Forex Update
Euro / Dollar Technical Forex Analysis for Forex Traders
In agreement with the negative technical outlook we talked about in the past two days, the Euro stopped at the first resistance in the report 1.4844 with great accuracy (highest price after the issuance of the report is 1.4840), then dropped breaking the support 1.4801, and reached the first target of that break 1.4702. And after reaching 1.4702, we should not neglect the rising probability of an upward correction for the drop from 1.5061, which reached almost 400 pips so far.
USD / JPY Technical Forex Analysis for Forex Traders
Dollar-Yen broke 90.76 and had some drop after that, but it stopped before 90. In spite of that, the technical outlook became more negative, because we broke the rising channel that we have been monitoring lately. The most important support for the short-term is 90.16, and until this moment it managed to hold above it.
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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.
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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.
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Access Bank Plc - Unaudited results for the 6 month period ended 30 September 2009
ACCESS BANK PLC REPORTS 31% INCREASE IN REVENUES FOR THE 6 MONTH ENDED 30 SEPTEMBER 2009 TO N64 BILLION
LAGOS, NIGERIA – 30 October 2009 – Access Bank Plc, (Bloomberg: ACCESS NL) (“Access Bank” or the “Bank”), the full service commercial bank headquartered in Nigeria and with operations across eight African countries and in the United Kingdom announces its unaudited results for the 6 month period ended 30 September 2009.
Access Bank remains focused on building market share and leveraging its lean value chain driven business model to deliver quality service to our target market. We have continued to take the necessary actions to maintain strong capital adequacy ratios and grow our funding base and liquidity levels well beyond the prescribed regulatory minimum. The strength of our business model is evident given our 34% year on year growth in operating profits. Although our bottom line earnings for the 6 month reporting period have been significantly impacted by a N30.9billion exceptional provision resulting from the recently concluded joint CBN/NDIC special examination, we have since commenced the necessary recovery and remedial actions to regularize a significant portion of the classified loans. We are cautiously optimistic that we will record performance improvements over the next quarter.
Financial Highlights
· Gross Earnings of N64.0 billion, an increase of 31%, compared with the equivalent period in the prior year (N49.2 billion Sept 2008)
· Operating cost / operating income ratio down to 51%, (53% Sept 2008)
· Operating profit of N21.5 billion, an increase of 34% (N16.0 billion Sept 2008)
· Exceptional provision for risk assets of N30.9 billion
· Notwithstanding provisions, Bank’s capital adequacy ratio stands at 25.3%
· Loss After Tax of N11.8 billion, compared with a profit of N9.2 billion Sept 2008
· Loans & Advances down 12% to N383.2 billion (N432.7 billion Sept 2008)
· Deposits and other accounts up 22% to N381.3 billion (N311.4 billion Sept 2008)
· Loan to deposit ratio improved to 99% (138% Sept 2008)
· Liquidity ratio of 33.5% (8.5% above the regulatory minimum of 25%).
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LAGOS, NIGERIA – 30 October 2009 – Access Bank Plc, (Bloomberg: ACCESS NL) (“Access Bank” or the “Bank”), the full service commercial bank headquartered in Nigeria and with operations across eight African countries and in the United Kingdom announces its unaudited results for the 6 month period ended 30 September 2009.
Access Bank remains focused on building market share and leveraging its lean value chain driven business model to deliver quality service to our target market. We have continued to take the necessary actions to maintain strong capital adequacy ratios and grow our funding base and liquidity levels well beyond the prescribed regulatory minimum. The strength of our business model is evident given our 34% year on year growth in operating profits. Although our bottom line earnings for the 6 month reporting period have been significantly impacted by a N30.9billion exceptional provision resulting from the recently concluded joint CBN/NDIC special examination, we have since commenced the necessary recovery and remedial actions to regularize a significant portion of the classified loans. We are cautiously optimistic that we will record performance improvements over the next quarter.
Financial Highlights
· Gross Earnings of N64.0 billion, an increase of 31%, compared with the equivalent period in the prior year (N49.2 billion Sept 2008)
· Operating cost / operating income ratio down to 51%, (53% Sept 2008)
· Operating profit of N21.5 billion, an increase of 34% (N16.0 billion Sept 2008)
· Exceptional provision for risk assets of N30.9 billion
· Notwithstanding provisions, Bank’s capital adequacy ratio stands at 25.3%
· Loss After Tax of N11.8 billion, compared with a profit of N9.2 billion Sept 2008
· Loans & Advances down 12% to N383.2 billion (N432.7 billion Sept 2008)
· Deposits and other accounts up 22% to N381.3 billion (N311.4 billion Sept 2008)
· Loan to deposit ratio improved to 99% (138% Sept 2008)
· Liquidity ratio of 33.5% (8.5% above the regulatory minimum of 25%).
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MARKET RECORDED 0.975% NEGATIVE OUTLOOK
All-Share market index today lost 0.975% and market capitalization dropped by N52.349 billion. The NSE-30 Index declined by 0.023%, NSE-Food &Beverages lost 0.598%, NSE-Banking lost 1.576%, NSE-Insurance declined by 0.326%, while NSE-Oil &Gas gained 0.720%. The index movement in the entire market for the day showed 22,758.77 maximum, 22,525.62 average and 22,293.53 lowest.
One Hundred and Twenty Three (123) stocks were traded in the market today out of which Twenty Four (24) advanced, Forty-One (41) declined and Fifty Eight (58) traded at their previous closed prices.
The top ten gainers today were: AP Plc, UACN Plc, Flourmill Plc, Wapco Plc, Diamond Bank Plc, Ashakacem Plc, UPL Plc, Dangflour Plc, Starcomms Plc and Intercontinental Bank Plc with gains of 159k, 150k, 125k, 48k, 29k, 24k,21k,15k,9k and 9k respectively.
The top ten losers on the other hand were: Nestle Plc, Guinness Plc, Honeyflour Plc, Rtbriscoe Plc, Nahco Plc, Union Bank Plc, CCNN , ETI and FCMB; they lost 499k, 314k, 170k, 42k, 39k, 35k,32k,30k, 29k and 21k in that sequence.
The top five most traded sectors were: Banking with a total volume of 208.794 million units (about 50.40% of the entire market volume) exchanged in 3,334 deals, valued at N1.764 billion, Insurance sector followed with 158.085 million units traded( 38.17% of the market volume), Food &Beverages sector traded 12.784 million units (3.09% of the market volume), Petroleum Marketing traded 8.129 million units (1.96% of the market volume) and Building Materials traded 3.251 million units (0.785% of the entire market volume).
The ten most traded stock for today were Goldinsure Plc-81.937 million units, IAINSURE- 64.957 million units, UBA-42.127 million units, Diamond Bank-27.516 million units, FCMB-22.727 million units, First Bank-19.179 million units, Skye Bank-16.844 million units, Firstinland Bank-16.798 million units, Zenith Bank-11.426 million units and Fidelity bank- 11.198 million units..
Livestock Plc, Courtville, AP and UPL closed on bid. However FTN Cocoa, Nahco, Rtbriscoe, Spring Bank, Guinness, Afromedia, PZ, Honyflour, Nestle, Lasaco, Nigerins, Stdinsure, Wapic, Daarcomm, Crusader, Bagco, Becopetrol, UAC-Prop and UNTL closed on Offer.
RESULTS RELEASED TODAY:
BAGCO PLC FIRST QUARTER RESULTS:
When compared with the previous year first quarter result, Bagco Plc recorded 3.72% increase in its turnover, 28.80% decline in its Profit After Tax, 3.14% decline in its Fixed Assets, 7.46% increase in its working capital and 1.88% in its Net Assets.
NIGERIA WIRE&CABLE PLC HALF YEAR RESULT:
The turnover for the period increased by 24%, Profit After Tax also rose unusually by 724.67%. There was increase of 7.92% on the Fixed Assets, a drop of 13.86% in the company’s working capital and improvement of 4.77% on the Net Assets in the period.
ZENITH BANK FOURTH QUARTER RESULT:
The turnover for the period increased by 19.42%, Profit After Tax declined by 53.20%, Fixed Assets increased by 48.06%, Working Capital declined by 3.53% and Net Asset declined by 3.52%
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One Hundred and Twenty Three (123) stocks were traded in the market today out of which Twenty Four (24) advanced, Forty-One (41) declined and Fifty Eight (58) traded at their previous closed prices.
The top ten gainers today were: AP Plc, UACN Plc, Flourmill Plc, Wapco Plc, Diamond Bank Plc, Ashakacem Plc, UPL Plc, Dangflour Plc, Starcomms Plc and Intercontinental Bank Plc with gains of 159k, 150k, 125k, 48k, 29k, 24k,21k,15k,9k and 9k respectively.
The top ten losers on the other hand were: Nestle Plc, Guinness Plc, Honeyflour Plc, Rtbriscoe Plc, Nahco Plc, Union Bank Plc, CCNN , ETI and FCMB; they lost 499k, 314k, 170k, 42k, 39k, 35k,32k,30k, 29k and 21k in that sequence.
The top five most traded sectors were: Banking with a total volume of 208.794 million units (about 50.40% of the entire market volume) exchanged in 3,334 deals, valued at N1.764 billion, Insurance sector followed with 158.085 million units traded( 38.17% of the market volume), Food &Beverages sector traded 12.784 million units (3.09% of the market volume), Petroleum Marketing traded 8.129 million units (1.96% of the market volume) and Building Materials traded 3.251 million units (0.785% of the entire market volume).
The ten most traded stock for today were Goldinsure Plc-81.937 million units, IAINSURE- 64.957 million units, UBA-42.127 million units, Diamond Bank-27.516 million units, FCMB-22.727 million units, First Bank-19.179 million units, Skye Bank-16.844 million units, Firstinland Bank-16.798 million units, Zenith Bank-11.426 million units and Fidelity bank- 11.198 million units..
Livestock Plc, Courtville, AP and UPL closed on bid. However FTN Cocoa, Nahco, Rtbriscoe, Spring Bank, Guinness, Afromedia, PZ, Honyflour, Nestle, Lasaco, Nigerins, Stdinsure, Wapic, Daarcomm, Crusader, Bagco, Becopetrol, UAC-Prop and UNTL closed on Offer.
RESULTS RELEASED TODAY:
BAGCO PLC FIRST QUARTER RESULTS:
When compared with the previous year first quarter result, Bagco Plc recorded 3.72% increase in its turnover, 28.80% decline in its Profit After Tax, 3.14% decline in its Fixed Assets, 7.46% increase in its working capital and 1.88% in its Net Assets.
NIGERIA WIRE&CABLE PLC HALF YEAR RESULT:
The turnover for the period increased by 24%, Profit After Tax also rose unusually by 724.67%. There was increase of 7.92% on the Fixed Assets, a drop of 13.86% in the company’s working capital and improvement of 4.77% on the Net Assets in the period.
ZENITH BANK FOURTH QUARTER RESULT:
The turnover for the period increased by 19.42%, Profit After Tax declined by 53.20%, Fixed Assets increased by 48.06%, Working Capital declined by 3.53% and Net Asset declined by 3.52%
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Forex market Updates
Forex: EUR/USD finds resistance at 1.5050
FXstreet.com (Barcelona) – The Euro's recovery against the Dollar from MA55 hourly at 1.4990 has found resistance at 1.5050 in the European session with the pair sliding to trade close to 1.5030. Currently the pair is trading around 1.5025/35, at the same zone of opening price action.
Next resistance area, at the moment, lies at 1.5060 (session high), and above here, 1.5085 (Aug 11 08 high) and 1.5100. On the downside, support levels at 1.4990/00 (session low/ oct 20 high), and below here 1.4975 and 1.4940 (Oct 22low).
George Antonakos, analyst at FXGreece, comments: “Our lower targets were achieved during yesterday’s highs, but retracements remained weak, indicating that buyers still dominate. Important resistance emerges at 1,5100 area, which is the most possible target. As you can see in the daily chart two different channels are met at these levels and these levels should not be easily breached. Next targets are set at 1,5160-80, but if these levels are reached, a move to higher levels with next target at 1,5250-00 area. Important support emerges at 1,4965-80 area, followed by 1,4830-50 area.”
Forex: USD/JPY finds support at 91.50 and approaches to 92.00
FXstreet.com (Barcelona) – The Dollar has bounced at 91.50, coming from its 40 pips decline from 91.90, to rise above previous highs at 91.90 and tests 92.00 level. Currently the pair is trading around 91.85/95, 0.70% above today's opening price action at 91.30.
According to Peter Rosentreich, technical analyst at ACM - Advanced Currency Markets, The Dollar could go through a corrective decline after topping at 91.90: "91.95 has so far provided decent supply to cap further rallies today. First resistance comes in at 91.10, we would look to buy around 90.20, with support below at 89.70."
