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Stock Market Report For Week Ended Sept 19th

Courtesy of Meristem Securities, here is the summary of the NSE for the week ended Friday, September 19th:

Market Overview
In what could be described as complete bear reign, the stock market continued in losses terrain. However, Thursday saw the Central Bank announce a slash in lending rates (Monetary Policy Rate was cut down from 10.25 percent to 9.75 percent; Cash Reserve Rate reduced from 4 percent to 2 percent and Liquidity Ratio dropped to 30 percent from 40 percent) and the release of N150 trillion (US$1.27 billion), a move which is directed at preventing any negative effect of the global financial crisis and credit crunch on the Nigerian market and economy. Concurrently, over US$180 billion was pumped into global markets by six central banks in a bid to lift the amounts of funds available.

The NSE ASI was down by 2.91% compared with previous Friday‘s point of 48,738.15. The ASI today booked a mild plunge of 0.18 percent to settle at 47,317.94 points while the market capitalisation of the 217 listed equities declined by 1.91 percent (relative to a week ago) and lost 0.18 percent by the close of business on Friday to stand at N10.019 trillion (US$84.19 billion).

An aggregate of 2.46 billion shares were traded in 49,498 deals which was valued at N39.28billion (US$330.12million) compared with previous week’s trading history of 2.65 billion shares executed in 44,371 trades worth N50.26billion (US$422.38 million).

Global Performance
This week witnessed a couple of spine gripping happenings across the global markets. Stocks in the U.S. markets on Monday posted sharp losses in the dawn of bankruptcy plan at Lehman Brothers Holdings Inc. and forced sale of Merrill Lynch to Bank of America for US$50 billion in stock. Further market losses were cut short by the injection of $180 billion USD by U.S. Federal Reserve.

Friday recorded a move by most Government across the globe following suit. Japan, Australia, India and Indonesia pumped over $42 billion into their money markets. The Chinese government bought shares in three of the biggest state-owned banks and ditched a tax on purchases of stocks to support its stock market. On Thursday, regulators of the British market imposed a temporary ban on short selling which allow investors to profit from falling prices.

Consequently, activities on major stock exchanges across the world recorded appreciable positive returns. London’s FTSE leapt 7 percent. In Frankfurt, Germany’s DAX index bounced up by 4 percent while the Irish Stock Exchange reacted rising by 12 percent. Across Asia, similar spikes were seen around the region. Hong Kong’s Hang Seng Index sprung a stunning 9.6 percent to 19,327.73 points, while Japan’s Nikkei 225 average rose 3.8 percent to 11,920.86 points. The Shanghai benchmark in China soared 9.5 percent. Likewise, Oil prices on the international scene rose above $100 a barrel to $100.04 per barrel.

Price Movement Chart
A total of 20 stocks appreciated in price during the week, lower than 22 in the preceding week. CONOIL +11.32k led, closing up at N105.14k while UACN +2.75k, CAP +2.40k and NBC +1.08k followed. On the other hand of the pendulum, 70 stocks settled in the losers’ camp for the week led by CHEVRON -12.17k as AFRIBANK -8.16k and OANDO -6.69 trailed behind. (See Full Update)

Banking Sector Led Sectoral Performance Analysis
The banking sector was the most active during the week (measured by turnover volume), accounting for 2.32 billion shares exchanged by investors in 26,906 deals worth N34.53 billion. This feat was made achievable as investors rallied for the shares of SPRINGBANK (876.45m units), AFRIBANK (441.42m units), ECOBANK (285.04m units) and OCEANIC (251.54m units) which represented 79.8 percent of the sector’s turnover. The insurance sector boosted by activity in IAINSURE, followed on the week’s activity chart with 369.9m shares valued at N755.5m in 5,345 deals. (Full Update)

CORPORATE NEWS:
Companies Performance Results
Law Union & Rock Insurance Plc released its audited accounts for the year ended December 31, 2007. Similarly, Benue Cement Company Plc, Guaranty Trust Bank Plc, Berger Paints Plc and Nigerian Bottling Company Plc all made public their Q2’08 un-audited results for the period ended respectively.

BAGCO PLC and UNIC PLC made public their un-audited Q1’08 and Q2’08 results for the period ended June 30 respectively. (See Full Update)

Share Reconstruction
ECOBANK Plc on Thursday, filed in for share reconstruction exercise of 1 for 3 (one new share for every three previously held) after shareholders endorsed same in the last AGM held on May 31, 2007. To this effect, the shares will be placed on full suspension for a week commencing on Monday, September 22, 2008.

