+ All Categories
Home > Documents > Monthly NCM Report for July 2010 - Proshare

Monthly NCM Report for July 2010 - Proshare

Date post: 29-May-2018
Category:
Upload: proshareng
View: 219 times
Download: 0 times
Share this document with a friend

of 66

Transcript
  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    1/66

    ISSN 1597 - 8842 Vol. 1 No. 43

    The Monthly NCM Report for Jul 10

    Issued on Aug 02, 2010

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    2/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 2

    Contents

    Executive Summary 3

    Introduction 5

    All-Share Index Movement 6

    Market Dynamics 9

    Comparison of 2009 and 2010 Market Performance 10

    Sectoral Index Movements 11

    NSE -30 Index, NSE -Food Index, NSE -Banking Index, NSE -Insurance Index & NSE -Oil Index

    Sectoral Analysis 15

    Transactions Volume and Value Trend 16

    Top Ten Trades in the Month 16

    Top Ten Traded Sectors in the Month 16

    Top Ten Gainers in the Month 18

    Top Ten Year to Date Appreciation 18

    Top Ten Decliners in the Month 19

    Top Ten Year to Date Depreciation 19

    Supplementary Listing in the Month 19

    Corporate Declarations in the Month 20

    Forecast Results in the Month 25

    Dividends Declared 25

    Sectoral Analysis 26

    Outlook/ Analyst Opinion 33

    Time Lines (April Market News/Information) 34

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    3/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 3

    The Monthly NCM Report for July 2010

    ISSN 1597 - 8842 Vol. 1 No. 43

    Executive Summary

    "Progress is impossible without change and those who cannot change their minds cannot

    change anything." - George Bernard

    Equity market in the month under review has performed in line with general expectationof both the investing public and analysts as the fortunes of equities that ended on thedownside in the month of June showcase the reverse in July.

    Trends in the month showed that, for the first thirteen trading days into the month(between 1st and 19th July, 2010), bulls and bears were striving for the control of themarket. It was observed that the bears consequently gained upper hand in the period itlasted.

    The dominance of bears in the period was not unconnected with the spill over effect of

    the preceding three months below average performance. Uncertainties surrounding thesuccessful takeoff of Asset Management Company of Nigeria (AMCON) in the period alsocontributed to the volatility and consequently, dominance of bearish trend.

    Also, the statement credited to the Central Bank of Nigeria (CBN) that banks in thecountry are not yet in safe territory despite their flight to profitability in their respectivefirst quarter results to March 31st, 2010. This created a run on most of the banking

    stocks, most especially the rescued banks, hence the dominance of bears since stocks inbanking sector accounted for more than 50% of the entire market capitalisation.

    Towards the latter part of the week, the market outlook improved drastically and the

    upbeat has been sustained from Tuesday 20th July, 2010. The positive outlook recorded

    was on the back of eventually asset to the Asset Management Company bills by thePresident. The impact of the development has been felt most prominently in the bankingstocks and also in all the other sectors on the bourse.

    The market pattern in the last three trading days of the month showed evidence of profittakings by the investors, who has since besieged the market from Wednesday 28 th July,

    2010 to rake in profit from the previous rally. The sell pressures on the bourseconsequently climaxed in negative outlook at the close of the last trading day of themonth with -0.24% decline.

    The trend could be pointing to the fact that, despite the positive development notedabove; investors mindsets are still not towards medium to long term basis but still at

    the speculative mood. This kind of trend may still persist for sometimes as part of thestages towards eventual market stability.

    As noted in our half year report to June 30th,2010(http://www.proshareng.com/reports/2753), the second quarter results ofcompanies flooded the market in the month of July. The outlook of banking sectorsecond quarter results showed a level of relative stability as most of them built on theflight to profitability recorded in their first quarter results for the period ended 31 stMarch, 2010. The next month should indicate how Q3 will go as policy decisions become

    manifest, and the direction for the market going forward set on track.

    Thank you for reading and do take time to share with us your thoughts on the market,

    analyst at [email protected]. We value your feedback and comments.

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    4/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 4

    Introduction

    NSE all share index rises on the back of Asset Management Company.The market trend in the month of July was bearish in the early part of the month with

    bears taking hold of the market for the first thirteen trading days of the month between

    1st and 19th of the month; the incessant interchange of bulls and bears closed with bearson the higher side.

    The dominant of bears in the period could be attributed to the spill over effect of the

    bears run of the preceding month, coupled with the state of uncertainties pervading the

    Asset Management Company issues. The indications that AMC might not come on stream

    as expected cast doubt on the market, and the immediate reaction was the incidence of

    speculative trading.

    However, afterwards, with the Asset Management Company signed into law by the

    President, market reacted immediately on a positive note with many equities recording

    price uptrend of different magnitude. The positive outlook has since remained and thishas pushed the performance in the month to positive territory.

    The fact that stocks across all the sectors had shed considerable price weight aided the

    positive reactions as discerning investors seemed post optimistic stance and bids for

    stocks has since remained strong.

    The profit taking activities that resumed on Wednesday 28th July, 2010 was not

    unexpected, it should be seen as part of the stages of further recovery to stability. The

    sell pressures witnessed at the tail end of the month is not expected to drag into bearish

    mode as trend in some sectors such as Food and a beverage is pointing in that direction.

    The Market Game On

    The market this month recorded a total of 7.638bn units valued at N58.784bn

    (US$392.679bn) exchanged in 134.213 deals compared with 9.921bn units valued

    at N72.384bn(US$483.527mn) exchanged in 4187.748 deals in the previous years

    comparable period. Comparing, the volume and value traded in the month reveals a -

    23% and -18.79% decline below the volume and value recorded in the previous years

    comparable period respectively.

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    5/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 5

    In the course of the month, the All-Share index recorded a +2.82% performance

    compared with -7.09% negative growth recorded in the preceding years July to close at

    25,286.61. The ASI trend this month when compared with the previous comparable

    period July 31st, 2009 showed that July 2010 outperformed the previous year. It also

    showed a level of recovery as against the negative performance by -3.23% recorded in

    the month of June 2010. Market capitalisation this month appreciated by +N206.828

    billion (US$1.382bn) as against N410.665 billion (US$ 2.743bn) market

    capitalisation loss recorded in the previous years comparable period.

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    6/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 6

    The Market Game Changers: The outcomes/consequence recorded in the month

    could be principally attributed to the issues outlined above and to some of the following

    market and financial fundamentals:

    The sustained political stability in the country which has made the economic and

    business environment friendlier.

    Planned elections (with a possibility of an early election timeframe) and the expected

    beneficial impact on the NCM.

    The sustained regulatory co-ordination and commitment to transparent market which

    seems to have tamed the incidence of infractions very significantly.

    The news by the Central Bank of Nigeria that banks are not yet in a safe territory

    created a run on the banking stocks before AMC positive development climaxed to

    reality.

    The fact that liquidity in the system remains insufficient to support the market

    capacity still creates impact. This is due dearth of loan-able funds from the banking

    sector.

    Corporate declarations announced by some companies good with relative positives.

    The management of the leadership issues at both the Nigerian Stock Exchange onsuccession plan.

    The second quarter results released so far in the banking sector must have raised the

    hope of better returns in the sector, coupled with the fact that many of them might

    not have many issues with the non-performing loans saga.

    The recent CBN stand in resorting to dialogue in dealing with recapitalisation of the

    rescued banks also raised the morale of the investing public in the sector. If the

    positive development continues, there may be swelling times ahead.

    Guaranteeing the domestic interbank market

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    7/66

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    8/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 8

    push of the general market performance, and the banking sector outlook in particular.

    Although AMCON has led to an increase in the demand for shares and appreciation in

    market indices in the last few days of the month, investors should be reminded that the

    company is not the total cure for the market challenges and ailments

    (http://proshareng.com/blog/?p=383).

    Advantages of AMCON

    Free up the balance sheet of these rescued banks

    Injection of liquidity into the system

    Bolster the prospects for long term growth

    Toxic assets had been written off the books of the banks, so once they are bought

    by AMCON, there will be some capital.

    More recovery of the bad loans of the banks and pressure on debtors to pay

    Recapitalization of banks in which the Central Bank of Nigeria (CBN) was forced

    to intervene and help to increase access to restructuring/refinancing opportunities

    for borrowers

    Assist banks in efficient management and disposal of their toxic assets.