George Clement, analyst at Swiss e trade, comments: “The Dollar continued its strength against the Yen in early European trading, right now at 91.55 after highs around 91.91. We see the upside potential rather limited for today's trading.”
Read more...
FXstreet.com (Barcelona) – The Euro's recovery against the Dollar from MA55 hourly at 1.4990 has found resistance at 1.5050 in the European session with the pair sliding to trade close to 1.5030. Currently the pair is trading around 1.5025/35, at the same zone of opening price action.
Next resistance area, at the moment, lies at 1.5060 (session high), and above here, 1.5085 (Aug 11 08 high) and 1.5100. On the downside, support levels at 1.4990/00 (session low/ oct 20 high), and below here 1.4975 and 1.4940 (Oct 22low).
George Antonakos, analyst at FXGreece, comments: “Our lower targets were achieved during yesterday’s highs, but retracements remained weak, indicating that buyers still dominate. Important resistance emerges at 1,5100 area, which is the most possible target. As you can see in the daily chart two different channels are met at these levels and these levels should not be easily breached. Next targets are set at 1,5160-80, but if these levels are reached, a move to higher levels with next target at 1,5250-00 area. Important support emerges at 1,4965-80 area, followed by 1,4830-50 area.”
Forex: USD/JPY finds support at 91.50 and approaches to 92.00
FXstreet.com (Barcelona) – The Dollar has bounced at 91.50, coming from its 40 pips decline from 91.90, to rise above previous highs at 91.90 and tests 92.00 level. Currently the pair is trading around 91.85/95, 0.70% above today's opening price action at 91.30.
According to Peter Rosentreich, technical analyst at ACM - Advanced Currency Markets, The Dollar could go through a corrective decline after topping at 91.90: "91.95 has so far provided decent supply to cap further rallies today. First resistance comes in at 91.10, we would look to buy around 90.20, with support below at 89.70."
George Clement, analyst at Swiss e trade, comments: “The Dollar continued its strength against the Yen in early European trading, right now at 91.55 after highs around 91.91. We see the upside potential rather limited for today's trading.”
Read more...
Conference Bd: Sep US Leading Index Up 1.0%, Above Expectations
Dow Jones | Thu, Oct 22 2009, 14:00 GMT
The index of leading economic indicators rose for the sixth consecutive month in September. The leading index increased 1.0% last month, after a revised 0.4% gain in August, the Conference Board reported Thursday. August's gain was originally reported as 0.6%.
Economists surveyed by Dow Jones Newswires had expected an increase of 0.8% in the September index.
"The LEI has risen for six consecutive months and the coincident economic index has increased in two of the last three months. These numbers strongly suggest that a recovery is developing," said Ken Goldstein, economist at the board. "However, the intensity of that recovery will depend on how much, and how soon, demand picks up."
Eight of the 10 leading indicators increased in September. The most positive were the interest rate spread, consumer expectations and the inverted trend in jobless claims. The negative contributors were weekly manufacturing hours and building permits.
The coincident index was unchanged in September after rising a revised 0.1% in August, which was originally reported as unchanged.
The lagging index dropped 0.3% last month, after a revised 0.2% fall in August that was first reported as a 0.1% drop.
-By Kathleen Madigan, Dow Jones Newswires; 212-416-2466; kathleen.madigan@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=4x5ks2bV7EdKor3uWxlUEg%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
Read more...
The index of leading economic indicators rose for the sixth consecutive month in September. The leading index increased 1.0% last month, after a revised 0.4% gain in August, the Conference Board reported Thursday. August's gain was originally reported as 0.6%.
Economists surveyed by Dow Jones Newswires had expected an increase of 0.8% in the September index.
"The LEI has risen for six consecutive months and the coincident economic index has increased in two of the last three months. These numbers strongly suggest that a recovery is developing," said Ken Goldstein, economist at the board. "However, the intensity of that recovery will depend on how much, and how soon, demand picks up."
Eight of the 10 leading indicators increased in September. The most positive were the interest rate spread, consumer expectations and the inverted trend in jobless claims. The negative contributors were weekly manufacturing hours and building permits.
The coincident index was unchanged in September after rising a revised 0.1% in August, which was originally reported as unchanged.
The lagging index dropped 0.3% last month, after a revised 0.2% fall in August that was first reported as a 0.1% drop.
-By Kathleen Madigan, Dow Jones Newswires; 212-416-2466; kathleen.madigan@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=4x5ks2bV7EdKor3uWxlUEg%3D%3D. You can use this link on the day this article is published and the following day.
(END) Dow Jones Newswires
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Forex: USD/JPY falls to 91.30 after reaching 1-month high at 91.71, Thu, Oct 22 2009, 16:40 GMT
FXstreet.com (Barcelona) – The Dollar's advances against the Yen from 91.10 has been capped at 91.71, fresh 1-month high, during the American session with the pair sliding to trade close to 91.30. Currently the pair is trading around 91.35/45, 0.45% above today's opening price action at 91.00.
The FastBrokers Research Team comments: “Meanwhile, all eyes will be on tomorrow’s wave of EU and British econ data long with continued Q3 results. The USD/JPY’s correlation with U.S. equities it’s a bit out of whack these days. However, any broad-based favoritism of the risk trade would likely benefit the USD/JPY’s uptrend. Considering the GBP/USD and EUR/USD have limited topside technical barriers, the USD/JPY’s present run could have more room to go over the near-term.”
FastBrokers provides us with her levels: “Resistances: 91.76, 91.90, 92.03, 92.18, 92.38, 92.51. Supports: 91.38, 91.26, 91.16, 90.85, 90.67.”
Read more...
The FastBrokers Research Team comments: “Meanwhile, all eyes will be on tomorrow’s wave of EU and British econ data long with continued Q3 results. The USD/JPY’s correlation with U.S. equities it’s a bit out of whack these days. However, any broad-based favoritism of the risk trade would likely benefit the USD/JPY’s uptrend. Considering the GBP/USD and EUR/USD have limited topside technical barriers, the USD/JPY’s present run could have more room to go over the near-term.”
FastBrokers provides us with her levels: “Resistances: 91.76, 91.90, 92.03, 92.18, 92.38, 92.51. Supports: 91.38, 91.26, 91.16, 90.85, 90.67.”
Read more...
Bank crisis: Senate may propose splitting CBN’s functions
The radical transformation of the Central Bank of Nigeria is a possibility soon as plans have reached an advanced stage in the Senate to split the functions of the apex bank by ceding some of it to a new regulatory agency.
It was gathered that the move followed a discovery in its weakness in discharging its supervisory role, which resulted in the current crisis in eight banks whose chief executive officers were sacked between August and October.
A source in the Senate told our correspondent on Wednesday that a proposal was being considered to restrict the apex bank and the National Deposit Insurance Corporation to concentrate on “their core functions.”
In doing so, the CBN, it was learnt, will by law be restricted to monetary policy formulation and keeping inflation in check and maintaining stability of interest and exchange rates.
A body that will be created from the CBN split, the source said, would be placed in charge of operational issues and banking supervision.
The body, which is to be patterned after similar agencies in the United Kingdom and South Africa, will “watch over” commercial, microfinance and mortgage banks.
This is with a view to generating data to enable regulators deal with threats or potential threats to the economic stability of the country.
This will form part of the major amendments being proposed to the CBN Act (2007), which President Olusegun Obasanjo signed in the twilight of his administration.
The Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Nkechi Nwaogu, confirmed the proposal in an exclusive interview with our correspondent in Abuja on Wednesday.
Nwaogu said, “Amending the Central Bank Act (2007) is the major thing we are going to embark on because we in the Senate believe that the CBN Act of 2007 requires a lot of modifications.
“We are of the opinion that the CBN needs to be split into two. We need a different agency to be responsible for the supervision of banking operations, while the CBN should be saddled with the core functions of monetary policy and regulation.”
To make things work better, the NDIC Act is also to be strengthened to ensure that it not only performs its role as insurer of depositors’ funds but also provides and analyse financial reports on the state of banks.
Nwaogu said, “The NDIC Act is an Insurance Deposit Act. It is for Deposit Insurance Companies.
“What primarily should be their core function is that it is not just majorly an undertaker when the banks fail.
“They should be able to provide reports and analyse bank financial status every now and then.
“The new body will be similar to what is being done in the United States and Britain, where they have Financial Services Authority.
“They will be responsible for supervising the commercial banks, the microfinance banks and mortgage banks while the deposit insurance company- the NDIC, should be working with them just like they are working right now.”
Nwaogu added that the Senate was also pursuing the case of depositors whose funds were trapped in failed banks.
She explained that the change of guard at the CBN, as well as other related issues, slowed down action in that direction.
Read more...
It was gathered that the move followed a discovery in its weakness in discharging its supervisory role, which resulted in the current crisis in eight banks whose chief executive officers were sacked between August and October.
A source in the Senate told our correspondent on Wednesday that a proposal was being considered to restrict the apex bank and the National Deposit Insurance Corporation to concentrate on “their core functions.”
In doing so, the CBN, it was learnt, will by law be restricted to monetary policy formulation and keeping inflation in check and maintaining stability of interest and exchange rates.
A body that will be created from the CBN split, the source said, would be placed in charge of operational issues and banking supervision.
The body, which is to be patterned after similar agencies in the United Kingdom and South Africa, will “watch over” commercial, microfinance and mortgage banks.
This is with a view to generating data to enable regulators deal with threats or potential threats to the economic stability of the country.
This will form part of the major amendments being proposed to the CBN Act (2007), which President Olusegun Obasanjo signed in the twilight of his administration.
The Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Senator Nkechi Nwaogu, confirmed the proposal in an exclusive interview with our correspondent in Abuja on Wednesday.
Nwaogu said, “Amending the Central Bank Act (2007) is the major thing we are going to embark on because we in the Senate believe that the CBN Act of 2007 requires a lot of modifications.
“We are of the opinion that the CBN needs to be split into two. We need a different agency to be responsible for the supervision of banking operations, while the CBN should be saddled with the core functions of monetary policy and regulation.”
To make things work better, the NDIC Act is also to be strengthened to ensure that it not only performs its role as insurer of depositors’ funds but also provides and analyse financial reports on the state of banks.
Nwaogu said, “The NDIC Act is an Insurance Deposit Act. It is for Deposit Insurance Companies.
“What primarily should be their core function is that it is not just majorly an undertaker when the banks fail.
“They should be able to provide reports and analyse bank financial status every now and then.
“The new body will be similar to what is being done in the United States and Britain, where they have Financial Services Authority.
“They will be responsible for supervising the commercial banks, the microfinance banks and mortgage banks while the deposit insurance company- the NDIC, should be working with them just like they are working right now.”
Nwaogu added that the Senate was also pursuing the case of depositors whose funds were trapped in failed banks.
She explained that the change of guard at the CBN, as well as other related issues, slowed down action in that direction.
Read more...
ASEA conference to deliberate on global financial crises
The effect of global financial crisis on African markets is expected to be brain-stormed when experts in the securities market meet in the13th African Securities Exchanges Association (ASEA) conference to be hosted by the Nigerian Stock Exchange (NSE).
According to a statement signed by the Head of Corporate Affairs, NSE, Mr. Sola Oni, the Exchange will be hosting the 13th African Securities Exchanges Association (ASEA) conference from Wednesday, December 2 to Saturday, December 5, 2009 in Abuja. His Excellency, Dr. Goodluck Jonathan, GCON, Vice President, Federal Republic of Nigeria has graciously accepted to be the Special Guest of Honour.
The Association is currently represented by 20-member Exchanges serving 27 African countries.This year’s conference with the theme “Global Crisis: Opportunities for African Capital Markets”, presents a unique opportunity for African and global stock exchanges, financial regulators, quoted / listed companies, investment banks, pension fund administrators, portfolio managers, clearing and settlement agencies, issuing houses, stockbrokers, multinational organizations, high net-worth investors, and other market operators and service providers to articulate the road map for investment opportunities on African Exchanges in the wake of global market downturn.
This year’s forum, designed to leverage on the effects of the global financial crisis on African capital markets, provides the opportunity for serious discussion about foreign investment, public private partnerships, technology-driven growth, liquidity, regional integration, product diversity and risk management, among others. In all, eight sub-themes have been designed to adequately address the general theme.
According to Oni, “ This conference would also provide a unique platform for all participants to discuss issues and opportunities, and proffer ideas and solutions, with each other and with Nigeria’s regulators, including the Ministry of Finance, Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), Debt Management Office (DMO), and other members of the Financial Services Coordinating Committee (FSRCC). A pantheon of experts in the securities industry, global fund managers and technocrats have accepted to make presentations at the international conference.
