Board of Directors. Julius Berger Nigeria Plc was adjusted for dividend of N1.25 per share and bonus of 3 for 1.

Julius Berger Nigeria Plc was adjusted for special dividend of N3.75 per share. First Bank of Nigeria Plc was adjusted for dividend of N1.20 per share and bonus of 1 for 4. Conoil Plc was adjusted for dividend of N2.75 per share.

Associated Bus Company Plc was adjusted for dividend of N0.08 per share. C & I Leasing Plc was adjusted for final dividend of N0.06 per share. Lasaco Assurance Plc was adjusted for dividend of N0.08 per share.

Investment and Allied Assurance Plc was adjusted for dividend of 0.8 kobo per share. Regency Alliance Insurance Plc was adjusted for bonus of 1 for 4.

Supplementary Listings
A total of 4,972,508,093 shares were added to the shares outstanding in the name of First Bank of Nigeria Plc following the bonus of 1 for 4. A total of 760,653,675 shares were added to the shares outstanding in the name of Costain (WA) Plc on Monday, August 4, 2008 following the conclusion of the hybrid offering and the subsequent supplementary offer. A total of 900,000,000 shares were added to the shares outstanding in the name of Julius Berger Nigeria Plc following the bonus of 3 for 1. A total of 1,212,500,000 shares were added to the shares outstanding in the name of Regency Alliance Insurance Plc following the bonus of 1 for 4.

COMPANY NEWS
DIAMOND BANK PLC: Audited result for the year ended 30th April 2008 shows Gross Earnings of N60.44 billion as against N39.9 billion in 2007. Profit after tax stood at N12.82 billion compared with N5.8 billion in 2007. The Directors are recommending a dividend of N0.56 per share and bonus of 1 for 10. The date of closure of register of members is August 15, 2008 while payment date is August 28, 2008. The Annual General Meeting (AGM) of shareholders is scheduled to hold at Shell Hall, Muson Centre, Onikan, Lagos on Thursday, August 28, 2008 by 11.00a.m.

DIAMOND BANK PLC: Unaudited result for the first quarter ended 31st July 2008 shows Gross Earnings of N21.8 billion, as against N10.44 billion in the comparable period of 2007. Profit after tax stood at N4.71 billion compared with N2.012 billion in 2007.

INTERCONTINENTAL WAPIC INSURANCE PLC: Audited result for the year ended 31st December 2007 shows Gross Premium of N3.9 billion as against N3.15 billion in 2006. Profit after tax stood at N533.33 million compared with N701.12 million in 2006. The Directors are recommending a dividend of N0.125 per share and bonus of 1 for 5. The date of closure of register of members is August 11, 2008 while payment date is August 28, 2008.

AIICO: INSURANCE PLC: Audited result for the year ended 31st December 2007 shows Gross Premium of N5.25 billion as against N3.41 billion in 2006. Profit after tax stood at N304.71 million compared with N483.7 million in 2006.

IPWA PLC: Audited result for the year ended 31st December 2007 shows Turnover of N485.7 million as against N303.92 million in 2006. Profit after tax stood at N68.52 million compared with loss after tax of N50.2 million in 2006. The Directors are recommending a dividend of N0.02 per share. The date of closure of register of members is August 25, 2008 while payment date is September 22, 2008.

NEIMETH INTERNATIONAL PHARMACEUTICAL PLC: Audited result for the year ended 31st March 2008 shows Turnover of N1.95 billion as against N1.5 billion in 2007. Profit after tax stood at N98.3 million compared with N116.41 million in 2007. The Directors are recommending a dividend of N0.12 per share and bonus of 1 for 4. The date of closure of register of members is August 29, 2008 while payment date would be advised later.

ALUMINUM EXTRUSION INDUSTRIES PLC: Audited result for the year ended 31st December 2007 shows Turnover of N1.04 billion as against N864.3 million in 2006. Profit after tax stood at N51.7 million compared with N20.7 million in 2006.

ECOBANK NIGERIA PLC: Unaudited result for the half year ended 30th June 2008 shows Gross Earnings of N25.04 billion, as against N16.1 billion in the comparable period of 2007. Profit after tax stood at N4.1 billion compared with N3.42 billion in 2007.