    AMCON buying the toxic assets of the banks and pumping money into the

    institutions, their books will improve and attract investors

    Reduce the volume of stocks supplied to the market

    Disadvantages of AMCON

    AMCON represents one of the solutions to address the economic condition in

    which the market is operating and not the solution.

    The long drawn out delay in executing the AMCON does not suggest to some that

    the regulators and managers of the economy get it.

    It may lead to another asset buddle at the nations capital market, owing to hugeinterest of foreign investors to invest in the country.

    Threat of inflation from the budget deficit and the operations of the proposed

    AMCON.

    Transparent pricing of toxic assets.

    Ensuring the political/election campaign does not affect its workability.

    Conditions for issuing the proposed $5 billion 7-year government guaranteed

    bonds

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    9/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 9

    technical and legal issues

    Establishing a fair market price for the impaired assets

    Establishment of sinking fund provision is has been proposed to deal with this

    issue, but it is not clear whether this sinking fund will be established and with

    what money

    The upcoming 2011 election may also create a turbulent atmosphere inimical to

    the proper sober functioning of the AMCON

    Commencement date chosen for AMCON to begin operation is not yet disclosed.

    Negative Net Worth of troubled banks will attract most of the AMCON funds

    Market Concerns: There are serious concerns with the regulatory bodies as the recent

    extension of the deadline given to Wema Bank Plc and Unity Bank Plc on the last day of

    deadline showed that the CBN did not have a clear programme for its reform. SEC on the

    extension of the deadline given to the Nigerian Stock Exchange to appoint a new

    Director-General. Removal of some of the restrictions by CBN it imposed on the credit

    operations of banks by amending relevant portions of the Prudential Guidelines that

    became effective May 1, this year. AMC was supposed to ensure the smooth take-off on

    July 26, 2010 but still no details have been found.

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    10/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 10

    The NSE All-Share Index Movement

    The Nigerian equities started the month with a negative note amid lingering

    uncertainties especially from the financial sector as S&P has said the Central Bank of

    Nigeria (CBN) may need to guarantee the acquisition of the rescued banks to be able to

    win the confidence of investors and rated Nigerian banks as high investment risk and

    Postponement of Asset Management Company by the Central Bank of Nigeria also

    attributed to the ongoing downturn.

    Trends in the month showed that, for the first thirteen trading days into the month(between 1st and 19th July, 2010), bulls and bears were striving for the control of themarket.

    The Nigerian Stock market has remained positive for continues last 9 trading days of themonth as buying pressure continued to dominate trading activities after a lacklusterperformance that trailed the passage of the Asset Management Company of Nigeria

    (AMCON) Bill and the positive earnings declared by most of the banks for period endingQ2, 2010.

    The NSE index in July 2010 ended on a positive note drawing from the upbeat recorded

    at the end of the last trading days of the month ( barring last trading day) ensuring thatJuly 2010 ended with a +2.82%appreciation to close at 25,844.18 compared with -7.09%

    depreciations recorded in the preceding year comparable period to close at 25,286.61.

    The appreciation in the month was far below the +12.97% and +8.43% recorded in the

    month of March and January 2010.

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    11/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 11

    Meanwhile, at the end of the last trading day of the month under review, All-Share Indexclosed above the figure recorded at the close of 31 July 2009 by +2.21%.

    At the end of the last trading day of the month, All-Share Index closed above the figure

    recorded at the close of 4th January 2010 by 24.02% which was -19.36% away from

    January 2nd 2009 to 31st July, 2009. This shows by how much the market has recovered

    in the year.

    Source: NSE, Proshare Research

    At the close of the last trading day of the month, All-Share Index traded above its 20days, 50 days and 200 days moving average which closed at 25,123.97, 25,462.09 and

    23,928.08 respectively. This trend is technically suggesting a bullish trend.

    Source: NSE, Proshare Research

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    12/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 12

    July 2010 Market Dynamics

    The market dynamics as graphically illustrated below showed the appreciation and

    depreciations on the daily basis.

    Assurances of improved regulatory environment, passage of AMC Bill, declaration ofCorporate results, Uncertainty regarding the ownership of the ailing institutions and its

    recapitalization plans, profit taking , low investor confidence were responsible for the

    dynamics recorded.

    Source: NSE, Proshare Research

    MARKET DYNAMICS IN THE PRECEDING YEAR COMPARABLE PERIOD (JULY,2009)

    Source: NSE, Proshare Research

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    13/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 13

    Comparison of 2009 and 2010 Market Performance

    The market performance in July 2010, when compared with the 2009 comparableperiod; showed a upward trend. In the period under review, ASI recorded 2.82%

    appreciation compared with -7.09% depreciations recorded in 2009 July. The scenario

    revealed that the appreciations in the current years comparable period were above the

    previous year trend but the market closed at approximately in the range of 25,000.

    Source: NSE, Proshare Research

    Dates NSE ASIMarket Capitalisation

    (trillion)Market Capitalisation ($

    billions)

    Jan-02-09 31,357.24 6.93 43.31

    Jul-01-09 27,217.59 6.2 38.75

    Jul-31-09 25,286.61 5.79 36.19

    Yearly Return -19.36% -16.45% -16.45%

    Monthly Return -7.09% -6.61% -6.61%

    Jan-04-10 20,838.90 4.99 33.27

    Jul-01-10 25,134.63 6.12 40.53

    Jul-30-10 25,844.18 6.32 41.85

    Yearly Return 24.02% 26.65% 25.81%

    Monthly Return 2.82% 3.27% 3.27%

    Source: NSE, Proshare Research

    From the table above, the year to date performance of the year 2009 as at 31 st July,

    2009 closing at-19.36%

    indicated a depressing outlook when compared with the positive

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    14/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 14

    year to date performance for the year 2010 as at 30th July, 2010 standing in the positiveperformance growth of+24.02% for the period under review.

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    15/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 15

    Sectoral Index Movements

    Date

    NSE-30%Change

    Food andBeverages %change

    Banking %Change

    Insurance %Change

    Oil and Gas% Change

    01/07/2010 -1.02 -0.954 -1.63 -0.84 -0.25102/07/2010 0.41 1.528 0.04 -1.77 -0.051

    06/07/2010 -0.32 -0.226 -0.16 1.98 -0.511

    07/07/2010 -0.32 -0.248 -0.52 1.84 0.000

    08/07/2010 -1.24 -2.239 -1.88 -0.50 0.000

    09/07/2010 -2.34 -4.525 -3.60 0.62 -0.907

    12/07/2010 0.32 -0.020 0.28 -0.08 -0.876

    13/07/2010 0.91 -0.122 1.57 -1.69 -0.032

    14/07/2010 -0.51 -0.679 -0.75 -1.24 -0.505

    15/07/2010 -0.06 -0.413 -0.67 1.28 -0.528

    16/07/2010 0.32 0.695 0.80 1.90 -1.414

    19/07/2010 -0.16 0.157 -0.74 -1.36 0.000

    20/07/2010 0.01 0.401 -1.00 0.09 -0.515

    21/07/2010 0.60 1.612 0.97 0.39 0.000

    22/07/2010 0.19 -0.214 0.43 -0.65 -0.895

    23/07/2010 0.74 0.244 2.55 0.49 -0.049

    26/07/2010 0.89 0.508 1.93 0.17 -0.645

    27/07/2010 1.38 0.910 1.17 0.62 -0.420

    28/07/2010 0.22 -0.666 0.47 -0.25 -0.005

    29/07/1930 0.22 2.288 -1.44 3.25 -1.25130/07/2010 -0.01 -0.442 -0.37 0.04 -0.747

    Monthly %

    Change 0.24 -2.41 -2.54 4.27 -9.60

    In the month under review, NSE-30 and Insurance index emerged the best performing

    sector with +3.13% and +1.68% appreciation respectively, followed by Banking index

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    16/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 16

    which appreciated by +1.48% and NSE-Food index followed with +1.10% appreciation.

    However, the declining trend recorded in Oil and Petroleum sectors stood at -8.47%.

    June and July Sectoral Indexes Compared

    Source: NSE, Proshare Research

    When compared with June trend of sectoral indexes, the performance in the month of

    July was above the preceding months trend in all other sectoral indexes with the

    exception of Oil & Gas index which underperformed the preceding month very

    considerably.

    NSE-30INDEX

    Source: NSE, Proshare Research

    By the committees action, the shares of Cadbury Nigeria Plc and Ecobank Nigeria Plc,

    were replaced with the shares of Julius Berger Nigeria Plc and Mobil Oil Nigeria Plc.