He noted that as a prelude to the conference, the Director General and Chief Executive Officer, NSE, Professor Ndi Okereke-Onyiuke, will on Thursday, October 22, 2009 at 12.00p.m. address a World Press Conference on the concept, hosting strategy, and status of the Conference. The venue of the Press Conference is at the Stock Exchange House in Lagos.
The Nigerian Stock Exchange hosted the conference successfully in 2000 while NairobiStock Exchange, Kenya hosted the last edition in 2007. ASEA was set up on November 13, 1993, with the aim of nurturing systematic mutual cooperation and facilitating the exchange of information among its members.
The association provides a forum for mutual communication, exchange of information, technological assistance and cooperation among its members. The organization aids in the facilitation of financial integration within the region, for the effective mobilization of capital to accelerate economic development across Africa.
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Six banks rated among 10 largest companies in Nigeria
Six out of the 21 banks listed on the Nigerian Stock Exchange have been rated among the 10 largest companies in Nigeria.
A report by International Corporate Research, titled, “Stakes 55” listed the banks as First Bank of Nigeria Plc, Zenith Bank Plc, United Bank for Africa Plc, Guaranty Trust Bank Plc, Ecobank Nigeria and Stanbic IBTC Bank.
Nigerian Breweries Plc, however, topped the chart with a market capitalisation of N415.9bn followed by First Bank, currently worth N358bn.
Zenith was third with N351.6bn in market value.
“The others that made up the ‘Gold Club’ for this quarter are UBA, GTBank, Guinness Nigeria Plc, Dangote Sugar, Ecobank, Nestle Nigeria and Stanbic IBTC,” the report said.
“Stakes 55” is a quarterly release of the largest companies in Nigeria ranked by market capitalisation. It profiles the current situation and most recent happenings in the companies, the position on the ranking, market capitalisation at the date of review and the corporate information.
Read more...
A report by International Corporate Research, titled, “Stakes 55” listed the banks as First Bank of Nigeria Plc, Zenith Bank Plc, United Bank for Africa Plc, Guaranty Trust Bank Plc, Ecobank Nigeria and Stanbic IBTC Bank.
Nigerian Breweries Plc, however, topped the chart with a market capitalisation of N415.9bn followed by First Bank, currently worth N358bn.
Zenith was third with N351.6bn in market value.
“The others that made up the ‘Gold Club’ for this quarter are UBA, GTBank, Guinness Nigeria Plc, Dangote Sugar, Ecobank, Nestle Nigeria and Stanbic IBTC,” the report said.
“Stakes 55” is a quarterly release of the largest companies in Nigeria ranked by market capitalisation. It profiles the current situation and most recent happenings in the companies, the position on the ranking, market capitalisation at the date of review and the corporate information.
Read more...
Dangote completes deal to increase cement production in Africa
In a bid to meet up with the demand for cement production in Africa, the Dangote Group, one of the leading manufacturing firms in Nigeria, has signed a $228million contract for cement lines in Africa with China's Sinoma.
The contract sum is exclusive of an additional $324m to be spent on infrastructure, power and mining equipment, being handled by other best-in-class vendors
The cement contract is to build a 3,000-tonne per day cement plant in Senegal and Zambia.
Dangote said its strategy is to increase domestic African cement production to meet the demand and ensure that value added benefits remain on the African continent.
The Dangote Group currently owns and operates the Obajana Cement Plant, the largest in sub-Saharan Africa. Other existing projects, and the Sinoma agreement in Nigeria bring the Dangote Group's total commitment to new production capacity in Africa to $1.63bn.
Aliko Dangote, President and CEO of the Dangote Group, said, "We have concluded this deal with Sinoma, to drive forward our Pan-African expansion strategy at a time when the global economy seems to be emerging from recession.
We are in a strong financial position and we are putting our money where our mouth is. This is a huge commitment for a Nigerian company and one of the most significant investment programmes currently being undertaken by any Sub-Saharan African company operating outside of South Africa."
"Africa has everything it needs to become a truly global producer of cement products. We have proved this at Obajana, and will demonstrate it absolutely over the coming years. Sinoma's representatives are already in the market initiating the contracts," he added.
Read more...
U.S. Stock Market Update
The S&P 500 halted its 9-day dive just short of 1,098.14, which is the upper end of the gap from 10/3/08 to 10/6/08.
Price momentum oscillators have stubbornly refused to make new highs in October, thereby denying confirmation of new highs by the price indexes. Bearish divergences persist.
Cumulative On-Balance Volume and Candlestick Volume also failed to confirm new price highs last week.
Crude Oil rose further above previous 12-month highs. The main trend remains bullish.
Energy Stock Sector Relative Strength Ratio (XLE/SPY) rose to another a new 4-month high on 10/16/09, and absolute price confirmed. XLE/SPY has been in a strong uptrend short-term this month. Longer term, it appears likely that XLE/SPY bottomed a year ago, on 10/16/08, and has been building a technical base over the past year
Spotlight on event stocks: Here is a stock screen I designed to pick out potential event stocks, both Bullish and Bearish. Sometimes, stocks with large changes in price and volume are revealed to be deal stocks, sooner or later, or are the subject of some other extraordinary events, positive or negative.
Bullish Stocks: Rising Price and Rising Volume
% Price Change, Symbol, Name
4.65% , BHH , Internet B2B H, BHH
2.89% , HAS , HASBRO
2.16% , SIRI , Sirius Satellite
2.30% , ORCL , ORACLE
3.76% , GOOG , Google
2.76% , CAH , CARDINAL HEALTH
2.78% , HGSI , Human Genome Sciences Inc
4.94% , SVU , SUPERVALU
1.71% , URBN , Urban Outfitters Inc.
2.76% , BA , BOEING
1.70% , MZZ , Short 200% MidCap 400 PS, MZZ
1.06% , ERIC.O , LM Ericsson Telephone Company
0.96% , MYY , Short 100% MidCap 400, MYY
0.44% , EWU , United Kingdom Index, EWU
0.86% , MS , MORGAN STANLEY
2.45% , R , RYDER SYSTEM
0.77% , HPQ , HEWLETT PACKARD
0.86% , LNCR , Lincare Holdings Inc
0.85% , HSP , HOSPIRA
0.76% , LMT , LOCKHEED MARTIN
0.28% , PBJ , Food & Beverage, PBJ
1.09% , GIS , GENERAL MILLS
1.61% , SYY , SYSCO
1.42% , SDS , Short 200% S&P 500 PS, SDS
1.21% , SO , SOUTHERN
1.23% , QID , Short 200% QQQ PS, QID
0.61% , MKC , MCCORMICK
1.11% , DXD , Short 200% Dow 30 PS, DXD
0.72% , UIS , UNISYS
0.66% , DOG , Short 100% Dow 30, DOG
0.43% , PPL , PPL
1.00% , MCD , MCDONALDS
0.58% , DIS , WALT DISNEY
1.13% , PM , Philip Morris, PM
0.64% , GD , GENERAL DYNAMICS
1.36% , WAG , WALGREEN
0.66% , PSQ , Short 100% QQQ, PSQ
0.53% , XLP , Consumer Staples SPDR, XLP
0.33% , ACE , ACE
0.61% , SH , Short 100% S&P 500, SH
Bearish Stocks: Falling Price and Rising Volume
% Price Change, Symbol, Name
-12.30% , MTG , MGIC INVESTMENT
-3.74% , RX , IMS HEALTH
-8.09% , MU , MICRON TECH
-1.07% , PZJ , SmallCap PS Zacks, PZJ
-4.43% , GRMN , GARMIN LTD
-1.19% , EWI , Italy Index, EWI
-7.27% , AMD , ADV MICRO DEV
-3.37% , LAMR , Lamar Advertising Company
-4.23% , GE , GENERAL ELECTRIC
-2.60% , RZV , Value SmallCap S&P 600, RZV
-1.15% , IWW , Value LargeCap Russell 3000, IWW
-5.40% , FITB , FIFTH THIRD BANC
-2.96% , HOLX , Hologic, Inc., HOLX
-4.58% , CAR , Avis Budget Group, Inc. (CAR)
-4.95% , IBM , IBM
-6.42% , GNW , GENWORTH FINANCIAL
-0.51% , JKK , Growth SmallCap iS M, JKK
-0.87% , IXJ , Healthcare Global, IXJ
-4.64% , BAC , BANK OF AMERICA
-3.45% , ZION , ZIONS
-0.92% , RFG , Growth MidCap S&P 400, RFG
-5.40% , MI , MARSHAL & ILSLEY
-4.64% , SNDK , SanDisk Corporation
-1.55% , FISV , FISERV
-9.21% , PWER , POWER ONE
-3.97% , SLM , SLM CORP
-4.33% , WFC , WELLS FARGO
-4.65% , STLD , Steel Dynamics, STLD
-2.16% , MDP , MEREDITH
-0.31% , FPX , IPOs, First Tr IPOX-100, FPX
-0.77% , VCR , Consumer D. VIPERs, VCR
-0.87% , JKF , Value LargeCap iS M, JKF
-2.15% , MRVL , MARVELL TECHNOLOGY
-2.79% , MET , METLIFE
-0.98% , MTB , M&T BANK
-3.16% , UNM , UNUMPROVIDENT
-3.61% , ODP , OFFICE DEPOT
-3.15% , TMK , TORCHMARK
-1.57% , EWP , Spain Index, EWP
-0.63% , VIG , Dividend Appreciation Vipers, VIG
9 major U.S. stock sectors ranked in order of long-term relative strength:
Consumer Discretionary (XLY) Neutral, Market Weight. The Relative Strength Ratio (XLY/SPY) appears choppy short term. Intermediate term, the relative trend appears neutral/sideways since peaking on 4/30/09. XLY was strong from 11/19/08 to 4/30/09, and that past strength accounts for XLY’s high ranking here. The XLY/SPY trend was clearly down from 1/5/05 to 11/19/08.
Technology (XLK) Neutral, Market Weight. The Relative Strength Ratio (XLK/SPY) fell further below 4-month lows on 10/16/09. XLK/SPY turned down after 9/30/09. The XLK/SPY Ratio appears to be in a moderate correction for the intermediate term. Long term, on 7/22/09, XLK/SPY rose to its highest level in 7 years, thereby confirming a long-term uptrend in effect since 9/30/02.
Materials (XLB) Neutral, Market Weight. The Relative Strength Ratio (XLB/SPY) peaked on 8/5/09 and has been consolidating gains since. XLB/SPY was in an intermediate-term uptrend from its low on 12/5/08 to its high on 8/5/09.
Financial (XLF) Neutral, Market Weight. The Relative Strength Ratio (XLF/SPY) has fallen sharply after breaking out to a new 10-month high on 10/14/09. Absolute price confirmed by making a new 11-month high on 10/14/09.
Energy (XLE) Neutral, Market Weight. The Relative Strength Ratio (XLE/SPY) rose to another a new 4-month high on 10/16/09, and absolute price confirmed. XLE/SPY has been in a strong uptrend short-term, in this month of October, 2009. Longer term, it appears likely that XLE/SPY bottomed a year ago, on 10/16/08, and has been building a technical base over the past year.
Consumer Staples (XLP) Neutral, Market Weight. The Relative Strength Ratio (XLP/SPY) has been in a moderate downtrend since peaking on 11/20/08, as the appetite for risk recovered.
Industrial (XLI) Neutral, Market Weight. The Relative Strength Ratio (XLI/SPY) has stabilized since making a low on 10/7/09 but is still well below its high of 9/17/09. XLI/SPY was in an intermediate-term uptrend from its low on 3/6/09 to its high on 9/17/09.
Health Care (XLV) Bearish, Underweight. The Relative Strength Ratio (XLV/SPY) fell further below the lows of the previous 12 months on 10/15/09. XLV/SPY has been relatively weak since 2/23/09.
Utilities (XLU) Bearish, Underweight. The Relative Strength Ratio (XLU/SPY) fell below previous 24-month lows on 10/14/09. XLU has underperformed since 11/21/08, as the appetite for risk recovered.
Emerging Markets Stocks ETF (EEM) Relative Strength Ratio (EEM/SPY) moved further above previous 6-year highs on 10/14/09. Trends remain bullish in all time frames.
Foreign Stocks ETF (EFA) Relative Strength Ratio (EFA/SPY) peaked on 9/9/09 and has been lagging slightly since. The ratio outperformed from 10/27/08 to 9/9/09. EFA is the ETF representing the EAFE, the international developed country stock markets, excluding the U.S. and Canada.
NASDAQ Composite/S&P 500 Relative Strength Ratio fell below previous 6-week lows on 10/15/09. The ratio peaked out on 7/23/09 and has been correcting and consolidating since.