Delisting of Companies’ shares:
The following Companies were delisted from the Daily Official List of the NSE on grounds of failure to meet the post-listing requirements of the Exchange: ACEN INSURANCE PLC, AMICABLE INSURANCE PLC, BAICO INSURANCE PLC, ATLAS NIGERIA PLC, CEREMICS MANUFACTURING PLC, BEVERAGES (W.A.) NIGERIA PLC, ENPEE NIGERIA PLC, TATE INDUSRIES PLC, MAUREEN LABORATORIES PLC and RIETZCOT NIGERIA PLC.

NIGERIAN BREWERIES Pays Interim Dividend
Nigerian Breweries Plc declared an interim dividend of N1.00k per share. Closure date was fixed for October 09, 2008 and payment date October 17, 2008.

Share Price Adjustment
The share price of FTN COCOA PLC was adjusted for a dividend of N0.025k and scrip issue of 1 for 10 while AFRIBANK PLC adjusted for a dividend of N0.50k and a bonus issue of 1 for 3. The share price of UPL Plc was adjusted for dividend payment of N0.35k during the trading week.

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Stock Report for the Week Ended, Friday, July 18th

A turnover of 3.4 billion shares worth N40.83 billion in 71,899 deals was recorded this week, in contrast to a total of 5.8 billion shares valued at N42.12 billion exchanged last week in 88,146 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 1.50 billion shares worth N2.54 billion exchanged by investors in 11,362 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 1.02 billion shares, representing 68.32% of the subsector’s turnover.

The Banking subsector, boosted by activity in the shares of First City Monument Bank Plc, First Bank of Nigeria Plc and Union Bank of Nigeria Plc, followed on the week’s activity chart with a turnover of 1.2 billion shares valued at N29.14 billion in 36,130 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 4.35% to close on Friday at 52,286.88. The market capitalization of the 209 First -Tier equities closed lower at N10.47 trillion.

Eighteen (18) stocks appreciated in price during the week, lower than the thirty-two (32) in the preceding week. Also, as in the preceding week, Mobil Oil Nigeria Plc led on the gainers’ table with a gain of N34.20 to close at N251.24 per share while Union Bank of Nigeria Plc followed with N6.06 to close at N42.00 per share. Other price gainers in the Top 10 category include:
• BOC Gases Plc - N3.42
• Chemical & Allied Products Plc - N2.70
• UACN Plc - N1.86
• Longman Nigeria Plc - N1.21
• Starcomms Plc - N0.92
• Nigerian-German Chemicals Plc - N0.92
• Afribank Nigeria Plc - N0.75
• Ferdinand Oil Mills Plc - N0.54

Ninety - One (91) stocks depreciated in price during the week, higher than the eighty-one (81) in the preceding week. Chevron Oil Nigeria Plc led on the price losers’ table, dropping by N36.27 to close at N335.73 per share while Flour Mills Nigeria Plc followed with a loss of N9.85 to close at N75.05 per share. Other price losers in the Top 10 category include:
• Guinness Nigeria Plc - N6.96
• Conoil Plc . - N4.99
• Ashaka Cement Plc - N4.92
• Lafarge WAPCO Plc - N4.30
• Costain (WA) Plc - N3.50
• Unilever Nigeria Plc - N3.10
• Stanbic IBTC Bank Plc - N3.08
• Nigerian Aviation Handling Co. Plc - N2.95

New Listing
The 6,878,478,096 shares in favour of Starcomms Plc were admitted to the Daily Official List at a price of N13.65 per share on Monday, July 14, 2008 by way of Introduction. The shares were listed in the newly created Telecommunications subsector. By this action, the number of listed companies and securities increased to 224 and 317, respectively.

Full Suspension
This was imposed on Cadbury Nigeria Plc on Thursday, July 17, 2008 and would remain in place until the Company complies with the decisions of the Administrative Proceedings Committee (APC).

COMPANY NEWS
FIRST BANK OF NIGERIA PLC: Audited result for the year ended 31st March 2008 shows Gross Earnings of N155.3 billion as against N91.2 billion in 2007. Profit after tax stood at N36.54 billion compared with N20.64 billion in 2007. The Directors are recommending a dividend of N1.20 per share and bonus of 1 for 4. The date of closure of register of members is August 8, 2008 while payment date is August 29, 2008.