    The trend recorded in the blue chips stocks is reflected in the index movement. There

    were interruptions at the many points in the index performance in the month due to the

    volatility that pervaded the entire market in the period, mainly in the early part of the

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    17/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 17

    month before the positive development in AMC. The sector would most probably have

    repeated the negative performance of the preceding month but for the positive

    developments in the market. The index recorded appreciation by +3.13% as against -

    2.97% depreciations recorded in the month of June.

    NSE-FOOD INDEX

    Source: NSE, Proshare Research

    Shares of Tantalizers Plc were admitted while that of Northern Nigeria Flour Mills Plc was

    removed to rebalance the sub-sectors index.

    The stocks in the sector still closed on a positive note in the month to record +1.10%

    compared with -2.54% recorded in the month of June. This is against appreciations by

    +39.09% recorded in the first three months of the year. Trend in the sector towards

    the close of the month suggested positive trend in the days ahead as stocks in the sector

    have potentials for impressive returns .Performance trail of the sector showed that the

    sector recorded +18.43% appreciation in the month of March alone compared with

    +13.20% and +3.75% appreciation recorded in January and February respectively.

    NSE-BANKING INDEX

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    18/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 18

    Source: NSE, Proshare Research

    Under NSE Banking Index shares of Fidelity Bank Plc and Skye Bank Plc were replaced

    tby hat of Union Bank of Nigeria Plc, and Ecobank Nigeria Plc.

    NSE-Banking index closed the month of July with +1.48% appreciations compared with -

    3.48% depreciations recorded in June. The performance growth was against +10.30%,

    +1.76% and +18.34% appreciations recorded in the months of January, February and

    March respectively. The trend recorded could be attributed to atmosphere of uncertainty

    that pervaded the sector before AMC bills eventually became a reality. Enthusiasm about

    the impact of the AMC plan for the banks might have also raised the investorsenthusiasm about the stocks in the sector in the latter parts of the month.

    We don't see any of the rescued banks delivering good between now and the third

    quarter as the results have failed to lift market sentiment and the share capital is stillnegative as we do not see growth in lending and increase in deposits but non-performingloans that were provisioned for earlier by the banks later re-paid to the banks werewritten back into the books as profit, interest rates at inter-bank market have dropped,while yield on bonds where the banks fled to as safe haven is not promising either.

    NSE-INSURANCE INDEX

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    19/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 19

    Source: NSE, Proshare Research

    The shares of International Energy Insurance Plc, Mutual Benefits Assurance Plc,

    Standard Alliance Insurance Plc, AIICO Insurance Plc, Cornerstone Insurance Plc, Equity

    Assurance Plc, and Goldlink Insurance Plc were admitted, while that of Unity Kapital

    Assurance Plc, Prestige Assurance Plc, Staco Insurance Plc, African Alliance Insurance

    Plc, Investment and Allied Insurance Plc, Oasis Insurance Plc, and Universal Insurance

    Plc were removed from the NSE Insurance.

    Insurance sector posted +1.68% appreciations in the month of July as against -6.15%

    decline recorded in the previous month. This could be attributed to the fact that stocks in

    the sector are subject to high rate of volatility as dearth of impressive returns remains

    the main discouragement to investors. The pattern may not change in the coming days.

    NSE-OIL INDEX

    Source: NSE, Proshare Research

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    20/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 20

    The sector recorded -8.47% performance declines in the months of July compared with

    -2.13% decline recorded in June. Trend in the sector posted the highest decline in the

    month among the NSE sectoral indexes, as there was a massive bear run in the sector

    during the period under review. Considering the massive rate of decline recorded so far,

    there may be reverse in the coming days as investors may want to cash in on the low

    prices.

    LAST TRADING DAY -SNAPSHOT

    http://www.proshareng.com/investors/theAnalyst.php

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    21/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 21

    SECTORAL ANALYSIS

    SECTOR PREFORMANCE

    Sector YTD%Change

    HOTEL & TOURISM 54.22%

    FOOD/BEVERAGES & TOBACCO 40.94%

    BREWERIES 35.54%

    BUILDING MATERIALS 26.50%

    CONSTRUCTION 24.14%

    HEALTHCARE 23.04%

    MARITIME 22.88%

    AIRLINE SERVICES 18.35%

    PETROLEUM(MARKETING) 18.21%CONGLOMERATES 11.95%

    ENGINEERING TECHNOLOGY 10.17%

    CHEMICAL & PAINTS 9.16%

    BANKING 8.69%

    PRINTING & PUBLISHING 7.86%

    THE FOREIGN LISTINGS 6.67%

    COMMERCIAL/SERVICES 4.14%

    LEASING 3.02%

    REAL ESTATE 2.97%

    PACKAGING 0.68%

    AVIATION 0.00%

    AGRICULTURE -0.89%

    INFORMATION & COMMUNICATION

    TECHNOLOGY-3.85%

    SECOND-TIER SECURITIES -7.15%

    ROAD TRANSPORTATION -8.22%

    INSURANCE -9.25%

    COMPUTER & OFFICE EQUIPMENT -9.76%

    OTHER FINANCIAL INSTITUTIONS -11.72%

    MEDIA -13.28%

    MORTGAGE COMPANIES -13.74%

    FOOTWEAR -14.08%

    INDUSTRIAL/DOMESTIC PRODUCTS -18.50%

    AUTOMOBILE & TYRE -30.57%

    TEXTILES -43.68%

    Source: NSE, Proshare Research

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    22/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 22

    Transactions Volume and Value Trend

    Market July '09' July '10' % Change

    Average Daily Volume of Stocks Traded (in millions) 431.34 347.18 -19.51%

    Average Daily Value of Stocks Traded (in N'millions) 3,147.13 2,672.13 -15.09%

    Average Daily Value of Stocks Traded (in USD$ millions) 19.67 17.70 -10.03%

    Total Volume of Stocks Traded (in millions) 9921.02 7638.05 -23.01%

    Total Value of Stocks Traded (in N'millions) 72,384.09 58,786.94 -18.78%

    Total Value of Stocks Traded (in USD$ billion) 452.40 389.32 -13.94%

    New Listing and Delisting July '09' July '10'

    Number of Equities Delisted 1 0

    Number of New Listings 3 0

    Source: NSE, Proshare Research

    The transaction volume in the month of July when compared with the preceding year

    comparable period closed lower by -23.01% to close at 7.63 billion units compared

    with 9.92 billion units traded in July 2009. This could be an indication that the

    investors patronage of the market in the month under review was significantly different.

    Also, the transaction value in the month under review closed lower by -18.78% at

    N58.78 billion ($389.32 million) compared with N72.38 billion ($452.40 million)

    of July 2009.

    July 2010 vs. 2009 Daily Volume Chart

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    23/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 23

    Source: NSE, Proshare Research

    Top Ten Trades for the Month of July 2010

    Zenith Bank Plc topped the transaction volume for the month. Banking stocks generally

    dominated the charts with eight of the stocks in the sector emerging in the top ten

    trades chart for the month.

    Company Total Trades Total Volume Total Value

    ZENITHBANK8437 456,503,373.00 5,970,956,270.81

    TRANSCORP 790 454,735,532.00 227,374,538.00

    SKYEBANK 3019 434,291,159.00 3,072,342,488.24

    FIRSTBANK 16476 424,521,645.00 5,624,195,394.88

    GUARANTY 11012 370,934,545.00 6,273,365,008.92

    DIAMONDBNK 1772 355,824,863.00 2,626,332,625.91

    UBA 6015 299,892,893.00 3,109,690,590.35

    NIGERINS 233 292,486,329.00 316,262,591.82

    FIRSTINLND 1562 255,676,965.00 136,211,718.29

    UBN 3648 251,286,123.00 1,288,008,423.10

    Grand Total 134213 7,637,990,081.00 58,784,142,060.02

    Recall Top Ten Trades for the Month of July 2009

    Company Total Trades Total Volume Total Value

    ZENITHBANK 7,878.00 737,929,184.00 9,418,426,706.14

    FIRSTBANK 31,611.00 664,594,875.00 12,451,567,446.25

    GOLDINSURE 467.00 512,217,330.00 258,570,094.24

    GUARANTY 11,190.00 473,984,638.00 6,612,120,027.79

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    24/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 24

