Weekly Market Report January 28, 2011

Transcription

1 ly Market Report January 28, 2011 In this Edition Fund Value for the week 1 Market snapshot for the week 1 Naira Exchange Rates 1 Macroeconomic Indicators 1 News Highlights 2 The Nigerian Stock Market Report 3 Company News and Announcements 4 International Indices 6 Fund Values for the week ending January 28, 2011 Fund Offer Price Bid Price Halal Fund (NGN) HISAB (NGN) Market snap shot as at Friday, January 28, 2011 NSE All Share Index This 27, Last 27, % Change -1.18% Jan-10 24, YTD 10.44% Total Market Capitalisation N 000 This 8,743, Last 8,848, % Change -1.18% Jan-10 7,913, YTD 10.49% Naira Exchange Rates (CBN) This Wk Last Wk Wk Chg YTD USD/NGN GBP/NGN EUR/NGN JPY/NGN SWISS FRANC/NGN Macroeconomic Indicators MPR 6.50 Contact Us Inflation (December Y.O.Y) 11.80% External Reserves (USD) $32,642,338, Head Office 1b Udi Street Osborne Foreshore Estate Osborne Road Ikoyi, Lagos Nigeria. Tel: Fax: info@lotuscapitallimited.com Website: Kano Office 1st Floor AIT Building 16c Murtala Mohammed Way, Kano Nigeria. Tel: , Abuja Office 1st Floor Oakland Center 48, Aguiyi Ironsi St Maitama, Abuja Tel: Lotus Capital Research Copyright Lotus Capital Limited of 6

2 ended Friday January 28, 2011 News Highlights Profit takers dominated trading activities in the week as the market closed on a negative note losing 1.18% in the week, relative to a return of 1.53% recorded in the prior week. Although the week started on a positive note, sell off activities particularly on the banking and oil & gas sectors adversely affected market performance. Monetary policy rate increased to 6.50% Key highlight for the week was the outcome of the monetary policy committee (MPC) meeting, which held on January 24 and 25, Most of the monetary indicators were revised upwards on fears that as the April 2011 elections draw near, increased government spending would create excess liquidity in the economy. Furthermore, fears on the rising global energy and food prices as well as the impact of the Asset Management Company of Nigeria (AMCON) on the banks, are expected events that could heighten inflationary threats in the economy. On this note, decisions taken to temper inflation include: Monetary Policy Rate (MPR) was raised by 25 basis points from 6.25% to 6.50%. Symmetric corridor of +/- 200 basis points was sustained. Cash Reserve Requirement (CRR) ratio was increased by 100 basis points from 1% to 2%, effective from February, Liquidity ratio would be raised by 500 basis points from 25% to 30%. Status of Stock Brokers Suspended: In addition to the fifty six (56) stock broking firms suspended two weeks ago on account of weak capitalization. Four additional firms were suspended in the week under review. As at the end of the week, only eleven firms have complied to meet the minimum capital requirement of N70 million. Federal Government bans importation of rice through land borders: In order to curb tax evasion, the Federal Government of Nigeria (FGN) has banned importation of rice through land borders to reduce the impact of smuggling on government revenue. Rice importers are required by the law to pay Customs duty of 20% in addition to a 20% levy, a condition those who engage in smuggling often try to evade. The new directive is expected to improve custom duties received by the FGN. Lotus Capital Research Copyright Lotus Capital Limited of 6

3 ended Friday January 28, 2011 NSE ASI lost 1.18% in the week and has returned 10.44% year to date The Nigerian Stock Market The bullish run which prevailed in the first two trading days of the week waned as the bears stepped in on Wednesday and intensified their grip on the market till Friday. The market ended the week on a negative note by losing 1.18% to close at 27, In the same vein, NSE market capitalization recorded a loss of 1.18% to close the week at N8.743 trillion. Among the 201 first tier equities listed on the NSE, fifty five (55) equities appreciated in price in the week, higher than fifty two (52) equities in the previous week. On the other hand, thirty nine (39) equities depreciated in price, better than forty one (41) in the preceding week. In terms of volume traded in the week, the banking sector was the most active during the week as 1.88 billion (last week: 2.1 billion) shares valued at (N16.81 billion (last week: N20.36 billion) were exchanged in 20,403 (last week: 20,854) deals. The Insurance subsector, ranked second on the week s activity chart with a turnover of million shares valued at N million in 1,834 deals. On our investment universe, Flour Mills led the gainers table in the week by recording a price appreciation of N6.42 to close at N84.50 per share. On the losers table, Oando Plc, which topped the table last week maintained its position by recording a loss of N2.90 to close at N , NSE ALL-SHARE INDEX 27, , , Points 27, , , , , Mon January 24 Tue January 25 Wed January 26 Thu January 27 Fri January 28 * Lotus Capital Universe is the entire NSE less Banking, Insurance, Brewery, Gambling and Entertainment Sectors/ companies Top Price Gainers for the week* Top % Gainers for the week* Stock Change (N) Closing Price Stock Change Closing Price Flour Mills Evans Med Nestle ABC AP Bagco Julius B AP NNFM Neimeth Top Price Losers for the week* Top % Losers for the week* Stock Change (N) Closing Price Stock Change Closing Price Oando (2.90) Okomu (4.51) Dangcem (1.25) OandO (3.87) Okomu (0.69) NAHCO (3.64) Unilever (0.61) Eterna Oil (3.21) 5.13 UACN (0.50) Airline (2.90) 2.01 Lotus Capital Research Copyright Lotus Capital Limited of 6