THE OKOMU OIL PALM PLC: Unaudited result for the first quarter ended 31st March 2008 shows Turnover of N1.8 billion, as against N924.4 million in the comparable period of 2007. Profit after tax stood at N889.31 million compared with N263.12 million in 2007.

JAPAUL OIL & MARITIME SERVICES PLC: Unaudited result for the half year ended 30th June 2008 shows Turnover of N1.5 billion, as against N1.0 billion in the comparable period of 2007. Profit after tax stood at N468.5 million compared with N183.6 million in 2007.

TANTALIZERS PLC: Unaudited result for the half year ended 30th June 2008 shows Turnover of N2.2 billion, as against N1.84 million in the comparable period of 2007. Profit after tax stood at N239.2 million compared with N82.71 million in 2007.

LIVESTOCK FEEDS PLC: Unaudited result for the half year ended 30th June 2008 shows Turnover of N848.91 million, as against N452.34 million in the comparable period of 2007. Profit after tax stood at N52.32 million compared with N23.72 million in 2007.

TRANS-NATIONWIDE EXPRESS PLC: Unaudited result for the half year ended 30th June 2008 shows Turnover of N226.64 million, as against N173.72 million in the comparable period of 2007. Profit after tax stood at N25.35 million compared with N25 million in 2007.

FTNCOCOA PROCESSORS PLC: Audited result for the 4 months ended 30th April 2008 shows Turnover of N324.6 billion, as against N2.7 billion during the year ended December 31, 2007. Profit after tax stood at N143.2 million compared with profit after tax and extra-ordinary items of N142.8 million during the year ended December 31, 2007.

PRESTIGE ASSURANCE PLC: Unaudited result for the half year ended 30th June 2008 shows Gross Premium of N1.75 billion, as against N1.05 billion in the comparable period of 2007. Profit after tax stood at N383 million compared with N242 million in 2007.

CONSOLIDATED HALLMARK INSURANCE PLC: Unaudited result for the half year ended 30th June 2008 shows Gross Premium of N1.41 billion, as against N578.8 million in the comparable period of 2007. Profit after tax stood at N473.7 million compared with N163.8 million in 2007.

STACO INSURANCE PLC: Unaudited result for the half year ended 30th June 2008 shows Gross Premium of N1.4 billion, as against N656.52 million in the comparable period of 2007. Profit after tax stood at N680.01 million compared with N301.2 million in 2007.

STANDARD ALLIANCE INSURANCE PLC: Unaudited result for the half year ended 30th June 2008 shows Gross Premium of N2.1 billion, as against N1.3 billion in the comparable period of 2007. Profit after tax stood at N577.85 million compared with N231.94 million in 2007.

UNITED NIGERIAN TEXTILES PLC: Audited result for the year ended 31st December 2007 shows Turnover of N18.5 billion as against N20.3 billion in 2006. Loss after tax and exceptional income stood at N1.73 billion compared with loss after tax of N756.5 million in 2006.

UNITED NIGERIAN TEXTILES PLC: Unaudited result for the first quarter ended 31st March 2008 shows Turnover of N3.1 billion, as against N5.14 billion in the comparable period of 2007. Loss after tax stood at N213.54 million compared with N101.4 million in 2007.

REPORT ON THE OTC MARKET FOR FGN BONDS
A turnover of 191 million units worth N189.6 billion in 1650 deals was recorded this week, in contrast to a total of 371.63 million units valued at N368.14 billion exchanged in 3413 deals during the week ended July 31, 2008. The most active bond (measured by turnover volume) was the 4th FGN Bond 2014 Series 3 with a traded volume of 24.4 million units valued at N25.95 billion in 212 deals.

Share/Save

Here are some news headlines from Guardian Newspapers in the last 3 days:

Oceanic Bank opens office in Sao Tome

THE Oceanic Bank Plc in Sao Tome and Principe said that it would provide quality service to the business and investment community in the Atlantic Ocean country.

The bank’s Managing Director/Chief Executive in Sao Tome, Mr. Peter Nwankwo, told the News Agency of Nigeria (NAN) recently in Sao Tome that the branch was a subsidiary of the Oceanic Bank Group.

According to him, Nigeria and Sao Tome and Principe enjoyed special relations through the Joint Development Authority (JDA), which administered their common economic interests in the Joint Development Zone (JDZ) of the maritime boundary.