Growth Stock/Value Stock Relative Strength Ratio (IWF/IWD) has been correcting and consolidating gains since the peak on 3/5/09. IWF/IWD was in an uptrend from 8/8/06 to 3/5/09, and it is quite possible that uptrend could resume.
Russell 1000 Value ETF Relative Strength Ratio (IWD/SPY) has been correcting and consolidating gains in recent weeks. Intermediate term, IWD/SPY outperformed from 3/6/09 to 9/18/09. Long term, IWD/SPY remains in a Bearish Major Trend, underperforming since 3/22/07.
The S&P 500 equally weighted index relative to the S&P 500 capitalization weighted index has been consolidating gains since 9/16/09. The ratio had been in a strong uptrend from 11/19/08 to 9/16/09, and that trend could resume.
The Largest Cap S&P 100/S&P 500 Relative Strength Ratio (OEX/SPX) has been in a downtrend since 11/20/08 as the market shifted toward a more aggressive risk seeking posture.
The Small Cap/Large Cap Relative Strength Ratio (IWM/SPY) been consolidating gains since 9/18/09. IWM/SPY was in an uptrend from 3/9/09 to 9/18/09, and that uptrend could resume. The 10-year trend still looks bullish.
The Mid Cap/Large Cap Relative Strength Ratio (MDY/SPY) has been consolidating gains since 9/16/09. The secular trend since 1999 remains bullish.
Crude Oil nearest futures contract price rose further above previous 12-month highs on 10/16/09. The main trend remains bullish. The first potential support may be seen at the previous high at 75.00 set on 8/25/09. Look for further potential support at previous lows of 65.05, 61.38, and 58.32. Look for potential resistance at previous highs around 74-75.
Gold nearest futures contract price fell back below the lows of the previous 6 trading days on 10/16/09, in what appears to be a normal minor pullback. Gold rose above previous all-time highs on 10/14/09. All trends remain bullish, and Gold appears to have substantial upside potential. Technical supports might be found around previous highs and lows at 1033.9, 1024.7, 982.2, 940.3, 931.5, 925.2 and 904.8, based on the nearest futures contract. There is no chart resistance.
Gold Mining Stocks ETF (GDX) Relative Strength Ratio (relative to Gold bullion) moved above the highs of the previous 3 weeks on 10/13/09. The short-term trend remains bullish. The ratio moved above previous 13-month highs on 9/17/09, confirming a preexisting longer-term uptrend in effect since 10/27/08. This main trend remains bullish for both Gold bullion and Gold Mining Stocks.
Silver/Gold Ratio turned down after 10/9/09. Although the short-term trend has been choppy, the ratio is still above uptrendlines drawn from the low on 10/10/08.
Copper nearest futures contract price has been correcting and consolidating gains since peaking at 29660 on 8/28/09. Copper appears confused about global economic prospects.
U.S. Treasury Bond December futures contract price fell further below the lows of the previous 3 weeks on 10/15/09 in what looks like a minor short-term shakeout. The 4-month trend still looks bullish. The Bond may find short-term support around the previous lows of 118.07 set on 9/23/09, 117.18 set on 9/9/09, and 116.30 set on 8/24/09. On 8/7/09, Bonds found support at the upper end of the 112-115 zone of many previous reversal points (including both lows and highs).
Bond quality ratio (LQD/TLT) partially recovered over the past 2 weeks. It broke down below a 6-month uptrend line and broke down below 11-week lows on 10/1/09, presumably signaling a move away from risk and toward safety. The trend had been up from 12/19/08 to 8/7/09, as the appetite for risk recovered, but that trend appears to have ended. LQD/TLT is iShares iBoxx $ Invest Grade Corp Bond ETF (LQD) price divided by 20+ Years US Treasury Bond ETF price (TLT).
The U.S. dollar nearest futures contract price fell further below the lows of the previous 14 months on 10/15/09. Obviously, the major trend remains bearish, and it probably would take a long period of base building and bottom testing to turn this trend.
The Art of Contrary Thinking: The various surveys of investor sentiment are best considered as background factors. The majority of investors can be right for a long time before a major trend finally changes course. So, Contrary Thinking should be used with more precise market timing tools.
Advisory Service Sentiment: There were 47.2% Bulls versus 26.4% Bears as of 10/14/09, according to the weekly Investors Intelligence survey of stock market newsletter advisors. The Bull/Bear ratio was 1.79, down from 2.00 the previous week. The ratio was 2.61 on 8/26/09, the highest reading since 10/17/07. The ratio’s 39-year range is 0.28 to 17.51, the median is 1.43, and the mean is 1.73.
VIX Fear Index touched a new 13-month low of 20.98 on 10/16/09. VIX is down from a peak of 80.86 set on 11/20/08. VIX is a market estimate of expected constant 30-day volatility, calculated by weighting S&P 500 Index CBOE option bid/ask quotes spanning a wide range of strike prices for the two nearest expiration dates.
VXN Fear Index touched a new 13-month low of 21.81 on 10/16/09. VIX is down from a peak of 80.86 set on 11/20/08. VXN is down from a peak of 80.64 set on 11/20/08. VXN measures NASDAQ Volatility using a method comparable to that used for VIX.
ISEE Call/Put Ratio fell to 1.29 on 10/16/09, indicating mildly bearish sentiment. The ratio’s 5-year mean is 1.43, median is 1.38, and its range is 0.51 to 3.16.
CBOE Put/Call Ratio rose to 0.55 on 10/16/09, still indicating bullish sentiment. The ratio’s 5-year mean is 0.67, median is 0.65, and its range is 0.35 to 1.35.
Fundamentals: The 2003-2007 Bull Market was fed by abundant global liquidly, M&A, leveraged buyouts, corporate stock buybacks, and a net balance of positive earnings surprises. The unfolding fallout from the credit market crisis derailed that engine. Since the stock market low on 3/9/09, massive monetary and fiscal stimulation appears to have had a Bullish impact on investor sentiment.
Read more...
Price momentum oscillators have stubbornly refused to make new highs in October, thereby denying confirmation of new highs by the price indexes. Bearish divergences persist.
Cumulative On-Balance Volume and Candlestick Volume also failed to confirm new price highs last week.
Crude Oil rose further above previous 12-month highs. The main trend remains bullish.
Energy Stock Sector Relative Strength Ratio (XLE/SPY) rose to another a new 4-month high on 10/16/09, and absolute price confirmed. XLE/SPY has been in a strong uptrend short-term this month. Longer term, it appears likely that XLE/SPY bottomed a year ago, on 10/16/08, and has been building a technical base over the past year
Spotlight on event stocks: Here is a stock screen I designed to pick out potential event stocks, both Bullish and Bearish. Sometimes, stocks with large changes in price and volume are revealed to be deal stocks, sooner or later, or are the subject of some other extraordinary events, positive or negative.
Bullish Stocks: Rising Price and Rising Volume
% Price Change, Symbol, Name
4.65% , BHH , Internet B2B H, BHH
2.89% , HAS , HASBRO
2.16% , SIRI , Sirius Satellite
2.30% , ORCL , ORACLE
3.76% , GOOG , Google
2.76% , CAH , CARDINAL HEALTH
2.78% , HGSI , Human Genome Sciences Inc
4.94% , SVU , SUPERVALU
1.71% , URBN , Urban Outfitters Inc.
2.76% , BA , BOEING
1.70% , MZZ , Short 200% MidCap 400 PS, MZZ
1.06% , ERIC.O , LM Ericsson Telephone Company
0.96% , MYY , Short 100% MidCap 400, MYY
0.44% , EWU , United Kingdom Index, EWU
0.86% , MS , MORGAN STANLEY
2.45% , R , RYDER SYSTEM
0.77% , HPQ , HEWLETT PACKARD
0.86% , LNCR , Lincare Holdings Inc
0.85% , HSP , HOSPIRA
0.76% , LMT , LOCKHEED MARTIN
0.28% , PBJ , Food & Beverage, PBJ
1.09% , GIS , GENERAL MILLS
1.61% , SYY , SYSCO
1.42% , SDS , Short 200% S&P 500 PS, SDS
1.21% , SO , SOUTHERN
1.23% , QID , Short 200% QQQ PS, QID
0.61% , MKC , MCCORMICK
1.11% , DXD , Short 200% Dow 30 PS, DXD
0.72% , UIS , UNISYS
0.66% , DOG , Short 100% Dow 30, DOG
0.43% , PPL , PPL
1.00% , MCD , MCDONALDS
0.58% , DIS , WALT DISNEY
1.13% , PM , Philip Morris, PM
0.64% , GD , GENERAL DYNAMICS
1.36% , WAG , WALGREEN
0.66% , PSQ , Short 100% QQQ, PSQ
0.53% , XLP , Consumer Staples SPDR, XLP
0.33% , ACE , ACE
0.61% , SH , Short 100% S&P 500, SH
Bearish Stocks: Falling Price and Rising Volume
% Price Change, Symbol, Name
-12.30% , MTG , MGIC INVESTMENT
-3.74% , RX , IMS HEALTH
-8.09% , MU , MICRON TECH
-1.07% , PZJ , SmallCap PS Zacks, PZJ
-4.43% , GRMN , GARMIN LTD
-1.19% , EWI , Italy Index, EWI
-7.27% , AMD , ADV MICRO DEV
-3.37% , LAMR , Lamar Advertising Company
-4.23% , GE , GENERAL ELECTRIC
-2.60% , RZV , Value SmallCap S&P 600, RZV
-1.15% , IWW , Value LargeCap Russell 3000, IWW
-5.40% , FITB , FIFTH THIRD BANC
-2.96% , HOLX , Hologic, Inc., HOLX
-4.58% , CAR , Avis Budget Group, Inc. (CAR)
-4.95% , IBM , IBM
-6.42% , GNW , GENWORTH FINANCIAL
-0.51% , JKK , Growth SmallCap iS M, JKK
-0.87% , IXJ , Healthcare Global, IXJ
-4.64% , BAC , BANK OF AMERICA
-3.45% , ZION , ZIONS
-0.92% , RFG , Growth MidCap S&P 400, RFG
-5.40% , MI , MARSHAL & ILSLEY
-4.64% , SNDK , SanDisk Corporation
-1.55% , FISV , FISERV
-9.21% , PWER , POWER ONE
-3.97% , SLM , SLM CORP
-4.33% , WFC , WELLS FARGO
-4.65% , STLD , Steel Dynamics, STLD
-2.16% , MDP , MEREDITH
-0.31% , FPX , IPOs, First Tr IPOX-100, FPX
-0.77% , VCR , Consumer D. VIPERs, VCR
-0.87% , JKF , Value LargeCap iS M, JKF
-2.15% , MRVL , MARVELL TECHNOLOGY
-2.79% , MET , METLIFE
-0.98% , MTB , M&T BANK
-3.16% , UNM , UNUMPROVIDENT
-3.61% , ODP , OFFICE DEPOT
-3.15% , TMK , TORCHMARK
-1.57% , EWP , Spain Index, EWP
-0.63% , VIG , Dividend Appreciation Vipers, VIG
9 major U.S. stock sectors ranked in order of long-term relative strength:
Consumer Discretionary (XLY) Neutral, Market Weight. The Relative Strength Ratio (XLY/SPY) appears choppy short term. Intermediate term, the relative trend appears neutral/sideways since peaking on 4/30/09. XLY was strong from 11/19/08 to 4/30/09, and that past strength accounts for XLY’s high ranking here. The XLY/SPY trend was clearly down from 1/5/05 to 11/19/08.
Technology (XLK) Neutral, Market Weight. The Relative Strength Ratio (XLK/SPY) fell further below 4-month lows on 10/16/09. XLK/SPY turned down after 9/30/09. The XLK/SPY Ratio appears to be in a moderate correction for the intermediate term. Long term, on 7/22/09, XLK/SPY rose to its highest level in 7 years, thereby confirming a long-term uptrend in effect since 9/30/02.
Materials (XLB) Neutral, Market Weight. The Relative Strength Ratio (XLB/SPY) peaked on 8/5/09 and has been consolidating gains since. XLB/SPY was in an intermediate-term uptrend from its low on 12/5/08 to its high on 8/5/09.
Financial (XLF) Neutral, Market Weight. The Relative Strength Ratio (XLF/SPY) has fallen sharply after breaking out to a new 10-month high on 10/14/09. Absolute price confirmed by making a new 11-month high on 10/14/09.
Energy (XLE) Neutral, Market Weight. The Relative Strength Ratio (XLE/SPY) rose to another a new 4-month high on 10/16/09, and absolute price confirmed. XLE/SPY has been in a strong uptrend short-term, in this month of October, 2009. Longer term, it appears likely that XLE/SPY bottomed a year ago, on 10/16/08, and has been building a technical base over the past year.
