ISSN Vol. 1 No. 62

Transcription

1 ISSN Vol. 1 No. 62 The Monthly NCM Report for Feb 11 Issued on Mar 04, 2011

2 Contents Executive Summary 3 Introduction 7 All-Share Index Movement 13 Market Dynamics 14 Comparison of 2009 and 2010 Market Performance 16 Sectoral Index Movements 18 NSE -30 Index, NSE -Food Index, NSE -Banking Index, NSE -Insurance Index & NSE -Oil Index Sectoral Analysis 24 Transactions Volume and Value Trend 25 Top Ten Trades in the Month 27 Top Ten Traded Sectors in the Month 28 Top Ten Gainers in the Month 28 Top Ten Year to Date Appreciation 29 Top Ten Decliners in the Month 29 Top Ten Year to Date Depreciation 30 Corporate Declarations in the Month 31 Forecast Results in the Month 42 Dividends Declared 43 Outlook/ Analyst Opinion 43 Time Lines (April Market News/Information) 45 The Monthly NCM Report for Feb Page 2

3 The Monthly NCM Report for February 2011 ISSN Vol. 1 No. 62 Executive Summary Market trend in the month of February maintained consistent downward trend as market experienced continuous bleeding while the outlook recorded lots of red (negatives) positions with doted greens (positive), indicating intense bearish atmosphere with strong hold of bears on the back of continued profit taking and speculative tendency. More so, the market terrain was heavily characterised with huge sell activities, feeble market confidence and low strength to drive active/profitable bargain activities as bearish sentiments dominated the market activities with fading investors commitment. The rollover effect of profiteering exercise in the previous month initiated the downtrend in the month of February which later extended to unrelenting selling, induced by weak confidence as market lacked the will to drive bargain transactions. The first six trading sessions in the month witnessed huge sell activities with single day of rally as bears dominated the terrain on the back of profit taking tendency as noted above, dipping market net worth by N99.15 billion while the key benchmark indices recorded -1.56% loss. During this period, market recorded 2.06 billion units of volume traded, on average of million units, which accounted for 31.76% of total volume traded in the month, indicating intense selling momentum. The trend was in reverse of comparable period in the previous month as shown below. First six trading days in the month Indicators Feb-11 Jan-11 Volume (billion Units) Value (billion Naira) Market CAP (billion Naira) The Monthly NCM Report for Feb Page 3

4 ASI -1.16% 4.12% Proshare The All Share Index gained the highest points by 1.03% on February 9 th 2011, closing at 26, while speculative tendency took over the consistent profiteering recorded in early stage of the month. The trend in the ASI movement revealed intense speculative activities as market swings up and down, suggesting mixed sentiments due to low state of market confidence. The growing activities towards treasury bills and bonds coupled with attractive interest rate in the money market following the tightening of MPR by CBN could be attributable to this trend (prolonged bearish trend) as this was perceived to have reduced the liquidity and patronage position in the market. As a result of prolonged bearish sentiments which were induced by profit taking, the key benchmark indices extended four weekly negative positions in a row as observed in one of our weekly reports. Also, the divestment move by banks from their subsidiaries could be a contributory factor to the prolonged bearish trend. Also, the recapitalisation of market operators as suggested by regulatory body had contributory impact to the long downward trend in the market as many brokers or operators assumed selling positions to raise capital for 70million minimum share capital which led to the suspension of 57 stock broking firms last month. Follow this link to know current status. The long delay in the announcement of corporate financial reports for the year ended December 31 st 2010 had its dose of impact on the low equity bargain recorded during the period while the inactive status of some foreign hedge funds due to withdrawal, further depressed market performance. Nevertheless, calm returned to market after 5days of speculative activities and sideways movements i.e. between February 17 th and February 22 nd 2011, as market recorded steady and consistent moderate buying while ASI consequently experienced 4 days uninterrupted uptrend, growing market capitalisation by N89.00billion during the period. The activities towards blue chip stocks particularly in Food and Beverages, Banking, Breweries, Building Materials sectors coupled with activities recorded on penny stocks mainly in Insurance sector impacted the outlook. The announcement of good earnings with rewards from few blue chips and expectation of impressive Q4 reports from others remained the only driver for the short-lived rally. Speculative tendency resumed with more momentum as market experienced high volatility towards the end of the month, depressing market to fresh low at 26, in the month with significant loss of N233.38billion between Feb 22 nd and 28 th 2011 while speculators scrambling for short profit, indicating low commitment and confidence. It was also observed that significant volume of 1.85 billon units, representing 29% and 26% total volume and value respectively was recorded at the tail end of the month which revealed sell off tendency as ASI dipped by -2.73%. Although, closing of books for the months could be responsible for this huge sell off while the month closed bearish The Monthly NCM Report for Feb Page 4

5 with aggregate loss of -3.03%. The trend might continue if the commitment level remained very low. However, the position of management of NSE to ensure strict compliance with rules and regulations by the Exchange remained unchanged. Also, the enforcement of separation of clients account from brokers trading accounts remained the same as this is set to protect investors stake in the market- this in our opinion would mitigate some unethical and sharp practices by brokers and of course signal to investors confidence- a panacea to market recovery, all things being equal. In addition, the recent review and update of rules for listed companies, which was last reviewed in 1975 according to records, gave some insights that NSE is likely to maintain high level of discipline in the market this year- which will of course bring sanity to market as enforcement of post listing rules will aid quick investment decision On the final note, the employment of new NSE CEO is expected to add more colours to the ongoing reforms in the Nigerian Capital Market when he finally settles down, we believe that market would receive dose of impact -positively or negatively, only investors reaction or market performance will tell as events are unfolding, while we are believing that the new CEO will tread the path of creating more efficient and transparent Exchange as advised A number of developments we believed should have impact in the month as predicted in the past monthly reports. Some of which are: Impact Assessment Table Factors expected to move market Outcomes in February 2011 Buying of toxic assets influenced AMCON bargain activities IFRS Full compliance is yet to commence Banks are yet to start lending to real stock. This situation might remain Banks lending to real sector the same with recent hike in monetary policy rates. Banks remained conservative Margin loans towards Margin loans Increased money and bond market Monetary Policy Rates activities as investors seek free risk attractive returns. Renewed and sincere efforts towards reinvigorating market confidence Sanctions against 61 stock broking firms with negative share capital was commendable Informed and planned regulatory reforms i.e. less of unstructured reforms Merger and acquisition in the banking sectors Liquidity challenges The terrain remained calm Processes are on course as deals and agreements are about to take final shape. Still persist The Monthly NCM Report for Feb Page 5

6 Continued cleanup of market irregularities by NSE Banking Sector audited Results Ownership of the rescued banks NSE maintained strict posture while the recapitalisation of market operators is still alive Significant volume and value growth witnessed in the sector in anticipation of audited results. Also the long delay of the results reduced investment commitment. Agreements are yet to be concluded, some of them are likely to seal deals soon. Developments in the coming months: Positive corporate actions Liquidity challenges Recapitalization process in the banking sector Merger & Acquisition in the banking sector Conclusion of bids on rescued banks Monetary Policy Rates Inflation outlook New NSE CEO- charting of new course New banking regime- likely to have effect on the market as more banks are likely to divest from their subsidiaries Increased institutional investing Continued cleanup of market irregularities by NSE Thank you for reading and do take time to share with us your thoughts on the market, analyst at We value your feedback and comments. The Monthly NCM Report for Feb Page 6

7 Introduction Nigerian Capital Market turns bearish by -3.03% with growing speculative tendency. Equity market experienced low bargain activities in the month of February as sell tendency dominated the market atmosphere. The prolonged bearish trend witnessed in the month started with profit taking motive, which was later taken over by speculative tendency as low commitment ensued while market lacked the strength to drive active and profitable bargain. The impressive rally and growth recorded in the previous month could be responsible for the early sell activities witnessed in the month of February, which also could be taken as market correction. During this period, market CAP recorded N99.15billion loss while ASI dipped by -1.16%. More so, short term traders took over market arena shortly after correction exercise as atmosphere was filled with mixed sentiments while bulls and bears jostled for position, swinging market in both directions. The Monthly NCM Report for Feb Page 7

