Weekly Market Update (301009) - Weak Earnings Reports and Loss of Confidence Caused Index Drop.

Market this week performed below the previous week performance as all indicators went southward. Market index was on consistent decline since the first trading day of the week throughout the week without a break. For instance, from the 0.28% index gain recorded last trading day of the previous week, the week reversed the trend with a loss of 1.24% in index and loss of N66.175 billion in Market Capitalisation on Monday. This gloomy outlook of the market was caused by a mixture of profit taking and loss of confidence, most especially in Banking sector. The sector recorded the highest loss in the week. However, Food and Beverages sector recorded the best performance in the week with Flourmill being the major driver of the sector’s impressive performance.

The NSE-All share index in the course of the week dropped by 3.75% to close at 21,804.69 as against increase of 1.61% which closed at 22,653.17. The drop was attributed to the decline in the prices of highly capitalised equities. The market capitalisation of 198 First-Tier equities closed lower at N5.14 trillion as against N5.34 trillion of the previous week and the NSE-30 index dropped by 3.02% to close at 837.34 as against gain of 2.60% recorded last week to close at 863.38. One of the four indices appreciated-NSE-Food and Beverages rose by 2.02% to close at 484.99 as against 2.56% gain recorded last week, the NSE-Banking declined by 4.23% as against appreciation by 1.30% of the previous week, the NSE-Oil and Gas declined by 2.02% as against gain of 5.95% recorded last week




A total of 1.95 billion units of shares worth N11.4 billion was exchanged in 30,579 deals in the week as against 2.102 billion units of shares worth N15.780 billion in 29,101 deals recorded last week. The banking sector recorded the highest traded volume for the week with a total of 902.73 million shares worth N6.8 billion was exchanged by investors in 16,935 deals in the week as against 1.305 billion units exchanged in 16,795 deals valued at N10.419 billion of last week. Volume in the banking sector was largely driven by activities in the shares of FCMB, UBA and Access Bank Plc just as of last week. Trading in these three banks accounted for 41.9% of the sector’s trade as against 50.13% of the previous week. In the same vein, the activity in the shares of Standard Alliance Insurance Plc and Lasaco Insurance followed with a turnover of 493.42 million units valued at N390 million in 2,685 deals.


On the price movement during the week, Sixteen(16) stocks advanced in price movement during the week which was below Forty Two (42) advancers recorded in the previous week. Flourmill in the Food and Beverages sector as in the preceding week led the gainers’ chart for the week with N6.79 as aginst N6.03 of the previous week, followed by Guinness Plc(N4.14), Julius Berger (N1.34), UAC (N0.50) and CCNN (N0.49). Other price gainers in the top ten category include: UPL(N0.45), Longman(N0.41), Ashakacem(N0.35), Berger Paints (N0.31) and Fidson (N0.25).
On the losers’ side, Seventy Two(72) decliners were recorded in the week against Seventy Two(55) decliners of the previous week. Nigerian Breweries Plc in the Breweries sector led the losers’ chart with N4.50 drop in the week. Next to it are Conoil(N3.98), UACN(N2.08),AP(N1.80), WAPCO(N1.55), NBC(N1.11), Eternal Oil(N1.09), Nahco(N1.09), Ecobank(97k) and Skye Bank(80)
During the week, Nigerian Ropes Plc was adjusted for dividend of 8k per share, Adswitch Plc was adjusted for dividend of 4k per share and Custodian and Allied Insurance Plc was adjusted for an interim dividend of 5k per share.


TECHNICAL SUSPENSION
The full suspension on Stokvis Nigeria Plc and African Paints (Nig) Plc was down graded to technical suspension on Thursday, October 29, 2009.


MEMORANDUM QUOTATIONS
NIGERIAN INTERNATIONAL GROWTH FUND: Unaudited result for the first quarter ended 30th September 2009 shows Total Income of N251.5 million and Total Expenses of N62.1 million. The Net Assets at the end of the period stood at N2, 840.35 million.


REPORT ON THE OTC MARKET FOR FGN BONDS
A turnover of 408.8 million units worth N N502,043.24 million in 4,667 deals was recorded this week, in contrast to a total of 482.04 million units valued at N588,776.5 million exchanged in 5,681 deals during the week ended Thursday, October 22, 2009. As in the preceding week, the most active bond (measured by turnover volume) was the 6th FGN Bond 2029 Series 3 with a traded volume of 77.6 million units valued at N107,457 million in 730 deals. This was followed by the 5th FGN Bond 2013 Series 1 with a traded volume of 46.94 million units valued at N50,844.34 million in 434 deals. Nineteen (19) of the available thirty - seven (37) FGN Bonds were traded during the week, compared to twenty–one (21) in the preceding week.