Consumer Staples (XLP) Neutral, Market Weight. The Relative Strength Ratio (XLP/SPY) has been in a moderate downtrend since peaking on 11/20/08, as the appetite for risk recovered.
Industrial (XLI) Neutral, Market Weight. The Relative Strength Ratio (XLI/SPY) has stabilized since making a low on 10/7/09 but is still well below its high of 9/17/09. XLI/SPY was in an intermediate-term uptrend from its low on 3/6/09 to its high on 9/17/09.
Health Care (XLV) Bearish, Underweight. The Relative Strength Ratio (XLV/SPY) fell further below the lows of the previous 12 months on 10/15/09. XLV/SPY has been relatively weak since 2/23/09.
Utilities (XLU) Bearish, Underweight. The Relative Strength Ratio (XLU/SPY) fell below previous 24-month lows on 10/14/09. XLU has underperformed since 11/21/08, as the appetite for risk recovered.
Emerging Markets Stocks ETF (EEM) Relative Strength Ratio (EEM/SPY) moved further above previous 6-year highs on 10/14/09. Trends remain bullish in all time frames.
Foreign Stocks ETF (EFA) Relative Strength Ratio (EFA/SPY) peaked on 9/9/09 and has been lagging slightly since. The ratio outperformed from 10/27/08 to 9/9/09. EFA is the ETF representing the EAFE, the international developed country stock markets, excluding the U.S. and Canada.
NASDAQ Composite/S&P 500 Relative Strength Ratio fell below previous 6-week lows on 10/15/09. The ratio peaked out on 7/23/09 and has been correcting and consolidating since.
Growth Stock/Value Stock Relative Strength Ratio (IWF/IWD) has been correcting and consolidating gains since the peak on 3/5/09. IWF/IWD was in an uptrend from 8/8/06 to 3/5/09, and it is quite possible that uptrend could resume.
Russell 1000 Value ETF Relative Strength Ratio (IWD/SPY) has been correcting and consolidating gains in recent weeks. Intermediate term, IWD/SPY outperformed from 3/6/09 to 9/18/09. Long term, IWD/SPY remains in a Bearish Major Trend, underperforming since 3/22/07.
The S&P 500 equally weighted index relative to the S&P 500 capitalization weighted index has been consolidating gains since 9/16/09. The ratio had been in a strong uptrend from 11/19/08 to 9/16/09, and that trend could resume.
The Largest Cap S&P 100/S&P 500 Relative Strength Ratio (OEX/SPX) has been in a downtrend since 11/20/08 as the market shifted toward a more aggressive risk seeking posture.
The Small Cap/Large Cap Relative Strength Ratio (IWM/SPY) been consolidating gains since 9/18/09. IWM/SPY was in an uptrend from 3/9/09 to 9/18/09, and that uptrend could resume. The 10-year trend still looks bullish.
The Mid Cap/Large Cap Relative Strength Ratio (MDY/SPY) has been consolidating gains since 9/16/09. The secular trend since 1999 remains bullish.
Crude Oil nearest futures contract price rose further above previous 12-month highs on 10/16/09. The main trend remains bullish. The first potential support may be seen at the previous high at 75.00 set on 8/25/09. Look for further potential support at previous lows of 65.05, 61.38, and 58.32. Look for potential resistance at previous highs around 74-75.
Gold nearest futures contract price fell back below the lows of the previous 6 trading days on 10/16/09, in what appears to be a normal minor pullback. Gold rose above previous all-time highs on 10/14/09. All trends remain bullish, and Gold appears to have substantial upside potential. Technical supports might be found around previous highs and lows at 1033.9, 1024.7, 982.2, 940.3, 931.5, 925.2 and 904.8, based on the nearest futures contract. There is no chart resistance.
Gold Mining Stocks ETF (GDX) Relative Strength Ratio (relative to Gold bullion) moved above the highs of the previous 3 weeks on 10/13/09. The short-term trend remains bullish. The ratio moved above previous 13-month highs on 9/17/09, confirming a preexisting longer-term uptrend in effect since 10/27/08. This main trend remains bullish for both Gold bullion and Gold Mining Stocks.
Silver/Gold Ratio turned down after 10/9/09. Although the short-term trend has been choppy, the ratio is still above uptrendlines drawn from the low on 10/10/08.
Copper nearest futures contract price has been correcting and consolidating gains since peaking at 29660 on 8/28/09. Copper appears confused about global economic prospects.
U.S. Treasury Bond December futures contract price fell further below the lows of the previous 3 weeks on 10/15/09 in what looks like a minor short-term shakeout. The 4-month trend still looks bullish. The Bond may find short-term support around the previous lows of 118.07 set on 9/23/09, 117.18 set on 9/9/09, and 116.30 set on 8/24/09. On 8/7/09, Bonds found support at the upper end of the 112-115 zone of many previous reversal points (including both lows and highs).
Bond quality ratio (LQD/TLT) partially recovered over the past 2 weeks. It broke down below a 6-month uptrend line and broke down below 11-week lows on 10/1/09, presumably signaling a move away from risk and toward safety. The trend had been up from 12/19/08 to 8/7/09, as the appetite for risk recovered, but that trend appears to have ended. LQD/TLT is iShares iBoxx $ Invest Grade Corp Bond ETF (LQD) price divided by 20+ Years US Treasury Bond ETF price (TLT).
The U.S. dollar nearest futures contract price fell further below the lows of the previous 14 months on 10/15/09. Obviously, the major trend remains bearish, and it probably would take a long period of base building and bottom testing to turn this trend.
The Art of Contrary Thinking: The various surveys of investor sentiment are best considered as background factors. The majority of investors can be right for a long time before a major trend finally changes course. So, Contrary Thinking should be used with more precise market timing tools.
Advisory Service Sentiment: There were 47.2% Bulls versus 26.4% Bears as of 10/14/09, according to the weekly Investors Intelligence survey of stock market newsletter advisors. The Bull/Bear ratio was 1.79, down from 2.00 the previous week. The ratio was 2.61 on 8/26/09, the highest reading since 10/17/07. The ratio’s 39-year range is 0.28 to 17.51, the median is 1.43, and the mean is 1.73.
VIX Fear Index touched a new 13-month low of 20.98 on 10/16/09. VIX is down from a peak of 80.86 set on 11/20/08. VIX is a market estimate of expected constant 30-day volatility, calculated by weighting S&P 500 Index CBOE option bid/ask quotes spanning a wide range of strike prices for the two nearest expiration dates.
VXN Fear Index touched a new 13-month low of 21.81 on 10/16/09. VIX is down from a peak of 80.86 set on 11/20/08. VXN is down from a peak of 80.64 set on 11/20/08. VXN measures NASDAQ Volatility using a method comparable to that used for VIX.
ISEE Call/Put Ratio fell to 1.29 on 10/16/09, indicating mildly bearish sentiment. The ratio’s 5-year mean is 1.43, median is 1.38, and its range is 0.51 to 3.16.
CBOE Put/Call Ratio rose to 0.55 on 10/16/09, still indicating bullish sentiment. The ratio’s 5-year mean is 0.67, median is 0.65, and its range is 0.35 to 1.35.
Fundamentals: The 2003-2007 Bull Market was fed by abundant global liquidly, M&A, leveraged buyouts, corporate stock buybacks, and a net balance of positive earnings surprises. The unfolding fallout from the credit market crisis derailed that engine. Since the stock market low on 3/9/09, massive monetary and fiscal stimulation appears to have had a Bullish impact on investor sentiment.
Read more...
Obama aide: big Wall Street bonuses "offensive"
WASHINGTON, Oct 18 (Reuters) - A top White House aide lashed out on Sunday at Wall Street firms that are handing out huge bonuses while the rest of the economy struggles and small businesses cannot create jobs because of a lack of credit.
Highlighting a disconnect between Wall Street and Main Street that has caught the attention of the Obama administration, Goldman Sachs Group Inc's (GS.N) was on a pace to hand out more than $20 billion in bonuses, which could make this year a record.
Compensation is also soaring at several other big firms, which are raking in higher trading revenues amid a recovery in the stock market that lifted the Dow Jones industrial average above 10,000 last week.
But the economy remains weak elsewhere and the U.S. unemployment rate, now at 9.8 percent, is widely forecast to climb above 10 percent.
"The bonuses are offensive," David Axelrod, a senior adviser to President Barack Obama, said on the ABC News program, "This Week."
"The most offensive thing is, we haven't seen the kind of increase in lending that ... we should," Axelrod said. "There are a lot of small businesses, credit-worthy businesses around this country who still can't get the capital they need to grow, which is important for our economy.
Axelrod and other U.S. officials emphasized on television talk shows that they were considering a variety of options to boost the economy and rekindle job growth.
But they also said they wanted to be mindful of the budget deficit.
WHITE HOUSE PRODS WALL STREET ON REFORM
White House aides pushed Obama's proposals for a broad rewriting of financial regulations aimed at preventing a repeat of Wall Street's worst crisis since the Great Depression.
The Obama administration has become increasingly vocal about what it sees as efforts by the financial industry to water down or block the reforms.
Axelrod and White House chief of staff Rahm Emanuel said Wall Street, which was saved from the brink of collapse by a $700 billion bailout from the U.S. government, had a duty to get behind the financial reforms.
Emanuel told CNN's "State of the Union" that many firms were now enjoying normalcy but "they're now back trying to fight consumer offices and the type of protections that will prevent another type of situation where the economy is taken over the cliff by the actions taken on Wall Street and the financial market."
Emanuel also said it was "frustrating to the American people" that financial firms are doling out big bonuses while incomes of other people are stagnating or falling.
A bill approved by the House of Representatives would impose new limits on executive pay, but the Senate has not yet acted on the issue.
For firms that still owe the government money under the bailout program, Treasury's pay czar, Kenneth Feinberg, has leeway to crack down on compensation packages.
But Axelrod said the administration is seeking to use "moral suasion" with some firms. Those such as Goldman Sachs that have already paid the government back are not subject to the Treasury's oversight of compensation.
Obama has faced criticism over the financial bailout program and his $787 billion stimulus plan enacted earlier this year. The financial bailout program was begun by the Bush administration in September 2008 and continued under Obama.
Republicans have labeled the stimulus package wasteful and say the high jobless rate is evidence it has not worked.
Obama administration officials say the stimulus plan helped save the economy from disaster.
They say they are still considering whether to propose additional steps to give the economy a jolt, but they have been reluctant to use the label "stimulus" to describe the possible further measures.
Asked on NBC's "Face the Nation" if a second stimulus was under discussion, White House adviser Valerie Jarrett said that Obama was "willing to look at all possibilities." But she said the original stimulus bill needed to be given time to work.
Axelrod said the administration was determined to prevent the economy from "cascading backward into a recession." But he also said Obama was paying close attention to the U.S. budget deficit, which hit a record $1.4 trillion in the just-ended 2009 fiscal year.
He said that Obama would address the issue of the deficit "at some length" in his "State of the Union" address to Congress in January.
Read more...
Highlighting a disconnect between Wall Street and Main Street that has caught the attention of the Obama administration, Goldman Sachs Group Inc's (GS.N) was on a pace to hand out more than $20 billion in bonuses, which could make this year a record.
Compensation is also soaring at several other big firms, which are raking in higher trading revenues amid a recovery in the stock market that lifted the Dow Jones industrial average above 10,000 last week.
But the economy remains weak elsewhere and the U.S. unemployment rate, now at 9.8 percent, is widely forecast to climb above 10 percent.
"The bonuses are offensive," David Axelrod, a senior adviser to President Barack Obama, said on the ABC News program, "This Week."
"The most offensive thing is, we haven't seen the kind of increase in lending that ... we should," Axelrod said. "There are a lot of small businesses, credit-worthy businesses around this country who still can't get the capital they need to grow, which is important for our economy.
Axelrod and other U.S. officials emphasized on television talk shows that they were considering a variety of options to boost the economy and rekindle job growth.
But they also said they wanted to be mindful of the budget deficit.
WHITE HOUSE PRODS WALL STREET ON REFORM
White House aides pushed Obama's proposals for a broad rewriting of financial regulations aimed at preventing a repeat of Wall Street's worst crisis since the Great Depression.
The Obama administration has become increasingly vocal about what it sees as efforts by the financial industry to water down or block the reforms.
Axelrod and White House chief of staff Rahm Emanuel said Wall Street, which was saved from the brink of collapse by a $700 billion bailout from the U.S. government, had a duty to get behind the financial reforms.
Emanuel told CNN's "State of the Union" that many firms were now enjoying normalcy but "they're now back trying to fight consumer offices and the type of protections that will prevent another type of situation where the economy is taken over the cliff by the actions taken on Wall Street and the financial market."
Emanuel also said it was "frustrating to the American people" that financial firms are doling out big bonuses while incomes of other people are stagnating or falling.