8 Furthermore, the trend remained unstable after hitting its high during the month at 26, to score the highest points of 1.03% on 9 th February Market experienced consistent weekly negative positions throughout the month while every gain recorded during the month was equally reversed as ASI hit the lowest points in 34days at 26, to technically enter bearish mode in both short term and mid-long term due to overwhelmed sell volumes. However, the comparable period in the previous year 2010 was fairly better as the outlook was more positive, though series of volatility due to high speculative tendency was observed. Nevertheless, the period marginally closed positive by +0.52% with YTD of % (February 2010) as against current -3.03% and YTD of +3.64% (February 2011). The current market trend further revealed strong bearish sentiments. The Monthly NCM Report for Feb Page 8

9 Market pattern basically reveals that market is technically weak and bearish in both short term and mid-long term as could be seen from the NSE ASI moving averages trend with index of 26, as at February 28 th, 2011 trading below its 20 and 50 days of 26, and 26, respectively, while trading above 200 days of 25, This suggests market trend is technically bearish mid long term. The Market Game On The market this month recorded a total volume of 6.49 billion units valued at N60.60 billion (US$ million) exchanged in 119,477 deals compared with 7.90bn units valued at N54.04bn (US$366.28bn) exchanged in 113,116 deals in February Comparing, the volume and value traded in the month reveals a 17.81% below the volume and 12.14% above value recorded in the previous year s comparable period respectively. The Monthly NCM Report for Feb Page 9

10 During the month, All-Share Index recorded a negative trend of -3.03%, a relative low performance to the positive growth of +0.52% upbeat recorded in February More so, the trend is significantly negative when compared with the -0.34% loss recorded in the previous month December Market capitalisation this month declined by N billion (US$1.76 billion) as against depreciation by N27.19 billion (US$184.28m) recorded in December Market Capitalisation gained higher figure of N billion (US$2.39b) in the previous year s comparable period (February 2009). The Monthly NCM Report for Feb Page 10

11 The Market Game Changers: The capitalisation issue of market operators which led to suspension of some dealers due to low share capital could be taken as of one of the contributory factors for the downtrend in the market as brokers engaged in heavy sell to raise capital for their capital base requirements as demanded by NSE in the month under review. The major factors remained low commitment as a result of long delay in corporate results of most active sector in the market, the attractive interest in the money market coupled with influx of bonds in market, high speculative tendency due to feeble market confidence and low liquidity. The market recorded series of huge sell in the early stage of the month on the back of profiteering while speculative tendency took over the terrain as market swings up and down. We envisage that the low price position, expectation of impressive Q4 earnings from banking sector and conclusion of merger talks might trigger reversal trend in the market. The contributory factors for performance in the month of February 2011 can be located in the following indices as outlined below: Negative Factors in the market No lending to the private sector and still in doubt Liquidity squeeze and the current politics - created uncertainty in the economy Increased investment in money market due to attractive rates Investor s confidence yet to gain momentum. Low commitment Partly withdraw of hedge funds Hike in the Central Bank of Nigeria's benchmark interest rate. Influx of Federal government and state bonds with other fixed income instrument in market. Absence of Margin loans Positive Factors in the market Positive progress in recapitalisation by shareholders The Monthly NCM Report for Feb Page 11

12 Second round of toxic assets purchase by AMCON Demutualisation of NSE Proposed new trading platform Buying of toxic assets in the banking sector by bad bank Ongoing recapitalisation process in the banking sector Possibility of merger and acquisition in banking sector Steady Institutional and value investing Investment by fund managers Expectation of Impressive Q4 results from banking sector and some blue chips The Federal Government commitment to revive economic infrastructures Market Concerns: The confidence and commitment level remained low while continued speculative tendency with prolonged bearish sentiments witnessed during the month. More so, liquidity level is still low which might not get better anytime soon as banks remained conservative and the hike of MPR with other monetary rates will not help situation. Although we envisage slight improvement in liquidity outlook as we move closer to election time. The Monthly NCM Report for Feb Page 12

13 The NSE All-Share Index Movement The Nigerian equities started the month with continued profit taking tendency as rollover effect of profiteering witnessed at the tail end of the previous month. The impressive rally and growth recorded in the previous month could be attributed to the profit taking activities as market set for correction. Speculative tendency dictated the tune of market trend as market swings in both directions interchangeably. Trends in the month revealed that bears dictated the pace in the first six trading days into the month (between 1 st and 8 th February, 2011), with aggregate loss of -1.16% as against -2.29% in December 2010 and +0.52% in February The equity market recorded bearish trend as market witnessed significant selling activities particularly in the banking sector while rescued banks led the volume transactions which depressed market considerably. The NSE index in February 2011 closed with four days extended loss position as result of speculative tendency following four days uptrend. The month recorded negative performance, with aggregate loss position of -3.03% to close at 26, compared with +0.52% appreciations recorded in the preceding year comparable period to close at 22, The loss in the month was far above the -0.34% recorded in the month of December Meanwhile, at the end of the last trading day of the month under review, All-Share Index closed above the figure recorded at the close of 25th February 2010 by % and 4 th January 2010 by 24.85%. Market pattern basically reveals that market is technically weak and bearish in both short term and mid-long term as could be seen from the NSE ASI moving averages trend with index of 26, as at February 28 th, 2011 trading below its 20 and 50 days of 26, and 26, respectively, while trading above 200 days of 25, This The Monthly NCM Report for Feb Page 13

14 suggests market trend is technically bearish mid long term. Source: NSE, Proshare Research At the close of the last trading day of the month, All-Share Index traded below its 20 and 50 days of 26, and 26, respectively, while trading above 200 days of 25, This suggests market trend is technically bearish mid long term. Source: NSE, Proshare Research February 2011 Market Dynamics The market dynamics as graphically illustrated below showed the appreciation and depreciations on the daily basis. The Monthly NCM Report for Feb Page 14

15 Low investors commitment, delay in Q4 corporate results of banking stocks and some blue chips,, attractive interest in money market, influx of federal and states bonds, high speculative tendency, low liquidity and feeble market confidence, merger and acquisition in the banking sector, the recapitalisation of market operators, withdrawal of hedge funds, continued efforts towards establishing healthy market and corporate governance in NSE. Source: NSE, Proshare Research MARKET DYNAMICS IN THE PRECEDING YEAR COMPARABLE PERIOD (FEBRUARY, 2010) Source: NSE, Proshare Research The Monthly NCM Report for Feb Page 15

16 Comparison of 2010 and 2011 Market Performance The market performance in February 2011, when compared with the 2010 comparable period; showed negative trend with bearish sentiment. In the period under review, ASI recorded -3.03% decline compared with +0.52% upswing recorded in 2010 February. The outlook in the current period suggests negative monthly performance when compared with comparable period of preceding year trend. The market closed at approximately in the range of 26,000. Source: NSE, Proshare Research Dates NSE ASI Market Capitalisation (trillion) Market Capitalisation ($ billions) Jan Feb , , Feb , Monthly Return 0.52% 0.54% 11.02% Yearly Return 10.30% 11.02% 11.02% Jan Feb , , Feb , Monthly Return -2.64% -2.58% -2.58% Yearly Return 3.64% 3.74% 3.74% The Monthly NCM Report for Feb Page 16

17 Source: NSE, Proshare Research From the table above, the year to date performance as at 28 th February 2011 closed at +3.64% against the previous year comparable period of 25 th February, 2010 at % appreciation, indicating a low performance against the trend recorded last year. The Monthly NCM Report for Feb Page 17