“We also want to assist the business community in STP and STP in Diaspora and other investment groups, including Nigerians to do business here.
“The bank is a one-stop-over supermarket in STP where we guarantee our financial services with high professionalism,” Nwankwo said.

He said that President Fradique Meneses and the CEO of the bank, Chief Cecilia Ibru, would inaugurate the branch jointly on Thursday.

Union Homes floats N50b REIT fund

AFRICA’S first Real Estate Investment Trust (REIT) fund has been floated by Union Homes Saving & Loans Plc, a subsidiary of Union Bank of Nigeria Plc. The Union Home REIT, is a closed-ended unit trust scheme that aims to achieve long-term capital appreciation of assets by investing in a portfolio of high-quality real estate and mortgage assets.

For its effective take-off, Goldman Assets Management Limited as financial adviser and lead arranger, alongside Union Capital Market Limited as joint issuing house is packaging an offer for public subscription of 970.9 million units of N51.50 each in the Union Homes REIT.

The fund manager would be Union Homes Saving and Loans Plc, and the fund would be quoted on the Nigerian Stock Exchange.

According to the prospectus, the funds would invest a minimum of 90 per cent of its assets in real estate and real estate related assets and a maximum of 10 per cent would be invested in quality money market instruments.

Already, the council of the Nigerian Stock Exchange has approved the admission of the 970.9 million units being offered for subscription on its daily official list, and the units qualify as securities in which trustees may invest under the Trustee Investment Act, Cap T22, laws of the Federation of Nigeria, 2004.
As a form of mandatory subscription, the sponsors of the Union Homes REIT will subscribe to 10 per cent of the total fund size as mandated by the Securities and Exchange Commission (SEC) rules and regulations guiding collective investment schemes.

Key features of the offer include a forecast cash distribution of N1.50 per unit invest in the 2009 financial year and N3.25 for zolo for initial investors. Also there is a yearly payout of dividend with the minimum payout fixed at 90 per cent according to the Chairman of Union Homes Saving & Loans Plc, Dr. Batholomew Ebong.

The offer opens on August 11 and closes on September 11, 2008

First Bank seeks licence for life assurance

The Managing Director and Chief Executive, FBN Insurance Brokers, Mr. Val Ojumah, who confirmed the bank’s entry said the bank’s interest is to use life assurance as an entry point to lift life insurance penetration in Nigeria which is very minimal.

AP floats N105 billion hybrid offering

TO expand its operational capacity, enhance working capital and upgrade its storage facilities, African Petroleum Plc (AP) has floated an hybrid offering to raise fresh N105 billion from the capital market.

Specifically, the company is offering by way of rights to existing shareholders, 262.93 billion ordinary shares of 50 kobo each at N230 per share on the basis of one new ordinary share for every three ordinary shares already held by existing shareholders as at February 20, 2008.

Besides, new investors would be able to participate through an offer for subscription of 199.1 million ordinary shares of 50 kobo each at N250 per share.

According to the prospectus, the purpose of the offer is to provide additional working capital, procure and upgrade existing storage facilities, lubricant plants and retail outlets.

Specifically, the lion share of 42.24 per cent or N44.3 billion would be expended on the construction of a refinery of 50,000 barrels per day capacity at Lekki Free Trade Zone, while another N23.8 billion or 22.7 per cent would be expended on market expansion, acquisition and construction of additional 350 modern service stations nationwide.

Increase in working capital will take N18.1 billion or 17.21 per cent, while construction of 120,000 metric tonnes PMS storage at Apapa, Lagos State with N5.76 billion or 5.49 per cent, among others.

Diamond Bank to expand operations to seven Francophone countries

DIAMOND Bank has completed arrangements for the establishment of seven banking branches in seven different Francophone speaking African countries.
The expansion and establishment of the operations was part of the bank’s “socio-economic responsibilities” and other services to be rendered to the people living in the African countries.

The expansionary branch network was to complement the ones in the French speaking countries of Senegal, Benin and Cote d’voire.

The bank, which has a capital base of over N30 billion, has already 160 branches in the country and other African countries. While the bank’s assets has also increased to over N1 trillion.

Share/Save

FSDH’s Analysis of RT Briscoe’s Q2 Results

1. Company most likely to surpass last year’s performance.
2. Good working capital position. So there is no fear of the company not meeting short term obligations.
3. Projects a PAT of N740m for fiscal year.
4. Rates the stock as a BUY at current price.