A bill approved by the House of Representatives would impose new limits on executive pay, but the Senate has not yet acted on the issue.
For firms that still owe the government money under the bailout program, Treasury's pay czar, Kenneth Feinberg, has leeway to crack down on compensation packages.
But Axelrod said the administration is seeking to use "moral suasion" with some firms. Those such as Goldman Sachs that have already paid the government back are not subject to the Treasury's oversight of compensation.
Obama has faced criticism over the financial bailout program and his $787 billion stimulus plan enacted earlier this year. The financial bailout program was begun by the Bush administration in September 2008 and continued under Obama.
Republicans have labeled the stimulus package wasteful and say the high jobless rate is evidence it has not worked.
Obama administration officials say the stimulus plan helped save the economy from disaster.
They say they are still considering whether to propose additional steps to give the economy a jolt, but they have been reluctant to use the label "stimulus" to describe the possible further measures.
Asked on NBC's "Face the Nation" if a second stimulus was under discussion, White House adviser Valerie Jarrett said that Obama was "willing to look at all possibilities." But she said the original stimulus bill needed to be given time to work.
Axelrod said the administration was determined to prevent the economy from "cascading backward into a recession." But he also said Obama was paying close attention to the U.S. budget deficit, which hit a record $1.4 trillion in the just-ended 2009 fiscal year.
He said that Obama would address the issue of the deficit "at some length" in his "State of the Union" address to Congress in January.
Read more...
NSE says AMC will boost capital market operations
The Nigerian Stock Exchange has said that the proposed Asset Management Company will boost activities in the capital market.
The Director-General, NSE, Prof. Ndi Okereke-Onyiuke, said this while addressing market operators on the trading floor on Wednesday. She noted that the AMC would also address the various, challenges rocking the Nigerian financial system, and the economy as a whole.
The DG, however, called on the market operators to deliberate on issues regarding the AMC during their forthcoming annual conference which will hold later this month.
Spokesperson for the NSE, Mr. Sola Oni, in a text message to journalists, quoted the DG as saying that the asset management company was not a design by the government to bail out just the capital market, but the entire financial system of the country.
He said, ”The Director-General advised stockbrokers to include asset management company among the issues to be discussed at their conference in Ibadan. It will help appreciate the fact that the Federal Government’s aim for setting up the Asset Management Company is not to bail out the market, but the whole gamut of the economy.”
Meanwhile, activities at the NSE closed on a negative note on Wednesday, with major indicators recording significant declines.
Specifically, the market capitalisation of the listed equities, fell by one per cent or N52bn to close at N5.353tn down from N5.405tn recorded on Tuesday.
Similarly, the NSE‘s All-Share Index closed at 22,985.05, representing a fall by one per cent or 221.30 basis points from 23,206.35 on Tuesday.
Two petroleum marketing stocks- Oando Plc and African Petroleum Plc- had the highest price losses of the day, shedding 2.2 per cent and 3.2 per cent to close at N90 and N32.01 per share respectively.
Lafarge Wapco Plc followed, also shedding 3.2 per cent to close at N30.06 per share.
On the other hand, Nestle Nigeria Plc had the highest gain, rising by five per cent or N10.40 to close at N218.40 per share.
Conoil Plc also gained five per cent or N1.79 to close at N37.60 per share, while, Nigerian Bottling Company Plc and Nigerian Breweries Plc appreciated by five per cent and 1.7 per cent to close at N22.27 and N55 per share in that order.
Read more...
Again, CBN Releases Names of ‘Non-Performing’ Debtors
The Central Bank of Nigeria (CBN) yesterday made good its threat to publish names of non-performing debts – owed mostly by politicians, entrepreneurs and shareholders/directors – whose companies secured loans totalling N450 billion from five banks.
The banks - BankPHB Plc, Equitorial Trust Bank, Spring Bank Plc, Wema Bank Plc and Unity Bank Plc - were those found wanting in the last round of audit exercise embarked on by the banking watchdog.
This culminated in the sack and replacement of the managing directors and executive directors of the first three banks said to be in “grave situation” two weeks ago. The two others were asked to recapitalise by June 2010.
Sources told THISDAY last night that the chief executives of the five banks said to be having challenges in their debt recovery drive pressurised the apex bank into publishing the latest list in a bid to compel their debtors to pay up.
The banking watchdog had on the 19th of August published the names of debtors (who owed N747 billion) of the initial five banks (Afribank, Oceanic Bank, FinBank, Intercontinental Bank and Union Bank) which had their CEOs sacked on August 14.
Over N100 billion has since been recovered from the debtors of these banks.
A breakdown of the loans, which are classified as non-performing in the latest list, is as follows: Bank PHB, N170 billion; Spring Bank, N95 billion; ETB, N46 billion; Unity Bank, N37 billion; and Wema Bank, N101 billion.
Some of the biggest debtors to BankPHB are one of its subsidiaries – Platinum Capital, which secured N11 billion; Akara Overseas Development owned by Prince Oyedele – N10 billion; N6.3 billion by Hometrust Savings and Loans owned by Yomi Disu, Funmi Ademosun and Tony Ubogu, while N16.7 billion is owed by Falcon Securities owned by Peter Okolo, currently on trial over his company’s N88 billion exposure to three other banks (Afribank, FinBank and Union Bank). Okolo’s other company - Peterson Oil and Gas also owes N4.5 billion. Also included is Femi Otedola’s Zenon Oil, which owes N5.2 billion.
In ETB, Conoil owes N19.8 billion; BayelsaState – N5.97 billion; Globle Motors, which has Williams Anumudu as one of its directors - owes N3.032 billion; N3.321 billion for Premium Seafoods, which has Sunil Vaswani and Haresh as directors, while Dangote Limited owes N1.96 billion.
Prominent among the debtors of Spring Bank are three companies, National Sports Lottery – N4.12 billion; NSL Lotteries Management Ltd – N3.32 billion and Victoria Construction International Ltd – N1.58 billion.
Also indebted to Spring Bank to the tune of N7.874 billion are two companies, Netlink Digital TV and Mofas Shipping Line, owned by Otunba Oyewole Fasawe, while Metro Energy & Gas Ltd in which prominent politician – Tony Anenih – is a director owes N2.06 billion.
Major debtors to Unity Bank are Alpha Property Development Company, which owes N1.8 billion. Alhaji Kashim Ibrahim is a director. Kola Abiola is also said to be owing Unity Bank N1.4 billion, while Albarka Air Services, which has Mohammed Buba Marwa, has one of its directors, is indebted to the tune of N1.1 billion.
Plateau and Bauchi States also owe Unity Bank N865 million and N676 million respectively.
Some of the principal debtors to Wema Bank are one of its subsidiaries – Independent Securities Ltd, which secured N25 billion; Transcorp - N16.6 billion; Wema Asset Management (also a subsidiary of Wema) – N10 billion; Suffolk Engineering & Construction owned by Admac Industry Ltd and Henry Macpepple owe N4.6 billion. Odua Investment – N1.7 billion; Jimoh Ibrahim’s Global Fleet – N3 billion, while another subsidiary, Wema Securities, is indebted to the tune of N2.2 billion.
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The banks - BankPHB Plc, Equitorial Trust Bank, Spring Bank Plc, Wema Bank Plc and Unity Bank Plc - were those found wanting in the last round of audit exercise embarked on by the banking watchdog.
This culminated in the sack and replacement of the managing directors and executive directors of the first three banks said to be in “grave situation” two weeks ago. The two others were asked to recapitalise by June 2010.
Sources told THISDAY last night that the chief executives of the five banks said to be having challenges in their debt recovery drive pressurised the apex bank into publishing the latest list in a bid to compel their debtors to pay up.
The banking watchdog had on the 19th of August published the names of debtors (who owed N747 billion) of the initial five banks (Afribank, Oceanic Bank, FinBank, Intercontinental Bank and Union Bank) which had their CEOs sacked on August 14.
Over N100 billion has since been recovered from the debtors of these banks.
A breakdown of the loans, which are classified as non-performing in the latest list, is as follows: Bank PHB, N170 billion; Spring Bank, N95 billion; ETB, N46 billion; Unity Bank, N37 billion; and Wema Bank, N101 billion.
Some of the biggest debtors to BankPHB are one of its subsidiaries – Platinum Capital, which secured N11 billion; Akara Overseas Development owned by Prince Oyedele – N10 billion; N6.3 billion by Hometrust Savings and Loans owned by Yomi Disu, Funmi Ademosun and Tony Ubogu, while N16.7 billion is owed by Falcon Securities owned by Peter Okolo, currently on trial over his company’s N88 billion exposure to three other banks (Afribank, FinBank and Union Bank). Okolo’s other company - Peterson Oil and Gas also owes N4.5 billion. Also included is Femi Otedola’s Zenon Oil, which owes N5.2 billion.
In ETB, Conoil owes N19.8 billion; BayelsaState – N5.97 billion; Globle Motors, which has Williams Anumudu as one of its directors - owes N3.032 billion; N3.321 billion for Premium Seafoods, which has Sunil Vaswani and Haresh as directors, while Dangote Limited owes N1.96 billion.
Prominent among the debtors of Spring Bank are three companies, National Sports Lottery – N4.12 billion; NSL Lotteries Management Ltd – N3.32 billion and Victoria Construction International Ltd – N1.58 billion.
Also indebted to Spring Bank to the tune of N7.874 billion are two companies, Netlink Digital TV and Mofas Shipping Line, owned by Otunba Oyewole Fasawe, while Metro Energy & Gas Ltd in which prominent politician – Tony Anenih – is a director owes N2.06 billion.
Major debtors to Unity Bank are Alpha Property Development Company, which owes N1.8 billion. Alhaji Kashim Ibrahim is a director. Kola Abiola is also said to be owing Unity Bank N1.4 billion, while Albarka Air Services, which has Mohammed Buba Marwa, has one of its directors, is indebted to the tune of N1.1 billion.
Plateau and Bauchi States also owe Unity Bank N865 million and N676 million respectively.
Some of the principal debtors to Wema Bank are one of its subsidiaries – Independent Securities Ltd, which secured N25 billion; Transcorp - N16.6 billion; Wema Asset Management (also a subsidiary of Wema) – N10 billion; Suffolk Engineering & Construction owned by Admac Industry Ltd and Henry Macpepple owe N4.6 billion. Odua Investment – N1.7 billion; Jimoh Ibrahim’s Global Fleet – N3 billion, while another subsidiary, Wema Securities, is indebted to the tune of N2.2 billion.
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US Recession over
The worst U.S. recession since the Great Depression has ended, but weak household spending as the labor market struggles to create jobs will slow the pace of the economy's recovery, according to a survey released on Monday.
The survey of 44 professional forecasters released by the National Association for Business Economics, also known as the NABE, found that 80 percent of the respondents believed the economy was growing again after four straight quarters of declines.
"The great recession is over," NABE President-Elect Lynn Reaser said.
"The vast majority of business economists believe that the recession has ended, but that the economic recovery is likely to be more moderate than those typically experienced following steep declines."
Recessions in the United States are dated by the National Bureau of Economic Research. The private-sector group, which does not define a recession as two consecutive quarters of decline in real gross domestic product, often takes months to make determinations.
The recession that started in December 2007 is the longest and deepest since the 1930s. It was triggered by the U.S. housing market's collapse and the ensuing global credit crisis.
While the economy is believed to have rebounded in the third quarter, analysts believe that ordinary Americans will probably not see much difference as unemployment will remain high well into 2010, restraining consumption.
"We don't necessarily expect the U.S. economy to fall into a double-dip recession. This time round, consumers will be reluctant to join the party," said Paul Ashworth, senior U.S. economist at Capital Economics in Toronto.
The NABE survey, conducted in September, predicted real GDP growth expanding at an annual pace of 2.9 percent over the second half of this year. Output for all of 2009 is expected to contract 2.5 percent and next year, rebound 2.6 percent.
Much of the anticipated recovery was seen driven by businesses rebuilding their inventories after aggressively reducing unwanted stockpiles of unsold goods to match weak demand.
HOUSING PRICES TO HIT BOTTOM
Investment in the residential market would also add to growth, with the majority of the survey's respondents convinced that the housing market downturn, which has lasted more than three years, was close to coming to an end.
About two-thirds of respondents believed house prices will reach a bottom this year. The survey found that high house prices would not pose a threat to the sector's recovery.
The survey predicted that the unemployment rate will rise to 10 percent in the first quarter of 2010 and edge down to 9.5 percent by the end of that year. The labor market was not expected to regain most of the jobs destroyed in the recession until 2012 or beyond.
The weak labor market will continue to weigh on consumer spending, slowing the recovery. The jobless rate climbed to 9.8 percent in September -- a 26-year high -- from August's 9.7 percent.