18 Sectoral Index Movements NSE 30 NSE Food NSE Banking NSE Insurance NSE Oil 01/02/2011 1, /02/2011 1, /02/2011 1, /02/2011 1, /02/2011 1, /02/2011 1, /02/2011 1, /02/2011 1, /02/2011 1, /02/2011 1, /02/2011 1, /02/2011 1, /02/2011 1, /02/2011 1, /02/2011 1, /02/2011 1, /02/2011 1, /02/2011 1, /02/2011 1, Monthly % Change -2.31% 1.98% -2.01% -0.53% -1.51% In the month under review, four sectoral indices moved down considerable except NSE Food & Beverages which top with 1.98% gain while NSE 30 is topping the negative side by -2.31%, followed by NSE Banking by -2.01%, NSE Insurance and NSE Oil & Gas dropped by -0.53% and -1.51% respectively. The Monthly NCM Report for Feb Page 18

19 February and January Sectoral Indexes Compared Source: NSE, Proshare Research When compared the current trend with the previous impressive positive outlook recorded in January with NSE sectoral index movements, none of the sectoral indices outperformed previous outlook recorded in the month of January NSE -30 INDEX Source: NSE, Proshare Research The trend recorded in the blue chips stocks is reflected in the index movement. There were active consistent sell transactions and slight interruptions at the few points in the index performance during the month due to the volatility resulting from profiteering in the period. The sector experienced significant sell in the early state with trends reversal in mid-stage to embark on a sharp fall at the tail end of the month. The trend revealed The Monthly NCM Report for Feb Page 19

20 high speculative tendency in the sector while the index dipped by -2.31% as against +6.60% gain recorded in the month of January. NSE -FOOD INDEX Source: NSE, Proshare Research The stocks in the sector experienced series of speculative tendency in the early stage with continued patronage to record outstanding positive outlook in the month, the performance in the sector rated best. The performance of 1.98% is considered significantly low when compared with January 2011 posture of +9.66%. This is against appreciations by % recorded in January 2010 comparable period. The outlook in the sector throughout the month suggested better prospect and returns in months ahead. NSE -BANKING INDEX The Monthly NCM Report for Feb Page 20

21 Source: NSE, Proshare Research NSE-Banking index closed the month of February with falling posture as the sector experienced concentrated profit taking tendency and sell off, while the rescued banks led the sell activities to dip by -2.01%, a negative performance when compared with +4.38% appreciation recorded in January. The negative outlook recorded was largely driven by the long delay in announcing the Q4 results. NSE -INSURANCE INDEX Source: NSE, Proshare Research The sector experienced high volatility due to speculative tendency coupled with consistent profit taking which emanated from impressive price appreciation recorded in the previous month of January. They penny of the sector increased the speculative The Monthly NCM Report for Feb Page 21

22 activities while the sector declined from high of % recorded January 2011 to current position of -0.53%. However, the sector will ripe any time soon for trend reversal as the sector possesses potential of price appreciation, considering penny nature of the sector. NSE -OIL INDEX Source: NSE, Proshare Research The sector recorded prolonged bearish trend as consistent and stead sell activities reigned in the sector. The sector recorded negative performance of -1.51% against the modest growth of 3.48% recorded in the month of January The performance is also far below the negative position of -0.55% recorded in December Further analysis revealed that the sector experienced high sell tendency as bearish sentiments cut across the sectors. However, the sector has prospects in coming month as the anticipated impressive year end results from the blue chips in the sector likely to drive the sector performance. LAST TRADING DAY - SNAPSHOT The Monthly NCM Report for Feb Page 22

23 The Monthly NCM Report for Feb Page 23

24 SECTORAL ANALYSIS SECTOR PREFORMANCE Sector YTD %Change MARITIME 21.09% ROAD TRANSPORTATION 18.18% HEALTHCARE 9.00% FOOD/BEVERAGES & TOBACCO 7.71% BREWERIES 7.29% MEDIA 6.48% BANKING 5.02% AIRLINE SERVICES 4.74% REAL ESTATE 4.18% THE FOREIGN LISTINGS 4.14% INSURANCE 2.96% PETROLEUM(MARKETING) 2.45% AUTOMOBILE & TYRE 2.18% ENGINEERING TECHNOLOGY 1.36% CONSTRUCTION 0.91% SECOND-TIER SECURITIES 0.72% AVIATION 0.00% FOOTWEAR 0.00% CHEMICAL & PAINTS -0.23% PRINTING & PUBLISHING -0.43% OTHER FINANCIAL INSTITUTIONS -1.02% PACKAGING -1.50% BUILDING MATERIALS -1.68% MORTGAGE COMPANIES -2.16% COMMERCIAL/SERVICES -2.54% HOTEL & TOURISM -2.60% TEXTILES -2.67% COMPUTER & OFFICE EQUIPMENT -2.88% CONGLOMERATES -3.56% INFORMATION & COMMUNICATION TECHNOLOGY -3.91% AGRICULTURE -3.93% INDUSTRIAL/DOMESTIC PRODUCTS -4.63% LEASING -9.87% Source: NSE, Proshare Research The Monthly NCM Report for Feb Page 24

25 Transactions Volume and Value Trend Market Feb '10' Feb '11' % Change Average Daily Volume of Stocks Traded (in millions) % Average Daily Value of Stocks Traded (in N'millions) 2, , % Average Daily Value of Stocks Traded (in USD$ millions) % Total Volume of Stocks Traded (in millions) % Total Value of Stocks Traded (in N'millions) 54, , % Total Value of Stocks Traded (in USD$ billion) % New Listing and Delisting Feb '10' Feb '11' Number of Equities Delisted 1 0 Number of New Listings 0 0 Source: NSE, Proshare Research The transaction volume in the month of February when compared with the preceding year comparable period closed lower by % to close at 6.49 billion units compared with 7.90 billion units traded in February This could be an indication that the investors patronage of the market in the month under review was significantly different. Also, the transaction value in the month under review closed higher by 12.14% at N60, billion ($ million) compared with N54, billion ($ million) of February February 2011 vs Daily Volume Chart The Monthly NCM Report for Feb Page 25

26 Source: NSE, Proshare Research The Monthly NCM Report for Feb Page 26

27 Top Ten Trades for the Month of February 2011 Zenith bank Plc topped the transaction volume for the month. Banking stocks generally dominated the charts with nine of the stocks in the sector emerging in the top ten trades chart for the month. Company Total Trades Total Volume Total Value ZENITHBANK 8, ,856, ,784,743, UBA 4, ,211, ,022,757, FIRSTBANK 14, ,175, ,591,023, FIRSTINLND 2, ,005, ,686, OCEANIC 3, ,146, ,449, GUARANTY 9, ,936, ,394,584, PLATINUM 2, ,700, ,225, INTERCONT 2, ,748, ,293, FIDELITYBK 2, ,313, ,060, JAPAULOIL 2, ,408, ,564, Recall Top Ten Trades for the Month of February 2010 Company Total Trades Total Volume Total Value FIRSTINLND ,775, ,007, IHS ,698, ,969,443, ZENITHBANK ,812, ,380,615, FIRSTBANK ,771, ,117,075, ACCESS ,172, ,657,484, DIAMONDBNK ,602, ,360,976, GUARANTY ,929, ,581,704, UBA ,145, ,360,695, The Monthly NCM Report for Feb Page 27

28 SKYEBANK ,831, ,693,515, FIDELITYBK ,874, ,592, Top Ten Traded Sectors for the Month of February Sector Total Trades Total Volume Total Value % Contribution BANKING 70, ,494,288, ,294,529, % INSURANCE 4, ,232, ,893, % MARITIME 2, ,408, ,564, % FOOD/BEVERAGES & TOBACCO 9, ,026, ,720,877, % PACKAGING 4, ,658, ,881, % MORTGAGE COMPANIES ,215, ,069, % BUILDING MATERIALS 2, ,428, ,642,988, % HEALTHCARE 1, ,763, ,332, % MEDIA ,467, ,550, % PETROLEUM(MARKETING) 5, ,953, ,838,250, % Top 10 Trades 103, ,935,442, ,238,938, Total Trades 119, ,497,107, ,606,404, Source: NSE, Proshare Research Recall Top Ten Sectors for the Month of January 2010 Sector Total Trades Total Volume Total Value BANKING ,032,381, ,853,008, INSURANCE ,179,356, ,185,619, INFORMATION & COMMUNICATION TECHNOLOGY ,152, ,433,233, FOOD/BEVERAGES & TOBACCO ,822, ,811,401, MORTGAGE COMPANIES ,988, ,180, CONGLOMERATES ,629, ,542,200, BUILDING MATERIALS ,353, ,189,465, CHEMICAL & PAINTS ,829, ,520, OTHER FINANCIAL INSTITUTIONS ,067, ,335, MARITIME ,574, ,215, Top 10 Sectors 107, ,158,155, ,986,181, Source: NSE, Proshare Research Top Ten Gainers in the Month The Monthly NCM Report for Feb Page 28