FSDH Analysis - R.T BRISCOE -Q2- 2008 (4)

Meristem Securities’ Analysis of Air Services PLC

1. The company provides catering and hospitality services to local and international airlines and airports in Nigeria.
2. Company currently enjoys a monopoly in providing catering services to the various airlines that serve the Nigerian economy.
3. It has recorded impressive growth in PBT and PAT of 75% and 86% in the last 5 years.
4. PAT is projected to rise to N1.67bn in the next 5 years.
5. For FY 08, a 44% rise in PAT is projected.
6. Rates the stock as a PUY with an upside potential of 27%.

Meristem Equity Research Report - ASL (10)

You can also read Meristem’s Analysis of the Petroleum Marketing companies:
Meristem - Report on Petroleum Marketing Companies (6)

Share/Save

A turnover of 3.11 billion shares worth N38.16 billion in 72,680 deals was recorded this week, in contrast to a total of 4.05 billion shares valued at N43.75 billion exchanged last week in 73,782 deals.

There were no transactions in the Federal Government Development Stocks, State Government Bonds and Industrial Loans/Preference Stocks sectors.

The Insurance subsector was the most active during the week (measured by turnover volume), with 1.3 billion shares worth N2.05 billion exchanged by investors in 10,433 deals. Volume in the Insurance subsector was largely driven by activity in the shares of Investment and Allied Assurance Plc. Trading in the shares of the Insurance
Company accounted for 811.8 million shares, representing 62.7% of the subsector’s turnover.

The Banking subsector, boosted by activity in the shares of First City Monument Bank Plc and Fidelity Bank Plc, followed on the week’s activity chart with a turnover of 1.2 billion shares valued at N24.65 billion in 37,592 deals.

Last week, the Insurance subsector led on the activity chart and was followed by the Banking subsector.

Price Movement:
The All-Share Index rose by 4.04% to close on Friday at 52,641.55. The market capitalization of the 209 First -Tier equities closed higher at N10.55 trillion.
Eighty (80) stocks appreciated in price during the week, higher than the nineteen (19) in the preceding week. Mobil Oil Nigeria Plc led on the gainers’ table with a gain of N33.80 to close at N254.00 per share while Julius Berger Nigeria Plc followed with N25.91 to close at N146.24 per share. Other price gainers in the Top 10 category include:
+ Flour Mills Nigeria Plc - N8.05
+ Unilever Nigeria Plc - N4.97
+ Benue Cement Company Plc - N4.85
+ Cadbury Nigeria Plc - N4.70
+ UACN Plc - N4.42
+ PZ Cussons Nigeria Plc - N4.13
+ Guinness Nigeria Plc - N4.00
+ UACN Property Development Co. Plc - N3.99

Twenty – Six (26) stocks depreciated in price during the week, lower than the ninety-two (92) in the preceding week. Three Petroleum (Marketing) Stocks led on the losers table. Chevron Oil Nigeria Plc led dropping by N46.05 to close at N213.76 per share while Oando Plc followed with a loss of N17.99 to close at N170.01 per share. Other price losers in the Top 10 category include:
- Total Nigeria Plc - N9.50
- Nig. Enamelware Plc . - N8.61
- Nestle Nigeria Plc - N4.24
- 7-Up Bottling Co. Plc - N2.58
- G Cappa Plc - N1.47
- PlatinumHabib Bank Plc - N1.46
- Neimeth International Pharmaceuticals Plc - N1.43
- Ashaka Cement Plc - N1.00

Two equity prices were adjusted for dividend as recommended by the Board of Directors. Access Bank Plc was adjusted for dividend of N0.65 per share while NEM Insurance Plc was adjusted for dividend of N0.05 per share.

COMPANY NEWS
CONOIL PLC: Audited result for the year ended 31st December 2007 shows Turnover of N86.85 billion as against N90.52 billion in 2006. Profit after tax stood at N2.6 billion compared with N2.81 billion in 2006. The Directors are recommending a dividend of N2.75 per share. The date of closure of register of members is August 4, 2008 while payment date is September 19, 2008.