Labor market slack, combined with weak wage growth, meant inflation would not be an obstacle to the economic recovery and the Federal Reserve will not be under pressure to raise interest rates, the survey found.
"With improving credit markets, the U.S. economy can return to solid growth next year without worry about rising inflation," Reaser said.
The U.S. central bank was seen leaving its overnight benchmark lending rate near zero until late next spring, followed by measured increases that would take the rate to 1 percent by the end of 2010, the survey showed.
Despite signs of improvement in the financial markets, most respondents believed that it would take some time for them to return to normal. Only 29 percent believed this would happen in the second half of next year.
Respondents also expected the U.S. dollar to weaken further this year and into 2010, but did not see this contributing to a narrowing of the country's trade deficit as the economic revival stimulates demand for imports.
The dollar has lost about 5.8 percent of its value against a basket of currencies so far this year, largely because of worries over the government's growing budget deficit and expectations that the Fed will keep interest rates at super-low levels for a while.
Read more...
The survey of 44 professional forecasters released by the National Association for Business Economics, also known as the NABE, found that 80 percent of the respondents believed the economy was growing again after four straight quarters of declines.
"The great recession is over," NABE President-Elect Lynn Reaser said.
"The vast majority of business economists believe that the recession has ended, but that the economic recovery is likely to be more moderate than those typically experienced following steep declines."
Recessions in the United States are dated by the National Bureau of Economic Research. The private-sector group, which does not define a recession as two consecutive quarters of decline in real gross domestic product, often takes months to make determinations.
The recession that started in December 2007 is the longest and deepest since the 1930s. It was triggered by the U.S. housing market's collapse and the ensuing global credit crisis.
While the economy is believed to have rebounded in the third quarter, analysts believe that ordinary Americans will probably not see much difference as unemployment will remain high well into 2010, restraining consumption.
"We don't necessarily expect the U.S. economy to fall into a double-dip recession. This time round, consumers will be reluctant to join the party," said Paul Ashworth, senior U.S. economist at Capital Economics in Toronto.
The NABE survey, conducted in September, predicted real GDP growth expanding at an annual pace of 2.9 percent over the second half of this year. Output for all of 2009 is expected to contract 2.5 percent and next year, rebound 2.6 percent.
Much of the anticipated recovery was seen driven by businesses rebuilding their inventories after aggressively reducing unwanted stockpiles of unsold goods to match weak demand.
HOUSING PRICES TO HIT BOTTOM
Investment in the residential market would also add to growth, with the majority of the survey's respondents convinced that the housing market downturn, which has lasted more than three years, was close to coming to an end.
About two-thirds of respondents believed house prices will reach a bottom this year. The survey found that high house prices would not pose a threat to the sector's recovery.
The survey predicted that the unemployment rate will rise to 10 percent in the first quarter of 2010 and edge down to 9.5 percent by the end of that year. The labor market was not expected to regain most of the jobs destroyed in the recession until 2012 or beyond.
The weak labor market will continue to weigh on consumer spending, slowing the recovery. The jobless rate climbed to 9.8 percent in September -- a 26-year high -- from August's 9.7 percent.
Labor market slack, combined with weak wage growth, meant inflation would not be an obstacle to the economic recovery and the Federal Reserve will not be under pressure to raise interest rates, the survey found.
"With improving credit markets, the U.S. economy can return to solid growth next year without worry about rising inflation," Reaser said.
The U.S. central bank was seen leaving its overnight benchmark lending rate near zero until late next spring, followed by measured increases that would take the rate to 1 percent by the end of 2010, the survey showed.
Despite signs of improvement in the financial markets, most respondents believed that it would take some time for them to return to normal. Only 29 percent believed this would happen in the second half of next year.
Respondents also expected the U.S. dollar to weaken further this year and into 2010, but did not see this contributing to a narrowing of the country's trade deficit as the economic revival stimulates demand for imports.
The dollar has lost about 5.8 percent of its value against a basket of currencies so far this year, largely because of worries over the government's growing budget deficit and expectations that the Fed will keep interest rates at super-low levels for a while.
Read more...
EFCC recovers N21.6bn from Transcorp
he Economic and Financial Crimes Commission said on Tuesday that it had recovered a total of N135.6bn from debtors of five banks, whose managing directors were sacked by the Central Bank of Nigeria in August.
It also said that it recovered N21.6bn from Transcorp out of about N30bn it owed some banks.
The Head of Media and Publicity, EFCC, Mr. Femi Babafemi, disclosed this to our correspondent on the telephone in Abuja.
Non-performing loans totaling N747bn of five banks had led to the sacking of the chief executive officers of Union Bank, Intercontinental Bank, Oceanic Bank, Finbank and Afribank.
Similarly, a former Chairman of Alliance for Democracy, Ambassador Yusuf Mamman and Mr. Jafaru Sani were detained by the EFCC.
It was gathered that Mamman‘s detention was not unconnected with the mismanagement of N130m belong to Aso Radio.
An EFCC operative said that a dummy account was opened in respect of the N130m.
The source said that the commission had evidence to show that the money was mismanaged, just as he said that Mamaman and Sani would remain in detention as more suspects faced interrogation on Wednesday.
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Technical Suspension Lifted, Bank PHB and Spring Bank
The Technical Suspension which was placed on Bank PHB Plc and Spring Bank Plc has been lifted today October 13, 2009.
It’s a joint decision by the Securities Exchange Commission and the Nigerian Stock Exchange as the basis for the suspension has been addressed. It is lifted this morning, exactly after one week: Mr. Sola Oni, Assistant General/ Head Corporate Affairs.
The technical suspension was placed on October 5, 2009 following the sack of their managements by the Central Bank of Nigeria (CBN) after the final audit of the banks revealed that their operations were in grave danger.
The suspension was to guard against negative responses from some of the investors in Bank PHB and Spring Bank due to the CBN’s action.
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It’s a joint decision by the Securities Exchange Commission and the Nigerian Stock Exchange as the basis for the suspension has been addressed. It is lifted this morning, exactly after one week: Mr. Sola Oni, Assistant General/ Head Corporate Affairs.
The technical suspension was placed on October 5, 2009 following the sack of their managements by the Central Bank of Nigeria (CBN) after the final audit of the banks revealed that their operations were in grave danger.
The suspension was to guard against negative responses from some of the investors in Bank PHB and Spring Bank due to the CBN’s action.
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EFCC uncovers N23bn scam in Oceanic Bank - Slams money laundering charge on Ibru, 2 others - Begins
Operatives of the Economic and Financial Crimes Commission (EFCC) investigating the alleged massive insider abuse in the banking sector have reportedly uncovered an alleged N23 billion money laundering scam in Oceanic Bank.
Oceanic Bank is one of the eight banks that had their management teams sacked by the Central Bank of Nigeria (CBN) in the wake of alleged unethical practices in the industry.
The aftermath of the discovery, according to sources in the commission, has seen fresh money laundering charges being prepared against the sacked Group Managing Director and Chief Executive Officer of the bank, Mrs Cecilia Ibru and two others.
They are Dele Oye, a legal practitioner, and Nana Shetu Bedeni, a nanny to the Ibru family.
In order to make them face the law, the commission is also said to have commenced their repatriation from abroad where they reportedly fled following the arrest of Mrs. Ibru over the alleged unethical practice in the running of the bank.
She is being prosecuted alongside 13 former bank chiefs sacked by the apex bank in five banks during the first round of the sanitisation exercise in the industry.
It was further gathered that the commission had also added former Group Managing Director of Intercontinental Bank Plc, Erastus Akingbola to the extradition list.
Akingbola left the country for the United Kingdom following his removal by the apex bank and has since been declared wanted by the anti-graft commission.
Commission’s spokesperson, Mr. Femi Babafemi, confirmed that the commission was working hard on cases involving all the individuals mentioned.
According to him “I don’t have the details you referred to, but I know that the commission is working hard on the cases of some individuals you referred to”.
Nigerian Tribune gathered that fresh facts dug up by the commission’s operatives revealed that Mrs. Ibru was allegedly using Dele Oye and Nana Bedeni as fronts to launder investors’ and depositors’ funds to her personal purse.
Sources disclosed that Waves Nigeria Ltd, a company allegedly owned by Ibru’s son, who was a director in the bank, was allegedly used in laundering the N23 billion sum, even though its shares capital during registration with the Corporate Affairs Commission {CAC}was just one million shares, and by law, should not receive money beyond its share capital capacity.
The ownership of the company was said to have been relinquished by Ibru’s son to Bedei and Oye in 2006, with Mrs. Ibru allegedly paying 110 million dollars (about N16.9b) and N6 billion to the company almost immediately the duo took over the ownership of the company.
The company under the leadership of the duo was said to have paid 10 million dollars (N1.5bn) to Mrs. Ibru’s private bank account, after the N23 billion payment was made.
Sources added that the commission’s operatives also discovered that the company was awarded a contract by Oceanic leadership under Mrs. Ibru to build its corporate headquarters, with documents allegedly found with the bank showing that the payments made to the company was for the project.
It was further learnt that documents from Waves allegedly showed that it owned the building while Oceanic would just be a tenant, though the land on which the property is being built was allegedly discovered to belong to the Ibru family.
Though the said property is still said to be under construction, documents found exhumed by the commission’s operatives showed that Oceanic had already paid 22 million dollars (N3.4bn) for 10 years rent to Waves Ltd for the uncompleted building.
Findings of the commission’s operatives reportedly showed that the Ibru leadership at Oceanic paid rent for a property that was paid for and still under construction, with one of the sources saying that “The whole deal was designed to just siphon shareholders and depositors monies into private accounts and that is why they would face a fresh money laundering trial”.
Ibru is currently on conditional bail, with sources in the anti-graft commission revealing that she would be arraigned in Lagos next week over the alleged money laundering.
The commission, it was learnt, would also apply to the court for the repatriation of her co-accused during her fresh arraignment.
Read more...
Oceanic Bank is one of the eight banks that had their management teams sacked by the Central Bank of Nigeria (CBN) in the wake of alleged unethical practices in the industry.
The aftermath of the discovery, according to sources in the commission, has seen fresh money laundering charges being prepared against the sacked Group Managing Director and Chief Executive Officer of the bank, Mrs Cecilia Ibru and two others.
They are Dele Oye, a legal practitioner, and Nana Shetu Bedeni, a nanny to the Ibru family.
In order to make them face the law, the commission is also said to have commenced their repatriation from abroad where they reportedly fled following the arrest of Mrs. Ibru over the alleged unethical practice in the running of the bank.
She is being prosecuted alongside 13 former bank chiefs sacked by the apex bank in five banks during the first round of the sanitisation exercise in the industry.
It was further gathered that the commission had also added former Group Managing Director of Intercontinental Bank Plc, Erastus Akingbola to the extradition list.
Akingbola left the country for the United Kingdom following his removal by the apex bank and has since been declared wanted by the anti-graft commission.
Commission’s spokesperson, Mr. Femi Babafemi, confirmed that the commission was working hard on cases involving all the individuals mentioned.
According to him “I don’t have the details you referred to, but I know that the commission is working hard on the cases of some individuals you referred to”.
Nigerian Tribune gathered that fresh facts dug up by the commission’s operatives revealed that Mrs. Ibru was allegedly using Dele Oye and Nana Bedeni as fronts to launder investors’ and depositors’ funds to her personal purse.
Sources disclosed that Waves Nigeria Ltd, a company allegedly owned by Ibru’s son, who was a director in the bank, was allegedly used in laundering the N23 billion sum, even though its shares capital during registration with the Corporate Affairs Commission {CAC}was just one million shares, and by law, should not receive money beyond its share capital capacity.
The ownership of the company was said to have been relinquished by Ibru’s son to Bedei and Oye in 2006, with Mrs. Ibru allegedly paying 110 million dollars (about N16.9b) and N6 billion to the company almost immediately the duo took over the ownership of the company.
The company under the leadership of the duo was said to have paid 10 million dollars (N1.5bn) to Mrs. Ibru’s private bank account, after the N23 billion payment was made.
Sources added that the commission’s operatives also discovered that the company was awarded a contract by Oceanic leadership under Mrs. Ibru to build its corporate headquarters, with documents allegedly found with the bank showing that the payments made to the company was for the project.
It was further learnt that documents from Waves allegedly showed that it owned the building while Oceanic would just be a tenant, though the land on which the property is being built was allegedly discovered to belong to the Ibru family.
Though the said property is still said to be under construction, documents found exhumed by the commission’s operatives showed that Oceanic had already paid 22 million dollars (N3.4bn) for 10 years rent to Waves Ltd for the uncompleted building.