29 COMPANY 01-Feb Feb-11 Change % Change CHAMPION % NEIMETH % INTBREW % NESTLE % MOBIL % CAP % BERGER % CUSTODYINS % WEMABANK % JAPAULOIL % Source: NSE, Proshare Research Top Ten Year to Date Appreciation COMPANY 28-Feb Jan- 11 Change % Change SPRINGBANK % CHAMPION % NEIMETH % NIGERINS % EVANSMED % BERGER % WEMABANK % NESTLE % UTC % BAGCO % Source: NSE, Proshare Research Top Ten Decliners in the month COMPANY 01-Feb Feb-11 Change % Change WAPIC % OCEANIC % AFRIBANK % STARCOMMS % UBN % FIRSTINLND % PLATINUM % UNITYBNK % The Monthly NCM Report for Feb Page 29

30 INTERCONT % GOLDINSURE % Top Ten Year to Date Depreciation COMPANY 28-Feb Jan- 11 Change % Change STARCOMMS % FIDSON % POLYPROD % NSLTECH % NIG- GERMAN % LIVESTOCK % UBN % VITAFOAM % PREMPAINTS % JOHNHOLT % The Monthly NCM Report for Feb Page 30

31 Corporate Declarations February 1st, 2011: RED STAR EXPRESS PLC THIRD QUARTER REPORT FOR THE PERIOD ENDED 30-SEP N'm 2009 N'm % Change 2nd February, 2011: TRIPPLE GEE PLC THIRD QUARTER REPORT FOR THE PERIOD ENDED 31- DEC % N'm 2009 N'm Change Gross Earnings 3,196 3, % Turnover % Profit Before Tax % Profit Before Tax (42.520) (60.794) -30.1% Taxation (90.097) ( ) 16.53% Taxation % Profit/Loss After Profit/Loss After Tax % Tax (43.357) (60.992) -28.9% Balance Sheet Information Retained Earnings % Fixed Assets % Balance Sheet Information Investment % Fixed Assets % Stocks % Stock % Trade Debtors 1,104 1, % Trade debtors % Cash and Bank Balances % Cash and Bank Balances % Other Debit Balances % Other Debit Balances % Trade Creditors % Trade creditors % Other Credit Balances 986 1, % Short Term Borrowings % Working Capital % Other Credit Balances % Net Assets 1,290 1, % Working Capital ( ) ( ) 108.9% Net Assets %

32 G 2nd February, 2011: UNITED NIGERIA TEXTILE PLC THIRD QUARTER REPORT FOR THE PERIOD ENDED 30-SEP N'm N'm % Change 3rd February, 2011: ACADEMY PRESS PLC THIRD QUARTER REPORT FOR THE PERIOD ENDED 31- DEC % N'm 2009 N'm Change Gross Earning 5,686 6, % Gross Earnings 1,640 1, % Profit Before Tax ( ) ( ) -1.6% Profit Before Tax % Taxation Nil Nil 0.0% Taxation (30.373) (32.005) -5.10% Profit/Loss After Tax (945.69) (961.39) -1.6% Profit/Loss After Tax % Balance Sheet Information Balance Sheet Information Fixed Assets 3,546 3, % Fixed Assets 1,031 1, % Investments % Investments % Stock 6,932 7, % Stocks % Trade debtors 1,074 1, % Trade Debtors % Cash and Bank Balances 1,183 1, % Cash and Bank Balances % Other Debit Balances 1,841 1, % Other Debit Balances Nil 0.00% Trade creditors % Trade Creditors % Short Term Borrowings , % Short Term Borrowings % Other Credit Balances 2,463 3, % Other Credit Balances % Working Capital 19.2% Working Capital % The Monthly NCM Report for Feb Page 32

33 8,318 6, Net Assets 3,260 4, % Net Assets % ACADEMY February 4th, 2011: Flour Mills Nigeria Plc THIRD QUARTER REPORT FOR THE PERIOD ENDED 31-DEC N'm N'm % Change February 9th, 2011: Guinness Nigeria Plc SECOND QUARTER REPORT FOR THE PERIOD ENDED 31- DEC % N'm 2009 N'm Change Gross Earning 122, , % Gross Earnings 59,227 53, % Profit Before Tax 11,920 12, % Profit Before Tax 10,792 10, % Taxation (3,814) (4,012) % Taxation 3,453 3, % Profit/Loss After Tax 8,106 8, % Profit After Tax 7,339 7, % Balance Sheet Information Balance Sheet Information Fixed Assets 24,942 25, % Fixed Assets 42,246 40, % Stocks 14,283 10, % Stocks 18,296 16, % Trade debtors 4,252 4, % Trade Debtors 7,237 6, % Cash and Bank Balances 12,906 4, % Cash and Bank Balances 9,927 12, % Other Debit Balances 46,646 27, % Other Debit Balances 6,622 2, % Trade creditors 3,343 7, % Trade Creditors 14,677 6, % Other Credit Short Term Borrowing 2,986 13, % Balances 38,352 37, % The Monthly NCM Report for Feb Page 33

34 Other Credit Balances 30,997 44, % Working Capital 44,717 47, % Working Capital 25,074 5, % Equity 31,299 34, % Net Assets 40,074 35, % GUINNESS 9th February, 2011: ADSWITCH PLC SECOND QUARTER REPORT FOR THE PERIOD ENDED 31-OCT N'm N'm % Change February 11th, 2011: UNIVERSITY PRESS PLC THIRD QUARTER REPORT FOR THE PERIOD ENDED 31- DEC % N'm 2009 N'm Change Gross Earning % Gross Earnings 1,472 1, % Profit/Loss After Tax (10.78) % Profit/Loss After Tax % Balance Sheet Information Net Assets 1,153 1, % UPL 11th February, 2011: CHELLARAMS PLC THIRD QUARTER REPORT FOR THE PERIOD ENDED 31-DEC N'm N'm % Change February 11th, 2011: NIGERIA ENAMELWARE PLC SECOND QUARTER REPORT FOR THE PERIOD ENDED 31- OCT % N'm 2009 N'm Change Turnover 16,849 14, % Gross Earnings % Profit Before Tax % Profit Before Tax % Taxation (51.00) (28.50) 78.9% Taxation (14.738) (15.997) 32.11% Profit/Loss After Tax % Profit/Loss After Tax % Balance Sheet Information Balance Sheet Information The Monthly NCM Report for Feb Page 34

35 Fixed Assets 3,190 3, % Fixed Assets % Stocks % Stocks % Trade debtors 1, % Trade Debtors % Cash and Bank Balances % Cash and Bank Balances Nil 0.00% Other Debit Balances 5,230 5, % Other Debit Balances % Trade Creditors 1,387 1, % Trade Creditors % Short Term Borrowings % Short Term Borrowings % Other Credit Balances 4,445 4, % Other Credit Balances % Working Capital (49.074) ( ) -59.1% Working Capital % Net Assets 2,984 2, % Net Assets % WA February 11th, 2011: BAGCO PLC THIRD QUARTER REPORT FOR THE PERIOD ENDED 31-DEC N'm N'm % Change 17th February, 2011: AVON CROWNCAPS PLC THIRD QUARTER REPORT FOR THE PERIOD ENDED 31- DEC % N'm 2009 N'm Change Gross Earning 8,694 7, % Turnover 8,836 8, % Profit/Loss After Tax % Profit Before Tax % Balance Sheet Information Taxation (82.284) (37.133) 121.6% Net Assets 9,941 9, % Profit/Loss After Tax % Balance Sheet Information The Monthly NCM Report for Feb Page 35