    ACCESS 5,759.00 455,194,932.00 3,096,514,040.41

    UBA 8,218.00 421,240,035.00 5,297,029,099.83

    FIRSTINLND 1,619.00 336,174,653.00 703,161,667.52

    DIAMONDBNK 3,014.00 320,426,681.00 2,296,133,534.11

    AIICO 10,809.00 316,979,260.00 325,525,643.80

    SKYEBANK 5,252.00 301,914,411.00 1,875,212,154.59

    Top Ten Traded Sectors for the Month of July

    SectorTotal

    TradesTotal Volume Total Value

    %Contribution

    BANKING 72,858.00

    4,220,352,269.0

    0 32,882,327,122.20

    55.25%

    INSURANCE 6,165.00

    1,004,118,449.0

    0 1,050,804,494.65

    13.15%

    CONGLOMERATES 5,732.00 570,929,355.00 3,787,327,018.917.47%

    FOOD/BEVERAGES &

    TOBACCO 13,859.00 267,717,514.00 6,773,125,613.313.51%

    HOTEL & TOURISM 346.00 242,390,283.00 1,088,549,363.033.17%

    SECOND-TIER

    SECURITIES 57.00 212,702,951.00 106,660,185.502.78%

    INFORMATION &

    COMMUNICATIONTECHNOLOGY 1,243.00 211,142,141.00 228,103,889.82

    2.76%

    CONSTRUCTION 1,260.00 132,457,777.00 349,267,317.281.73%

    MORTGAGE

    COMPANIES 797.00 110,821,195.00 61,351,178.831.45%

    PETROLEUM(MARKETI

    NG) 6,400.00 77,026,997.00 4,166,178,266.24

    1.01%

    Grand Total 134,213.00

    7,637,990,081.0

    0 58,784,142,060.02

    Source: NSE, Proshare Research

    Top Ten Gainers in the Month

    COMPANY1-Jul-

    1030-Jul-

    10Change

    %Change

    INTERCONT 1.53 2.25 0.72 47.06%

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    25/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 25

    NIGERINS 0.83 1.15 0.32 38.55%

    OCEANIC 1.61 1.97 0.36 22.36%

    NBC 30 35.87 5.87 19.57%

    UNHOMES 0.62 0.74 0.12 19.35%

    CONTINSURE 1.1 1.3 0.2 18.18%

    FTNCOCOA 0.67 0.79 0.12 17.91%

    FIRSTINLND 0.5 0.58 0.08 16.00%

    UBN 4.9 5.63 0.73 14.90%

    UPL 6.72 7.65 0.93 13.84%

    Source: NSE, Proshare Research

    Top Ten Year to Date Appreciation

    COMPANY4-Jan-

    10

    30-Jul-

    10Change

    %Change

    INTBREW 2.27 6.99 4.72 207.93%CADBURY 10.49 29 18.51 176.45%JBERGER 25.79 55.01 29.22 113.30%CAPHOTEL 1.38 2.92 1.54 111.59%FLOURMILL 36.2 75 38.8 107.18%BERGER 3.2 6.52 3.32 103.75%DANGFLOUR 10.42 20.7 10.28 98.66%STERLNBANK 1.26 2.16 0.9 71.43%CONOIL 27.63 47.03 19.4 70.21%BAGCO 1.52 2.58 1.06 69.74%

    Source: NSE, Proshare Research

    Top Ten Decliners in the month

    COMPANY

    1-Jul-10

    30-Jul-10 Change

    %Change

    AP 36.58 27.08 -9.5 -25.97%WAPIC 0.82 0.61 -0.21 -25.61%DAARCOMM 0.79 0.6 -0.19 -24.05%OKOMUOIL 14.28 11.2 -3.08 -21.57%

    UTC 1.32 1.04 -0.28 -21.21%ABCTRANS 0.85 0.67 -0.18 -21.18%CORNERST 0.63 0.5 -0.13 -20.63%REDSTAREX 3.93 3.17 -0.76 -19.34%LIVESTOCK 0.73 0.6 -0.13 -17.81%UNTL 1.29 1.07 -0.22 -17.05%

    Top Ten Year to Date Depreciation

    COMPANY

    4-Jan- 30-Jul- Change %

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    26/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 26

    10 10 Change

    UNITYKAP 2.38

    0.5-1.88

    -

    78.99%ALUMACO

    27.71 8.15 -19.56

    -

    70.59%

    BECOPETRO 2.530.8 -1.73

    -68.38%

    OASISINS

    1.49 0.51 -0.98

    -

    65.77%CRUSADER 1.5

    0.53 -0.97

    -

    64.67%STACO 1.19

    0.5 -0.69

    -

    57.98%ECOBANK 10.1

    4.6 -5.5

    -

    54.46%INCAR 4.12

    1.97 -2.15

    -

    52.18%

    UNIC 1.150.56 -0.59

    -51.30%

    OKOMUOIL 22.75

    11.2 -11.55

    -

    50.77%

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    27/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 27

    Corporate Declarations in the Month

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    28/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 28

    Forecast Results in the Month

    DECLARED FORECASTS FOR JULY

    Company Year End PeriodGross Earnings in

    N' billionPAT in N'

    billion

    Beco Petroleum Plc December Q3 2010 1.020 0.75

    Presco Plc December Q3 2010 4.3 0.703

    Alumaco Plc December Q3 2010 0.32 0.13

    RT Briscoe Plc December Q3 2010 0.9 0.107

    Seven-Up Bottling Company Plc December Q3 2010 9.469 0.351

    FCMB December Q3 2010 17.557 3.011

    Afromedia Plc September Q4 2010 3.593 0.82

    John Holt Plc December Q3 2010 0.187 -0.8

    John Holt Plc December Year End 3.2 -0.25

    Japaul Oil & Maritime Services Plc December Q3 2010 5.265 1.204Access Bank Plc December Q3 2010 22.569 2.318

    Juli Plc December Q3 2010 0.71 -0.3

    Fidson Healthcare Plc December Q3 2010 1.081 0.88

    Dividends Declared

    DIVIDENDS DECLARED FOR JULY

    Company DividendDeclared BonusDeclared AGM Date

    Price

    AdjustmentDate

    Red Star Express Plc30k

    24th Aug,2010

    10th - 13thAug, 2010

    Flour Mills Nigeria PlcN2.00 1 for 10

    20th Oct,2010

    13th - 17thSept, 2010

    Nigerian BagManufacturing CompanyPlc

    13k19th Oct,2010

    13th - 17thSept, 2010

    Law Union & RockInsurance Plc

    3k Nil Nil

    Resort Savings & Loans Plc0.01k

    5th August,2010

    Unity Kapital Assurance Plc1 for 19 23rd Aug,

    20109th - 10thAug, 2010

    NAHCO Aviance Plc 25k (interim) Nil Nil

    PZ Cussons Nig Plc

    86KSeptember9th, 2010

    23rd - 27thAugust,2010

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    29/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 29

    Sectoral Analysis

    SECTOR ANALYSIS

    Symbol30-Jul

    Symbol4-Jan YTD

    YTD%

    Price Price Change Change

    AGRICULTURE

    AFPRINT 0.86 AFPRINT 0.86 0 0.0%

    ELLAHLAKES 4.26 ELLAHLAKES 4.26 0 0.0%

    FTNCOCOA 0.79 FTNCOCOA 0.54 0.25 46.3%

    LIVESTOCK 0.6 LIVESTOCK 0.59 0.01 1.7%

    OKITIPUPA 6.21 OKITIPUPA 6.53 -0.32 -4.9%

    OKOMUOIL 11.2 OKOMUOIL 22.75 -11.55 -50.8%

    Presco 5.68 Presco 5.6 0.08 1.4%

    Average -0.9%AIRLINE SERVICES

    AIRSERVICE 2.46 AIRSERVICE 2.65 -0.19 -7%

    NAHCO 10.33 NAHCO 7.18 3.15 44%

    Average 18.4%

    AUTOMOBILE & TYRE

    DUNLOP 0.5 DUNLOP 0.5 0 0%

    INCAR 1.97 INCAR 4.12 -2.15 -52%

    RTBRISCOE 3.72 RTBRISCOE 6.15 -2.43 -40%

    Average -30.6%

    AVIATIONALBARKAIR 0.58 ALBARKAIR 0.58 0 0%

    Average 0.0%

    BANKING

    ACCESS 9.09 ACCESS 7.55 1.54 20%

    AFRIBANK 2.08 AFRIBANK 2.43 -0.35 -14%

    DIAMONDBNK 7.51 DIAMONDBNK 7.19 0.32 4%

    ECOBANK 4.6 ECOBANK 10.1 -5.5 -54%

    FIDELITYBK 2.53 FIDELITYBK 2.52 0.01 0%

    FIRSTBANK 13.4 FIRSTBANK 14 -0.6 -4%

    FCMB 7.89 FCMB 7.01 0.88 13%

    FIRSTINLND 0.58 FIRSTINLND 0.55 0.03 5%

    GUARANTY 16.8 GUARANTY 15.78 1.02 6%

    INTERCONT 2.25 INTERCONT 1.69 0.56 33%

    OCEANIC 1.97 OCEANIC 1.77 0.2 11%

    PLATINUM 1.49 PLATINUM 1.38 0.11 8%

    SKYEBANK 7.3 SKYEBANK 5.48 1.82 33%

    SPRINGBANK 0.66 SPRINGBANK 0.73 -0.07 -10%

    IBTC 9.1 IBTC 7.16 1.94 27%

    STERLNBANK 2.16 STERLNBANK 1.26 0.9 71%

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    30/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 30