Findings of the commission’s operatives reportedly showed that the Ibru leadership at Oceanic paid rent for a property that was paid for and still under construction, with one of the sources saying that “The whole deal was designed to just siphon shareholders and depositors monies into private accounts and that is why they would face a fresh money laundering trial”.
Ibru is currently on conditional bail, with sources in the anti-graft commission revealing that she would be arraigned in Lagos next week over the alleged money laundering.
The commission, it was learnt, would also apply to the court for the repatriation of her co-accused during her fresh arraignment.
Read more...
Weekly Round Up - Equities Market Rebound by 3.44%
The NSE All Index rose by 3.44% to close on Friday at 23,271.69. The Market Capitalization closed higher at N5.42 trillion.
A turnover of 3.2 billion shares worth N22.11 billion in 33,985 deals was recorded this weak as compared to a total of 2.2 billion shares valued at N16.14 billion exchanged last week in 27,236 deals.
The Banking subsector was the most active during the week with 2.02 billion shares worth N16.35 billion exchanged by investors in 19,701 deals. Volume in the sector was largely driven in the shares of Access Bank, First City Monument Bank and Zenith Bank.
The Insurance subsector was boosted by the activities in the shares of International Energy Insurance and CornerStone Insurance. Insurance sector has a turnover of 383.95 million shares valued at N386.9 million in 2,432 deals.
Losers and Laggards
The market breadth was positive at 1.44 as compared to 1.08 last week. Oando led on the gainers table with a gain of N4.70 to close at N92.20 while Nigerian bottling Company followed with N2.83 to close at N20.88.
Wapco Nigeria led on the price losers table dropping by N3.95 to close at N30.05 per share while Conoil followed with a loss of N3.51 to close at N32.49.
New Listing
The 3.71 billion of shares of N 0.50 each in favor of Beco Petroleum Products were admitted at a price of N2.50 per share on October 7, 2009. The Company is listed in Petroleum Sub sector.
Technical Suspension
Bank PHB Plc and Spring Bank were placed on technical suspension on Monday October 5, 2009. The Suspension would be reviewed after one week.
Review of The NSE-30 Index
The Index Committee held its quarterly meeting to review and rebalance The NSE 30 Index. At the end of deliberations, Wema Bank Plc and FinBank Plc were dropped from the index while Pinnacle Point Group Plc and Ecobank Nigeria Plc were included.
Corporate Results
ASO SAVINGS & LOANS PLC: Audited result for the year ended 31st March 2009 shows Gross Earnings of N10,090.14 million as against N7,063.13 million in 2008. Profit after tax stood at N873.5 million compared with N1,061.8 million in 2008. The Board of Directors is recommending a dividend of N0.05 per share. The date of closure of register was October 12, 2009 while payment date is November 10, 2009. The 11th Annual General Meeting is scheduled to hold on Tuesday, November 3, 2009 by 11.00a.m.
NEIMETH INTERNATIONAL PHARMACEUTICALS PLC: Audited result for the year ended 31st March 2009. The date of closure of register is October 21, 2009. The 51st Annual General Meeting is scheduled to hold at Lagos Airport Hotel Limited, Ikeja on Wednesday, October 21, 2009 by 11.00a.m.
NATIONAL SALT COMPANY OF NIGERIA PLC: Unaudited result for the half year ended 30th June 2009 shows Turnover of N4,276.14 million, as against N3,602.8 million in the comparable period of 2008. Profit after tax stood at N763.21 million compared with N642.74 million in 2008.
Company Forecast
ASO SAVINGS & LOANS PLC: The Company forecasts Interest Income of N11, 992.5 million and profit after tax of N2, 025.5 million during the year ending March 31, 2010.
UACN PROPERTY DEVELOPMENT COMPANY PLC: The Company forecasts Turnover of N13, 730.9 million and profit after tax of N2, 110.5 million during the fourth quarter ending December 31, 2009.
STANDARD ALLIANCE INSURANCE PLC: The Company forecasts Gross Premium of N1,531.8 million and profit after tax of N1,265.25 million during the year ending December 31, 2009.
VONO PRODUCTS PLC: The Company forecasts Turnover of N669.2 million and loss after tax of N119.53 million during the fourth quarter ending December 31, 2009.
Read more...
A turnover of 3.2 billion shares worth N22.11 billion in 33,985 deals was recorded this weak as compared to a total of 2.2 billion shares valued at N16.14 billion exchanged last week in 27,236 deals.
The Banking subsector was the most active during the week with 2.02 billion shares worth N16.35 billion exchanged by investors in 19,701 deals. Volume in the sector was largely driven in the shares of Access Bank, First City Monument Bank and Zenith Bank.
The Insurance subsector was boosted by the activities in the shares of International Energy Insurance and CornerStone Insurance. Insurance sector has a turnover of 383.95 million shares valued at N386.9 million in 2,432 deals.
Losers and Laggards
The market breadth was positive at 1.44 as compared to 1.08 last week. Oando led on the gainers table with a gain of N4.70 to close at N92.20 while Nigerian bottling Company followed with N2.83 to close at N20.88.
Wapco Nigeria led on the price losers table dropping by N3.95 to close at N30.05 per share while Conoil followed with a loss of N3.51 to close at N32.49.
New Listing
The 3.71 billion of shares of N 0.50 each in favor of Beco Petroleum Products were admitted at a price of N2.50 per share on October 7, 2009. The Company is listed in Petroleum Sub sector.
Technical Suspension
Bank PHB Plc and Spring Bank were placed on technical suspension on Monday October 5, 2009. The Suspension would be reviewed after one week.
Review of The NSE-30 Index
The Index Committee held its quarterly meeting to review and rebalance The NSE 30 Index. At the end of deliberations, Wema Bank Plc and FinBank Plc were dropped from the index while Pinnacle Point Group Plc and Ecobank Nigeria Plc were included.
Corporate Results
ASO SAVINGS & LOANS PLC: Audited result for the year ended 31st March 2009 shows Gross Earnings of N10,090.14 million as against N7,063.13 million in 2008. Profit after tax stood at N873.5 million compared with N1,061.8 million in 2008. The Board of Directors is recommending a dividend of N0.05 per share. The date of closure of register was October 12, 2009 while payment date is November 10, 2009. The 11th Annual General Meeting is scheduled to hold on Tuesday, November 3, 2009 by 11.00a.m.
NEIMETH INTERNATIONAL PHARMACEUTICALS PLC: Audited result for the year ended 31st March 2009. The date of closure of register is October 21, 2009. The 51st Annual General Meeting is scheduled to hold at Lagos Airport Hotel Limited, Ikeja on Wednesday, October 21, 2009 by 11.00a.m.
NATIONAL SALT COMPANY OF NIGERIA PLC: Unaudited result for the half year ended 30th June 2009 shows Turnover of N4,276.14 million, as against N3,602.8 million in the comparable period of 2008. Profit after tax stood at N763.21 million compared with N642.74 million in 2008.
Company Forecast
ASO SAVINGS & LOANS PLC: The Company forecasts Interest Income of N11, 992.5 million and profit after tax of N2, 025.5 million during the year ending March 31, 2010.
UACN PROPERTY DEVELOPMENT COMPANY PLC: The Company forecasts Turnover of N13, 730.9 million and profit after tax of N2, 110.5 million during the fourth quarter ending December 31, 2009.
STANDARD ALLIANCE INSURANCE PLC: The Company forecasts Gross Premium of N1,531.8 million and profit after tax of N1,265.25 million during the year ending December 31, 2009.
VONO PRODUCTS PLC: The Company forecasts Turnover of N669.2 million and loss after tax of N119.53 million during the fourth quarter ending December 31, 2009.
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Stock Exchange lists new petroleum company (Beco Petroleum Products Plc )
The Nigerian Stock Exchange (NSE), on Wednesday, listed by introduction, Beco Petroleum Products Plc’s 3.72 billion Ordinary Shares of 50 kobo each at N2.50 per share; thereby increasing the number of quoted First-Tier equities to 197.
Listing by introduction means that investors can only buy the company’s stock through their stockbrokers at the stock market.
Lance Elakama, the NSE’s Assistant Director General, who declared the listing, said the coming of the new company to the petroleum marketing subsector of the Exchange is expected to boost investors’ confidence in the market because “the subsector has been showing signs of improvement”.
Ogala Osoka, Beco Petroleum’s Chairman, said that he believes the stock will perform well in the market because “since the company transformed into a public liability company in 2008, after a private placement outing, its assets of N425.9 million has increased to N4.043 billion.”
Mr. Osoka said the company, which was founded in 1986 with one million shares of N1 each, currently has a share capital of 6.52 billion units of 50 kobo each and hopes to raise from the capital market, its targeted 3.72 billion units of 50 kobo each at N2.50 per share.
The chairman noted that the global economic condition has affected the company’s expansion programme, adding, “Achieving long term sustainable growth of the company remains the objective.”
Olu Odejimi, the spokesperson for stockbrokers, who is also the Chief Executive Officer of Clearview Investment Ltd, has given assurance to the management o f the company of their support in attracting investors to the stock.
Mr. Odejimi said that Beco Petroleum’s historical figures and projected turnover for the next three years ares promising.
Henry Mojekwu, Managing Director of Beco Petroleum, said, “The company came to the market to achieve its vision to be one of the foremost integrated players in the marine, oil and gas sectors of the Nigerian economy.”
He explained that the additional fund will help the company increase its current 15 service stations to about 200 stations. Mr. Mojekwu said that the company is developing a petroleum products tank farm with 96,000 metric tonnes, and currently owns and operates two marine tankers with a combined tonnage of 13,000DWT. “Beco Petroleum also plans to construct a gas plant in the future project,” he added.
Market close lower
Meanwhile, at the close of stock trading on Wednesday, about N15 billion was lost. The NSE’s market capitalisation and All-Share index dropped, each, by 0.28 per cent.
The market capitalisation closed at N5.349 trillion down from the N5.364 trillion it closed at on Tuesday, while the All-Share Index closed at 22,968.21 units from 23,071.66 units it recorded the previous day.
A total of 790.680 million quantities of stocks were traded, worth N5.408 billion in a record of 8,483 deals. Also, a total of 43 stocks appreciated in price while 36 stocks depreciated at the close of the day’s trading.
The banking sub-sector maintained its lead on the most active sub-sectors’ chart while the insurance and information communication/telecommunication sub-sectors followed.
source: proshare
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Listing by introduction means that investors can only buy the company’s stock through their stockbrokers at the stock market.
Lance Elakama, the NSE’s Assistant Director General, who declared the listing, said the coming of the new company to the petroleum marketing subsector of the Exchange is expected to boost investors’ confidence in the market because “the subsector has been showing signs of improvement”.
Ogala Osoka, Beco Petroleum’s Chairman, said that he believes the stock will perform well in the market because “since the company transformed into a public liability company in 2008, after a private placement outing, its assets of N425.9 million has increased to N4.043 billion.”
Mr. Osoka said the company, which was founded in 1986 with one million shares of N1 each, currently has a share capital of 6.52 billion units of 50 kobo each and hopes to raise from the capital market, its targeted 3.72 billion units of 50 kobo each at N2.50 per share.
The chairman noted that the global economic condition has affected the company’s expansion programme, adding, “Achieving long term sustainable growth of the company remains the objective.”
Olu Odejimi, the spokesperson for stockbrokers, who is also the Chief Executive Officer of Clearview Investment Ltd, has given assurance to the management o f the company of their support in attracting investors to the stock.
Mr. Odejimi said that Beco Petroleum’s historical figures and projected turnover for the next three years ares promising.
Henry Mojekwu, Managing Director of Beco Petroleum, said, “The company came to the market to achieve its vision to be one of the foremost integrated players in the marine, oil and gas sectors of the Nigerian economy.”
He explained that the additional fund will help the company increase its current 15 service stations to about 200 stations. Mr. Mojekwu said that the company is developing a petroleum products tank farm with 96,000 metric tonnes, and currently owns and operates two marine tankers with a combined tonnage of 13,000DWT. “Beco Petroleum also plans to construct a gas plant in the future project,” he added.
Market close lower
Meanwhile, at the close of stock trading on Wednesday, about N15 billion was lost. The NSE’s market capitalisation and All-Share index dropped, each, by 0.28 per cent.
The market capitalisation closed at N5.349 trillion down from the N5.364 trillion it closed at on Tuesday, while the All-Share Index closed at 22,968.21 units from 23,071.66 units it recorded the previous day.
A total of 790.680 million quantities of stocks were traded, worth N5.408 billion in a record of 8,483 deals. Also, a total of 43 stocks appreciated in price while 36 stocks depreciated at the close of the day’s trading.
The banking sub-sector maintained its lead on the most active sub-sectors’ chart while the insurance and information communication/telecommunication sub-sectors followed.
source: proshare
Read more...
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