36 Fixed Assets 1,087 1, % Stocks 3,797 5, % Trade Debtors 1,500 1, % Cash and Bank Balances % Other Debit Balances % Trade Creditors % Short Term Borrowings 1,665 2, % Other Credit Balances 2,913 4, % Working Capital 1,342 1, % Net Assets 1,961 1, % OWN February 17th, 2011: IHS PLC AUDITED REPORT FOR THE PERIOD ENDED 30-APR N'm N'm % Change 17th February, 2011: JOHN HOLT PLC FIRST QUARTER REPORT FOR THE PERIOD ENDED 31- DEC % N'm 2009 N'm Change Gross Earnings 17,247 11, % Turnover 1,657 3, % Profit Before Tax , % Profit Before Tax (170.00) % Taxation (121.65) (378.72) 67.88% Taxation (15.00) (15.00) 0.0% Profit/Loss After Tax , % Profit/Loss After Tax (185.00) (13.00) % Balance Sheet Information Balance Sheet Information The Monthly NCM Report for Feb Page 36

37 Fixed Assets 9,164 5, % Fixed Assets 7,827 7, % Stocks 3,762 5, % Investment % Trade Debtors 5,479 7, % Stocks 3, , % Cash and Bank Balances 1,866 1, % Trade debtors % Other Debit Balances 6,001 4, % Cash and Bank Balances % Trade Creditors 2,141 2, % Other Debit Balances 1,781 1, % Short Term Borrowings 10,399 9, % Trade creditors % Short Term Other Credit Balances 3,155 1, % Borrowings 1,876 2, % Working Capital (820) 2, % Other Credit Balances 7,874 8, % Net Assets 10,578 9, % Working Capital (3,044) (2,913) 4.5% Net Assets 3,777 3, % LT February 17th, 2010: Poly Products Nigeria Plc AUDITED REPORT FOR THE PERIOD ENDED 31-MAR N'm N'm % Change 18th February, 2011: NESTLE NIGERIA PLC AUDITED REPORT FOR THE PERIOD ENDED 31-DEC N'm 2009 N'm %Change Gross Earning 2, , % Gross Earnings 82,726 68, % Profit/Loss Before Tax % Profit Before Tax 18,244 13, % Taxation (22.70) (19.43) 44.11% Taxation (5,642) (3,999) % Profit/Loss After Profit/Loss After Tax % Tax 12,602 9, % The Monthly NCM Report for Feb Page 37

38 Balance Sheet Information Balance Sheet Information Fixed Assets % Fixed Assets 40,241 25, % Stock Short Term Invest % Stock 8,494 10, % Trade debtors % Trade Debtors 4,970 1, % Cash and Bank Balances % Cash and Bank Balances 3,092 3, % Other Debit Balances % Other Debit Balances 3,548 5, % Trade creditors % Trade creditors 4,085 4, % Short Term Borrowing % Short Term Borrowing 3,398 4, % Other Credit Balances % Other Credit Balances 37,997 27, % Working Capital ( ) % Working Capital ( ) % Net Assets % Net Assets 14,865 10, % NESTLE 22nd February, 2011: GREAT NIGERIA INSURANCE PLC THIRD QUARTER REPORT FOR THE PERIOD ENDED 30-SEP N'm N'm %Chang e 24th February 2011: VITAFOAM NIGERIA PLC FIRST QUARTER REPORT FOR THE PERIOD ENDED 31- DEC % N'm 2009 N'm Change Turnover 1,471 1, % Gross Earnings 3,259 2, % Profit Before Tax and Extra-ordinary Items % Profit Before Tax % Exceptional Items Nil (1,993) 0.0% Taxation ( ) (94.504) 18.00% Taxation 0.0% Profit/Loss After % The Monthly NCM Report for Feb Page 38

39 (11.636) (11.636) Tax Profit/Loss After Tax (1,973) 101.5% Balance Sheet Information Balance Sheet Information Fixed Assets 1,708 1, % Fixed Assets % Investments % Stocks % Stocks 2,281 2, % Trade Debtors % Trade Debtors % Cash and Bank Balances % Cash and Bank Balances % Other Debit Balances 4,829 4, % Other Dedit Balances 1, % Trde Creditors 1,370 1, % Trade Creditors 1, % Insurance Funds % Short Term Borrowings 1,137 1, % Other Credit Balances 1,314 1, % Other Credit Balances 1,939 1, % Net Assets 4,286 4, % Working Capital 2,937 1, % Net Assets 2,736 2, % M February 25th, 2010: NAMPAK PLC FIRST QUARTER REPORT FOR THE PERIOD ENDED 31-DEC N'm N'm % Change 25th February, 2010: NEIMETH INTL PHARMACEUTICALS PLC THIRD QUARTER REPORT FOR THE PERIOD ENDED 31- DEC % N'm 2009 N'm Change Gross Earning 1, , % Turnover 1,312 1, % Profit Before Tax 0.71% Profit Before Tax % The Monthly NCM Report for Feb Page 39

40 (27.249) Taxation (34.49) (34.24) 0.72% Taxation Nil (17.541) 0.0% Profit/Loss After Tax % Profit/Loss After Tax (27.249) % Balance Sheet Information Balance Sheet Information Fixed Assets % Fixed Assets % Stocks % Investments % Trade Debtors % Stocks 972 1, % Cash and Bank Balances % Trade debtors 1,349 1, % Other Debit Balances % Cash and Bank Balances % Trade Creditors % Other Debit Balances % Short Tterm Borrowing % Trade Creditors % Other Credit Balances % Short Term Borrowings % Working Capital % Other Credit Balances 1,633 1, % Net Assets % Working Capital % Net Assets % NEIMETH February 28th, 2011: NIGERIA ENAMELWARE PLC THIRD QUARTER REPORT FOR THE PERIOD ENDED 31-JAN N'm 2010 N'm % Change Gross Earnings 0.49% The Monthly NCM Report for Feb Page 40

41 1,832 1,823 Profit Before Tax % Taxation (23.539) (22.473) -4.74% Profit/Loss After Tax % Balance Sheet Information Fixed Assets % Stocks % Trade Debtors % Cash and Bank Balances Nil 0.00% Other Debit Balances % Trade Creditors % Short Term Borrowings % Other Credit Balances % Working Capital % Net Assets % The Monthly NCM Report for Feb Page 41

42 Forecast Result in the Month DECLARED FORECASTS FOR FEBRUARY 2011 Company Year End Period Gross Earnings in N' billion PAT in N' billion Stanbic IBTC Bank Plc December Q Neimeth Int'l Pharm Plc March Q Equity Assurance Plc March Q Chams Plc December Q Livestock Feeds Plc December Q Oceanic Bank Plc December Q Royal Exchange Plc December Q Starcomms Plc December Q Intercontinental Wapic Insurance Plc December Q Eterna Oil Plc December Q DN meyer Plc December Q Interlinked Technologies Plc December Q Interlinked Technologies Plc December Q Nestle Nigeria Plc December Full Year C & I Leasing Plc January Q Nigeria German Chemical Plc April Q Dangote Flour Mills Plc December Q Alumaco Plc December Q Nampak Plc September Q