4 ended Friday January 28, 2011 NIGERIAN ENAMELWARE PLC: FIDSON HEALTHCARE PLC: NORTHERN NIGERIA FLOURMILLS PLC: NIGERIAN WIRE INDUSTRIES PLC: DANGOTE SUGAR REFINERY PLC: PZ CUSSONS NIGERIA PLC: HONEYWELL FLOUR MILLS PLC: Company News and Announcements Companies Results Unaudited result for the first quarter ended 31st July 2010 shows Turnover of N389.1 million, as against N million in the comparable period of 2009, up 0.6%. Profit after tax stood at N16.17 million compared with N23.82 million in 2009, representing a decline of 32.1%. The Net Asset Value stood at N million compared with N234.5 million in April Audited result for the year ended 30th June 2010 shows Turnover of N5, million, as against N5, million in the comparable period of 2009, reflecting a marginal gain of 1.6%. Profit after tax stood at N million compared with Profit after tax of N million in 2009, up 8.6%. The Net Asset Value stood at N5, million compared with N5, million in June 2009.The Board of Directors is recommending a dividend of N0.10 kobo per share. Unaudited result for the third quarter ended 31st December 2010 shows Turnover of N8, million, as against N7, million in the comparable period of 2009, reflecting a gain of 4.5%. Profit after tax stood at N million compared with N million in 2009, up 18.6%. The Net Asset Value stood at N1, million compared with N1, million in March Audited result for the year ended 31st December 2009 shows Turnover of N571.9 million, as against N538.2 million in the comparable period of 2008, up 6.3%. Loss after tax stood at N1.609 million compared with profit after tax of N2.77 million in 2008, reflecting a decline in performance. The Net Asset Value stood at N million compared with N million in December The Annual General Meeting is scheduled to hold at the company s premises No 3, Niwil Close, Off Oba Akran Avenue, Ikeja, Lagos on Friday, February 25, Unaudited result for the third quarter ended 30th September 2010 shows Turnover of N65, million, as against N59, million in the comparable period of 2009, up 9.7%. Profit after tax stood at N9, million compared with profit after tax of N11, million in 2009, down 20.5%. The Net Asset Value stood at N39, million compared with N41,612.8 million in December Unaudited result for the half year ended 30th November 2010 shows Turnover of N26, million, as against N27, million in the comparable period of 2009, down 2.2%. However, Profit after tax stood at N1, million compared with profit after tax of N1, million in 2009, reflecting an increase of 2.9%. The Net Asset Value stood at N37, million compared with N38, million in May Unaudited result for the third quarter ended 31st December 2010 shows Turnover of N26,362.1 million, as against N33,528 million in the comparable period of 2009, down 21.4%. However, profit after tax increased by 22.8% to N1, million from profit after tax of N1, million in The Net Asset Value stood at N14, million compared with N13, million in March Lotus Capital Research Copyright Lotus Capital Limited of 6

5 ended Friday January 28, 2011 UNION VENTURES & PETROLEUM PLC: Company News and Announcements Company forecast The Company forecasts Turnover of N167.7 million and profit before tax of N0.196 million during the first quarter ending March 31, OANDO PLC: DANGOTE SUGAR REFINERY PLC: The Company forecasts Turnover of N101,958 million and profit after tax of N2,910 million during the first quarter ending March 31, The Company forecasts Turnover of N32, million and profit after tax of N4, million during the first quarter ending March 31, DANGOTE SUGAR REFINERY PLC: The Company forecasts Turnover of N25, million and profit after tax of N3, million during the fourth quarter ending December 31, 2010 Other Company News PHARMA-DEKO PLC: Change of External Auditors - The Company notified The Exchange of the appointment of SIAO Chartered Accountants as its External Auditors to replace Akintola Williams Deloitte effective Friday, December 17, PRESCO PLC: Appointments - The Company notified The Exchange of the appointment of Mr. Uday Pilani as its Managing Director effective Friday, November 19, SUPPLEMENTARY LISTING OF WEMA BANK PLC: A total of 2,500,618,928 ordinary shares of 50 Kobo each at N3.00 per share were added to the shares outstanding in the name of Wema Bank Plc on Friday, January 21, 2011 following the conclusion of Placing. Lotus Capital Research Copyright Lotus Capital Limited of 6

6 ended Friday January 28, 2011 International Indices & Commodities Stocks Indices Jan-11 Last This % YTD Dow Jones 11, NASDAQ 2, S & P 500 1, NIKKEI 225 1, FTSE 100 5, EURO STOXX 50 3, MSCI WORLD Metals (US$) Jan-11 Last This % YTD Gold 1, , , Silver Platinum 1, , , Copper Energy (US $) Jan-11 Last This % YTD Light Crude Oil Heating Oil Natural Gas Unleaded Gas Commodities (Cents per Bu) Jan-11 Last This % YTD Corn Soybeans 1, , , Wheat Cocoa 3, , , Cotton Disclaimer: The information contained in this report has been compiled by Lotus Capital Limited for general information purposes only. Lotus Capital assumes no responsibility for every errors or omissions in this report. However every attempt has been made to ensure accuracy of every data within this report. Lotus Capital Ltd will not be held liable for any losses incurred from relying on this information. Lotus Capital Research Copyright Lotus Capital Limited of 6