    UBA 10.5 UBA 10.81 -0.31 -3%

    UBN 5.63 UBN 6.25 -0.62 -10%

    UNITYBNK 1.11 UNITYBNK 0.87 0.24 28%

    WEMABANK 1.08 WEMABANK 0.97 0.11 11%

    ZENITHBANK14.21

    ZENITHBANK 13.50.71 5%

    Average 8.7%

    BREWERIES

    CHAMPION 2.58 CHAMPION 3.15 -0.57 -18%

    GOLDBREW 0.54 GOLDBREW 0.54 0 0%

    GUINNESS 169 GUINNESS 127.5 41.5 33%

    INTBREW 6.99 INTBREW 2.27 4.72 208%

    JOSBREW 3.36 JOSBREW 3.58 -0.22 -6%

    NB 70.24 NB 53 17.24 33%

    PREMBREW 0.93 PREMBREW 0.93 0 0%

    Average 35.5%BUILDING MATERIALS

    ASHAKACEM 19.1 ASHAKACEM 11.39 7.71 68%

    BCC 64.5 BCC 43.01 21.49 50%

    CCNN 17.05 CCNN 13 4.05 31%

    WAPCO 41 WAPCO 30 11 37%

    NIGERCEM 5 NIGERCEM 5 0 0%

    NIGROPES 9.14 NIGROPES 9.14 0 0%

    NIGWIRE 2.58 NIGWIRE 2.58 0 0%

    Average 26.5%

    CHEMICAL & PAINTS

    AFRPAINTS 3.32 AFRPAINTS 3.49 -0.17 -5%

    BERGER 6.52 BERGER 3.2 3.32 104%

    CAP 31.92 CAP 28 3.92 14%

    DNMEYER 4.74 DNMEYER 5.39 -0.65 -12%

    IPWA 0.99 IPWA 1.45 -0.46 -32%

    NIG-GERMAN 14.29 NIG-GERMAN 15.04 -0.75 -5%

    PREMPAINTS 13.4 PREMPAINTS 13.4 0 0%

    PORTPAINT 5.67 PORTPAINT 5.67 0 0%

    Average 9.2%COMMERCIAL/SERVICES

    COURTVILLE 0.51 COURTVILLE 0.5 0.01 2%

    NSLTECH 2.92 NSLTECH 4.35 -1.43 -33%

    REDSTAREX 3.17 REDSTAREX 2.15 1.02 47%

    TRANSEXPR 6.45 TRANSEXPR 6.45 0 0%

    Average 4.1%

    COMPUTER & OFFICE EQUIPMENT

    HALLMARK 3.22 HALLMARK 3.22 0 0%

    NCR 7.35 NCR 8.51 -1.16 -14%

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    31/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 31

    OMATEK 0.54 OMATEK 0.5 0.04 8%

    THOMASWY 1.38 THOMASWY 1.84 -0.46 -25%

    TRIPPLEG 3.96 TRIPPLEG 4.84 -0.88 -18%

    WTN 2.92 WTN 2.92 0 0%

    Average -9.8%CONGLOMERATES

    AGLEVENT 3.61 AGLEVENT 2.47 1.14 46%

    CHELLARAM 8.5 CHELLARAM 14.13 -5.63 -40%

    JOHNHOLT 9.28 JOHNHOLT 9.28 0 0%

    PZ 34 PZ 25 9 36%

    SCOA 8.71 SCOA 8.81 -0.1 -1%

    TRANSCORP 0.5 TRANSCORP 0.52 -0.02 -4%

    UACN 45 UACN 36.75 8.25 22%

    UNILEVER 25.8 UNILEVER 19 6.8 36%

    Average 11.9%CONSTRUCTION

    ARBICO 26 ARBICO 26 0 0%

    CAPALBETO 95.49 CAPALBETO 95.49 0 0%

    COSTAIN 6.25 COSTAIN 3.8 2.45 64%

    GCAPPA 14.46 GCAPPA 14.46 0 0%

    JBERGER 55.01 JBERGER 25.79 29.22 113%

    MULTIVERSE 0.5 MULTIVERSE 0.5 0 0%

    ROADS 3.01 ROADS 3.3 -0.29 -9%

    Average 24.1%

    ENGINEERING TECHNOLOGY

    CUTIX 3.61 CUTIX 3 0.61 20%

    INTERLINK 5.15 INTERLINK 5.15 0 0%

    NIWICABLE 0.64 NIWICABLE 0.97 -0.33 -34%

    Average 10.2%

    FOOD/BEVERAGES & TOBACCO

    7UP 49.35 7UP 29.4 19.95 68%

    BIGTREAT 0.64 BIGTREAT 0.66 -0.02 -3%

    CADBURY 29 CADBURY 10.49 18.51 176%

    DANGFLOUR 20.7 DANGFLOUR 10.42 10.28 99%DANGSUGAR 19 DANGSUGAR 14.9 4.1 28%

    FLOURMILL 75 FLOURMILL 36.2 38.8 107%

    HONYFLOUR 6.41 HONYFLOUR 8.5 -2.09 -25%

    FOREMOST 0.51 FOREMOST 0.51 0 0%

    MANDRID 5.66 MANDRID 5.95 -0.29 -5%

    NNFM 33.58 NNFM 22.94 10.64 46%

    NASCON 7.03 NASCON 4.56 2.47 54%

    NESTLE 364 NESTLE 239.5 124.5 52%

    NBC 35.87 NBC 22.49 13.38 59%

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    32/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 32

    TANTALIZER 0.8 TANTALIZER 0.75 0.05 7%

    UTC 1.04 UTC 0.86 0.18 21%

    UNIONDICON 4.22 UNIONDICON 6.01 -1.79 -30%

    Average 40.9%

    FOOTWEAR

    LENNARDS 3.66 LENNARDS 4.26 -0.6 -14%

    Average -14.1%

    HEALTHCARE

    ABOSELAB 4.92 ABOSELAB 4.92 0 0%

    EKOCORP 5.58 EKOCORP 5.58 0 0%

    EVANSMED 1.39 EVANSMED 1.02 0.37 36%

    FIDSON 3 FIDSON 1.86 1.14 61%

    GLAXOSMITH 29.93 GLAXOSMITH 22.4 7.53 34%

    MAYBAKER 5.6 MAYBAKER 3.86 1.74 45%

    MORISON 11.67 MORISON 12.28 -0.61 -5%NEIMETH 2.53 NEIMETH 1.5 1.03 69%

    PHARMDEKO 4.73 PHARMDEKO 4.97 -0.24 -5%

    UNIONDAC 0.61 UNIONDAC 0.64 -0.03 -5%

    Average 23.0%

    HOTEL & TOURISM

    CAPHOTEL 2.92 CAPHOTEL 1.38 1.54 112%

    IKEJAHOTEL 1.4 IKEJAHOTEL 0.87 0.53 61%

    TOURIST 4.76 TOURIST 5.28 -0.52 -10%

    Average 54%

    INDUSTRIAL/DOMESTIC PRODUCTS

    ALUMACO8.15

    ALUMACO27.71 -19.56

    -

    70.59%

    ALEX 12.39 ALEX 13.04 -0.65 -4.98%

    BOCGAS10.18

    BOCGAS13.48 -3.3

    -

    24.48%

    ENAMELWA43.06

    ENAMELWA55.63 -12.57

    -

    22.60%

    FIRSTALUM 0.5 FIRSTALUM 0.5 0 0.00%

    VITAFOAM 6.48 VITAFOAM 5.37 1.11 20.67%

    VONO 0.5 VONO 0.69 -0.19 -27.54%

    Average-

    18.50%

    INFORMATION & COMMUNICATION TECHNOLOGY

    CHAMS 0.59 CHAMS 0.59 0 0.00%

    ETRANZACT4.97

    ETRANZACT6.4 -1.43

    -

    22.34%

    IHS 4.02 IHS 4.24 -0.22 -5.19%

    MTECH 0.91 MTECH 0.91 0 0.00%

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    33/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 33