43 Dividends Declared Dividend Declared DIVIDENDS DECLARED FEBRUARY 2011 Bonus Declared AGM Date Price Adjustment Date Company Fidson Healthcare Plc 10kobo 23-Feb-11 3rd - 8th Feb, 2011 Poly Products Plc 30-Mar-11 16th - 30th Mar, 2011 Nestle Nig Plc 10.60kobo 1 for 5 26-Apr th 22 nd April 2011 IHS Nig Plc 6kobo 29-Mar-11 11th 15th March 2011 Nigeria Breweries Plc N1.25kobo 18-May th 23rd March 2011 Outlook/Analyst Opinion The trend in the month of February was bearish, characterised with high speculative tendency and series of selling activities on the back of profit taking as presumed. The prolonged bearish sentiments technically revealed that profiteering could not be the only reason for persistent selling as low commitment and enthusiasm coupled with absence of will to drive active bargain were major obvious factors aside the existing low liquidity issue. More so, the long delay in the announcement of corporate results in the most active sector of the market contributed immensely to low enthusiasm witnessed in the month as Investors expectation remained high in terms of rewards from the sector. Although, the influx of Federal and state bonds in the market reduced the expected liquidity inflow into the capital market as investors seek risk aversion, which further revealed low confidence level in the market. However, we are of the opinion that the prolonged bearish sentiments in the last four consecutive weeks is technically providing a window for value investors who will take advantage of low price for mid-long term positions, though market is presently in a bearish mode but a reversal is much possible anytime soon as earnings report from banking sector is likely to ignite the expected sentiments to drive trend reversal. In addition, we foresee growing liquidity level and increased positive volume turnover in the capital market, all things being equal, as we move closer to general election period while we expect MPR to remain unchanged. We therefore remained cautiously optimistic about the trend reversal in the coming weeks as we anticipate positive change in the commitment level on heels of good earnings report and improved liquidity level. Finally, the strict posture of the management of NSE is considered to be right thinking in a right direction to renew the lost/low investors confidence and we believe that charting The Monthly NCM Report for Feb Page 43

44 a new course and desire for new world class market environment in a transparent manner will drive full market recovery. The Monthly NCM Report for Feb Page 44

45 Time Lines - (News/Information in the month and Reaction of Market) Date Timelines Gaine rs Losers ASI and Market Capitalisation Remarks Feb 1 Feb 2 LSE Lists Nigeria s $500m Bond- The Nigerian corporate image at the international capital market came alive yesterday as the London Stock Exchange (LSE) admitted the country s first sovereign $500 million bond for trading on the exchange s main market. Investors dump shares to position for rising interest rates- Stock market in further N168 billion loss Cost of borrowing expected to rise Financial markets were caught in a two-way pull following last week's increase in benchmark rates by the Central Bank of Nigeria (CBN) to 6.5 percent. Experts predict improved market indicators this week- Analysts have predicted that there will be significant improvement in major market indicators towards the end of this week. CBN: Banks No Longer Threat to Economy - The CBN said Tuesday that the banking system no longer posed any systemic risks to the nation s economy as a result of the ongoing reforms in the industry. NSE s market capitalization slides further by N30b - Transactions on the floor of the NSE, yesterday, sustained its downward trend, as more highly capitalized companies continued to suffer price depreciation, resulting to a further slide in market capitalization by N30 billion. Analysts optimistic about foreign exchange derivative products - The move by the CBN to introduce derivative foreign exchange products will eventually allow for a more stable national currency At the close of trading session, the NSE All-Share Index dropped further by -0.40% to close at 26, as against a dip by -1.92% recorded previous session to close at 26, In the same vein, market capitalization moved down by N34.25billion (US$ million) to close at N8.54 trillion (US$57.88billion) as against depreciation by N168.09billion (US$1.13billion) recorded on preceding session to close at N8.57 trillion (US$58.12 billion).market report for the day was titled: : Market breadth remains negative as bears tightened grip( news.php?id=13004) At the close of trading session, the NSE All-Share Index gained by 0.77% to close at 26, as against a dip by -0.40% recorded previous session to close at 26, In the same vein, market capitalization moved up by N65.57billion (US$ million) to close at N8.60 trillion (US$58.33billion) as against depreciation by N34.25billion (US$232.16million) recorded on preceding session to close at N8.54 trillion (US$57.88 billion). Market report for the day was titled: Market regains breadth on renewed bargain tendency as Spring bank Plc leads gainers chart( 12) Feb 3 Regulators resolution to determine minority investors expectations At the close of trading session, the NSE All-Share Index droped by -0.12% to close at 26, as The Monthly NCM Report for Feb Page 45

46 Despite the fact that the NSE interim administrator, Emmanuel Ikazoboh, had noted that the move by the NBC to delist was in good faith based on the letter/report sent to the Exchange, minority investors attitude over the proposal seems not unchanged, especially with their unwillingness to dispose off the shares of the company. Investors swing positions to maximize returns - Uncertainty in the investment clime may be pushing investors to opt for more secured investment instruments. Some investment advisory firms have been encouraging their clients to switch to money market instrument in order to secure their investment and enjoy more returns. against an upbeat by 0.77% recorded previous session to close at 26, In the same vein, market capitalization moved down by N10.64billion (US$72.17 million) to close at N8.59 trillion (US$58.26billion) as against appreciation by N65.57billion (US$444.45million) recorded on preceding session to close at N8.60 trillion (US$58.33 billion). Market report for the day was titled: NSE ASI pulls back by -0.12% as banking sector records sell volume( 3015) Questions raised over MoU terms for rescued banks - The banking industry and some top executives of the rescued banks are currently engaged in intense struggle to agree on a share ownership structure with their potential buyers as they prepare to sign their MoU. Feb 4 Agenda for NSE DG designate- After months of shopping for a new head for the Nigerian Stock Exchange, the Council of the bourse, in conjunction with the Securities and Exchange Commission, has settled for Oscar Onyeama as the substantive Chief Executive. Nigeria s economy will surge from third quarter- The Nigerian economy will experience a surge in the third and fourth quarter of this year as the country begins to put behind her the aftermath of the April elections. The economy sectors that would generate significant interest are the equities market and the property development sector. UBA Asset Management predicts significant growth this year- NIGERIAN economy will witness significant growth and stability in 2011 despite growing concern across the country The All-Share Index in the week under review dropped by -2.17% to close at 26, as against a decline by -1.18% recorded last week to close at 27, In the same vein, the market capitalization in the week depreciated by N billion (US$1.28 billion) to close at N8.55 trillion (US$ 57.97billion) as against depreciation of N104.77billion (US$710.10million) recorded last week to close at N8.74 trillion (US59.25 billion). Market report for the week was titled: Bearish sentiments persist as YTD Market performance settles lower at 6.62%( ) The Monthly NCM Report for Feb Page 46

47 Feb 7 Feb 8 Recapitalization: Stockbrokers scramble for more funds - Stockbroking firms that were recently suspended by the NSE as a result of inadequate capital are intensifying moves to increase their capital base. Bond prices to remain stable Analysts - Analysts at the Financial Derivatives Company Limited have said they expect bond prices to remain stable until the interest rates increase in March. Interbank rates climb on cash shortage - Nigerian interbank lending rates climbed to 8.00% on average last week, from 5.0% the previous week, as expectations of cash withdrawals by the state-run energy firm NNPC prompted market hedging. SEC set to end one-size-fits-all code of corporate governance - SEC has said the new/revised code of corporate governance for quoted companies slated for April will end the era of one-size-fits-all rules that have been existing since NSE, vendors to conclude cost negotiation for new trading platform next month -Negotiation for a new trading platform for the NSE is to be concluded on or before the end of next month. Merger not an immediate solution for capital base' - While there are indications that some stockbroking firms are in merger talks following their inability to meet the new capital base, some market operators believe that the option of merger is not the solution At the close of trading session, the NSE All-Share Index dropped by -0.34% to close at 26, as against a decline by -0.49% recorded previous session to close at 26, In the same vein, market capitalization moved down by N29.17billion (US$ million) to close at N8.52 trillion (US$57.77billion) as against depreciation by N42.03billion (US$284.88million) recorded on preceding session to close at N8.55 trillion (US$57.97 billion). Market report for the day was titled: Sell traders maintain position as NSE ASI slides further by -0.34% ( At the close of trading session, the NSE All-Share Index dropped by -0.97% to close at 26, as against a decline by -0.34% recorded previous session to close at 26, In the same vein, market capitalization moved down by N82.88billion (US$ million) to close at N8.44 trillion (US$57.21billion) as against depreciation by N29.17billion (US$197.70million) recorded on preceding session to close at N8.52 trillion (US$57.77 billion). Market report for the day was titled: Sentiments remain unchanged as NSE ASI hits 20days low ( ws.php?id=13037) Feb 9 SEC prohibits directors, family members from dealing in their companies securities - As part of the effort to check the reoccurrence of insider dealing on the NSE, the new code of corporate governance released yesterday by SEC prohibits directors of public companies and their immediate families from dealing in their securities Banks make fresh moves to divest from non-banking subsidiaries At the close of trading session, the NSE All-Share Index gained by 1.03% to close at 26, as against a decline by -0.97% recorded on previous session to close at 26, In the same vein, market capitalization moved up by N86.94billion (US$ million) to close at N8.52 trillion (US$57.80billion) as against depreciation by N82.88billion (US$561.71million) recorded on The Monthly NCM Report for Feb Page 47