ACCESS BANK PLC: Audited result for the year ended 31st March 2008 shows Gross Earnings of N58 billion as against N27.9 billion in 2007. Profit after tax stood at N15.85 billion compared with N6.1 billion in 2007. The Directors are recommending a dividend of N0.65 per share. The date of closure of register of members is July 29, 2008 while payment date is August 12, 2008. The 19th Annual General Meeting (AGM) of shareholders is scheduled to hold at Lagoon Restaurant, Ozumba Mbadiwe Avenue, Victoria Island, Lagos on Tuesday, August 5, 2008 by 11.00a.m.

STANBIC IBTC BANK PLC: Audited result for the 9-month ended 31st December 2007 shows Gross Earnings of N28.9 billion as against N21.12 billion during the 12-month ended 31st March 2007. Profit after tax stood at N7.85 billion compared with N5.8 billion during the 12-month ended 31st March 2007. The Directors are recommending a dividend of N0.30 per share. The date of closure of register of members is July 17, 2008 while payment date would be advised later.

OCEANIC BANK INTERNATIONAL PLC: Unaudited result for the third quarter ended 30th June 2008 shows Gross Earnings of N106.74 billion, as against N47.52 billion in the comparable period of 2007. Profit after tax stood at N33.61 billion compared with N13.63 billion in 2007.

UNITED BANK FOR AFRICA PLC: Unaudited result for the third quarter ended 30th June 2008 shows Gross Earnings of N120.3 billion, as against N75.25 billion in the comparable period
of 2007. Profit after tax and exceptional items stood at N28.85 billion compared with N17.13 billion in 2007.

SKYE BANK PLC: Unaudited result for the third quarter ended 30th June 2008 shows Gross Earnings of N47.3 billion, as against N28.8 billion in the comparable period of 2007. Profit after tax stood at N10.9 billion compared with N3.25 billion in 2007.

AIICO INSURANCE PLC: Unaudited result for the first quarter ended 31st March 2008 shows Gross Premium of N2.03 billion, as against N752.73 million in the comparable period of 2007. Profit after tax stood at N402 million compared with N82.3 million in 2007.

NIGERIAN BREWERIES PLC: Unaudited result for the half year ended 30th June 2008 shows Turnover of N68.05 billion, as against N51.9 billion in the comparable period of 2007. Profit after tax stood at N12.34 billion compared with N8.5 billion in 2007.

NATIONAL SALT CO. NIG. PLC: Unaudited result for the first quarter ended 31st March 2008 shows Turnover of N3.6 billion, as against N2.33 billion in the comparable period of 2007. Profit after tax stood at N642.9 million compared with N516.0 million in 2007.

NIGERIAN ENAMELWARE PLC: Unaudited result for the half year ended 31st March 2008 shows Turnover of N1.32 billion, as against N1.23 billion in the comparable period of 2007. Profit after tax stood at N14.33 million compared with N8.2 million in 2007.

NEM INSURANCE PLC: Audited result for the year ended 31st December 2007 shows Gross Premium of N2.55 billion as against N853.6 million in 2006. Profit after tax stood at N399.81 million compared with N8.8 million in 2006. The Directors are recommending a dividend of N0.05 per share. The date of closure of register of members is July 30, 2008 while payment date is August 21, 2008.

REGENCY ALLIANCE INSURANCE PLC: Audited result for the year ended 31st December 2007 shows Gross Premium of N783.9 million as against N332.35 million in 2006. Profit after tax stood at N237.54 million compared with N215.23 million in 2006. The Directors are recommending a bonus of 1 for 4. The date of closure of register of members is August 5, 2008.

ETERNA OIL & GAS PLC: Unaudited result for the half year ended 30th June 2008 shows Turnover of N3.7 billion, as against N3.3 billion in the comparable period of 2007. Profit after tax stood at N57.5 million compared with N30.9 million in 2007.

REPORT ON THE OTC MARKET FOR FGN BONDS
A turnover of 129.03 million units worth N131.3 billion in 1092 deals was recorded this week, in contrast to a total of 206.9 million units valued at N210.65 billion exchanged in 1505 deals during the week ended July 10, 2008. As in the preceding week, the most active bond (measured by turnover volume) was the 3rd FGN Bond 2009 Series 11 with a traded volume of 21.9 million units valued at N24.3 billion in 219 deals

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Weekly Stock Reports For Week Ending, July 11th

Here are the weekly stock reports from Zenith Securities, BGL Securities, and FSDH. There is also the weekly stock recommendation from Zenith.