    MTI 0.5 MTI 0.5 0 0.00%

    STARCOMMS 1.88 STARCOMMS 1.8 0.08 4.44%

    Average -3.85%

    INSURANCE

    AFRINSURE 0.5 AFRINSURE 0.87 -0.37

    -

    42.53%

    AIICO 1.38 AIICO 0.82 0.56 68.29%

    CONFDINS 0.64 CONFDINS 0.64 0 0.00%

    CONTINSURE 1.3 CONTINSURE 1.15 0.15 13.04%

    CORNERST 0.5 CORNERST 0.52 -0.02 -3.85%

    CUSTODYINS 3.5 CUSTODYINS 2.86 0.64 22.38%

    EQUITYASUR 0.5 EQUITYASUR 0.5 0 0.00%

    GOLDINSURE0.68

    GOLDINSURE0.91 -0.23

    -

    25.27%

    GNI 0.5 GNI 0.5 0 0.00%

    GUINEAINS 0.5 GUINEAINS 0.5 0 0.00%

    HMARKINS 0.5 HMARKINS 0.5 0 0.00%

    WAPIC0.61

    WAPIC1.15 -0.54

    -

    46.96%

    INTENEGINS0.5

    INTENEGINS0.6 -0.1

    -

    16.67%

    IAINSURE 0.5 IAINSURE 0.5 0 0.00%

    LASACO0.5

    LASACO0.57 -0.07

    -

    12.28%

    LAWUNION 0.51 LAWUNION 0.51 0 0.00%

    LINKASSURE 0.5 LINKASSURE 0.5 0 0.00%MBENEFIT

    0.5MBENEFIT

    0.64 -0.14

    -

    21.88%

    NEM 0.5 NEM 0.54 -0.04 -7.41%

    NIGERINS 1.15 NIGERINS 0.97 0.18 18.56%

    OASISINS0.51

    OASISINS1.49 -0.98

    -

    65.77%

    PRESTIGE3.32

    PRESTIGE4 -0.68

    -

    17.00%

    REGALINS 0.5 REGALINS 0.5 0 0.00%

    SOVRENINS 0.5 SOVRENINS 0.5 0 0.00%

    STACO0.5

    STACO1.19 -0.69

    -57.98%

    STDINSURE0.5

    STDINSURE0.57 -0.07

    -

    12.28%

    UNIC0.56

    UNIC1.15 -0.59

    -

    51.30%

    UNIVINSURE 0.5 UNIVINSURE 0.5 0 0.00%

    Average -9.25%

    LEASING

    CILEASING 2.73 CILEASING 2.65 0.08 3.02%

    Average 3.02%

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    34/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 34

    MARITIME

    JAPAULOIL 1.45 JAPAULOIL 1.18 0.27 22.88%

    Average 22.88%

    MEDIA

    AFROMEDIA 0.56 AFROMEDIA 0.8 -0.24

    -

    30.00%

    DAARCOMM 0.6 DAARCOMM 0.58 0.02 3.45%

    Average-

    13.28%

    MORTGAGE COMPANIES

    ABBEYBDS1.39

    ABBEYBDS1.61 -0.22

    -

    13.66%

    ASOSAVINGS0.5

    ASOSAVINGS0.56 -0.06

    -

    10.71%

    UNHOMES0.74

    UNHOMES0.89 -0.15

    -

    16.85%

    Average-

    13.74%OTHER FINANCIAL

    INSTITUTIONS

    CRUSADER0.53

    CRUSADER1.5 -0.97

    -

    64.67%

    DEAPCAP 2.02 DEAPCAP 2.02 0 0.00%

    FIRSTCAP 0.45 FIRSTCAP 0.45 0 0.00%

    NESF 552.2 NESF 552.2 0 0.00%

    ROYALEX 0.7 ROYALEX 0.66 0.04 6.06%

    Average-

    11.72%

    PACKAGING

    ABPLAST 3.98 ABPLAST 3.98 0 0.00%

    AVONCROWN 7.65 AVONCROWN 7.65 0 0.00%

    BETAGLAS 15.58 BETAGLAS 14.26 1.32 9.26%

    NAMPAK4.44

    NAMPAK6.99 -2.55

    -

    36.48%

    POLYPROD2.83

    POLYPROD4.45 -1.62

    -

    36.40%

    BAGCO 2.58 BAGCO 1.52 1.06 69.74%

    STUDPRESS 2.92 STUDPRESS 2.92 0 0.00%VANLEER 15.03 VANLEER 15.03 0 0.00%

    WAGLASS 0.63 WAGLASS 0.63 0 0.00%

    Average 0.68%

    PETROLEUM(MARKETING)

    AP27.08

    AP33.51 -6.43

    -

    19.19%

    AFROIL 20.71 AFROIL 20.71 0 0.00%

    BECOPETRO0.8

    BECOPETRO2.53 -1.73

    -

    68.38%

    CHEVRON 90.1 CHEVRON 69.79 20.31 29.10%

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    35/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 35

    CONOIL 47.03 CONOIL 27.63 19.4 70.21%

    ETERNAOIL 7.11 ETERNAOIL 4.74 2.37 50.00%

    MOBIL 158 MOBIL 98.8 59.2 59.92%

    OANDO69.95

    OANDO93.99 -24.04

    -

    25.58%

    TOTAL 250 TOTAL 149 101 67.79%

    Average 18.21%

    PRINTING & PUBLISHING

    ACADEMY 5.89 ACADEMY 5.4 0.49 9.07%

    DTIMES 0.69 DTIMES 0.69 0 0.00%

    LONGMAN6.18

    LONGMAN9.03 -2.85

    -

    31.56%

    UPL 7.65 UPL 4.97 2.68 53.92%

    Average 7.86%

    REAL ESTATE

    UAC-PROP 20.45 UAC-PROP 19.86 0.59 2.97%

    Average 2.97%

    ROAD TRANSPORTATION

    ABCTRANS 0.67 ABCTRANS 0.73 -0.06 -8.22%

    Average -8.22%

    TEXTILES

    UNTL1.07

    UNTL1.9 -0.83

    -

    43.68%

    Average-

    43.68%

    THE FOREIGN LISTINGS

    ETI 17 ETI 15 2 13.33%

    PNG 7.28 PNG 7.28 0 0.00%

    Average 6.67%

    SECOND-TIER SECURITIES

    ADSWITCH1.9

    ADSWITCH2.3 -0.4

    -

    17.39%

    AFRIK 0.5 AFRIK 0.5 0 0.00%

    CAPOIL0.5

    CAPOIL0.59 -0.09

    -

    15.25%

    FLEXIBLE 0.5 FLEXIBLE 0.5 0 0.00%

    JULI3.05

    JULI3.54 -0.49

    -

    13.84%

    KRABO 0.13 KRABO 0.13 0 0.00%

    NEWPAK 1.1 NEWPAK 1.1 0 0.00%

    RAKUNITY 0.31 RAKUNITY 0.31 0 0.00%

    ROKANA 0.6 ROKANA 0.6 0 0.00%

    SMURFIT 1.52 SMURFIT 1.52 0 0.00%

    TROPICPET 0.44 TROPICPET 0.44 0 0.00%

    UDEOFSON 0.5 UDEOFSON 0.5 0 0.00%

    UNIONVENT 0.63 UNIONVENT 0.63 0 0.00%

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    36/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 36

    WAAP 0.5 WAAP 0.5 0 0.00%

    MCNICHOLS 1.02 MCNICHOLS 1.02 0 0.00%

    UNITYKAP

    0.5

    UNITYKAP

    2.38 -1.88

    -

    78.99%GTASSURE 2.11 GTASSURE 2.18 -0.07 -3.21%

    RESORTSAL 0.5 RESORTSAL 0.5 0 0.00%

    Average -7.15%

    Source: NSE, Proshare Research

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    37/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 37

    Outlook /Analyst Opinion

    Apparently, equity market in the month of July presented the two sides of the market

    dynamism going by the trend of price movements recorded in the month. As noted in

    the report, the scourge of bearish run that held sway for the first thirteen trading days of

    the month (from 1st to 19th July) was halted by the recovery recorded in the latter part ofthe month, the rebound that resumed on Tuesday 20th July has since remained.