48 Indications have emerged that some DMBs that have not complied with the CBN s directive on divestment from non-banking subsidiaries under the new banking regime have started fresh moves to comply Why NBC is delisting 1.3bn shares SEC - SEC has given reasons why NBC is delisting its shares valued at N50.33 billion from the trading floor of the NSE. preceding session to close at N8.44 trillion (US$57.21 billion). Market report for the day was titled: NSE ASI turns green as market giant upbeats by 4.92%( ws.php?id=13043) Feb 10 Shareholders group blames regulators for slow recovery of capital market- THE Independent Shareholders Association of Nigeria (ISAN) has blamed the regulatory authorities for the slow pace of recovery of the Nigerian capital market. NSE s market capitalisation rises by N87 billion- DESPITE price losses that outweighed gains, the bulls upstaged the bears yesterday on the trading floor of the Nigerian Stock Exchange (NSE), as major blue chip stocks recorded price appreciation, resulting to an increase in market capitalisation by N87 billion. How to attract more firms to NSE, by GTI Capital- EXECUTIVE Director, GTI Capital, Ola Ogedengbe, yesterday, advised the Securities and Exchange Commission (SEC), to carry out what he identified as detail research on why several medium and large scale firms in Nigeria are not willing to list their shares on the floor of Nigerian Stock Exchange (NSE) At the close of trading session, the NSE All-Share Index dropped by -0.29% to close at 26, as against an upbeat by 1.03% recorded previous session to close at 26, In the same vein, market capitalization moved down by N24.71billion (US$ million) to close at N8.50 trillion (US$57.63billion) as against appreciation by N86.94billion (US$589.27million) recorded on preceding session to close at N8.52 trillion (US$57.80 billion). Market report for the day was titled: : Nigerian Capital Market resumes southward trend as Julius Berger Plc leads decliners( news.php?id=13049) Feb 11 Survival of operators under test as SEC ups capital base by 2,400% - Market operators in Nigeria have to prove their preparedness to face the emerging competitions with their peers from other market as SEC jacks up the capitalization requirement by over 1,000%. More Stockbrokers Comply on N70m Capital Base -More stockbroking firms have resumed trading on the floors of the NSE having complied with the N70 million minimum capital stipulated by SEC. SEC: Foreign Investment Hits N381bn SEC said Thursday, that the lasting solution to Nigeria s huge infrastructure deficit was to continue to grow the capital market to a world class standard, such that the needed funds could be optimally raised from it. SEC pointed this out, as it also revealed that the total foreign The All-Share Index in the week under review dropped by -0.30% to close at 26, as against a decline by -2.17% recorded last week to close at26, In the same vein, the market capitalization in the week depreciated by N25.36 billion (US$ million) to close at N8.52 trillion (US$ 57.80billion) as against depreciation of N189.45billion (US$1.28billion) recorded last week to close at N8.55 trillion (US57.97 billion). Market report for the week was titled: : Market records N billion loss in 15days as bearish sentiments persist.( The Monthly NCM Report for Feb Page 48

49 Feb 14 Feb 16 Feb 17 portfolio investment in 2010 in the country through the nation s capital market was N billion, which accounted for 48% of the aggregate turnover value. NSE: Analysts predict improved activities this week- In the face of significant losses recorded in the NSE within the last three weeks; analysts have said that there may be improved activities this week. Banks in Liquidity Drain amid Tight Policy - The opening balance of banks at the interbank naira market, which is a key measure of the liquidity of the system, crashed at the weekend to about N15 billion from N124 billion the previous week. Mixed reactions trail SEC s move to slash stockbroking firms - Discordant tunes have continued to trail SEC s move to prune the number of stockbroking firms operating in the Nigerian Capital Market. SEC pledges commitment to IFRS adoption- DIRECTOR-GENERAL of Securities and Exchange Commission (SEC), Arunma Oteh, has reinstated the commission s commitment to the adoption of International Financial Reporting Standards (IFRS) fixed for 2012 in Nigeria. Rising Rates Take Toll on FGN Bonds- Rising interest rates appear to be hampering efforts by the Federal Government of Nigeria to deepen the bond market, as investors are reducing their stake in the securities at the secondary market. NSE to Enforce Rules on Compliance Officers- More stockbroking firms stand the chance of losing businesses as the Nigerian Stock Exchange (NSE) prepares to enforce its rule concerning compliance officers who are required to ensure full compliance with all NSE requirements. CBN Now to Approve Top Positions in Banks- Unlike in the past when banks were solely left to take decisions concerning the appointment of senior management officers, the Central Bank of Nigeria (CBN) Wednesday said such appointments would now be subject to its approval. Banks full year, other earnings release to moderate selling pressure At the close of trading session, the NSE All-Share Index dropped by -0.32% to close at 26, as against an upbeat by 0.29% recorded previous session to close at 26, In the same vein, market capitalization moved down by N27.51billion (US$ million) to close at N8.50 trillion (US$57.61billion) as against appreciation by N24.45billion (US$165.74million) recorded on preceding session to close at N8.52 trillion (US$57.80 billion). Market report for the day was titled: NSE ASI remains weak, trading below its 20days moving average ( ws.php?id=13071) At the close of trading session, the NSE All-Share Index dropped by -0.49% to close at 26, as against a decline by -0.32% recorded previous session to close at 26, In the same vein, market capitalization moved down by N41.49billion (US$ million) to close at N8.45 trillion (US$57.33billion) as against depreciation by N27.51billion (US$186.47million) recorded on preceding session to close at N8.50 trillion (US$57.61 billion). Market report for the day was titled: Market CAP dips further by N41 billion as downward trend gains momentum.( s/13079) At the close of trading session, the NSE All-Share Index gained by 0.60% to close at 26, as against a decline by -0.49% recorded previous session to close at 26, In the same vein, market capitalization moved up by N50.72billion (US$ million) to close at N8.51 trillion The Monthly NCM Report for Feb Page 49

50 Hindsight of a robust 2010 fourth quarter financial report by banks and other quoted firms is impacting positively on the performance indicators of the secondary market at the Nigerian Stock Exchange (NSE). More stockbrokers join NSE s 235 remote trading connections in Lagos- THE use of remote trading by dealing firms has continued to gain acceptance, as there are 235 remote trading connections in Lagos, besides those deployed in branches across the country. (US$57.68billion) as against depreciation by N41.49billion (US$281.22million) recorded on preceding session to close at N8.45 trillion (US$57.33 billion).market report for the day was titled: NSE ASI rebounds as sell pressure wanes( ews.php?id=13083) Feb 18 Feb 21 Code of corporate governance will be effective from April SEC- The Securities and Exchange Commission has said the newly approved code of corporate governance for public companies will be effective from April 1, AMCON ll not give more funds to DMBs Chike-Obi- The Asset Management Corporation of Nigeria will not give additional money to the rescued Deposit Money Banks aside from the five per cent of the original value of unsecured loans it pays to them, the Managing Director, AMCON, Mr. Mustapha Chike-Obi, has said. Market operators urge investors to trade cautiously- Some market operators have urged investors to trade cautiously following the recent growth in transaction volume at the Nigerian Stock Exchange (NSE), despite the wobbly market performance. Suspension: Brokers Seek Dialogue with SEC- The leadership of the stockbroking community in the nation s capital market will this week meet with the management of the Securities and Exchange Commission (SEC) and Nigerian Stock Exchange (NSE) over the suspension of brokering houses and planned consolidation. CBN partners NASB for IFRS adoption-the Central Bank of Nigeria (CBN) has declared its resolve to collaborate with the Nigerian Accounting Standards Board (NASB) in ensuring banks in Nigeria comply with International Financial Reporting Standards (IFRS) in the preparation of their financial statements The All-Share Index in the week under review dropped by -0.17% to close at 26, as against a decline by -0.30% recorded last week to close at26, In the same vein, the market capitalization in the week depreciated by N14.42 billion (US$97.78 million) to close at N8.51 trillion (US$ 57.70billion) as against depreciation of N25.36billion (US$171.88million) recorded last week to close at N8.52 trillion (US57.80 billion). Market report for the week was titled: Market CAP dips further by N14billion for the week as Nestle Plc grows PAT 28.8%.( nglenews.php?id=13097) At the close of trading session, the NSE All-Share Index gained by 0.26% to close at 26, as against an upbeat by 0.05% recorded previous session to close at 26, In the same vein, market capitalization moved up by N22.36billion (US$ million) to close at N8.53 trillion (US$57.85billion) as against appreciation by N3.85billion (US$26.12million) recorded on preceding session to close at N8.51 trillion (US$57.70 billion). Market report for the day was titled: Equity Market sustains uptrend by 0.26% as Nestle Plc leads gainers The Monthly NCM Report for Feb Page 50