PZ INDUSTRIES PLC: Audited result for the year ended 31st May 2008 shows Turnover of N65.94 billion as against N54.22 billion in 2007. Profit after tax, exceptional items and minority interest stood at N3.95 billion compared with profit after tax and minority interest of N3.51 billion in 2007. The Directors are recommending a dividend of N0.62 per share. The date of closure of register of members is August 25, 2008 while payment date is September 11, 2008.

CAPPA & D”ALBERTO PLC: Audited result for the year ended 31st December 2007. The Directors are recommending a dividend of N0.50 per share. The date of closure of register of members is October 2, 2008 while payment date would be advised later.

ASSOCIATED BUS COMPANY PLC: Audited result for the year ended 31st December 2007 shows Turnover of N3.13 billion as against N2.71 billion in 2006. Profit after tax stood at N141.25 million compared with N143.01 million in 2006. The Directors are recommending a dividend of N0.08 per share. The date of closure of register of members is August 7, 2008 while payment date is September 7, 2008.

ASO SAVINGS & LOANS PLC: Audited result for the year ended 31st March 2008 shows Gross Earnings of N7.1 billion as against N2 billion in 2007. Profit after tax stood at N1.1 billion compared with N276.62 million in 2007. The Directors are recommending a dividend of N0.05 per share. The date of closure of register of members is October 6, 2008 while payment date is October 24, 2008.

LASACO ASSURANCE PLC: Audited result for the year ended 31st December 2007 shows Gross Premium of N1.84 billion as against N1.6 billion in 2006. Profit after tax stood at N678.11 million compared with N171.35 million in 2006. The Directors are recommending a dividend of N0.08 per share. The date of closure of register of members is August 8, 2008 while payment date is September 4, 2008. The 28th Annual General Meeting (AGM) of shareholders is scheduled to hold on Thursday, September 4, 2008 by 11.00a.m. The venue would be advised later

ROYAL EXCHANGE ASSURANCE (NIG) PLC: Audited result for the year ended 31st December 2007 shows Gross Premium of N2.7 billion as against N2.14 billion in 2006. Profit after tax stood at N543.64 million compared with profit after tax and exceptional items of N178.71 million in 2006. The Directors are recommending a bonus of 1 for 10. The date of closure of register of members was June 30, 2008.

GREAT NIGERIA INSURANCE PLC: Audited result for the year ended 31st December 2007 shows Gross Premium of N608.04 million as against N289.74 million in 2006. Profit after tax stood at N90.25 million compared with loss after tax of N155.35 million in 2006.

GREAT NIGERIA INSURANCE PLC: Unaudited result for the half year ended 30th June 2008 shows Gross Premium of N563.7 million, as against N425.2 million in the comparable period of 2007. Profit after tax stood at N85.4 million compared with N75.85 million in 2007.

NEM INSURANCE PLC: Unaudited result for the half year ended 30th June 2008 shows Gross Premium of N2.32 billion, as against N1.31 billion in the comparable period of 2007. Profit after tax stood at N560.92 million compared with N213.8 million in 2007.

OASIS INSURANCE PLC: Unaudited result for the half year ended 30th June 2008 shows Gross Premium of N521.35 million, as against N158.01 million in the comparable period of 2007. Profit after tax stood at N138.05 million compared with N17.11 million in 2007.

CORNERSTONE INSURANCE PLC: Unaudited result for the half year ended 30th June 2008 shows Gross Premium of N2.13 billion, as against N1.7 billion in the comparable period of 2007. Profit after tax stood at N438.7 million compared with N330.52 million in 2007.

ASHAKA CEMENT PLC: Audited result for the year ended 31st December 2007 shows Turnover of N16.5 billion as against N16.8 billion in 2006. Profit after tax stood at N1.6 billion compared with N3.4 billion in 2006. The Directors are recommending a bonus of 1 for 6. The date of closure of register of members is August 25, 2008

ECOBANK TRANSNATIONAL INCORPORATED: Unaudited result for the half year ended 30th June 2008 shows Gross Revenue of N61.3 billion, as against N38.02 billion in the comparable period of 2007. Profit after tax stood at N9.0 billion compared with N6.6 billion in 2007.

OANDO PLC: Unaudited result for the half year ended 30th June 2008 shows Turnover of N124.41 billion, as against N106 billion in the comparable period of 2007. Profit after tax stood at N3.7 billion compared with profit after tax and exceptional items of N2.31 billion in 2007.