BGL - Weekly Report - July 11 (21)
FSDH Weekly Report - July 11 (20)
Lead Capital Weekly Report - July 11 (20)
Zenith - Stock Picks - July 14 (28)

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Stock Reports and Analysis for Week Ended July 4th

Below are the stock reports prepared by FSDH, Lead Capital, Zenith Securities, and BGL.

BGL Securities Weekly Stock Report - July 4th (29)

FSDH Weekly Stock Report - July 4th (33)

Lead Capital Weekly Stock Report - July 4th (24)

ZSL Weekly Stock Report - July 4th (31)

Here are the stock picks for this week from Zenith Securities and Lead Capital.

Lead Capital Stock Picks - July 7th (27)

Zenith Stock Picks - July 7th (28)

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Stock Report for Week Ended May 25th

Below are the weekly stock reports prepared by TRW Stockbrokers and FSDH Securities. Also attached is the Monthly Economic Report prepared by Lead Capital.

FSDH Weekly Report - May 25 (36)
Lead Capital - May Economic Review (19)
TRW-Weekly Stock Report - May 25 (36)

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Weekly Reports for the Week Ended May 9th

Here are reports that have been prepared by the various Stock Brokerage companies in Nigeria. I will try and post these reports every Monday.

1. Zenith Securities Weekly Report
2. Lead Capital Weekly Report
3. FSDH Weekly Report
4. NSE Pro Weekly Report
5. CSL Weekly Report
6. Afrinvest Forthnightly Report
7. Meristem Securities Report

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FSDH Week Stock Report

Here is FSDH Securities’ Weekly Stock Market Report

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Anticipated Results

Here is a list of the anticipated financial results:

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Market Sentiments for the Week Ended May 9th, 2008 as prepared by Meristem Securities.

Market Sentiments for the Week Ended May 9th, 2008 as prepared by Meristem Securities.

There are strong indications and positive gestures that the stock market is on the path of transition from stability to recovery as all market performance indices inched up throughout the week ended Friday May 9, 2008. Market capitalization of listed equities bounced by 6.06 percent to stand at N12.12trn (US$2.0bn). The entire market reported positive and appreciable returns of 5.74 percent as The Nigerian Stock Exchange (NSE) All-Share Index (ASI) leapt by 574 basis points to close higher at 62,518.07 points. Activity level rose substantially as volume and value of equities traded jumped up by 44.1 percent and 56.4 percent respectively over the previous week’s statistics.

Market was buoyed by activities in key sectors- such as banking, insurance, building materials, food & beverage and conglomerates as a few companies in these sectors released outstanding period and full year results accompanied by stimulating corporate benefits. Market watchers and investments experts are optimistic about an imminent resurgence and thereby reassure investors of ‘goodies’ ahead in coming weeks. They however admonish market participants to look beyond only speculative positioning and give more consideration to value investing across all investment horizons.

Banking stocks rekindled investors’ hope as they topped performance charts all through the week. The sector performance was propped up by trading in shares of Zenith Bank, UBA, Oceanic, First Bank, Afribank, Ecobank, Access, Intercontinental Bank, and Diamond Bank Plc. There are strong beliefs that quite a few of the stocks above are trading below their intrinsic values and sentiments support a good entry for momentum traders and proactive investors at current pricing.  A segment of market commentators opines that another incentive for investors is the anticipated corporate benefits of banks like First Bank; Access Bank; Union Bank Plc (UBN), Afribank Nigeria Plc; Stanbic IBTC; Skye Bank Plc and Wema Bank Plc- all having their FYE March 30,  2008 and Intercontinental Bank Plc- FYE February 29, 2008; GTBank Plc – February 29, 2008. Meanwhile, Ecobank was also sought after by investors as it went on bid soon after lifting off technical suspension as a result of the termination of the Bank’s merger talks with Sterling Bank Plc.

In the insurance sector, activity level was probably fueled by the release of full year corporate results for the FYE December 31, 2007in favour of Custodian and Allied Insurance Plc, Nem Insurance Plc; Linkage Assurance Plc. There are strong sentiments that the further activities in insurance stocks will substantially be shaped and propelled by their full year 2007 results, anticipated corporate rewards and their first quarter results for the period ended March 31, 2008. We are of the opinion that a peer analysis of fundamentals of insurance companies remains a critical factor for consideration in screening out value stocks for short to medium term investment horizons.