    The rebound which cut across all the sectors in the market was on the back of success

    story recorded on the Asset Management Company which was assented to by the

    President. Banking sector has been the most beneficial of the positive development as

    investors enthusiasm seems to have eventually returned to the sector.

    The fact that many stocks have shed considerable price weight accounted for the trend

    as discerning investors and speculators took advantages of low prices across the market

    to take positions for capital appreciations, and possibly holding on to some stocks with

    prospects of good returns.

    With the ongoing stability in the system- both political and economic, we expect that the

    business environment will continue to post more attractive outlook for both local and

    foreign investors; and this is expected to rob much more positively on the equity market

    in particular and the whole economy in general.

    While we hold our view that Asset Management Company is not the total cure for the

    market challenges and ailments (http://proshareng.com/blog/?p=383) , we expect that

    all things being equal, the expected positive impact on the back of AMC should rob much

    more in the market. This is expected to be much more pronounced in the banking sector

    which stands as the most beneficiary of the company.

    The second quarter results released so far in the banking sector (with others still being

    awaited as at the time of filling this report), and with quarterly results in some other

    sectors as well, the results in many of these entities seem to be projecting better days

    ahead for investors. It may be safe then to conclude that market outlook should be more

    robust as against bearish run recorded in the preceding year comparable period.

    We are of the view that lending is likely pick up in 2010, as the economy continues to

    grow and commercial activity resumes after the slowdown in 2009 but Harmonization of

    the fiscal and monetary policies Nigerian economy is a key and important aspect.

    Moreover, as the economic recovery continues and scourge of job losses continues to

    subside, with improved access to credit since banks should be able to resume lending

    properly, improvement in liquidity situations seems inevitable (ceteris paribus.)

    We are hopeful that the approaching transition period which tempo is expected to be

    more intense as the year closes by will not create any hitch on the market recovery. We

    hope the transition through election should be managed with transparency to forestall

    any possibility of crisis that may send wrong signals to foreign investors.

    In the same vein, leadership issues of the Nigerian Stock Exchange should be managed

    properly even as the incumbents tenure expires before the year runs out. The smooth

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    38/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 38

    transitions both in the nations political sphere as well as in the capital market will surely

    bring nothing but pluses to the market.

    Market direction will be clear when the results of the bids would be released by

    September or October (as expected by CBN) clarifying the ownership of the ailing

    institutions as banks really had nothing to offer in terms of net worth as the equity isnegative but There are rooms for building and maintaining wealth as against depletion of

    fortunes that had been before now.

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    39/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 39

    Time Lines - (News/Information in the month and Reaction of Mar

    Date Timelines Gain

    ers

    Lose

    rs

    ASI

    July 1

    S&P: CBN Requires Guarantee to Sell Banks Says govts propensity to

    support uncertain-Standard & Poors, one of the worlds most reputable rating

    agencies, has said the Central Bank of Nigeria (CBN) may need to guarantee the

    acquisition of the rescued banks to be able to win the confidence of investors.S&P,

    which some days ago rated Nigerian banks as high investment risk, in a report ,

    titled Banking Industry Country Risk Assessment: Nigeria, identified a number of

    hurdles in the way of the recapitalisation of the rescued banks, the execution of the

    banking reforms and the return of the financial institutions to profitability.

    Insurance industry premium hits N200bn-The nations insurance industry has

    recorded a premium income of N200.6 billion for the financial year ended December

    31, 2009, as against N150.3 billion it posted the same period in 2008, indicating a

    33.5 percent growth. The growth, according to analysts, may have been as a result

    of market expansion and increased business resulting from the industrys increased

    capacity since after its recapitalisation in 2007.

    CBN releases guidelines for granting liquid asset status to state govt.

    Bonds- Three months after the Central Bank of Nigeria (CBN) decided to confer

    liquid asset status on eligible state government bonds, it has finally issued

    guidelines to operationalise the decision. With the guidelines, the Securities and

    Exchange Commission (SEC) is expected to monitor the execution of projects

    carried out with proceeds from state government bonds. The apex bank decided to

    18 40 At th

    declin

    with

    close

    depre

    to c

    comp

    millio

    (US$4

    was t

    mark

    (http.php?

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    40/66

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    41/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 41

    revive lending and boost growth. He also said that it would cost roughly N750bn to

    purchase the bad debts hanging around the rescued banks. Sanusi, in an interview

    with Bloomberg News in London on Thursday, said the debt purchases would cost

    the bank roughly $5bn as commercial banks did not have collateral to cover the

    bad loans.

    Foreign reserves fall to $37bn-Nigerias foreign reserves declined to $37.17bn

    on Tuesday from $38.79bn at the end of May.The reserves have fallen steadily

    since January because of a surge in dollar demand at the local forex market.

    Demand for funds from the Central Bank of Nigeria has averaged $600m weekly in

    the last two months, while the regulator has sold an average of $500m during the

    same period.

    Hope rises for sick banks Get CBNs N1.5trn lifeline-Succour may have

    finally come the way of weak banks in the country, as the Central Bank of Nigeria

    (CBN) plans to clear about N1.5 trillion ($10 billion) of toxic debts from the banking

    system by the end of the year. The move by the apex bank, which is aimed at

    reviving lending and boosting growth in the banking sector, will indicate a debt

    purchase, valued roughly at about N750 billion as commercial banks dont have

    collateral to cover their bad loans.

    CBN governor sees no rate rise, warns of bubble-Four international banks to bid for

    rescued banks Bid starts end of July-The Central Bank of Nigeria governor

    said on Thursday he saw no reason to raise interest rates, days before a

    monetary policy committee meeting, but said he was concerned about the

    risk of another asset bubble forming. Governor Lamido Sanusi also said

    four international banks were among the likely bidders for Nigerian banks

    rescued last year in a $4 billion bailout and that he expected bids to be in

    by the end of the month.

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    42/66

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    43/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 43

    CBN comfortable with naira-dollar exchange rates Sanusi-The Governor of

    the Central Bank of Nigeria, Mr. Lamido Sanusi, has said that the country is

    comfortable with current naira levels. According to him, the currency is unlikely to

    come under pressure, with foreign reserves capable of funding 17 months of

    imports. The naira has appreciated to the strongest level in more than three

    months versus the dollar, strengthening by 0.1 per cent to N149.7 as at Thursday.

    Union Bank, Ecobank removed from NSE Banking 10 Index-The Nigerian

    Stock Exchange has removed Union Bank of Nigeria Plc and Ecobank Nigeria Plc

    from the NSE Banking -10 Index. The index committee, after reviewing the banking

    index in its quarterly meeting, replaced the two banks with Fidelity Bank Plc and

    Skye Bank Plc. The committee also reviewed the NSE-30 and other sectoral indices,

    such as the NSE Food, Beverages and Tobacco-10 Index, the NSE Insurance-10

    Index and the NSE Oil and Gas-5 Index. Two companies were also removed from

    the NSE-30. The companies Cadbury Nigeria Plc and Ecobank Nigeria Plcwere

    replaced by Julius Berger Plc and Mobil Oil Nigeria Plc.

    Banks crisis: Mergers and acquisitions to be concluded in Q3 CBN-The

    Central Bank of Nigeria and financial experts agree that the planned

    commencement of operations of the Asset Management Corporation of Nigeria to

    coincide with the conclusion of mergers and acquisitions will make the nations

    banks bounce back, YEMI KOLAPO reports. Mergers and acquisitions in the Nigerian

    banking sector will be concluded in the third quarter of 2010, the Central Bank of

    Nigeria has said.