STERLING BANK PLC: Unaudited result for the third quarter ended 30th June 2008 shows Gross Earnings of N27.1 billion, as against N16.01 billion in the comparable period of 2007. Profit after tax stood at N4.6 billion compared with N2.5 billion in 2007.

RT BRISCOE (NIG) PLC: Unaudited result for the half year ended 30th June 2008 shows Turnover of N9.03 billion, as against N8.01 billion in the comparable period of 2007. Profit after tax stood at N391.1 million compared with N326.04 million in 2007.

IKEJA HOTEL PLC: Unaudited result for the half year ended 30th June 2008 shows Turnover of N3.22 billion, as against N2.5 billion in the comparable period of 2007. Profit after tax stood at N555.61 million compared with N397.84 million in 2007.

LAFARGE WAPCO PLC: Unaudited result for the half year ended 30th June 2008 shows Turnover of N22.2 billion, as against N19.9 billion in the comparable period of 2007. Profit after tax stood at N4.75 billion compared with N5.82 billion in 2007.

TRIPPLE GEE & CO. PLC: Unaudited result for the first quarter ended 30th June 2008 shows Turnover of N225.6 million, as against N161.82 million in the comparable period of 2007. Profit after tax stood at N26.14 million compared with N16.9 million in 2007.

FIRST ALUMINIUM NIGERIA PLC: Unaudited result for the half year ended 30th June 2008 shows Turnover of N4.28 billion, as against N4.3 billion in the comparable period of 2007. Loss after tax stood at N13.82 million compared with N171.7 million in 2007.

INVESTMENT & ALLIED ASSURANCE PLC: Audited result for the year ended 31st December 2007 shows Gross Premium of N675.7 million as against N159.2 million in 2006. Profit after tax stood at N304.65 million compared with N54.64 million in 2006. The Directors are recommending a dividend of 0.8 kobo per share. The date of closure of register of members is August 8, 2008 while payment date is September 8, 2008.

INVESTMENT & ALLIED ASSURANCE PLC: Unaudited result for the half year ended 30th June 2008 shows Gross Premium of N611.93 million, as against N354.2 million in the comparable period of 2007. Profit after tax stood at N252.9 million compared with N136.8 million in 2007.

REPORT ON THE OTC MARKET FOR FGN BONDS
A turnover of 371.63 million units worth N368.14 billion in 3413 deals was recorded this week, in contrast to a total of 232.62 million units valued at N232.6 billion exchanged in 2001 deals during the week ended July 24, 2008. As in the preceding week, the most active bond (measured by turnover volume) was the 5th FGN Bond 2018 Series 2 with a traded volume of 34.85 million units valued at N31.51 billion in 287 deals.

Share/Save

Below is are summaries of the reports on Nigerian Breweries, Unilever and NAHCO. Lead Capital’s Q2 Economic Report is also available.
FSDH’s Research Report on Nigerian Breweries
1. A projected turnover of N145.27bn with a growth of 30%
2. Earnings Per Share projection of N3.26
3. Profit After Tax projection of N24.63bn
4. The stock is a BUY
FSDH-Nigerian Breweries Q2 Analysis (3)

FSDH’s Research Report on UNILEVER Nigeria PLC
1. Turnover projection of N40.05bn
2. PAT projection of N3.69bn
3. Divident Per Share projection of N0.83
4. The stock is valued at N25.05
5. The stock is a BUY
FSDH-Unilever Q2 Analysis (2)

Meristem’s Analysis of NAHCO
1. Competitive pressures are likely to erode the company’s monopoly status as current reforms are luring ground handling companies into the country
2. Believes that NAHCO will be negatively impacted by unexpected negative government regulations
3. Post-privatization growth rate of about 9% has been unimpressive
4. Believes the stock is overvalued by as much as 18%
5. The stock is a SELL
Meristem - NAHCO Analysis (Abridged) (25)

Lead Capital - Q2 Economic Report (4)

Share/Save

Results for Livestock Feeds, Flour Mills of Nigeria, National Sports Lottery, DN Meyer, Aso Savings and Loans, Presco, Interlinked Technologies, Royal Exchange and AG Leventis:

Share/Save

Results for Deap Capital, Ellah Lakes, and Crusader Insurance:

Share/Save