RESULTS RELEASED DURING THE WEEK:

Berger Paints Plc Second Quarter Result released reported Turnover drop of 11.82%, PAT dropped by 29.60%, Working Capital declined by 6.90% and slight increase of 0.74% in Net Asset.
Transcorp Plc Audited Account for the year ended, 30th September 2009 reported Turnover growth of 23.83%, PAT growth of 114.37%, Working Capital growth of 101.31% and 20.43% growth in Net Assets. The result is a boost to investors’ confidence.


Skye Bank Plc Fourth Quarter Results: The turnover grew by 35.96% from N74.615 billion to N101.448 billion. However, the PAT dipped by 187.68% from N15.126 billion to (N13.263 billion).There was drop of 7.41% in Net Assets for the period to close at N86.901 billion from N93.853 billion. Working Capital situation improved by 41.77% from (N481.063 billion) to (N280.138 billion)


Sterling Bank Fourth Quarter Result: Gross Earnings grew by 4.04% from N36.30 billion to N37.768 billion. PAT dipped by 169.63% from N6.583 billion to (N4.584 billion). Net Asset for the period dipped by 4.48% from N31.272 billion to N29.868 billion and Working Capital situation declined further by 82.83% from (N50.09 billion) to (N91.6 billion).


Ecobank Transnational Plc Third Quarter Result: Gross Earnings grew by 31.35% from N96.961 billion to N127.354 billion. PAT dipped by 24.82% from N12.222 billion to N9.189 billion. Net Asset for the period grew by 12% from N144.174 billion to N161.621 billion and Working Capital dropped by 41.21% from N51.696 billion to N27.291 billion


NCR Plc First Quarter Result: Turnover dropped by 22.27% from N4.310 billion to N3.350 billion. PAT increased by 520% from (N155.521 million) to N651.408 million. Net Asset for the period grew by 128.71% from (N505.497 million) to N145.911 million and Working Capital increased by 224.22% from N294.524 million to N954.524 million.


Academy Plc First Quarter Result: Turnover dropped by 39.47% from N412.862 million to N575.800 million. PAT increased by 314.72% from N9.350 million to N38.776 million. Net Asset for the period grew by 7.35% from N463.152 million to N497.201 million and Working Capital increased by 6.55% from N139.526 million to N148.661 million.


Access Bank Plc Second Quarter Result: Turnover grew by 30.77% from N64.326 billion to N49.189 billion. PAT dipped by 227.99% from N9.187 billion to (N11.758 billion). Net Asset for the period declined by 12.29% from N184.159 billion to N161.535 billion and Working Capital situation improved by 9.41% from (N256.883 billion) to (N232.714 billion).


Tantalizer Plc Third Quarter Result: Turnover grew by 23.82% from N3.279 billion to N4.060 billion . PAT rose by 5.89% from N225.213 million to N238.479 million. Net Asset for the period increased by 1.56% from N3.768 million to N3.827 million and Working Capital situation improved by 92.91% from (N129.941 million) to (N9.219 million).


Asosavings and Loans Plc First Quarter Result: Turnover declined by 3.72% from N2.419 billion to N2.329 billion . PAT came down by 68.62% from N674.583 million to N211.669 million. Net Asset for the period increased by 7.74% from N5.477 billion to N5.901 billion.


Fidelity Bank Plc First Quarter Result: Turnover grew by 33.12% from N13.939 billion to N18.555 billion . PAT declined by 24.83% from N3.024 billion to N2.273 billion. Net Asset for the period decreased by 5.18% from N138.888 billion to N131.693 billion and Working Capital situation improved by 14.12% from (N125.359 billion) to (N107.660 billion).


Northern Nigerian Flourmill Plc Second Quarter Result: Turnover grew by 14.18% from N4.694 billion to N5.360 billion . PAT grew by 337.24% from N75.179 million to N328.709 million. Net Asset for the period increased by 31.33% from N865.169 million to N1.136 billion and Working Capital situation improved by 55.86% from N888.45 million to N1.384 billion.


Benue Cement Company Plc Third Quarter Result: Turnover grew by 177.28% from N9.819 billion to N27.226 billion . PAT grew by 209.06% from N4.196 billion to N12.968 billion.
Capital Oil Plc Audited Account for the Year Ended 2008: Turnover grew by 17.13% from N219.93 million to N257.6 million . PAT grew by 337.24% from N0.27 million to N39.41 million.