Our analysis reveals that a couple of insurance stocks are trading at outrageously high price compared to their trailing multiples which calls for caution for investors to avoid further diminution in portfolio value. As at date, average pricing in the sector gravitates to N5 while the sector’s EPS and P/E hover around N0.13k and 53.5 xs respectively. Insurance stocks emerged from the recent market hiccups and correction to record appreciable daily gains that have ignited investors’ aspirations about the prospects of the sector in the post consolidation era. Although market analysts agree that with an average industry PE of 53.5x, most insurance stocks lack fundamental strength to justify their current pricing as well as sustain their momentum, the industry’s prospects seem bright enough to douse any negativity priced into insurance equities.

Building materials sector was also amongst dominant sectors in activity during the week ended. Trading in shares of Cement Company of Northern Nigeria Plc (CCNN) arouse market participants’ curiosity as the stock recorded maximum capital appreciation for almost 5 days to close the week at N19.60k against N17.01k it opened the week on Monday May 5, 2008. Market rumours have it that the recent surge in the stock price may not be unconnected with an impending corporate decision. On the other hand, a group of analysts expresses that stocks in this sector are currently trading at ridiculously cheap prices due to operational challenges raging from energy to equipment refurbishment facing all cement manufacturers in the country. Industry experts opine that this phase of operation is momentary and a recovery is near.

Market commentators applaud the authority of over a new regulation on share price movement. They also assert that going forward, bullish run will substantially be moderated as the authority of The NSE has come up with a new regulation such that before there could be movement in stock price, a minimum of 100,000 units must be traded. This is contrary to the hitherto 15,000 units, which some participants said was partly responsible for abnormal share price appreciation most especially amongst penny stocks which are less liquid in terms of volume available for trades.

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STOCK MARKET BRIEF FOR THE WEEK ENDED FRIDAY MAY 09, 2008.

STOCK MARKET BRIEF FOR THE WEEK ENDED FRIDAY MAY 09, 2008 as prepared by Meristem Securities.

Market Regains Upward Momentum: All Share Index Up by 5.74%
The capital market experienced a trend reversal during the week after a 2 months free fall in market indices. The NSE All Share Index (ASI) surged by 5.74% to close the week at 6,2518.07 points while the total market capitalization of the 219 listed equities also rose by 6.06% to stand at N12.12 trillion.

In the same vein, a cumulative total of 3.8 billion shares valued at N74.4 billion were exchanged by investors in 89,212 deals in contrast to last week’s trading statistics of 2.63 billion shares worth N47.6billion traded in 66,373.

OANDO Tops the Week’s Advancers’ Chart
A total of 89 stocks advanced this week higher than 33 during the previous week while there was an appreciable decrease in the decliners’ camp resulting in 29 equities depreciating in value. This is underscored by the recovery witnessed in the market. OANDO PLC led the gainers camp raking N13.10k to close at N258.00k while MOBIL PLC topped the losers’ table shedding N7.90k to close at N228.00k.

Banking Sector Dominates Trades
The Banking sector emerged most active during the week (measured in terms of turnover), with 1.64bn shares worth N47.63bn exchanged by investors in 43,692 deals. Activities in the sector were propelled by high trading in the shares of INTERCONTINENTAL, OCEANIC, UBA and FIRSTBANK. The insurance sector followed behind on the week’s activity table with 924.14 million shares exchanged in 15,681 deals valued at N3.45 bn. The building sector emerged third on the table with 654.08 million shares traded in 1,331 deals.

CORPORATE NEWS:
BERGER, FIRST ALUMINUM, JAPAUL and Others Post Performance Results
GOLDLINK, FIDELITY BANK, BERGER, FIRST ALUMINIUM, JAPAUL, ZENITH BANK, NEM INSURANCE, BETA GLASS, CUSTODIAN INSURANCE and LINKAGE ASSURANCE released their period results on the floor of the Exchange during the week. Also, UAC PLC recorded 35% and 10% increase in PAT and turnover respectively for the full year ended December 2007 while its first quarter result reflected 19% and 359% growths in turnover and PAT respectively compared to corresponding period in 2007.

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