51 Margin loans: Stockbrokers express divergent views over AMCON s intervention Ahead of the meeting with the AMCON (today), stockbrokers have expressed divergent views on the outcome of the discussions, especially as regards the modalities for acquiring margin loans. chart( lenews.php?id=13114) Feb 22 Feb 23 Investors urged to take position ahead of companies results - Investors in the capital market have been urged to take position in good stocks on the NSE ahead of the release of some companies f FDI: Stanbic IBTC set to host investors, corporate managers - Stanbic IBTC Bank Plc and its stockbroking subsidiary, Stanbic IBTC Stockbrokers Limited, have concluded arrangements to host institutional investors keen on making forays into the Nigerian economy through stake holdings in leading quoted firms on the NSE. financial results. CBN governor rejects IMF advice to devalue naira - CBN Governor, Lamido Sanusi, yesterday rejected the advice by the IMF to weaken the naira, saying the currency is not overvalued. SEC, stakeholders plan alternative market - Plans are in the offing to offer investors alternative windows for building wealth to complement the NSE, as the Nigerian Association of Securities Dealers (NASD) and SEC are in top discussions to set up the OTC market. NSE Moves Closer to Global Membership - The renewed efforts by the NSE to enforce its rules and the appointment of a new CEO are said to have attracted favourable review from the World Federation of Exchanges (WFE) thus brightening the Exchange s chance of early admission into the g AMCON Plans Second Phase of Asset Purchase - AMCON Tuesday said it is seeking approval from the CBN to commence the second phase of its agenda of buying banks bad debt. MD and CEO, AMCON, Mr. Mustapha Chike-Obi, who disclosed this, said that the next stage of bad debt to be purchased would be from At the close of trading session, the NSE All-Share Index gained by 0.14% to close at 26, as against an upbeat by 0.26% recorded previous session to close at 26, In the same vein, market capitalization moved up by N12.05billion (US$81.70 million) to close at N8.54 trillion (US$57.93billion) as against appreciation by N22.36billion (US$151.57million) recorded on preceding session to close at N8.53 trillion (US$57.85 billion). Market report for the day was titled: Market CAP gains N89billion in four days on continued moderate buying( glenews.php?id=13120) At the close of trading session, the NSE All-Share Index dropped by -0.12% to close at 26, as against an upbeat by 0.14% recorded previous session to close at 26, In the same vein, market capitalization moved down by N10.64billion (US$72.14 million) to close at N8.53 trillion (US$57.86billion) as against appreciation by N12.05billion (US$81.70million) recorded on preceding session to close at N8.54 trillion (US$57.93 billion). Market report for the day was titled: NSE ASI pulls back by -0.12% as sell traders halt four days rally( enews.php?id=13134) The Monthly NCM Report for Feb Page 51

52 the healthy banks and other banks that did not meet up with the first stage. Feb 24 Attractive prices may lure investors to take position ahead FY 10 results - Ahead the release of banks financial year 2010 scorecards, many investors especially those in the NSE may leverage on the attractive share prices of some banks to take position ahead of the results that are likely to be out for public knowledge 2nd or 3rd week of next month. Equities Decline on Profit-taking - The wavy investors confidence in the stock market was once again reflected in the trading pattern as profit taking halted the positive run witnessed in the past few days. SEC seeks improved legal framework - SEC is seeking for an improved and efficient legal process upon which a world class capital market can be built in Nigeria At the close of trading session, the NSE All-Share Index declined by -1.86% to close at 26, as against a dip by -0.12% recorded previous session to close at 26, In the same vein, market capitalization moved down by N158.67billion (US$1.07 billion) to close at N8.37 trillion (US$56.79billion) as against depreciation by N10.64billion (US$72.14million) recorded on preceding session to close at N8.53 trillion (US$57.86 billion). Market report for the day was titled: NSE ASI dips further by -1.86% as Nigerian Breweries Plc rewards investors with N1.25( glenews.php?id=13141) Feb 25 Feb 28 Stock Market: Foreign Investors Dominate Transactions- Foreign investors are currently dominating transactions in the Nigerian equities market, as they account for 68 per cent investment on the Nigeria Stock Exchange (NSE), Interim Administrator of NSE, Mr. Emmanuel Ikazoboh disclosed Thursday. AMCON: We ll Encourage Short-Selling of Securities- The Assets Management Corporation of Nigeria (AMCON),Thursday said it would encourage short-selling of the assets acquired from banks to traders that are interested in borrowing them Regulation, Liquidity Key To Capital Market Leadership- Effective regulatory and investment framework hold the key to Nigeria taking her pride of place as a leading world class capital market that engenders confidence, according to stakeholders who spoke at the Annual Capital Market Conference in Lagos yesterday Getting multinationals to list on the NSE-Penultimate week, President Goodluck Jonathan was reported to have ordered the director- general of the Securities and Exchange Commission to encourage multinationals like oil and Telecommunication companies to list on the stock exchange. SEC vs stockbrokers: Resolving grey areas of consolidation- Capital market The All-Share Index in the week under review dropped by -1.72% to close at 26, as against a decline by -0.17% recorded last week to close at26, In the same vein, the market capitalization in the week depreciated by N billion (US$ million) to close at N8.36 trillion (US$ 56.71billion) as against depreciation of N14.42billion (US$97.78million) recorded last week to close at N8.51 trillion (US57.70 billion).bears tighten grip as NSE ASI hits fresh low in 30days( nglenews.php?id=13162) At the close of trading session, the NSE All-Share Index declined by -0.63% to close at 26, as against a dip by -0.14% recorded previous session to close at 26, In the same vein, market capitalization moved down by N52.52billion (US$ million) to close at N8.31trillion (US$56.35billion) as against depreciation by The Monthly NCM Report for Feb Page 52

53 activities improved significantly, last year, with the establishment of the Asset Management Corporation of Nigeria. However, the recent announcement by the Securities and Exchange Commission that it is working towards reducing the number of stockbrokers through consolidation has generated a controversy, which experts say may affect the market trend. CIS warns SEC against NBC s delisting plan- The Chartered Institute of Stockbrokers has frowned on the planned delisting of the shares of the Nigerian Bottling Company from the Nigerian Stock Exchange. N11.53billion (US$78.18million) recorded on preceding session to close at N8.36 trillion (US$56.71 billion) Equity Market moves into bearish mode as ASI slides below 50days moving average( nglenews.php?id=13170 ) The Monthly NCM Report for Feb Page 53

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55 Online irs Training Analyst Service news & investigations February 2011, Lagos, Nigeria ISSN Vol. 1 No Plot 590b, Pat Ojebuoboh Close, Omole Phase II, Isheri LGA, P.O.Box 18782, Ikeja, Lagos, NG DL: info@proshareng.com Website: The Monthly NCM Report for Feb Page 55