    Inter-bank rates climb on big cash outflow-Inter-bank lending rates rose to two

    per cent on average last week from 1.1 per cent the previous week after

    large chunks of cash flowed out to treasury bills and foreign exchange

    purchases drained liquidity from the system. The secured Open Buy Back

    climbed to 1.50 per cent, from 1.05 per cent, 50 basis points above the

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    44/66

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    45/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 45

    packaged late last year for power and other baseline infrastructure revival. The

    credit carries a 15-year tenure with an interest of seven per cent.The CBN

    Governor, Malam Sanusi Lamido Sanusi, who announced the good news in Abuja

    yesterday said plans had been concluded for the signing of agreement with banks

    that would be used for the disbursement of the funds next week

    NSE council approves N93.6b issues-The Council of the Nigerian Stock

    Exchange (NSE) has approved is isues worth N93.6bn through its quotation

    committee. Mr Sola Oni, the Assistant General Manager and Head, Corporate

    Communications, said in a statement given to the News Agency of Nigeria (NAN) in

    Lagos that the approval was in respect of four companies, a state government and

    two financial instruments.The statement said the approval was a sign of rising

    investors confidence in the stock market. Bayelsa State Government got the

    councils approval for its offer for subscription of N50bn Fixed Rate Development

    Bond 2016 of N1,000 each at par.

    FGs spending on fuel subsidy hits N120bn-The Federal Governments spendingon fuel subsidy has hit N120bn, our correspondent has gathered. It was learnt that

    the amount was the total expenditure on subsidy between the first and second

    quarters of the year.A top official in one of the government agencies managing the

    disbursement of the subsidy to importers told our correspondent on Monday, I can

    tell you that the Federal Government has spent not less than N120bn so far,

    between January and June, on fuel subsidy.

    CBN to maintain interest rates at 6%-The Central Bank of Nigeria will keep its

    benchmark interest rate unchanged at 6 percent on today, as the need to

    stimulate growth seems to outweigh inflation risks in the nations

    economy. The CBN had earlier said it would review whether to start

    tightening its monetary policy at its meeting in July because of increased

    inflationary risks from government spending and the soaking up of bad

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    46/66

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    47/66

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    48/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 48

    the CBN did not have a clear programme for its reform. They also faulted the SEC

    on the extension of the deadline given to the Nigerian Stock Exchange to appoint a

    new Director-General.

    July 12Govt begins tracking of foreign loans management-The Federal Government has

    flagged-off the tracking of all foreign loans secured by it. The move is to

    ensure that the credit facilities are channelled to purposes they were

    meant for, to achieve value for money. Currently, an estimated $4.23

    billion has been secured by the Federal Government, which recently

    expressed concern on the poor implementation and administration

    bottlenecks that have negatively impacted on projects across the country.

    18 29 At th

    inche

    declin

    yeste

    also i

    to cl

    again

    millio

    (US$4

    was

    http:

    p?id=

    UBA

    mass

    July 13CBN begins process of bailout to airlines, manufacturers-Respite has come the

    way of the hitherto domestic airlines enmeshed in financial mess as the

    process has reached an advanced stage for the Central Bank of Nigeria

    (CBN) to release the N1 billion bailout loans to each of the airlines

    30 28 At th

    inche

    with t

    of tra

    capita

    (US$3

    (US$4

    N5.74

    to clo

    mark

    rewa

    gains(http

    id=1

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    49/66

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    50/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 50

    apex bank had in a memo to the respective banks last Friday invited all the

    managing directors as well as the executive and non- executive directors of the

    affected banks to a town hall meeting in Abuja with top officials of the CBN.

    SEC suspends 34 stockbrokers for alleged default in reporting

    requirements-The Securities and Exchange Commission (SEC) has suspended the

    operating licences of 34 stockbrokers for allegedly defaulting in the commissions

    statutory reporting requirements. Director-General of SEC, Arunma Oteh, explained

    yesterday that the suspension would not be lifted until the affected stockbrokers

    comply with all the necessary statutory mandates. The suspension is coming barely

    three months after SEC dispatched letters of queries to some stockbroking firms for

    allegedly indulging in unethical practices.

    CBN makes U-turn on new guidelines-The Central Bank of Nigeria, CBN, has

    backpedalled on its directive that banks should disclose executive

    compensation and bonuses in their annual accounts. The apex bank, last

    week, issued a new prudential guidelines which replaced the one issued in

    May which mandated banks to disclose in their annual accounts monies

    paid to executives and staff as compensation, profit sharing and bonuses.

    Also deleted from the new prudential guidelines is the limit on credit to

    directors and significant shareholders and the general provisioning of one

    per cent for all loans.

    July 16 Nigeria denies state oil firm NNPC bankrupt-The Nigerian government has

    strongly denied claims that the state oil company is bankrupt, shortly after a junior

    minister said it was insolvent.On Tuesday, Junior Finance Minister Remi Babalola

    said the Nigerian National Petroleum Corporation was unable to pay debts of $5bn

    (3.3bn).However, two senior cabinet ministers flatly contradicted him.Nigeria is a

    major producer and exporter of crude oil but depends almost entirely on imported

    fuel.Finance Minister Segun Aganga told journalists the NNPC was a going concern

    31 27 The

    appre

    again

    at 24

    of the

    positi

    The m

    by N

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    51/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 51

    and an important arm of government.

    CBN: Shareholders Now to Recapitalise Rescued Banks-The Central Bank of

    Nigeria (CBN) has enhanced the participation of shareholders in the recapitalisation

    of rescued banks by bestowing on them the power to midwife the process. They

    would also take the final decision on who invests in the financial institutions. Withthis development, the apex bank has heeded to the wishes of the shareholders,

    who have been clamouring that they be allowed to recapitalise the banks.

    Money Laundering Bill Runs into Hitch-The clause-by-clause consideration of

    the Senate Committee on Drugs, Narcotics, Financial Crimes and Anti-Corruption on

    the Money Laundering Act 2004 (Repeal and Re-enactment) Bill 2010 was stalled

    on the floor of the Senate yesterday following disagreements over some of its

    provisions. Since deliberations on the draft Bill began about four weeks ago, many

    senators have expressed misgivings over some of its provisions, which they believe

    to be too draconian and unrealistic.

    Bank lending to real estate drops 60% as credit squeeze lingers-The real

    estate sector of the economy has seen a substantial drop in bank lending that

    hovers between 60 and 70 percent following the credit squeeze in the banking

    sector. Due more to the on-going banking reform than the global economic

    recession, the Nigerian banking sector is having serious liquidity challenges. The

    situation is such that most of the banks appear to have outlawed lending. The few

    that lend are very selective, lending only to individuals and institutions that they

    like most, especially those that pose minimal risk.

    Asset management company takes off July 26- Barring any unforeseen

    circumstance, the Asset Management Company (AMC), an establishment that will

    soak up bad debts in the banking sector, is set to take off in the next two weeks.

    This follows the receipt of the harmonised Asset Management Company (AMCON)

    bill by President Goodluck Jonathan last weekend. AMCON, when signed into law,

    N6.07

    depre

    recor

    (US$4

    was t

    at

    north3)

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    52/66

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    53/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 53

    sell the bailed out banks, may have been designed to send positive signals to the

    Nigerian financial markets to ease what has been described as a year-long tension

    that kept them in slow motion. At a meeting last week with the shareholders and

    management of the troubled banks, CBN had agreed to leave their recapitalisation

    in the hands of the shareholders, effectively jettisoning the plan to sell the banks to

    new investors.

    Inflation dips to lowest for two years- Consumer inflation eases to 10.3%

    in June Growth in food prices declines to 12%-Inflation year-on-year eased

    to 10.3 percent in June, a drop from 11 percent recorded in May and the lowest

    since June 2008 when impact of global food crisis pushed it to a double digit.

    Growth in food prices also eased to 12.0 percent year-on-year from 12.3 percent in

    May.The growth in consumer prices is the lowest monthly year-on-year increase

    since May 2008, when it rose to 9.7 percent, according to figures from National

    Bureau of Statistics (NBS) weekend. Once again, despite ample domestic liquidity,

    Nigerian inflation surprises with a year-on-year fall, said Razia Khan, head ofAfrica research at Standard Chartered.

    Nigeria earns N33 trillion from oil, gas in six years -Production activities from

    the nations oil and gas sector raked-in about $220 billion (N33 trillion) into the

    Federal Governments coffers between 2003 and 2009. Statistics obtained from the

    International Oil Companies (IOCs) also revealed that the cumulative capital

    investment in the sector (excluding exploration) reached about $81 billion (N12.150

    trillion) during the period under review.The Chairman of the Oil Producing Trade

    Section (OPTS) of the Lagos Chamber of Commerce and Industry, Mr. Andrew

    Fawthorpe, disclosed this at the South West Road Show of the Nigeria Extractive

    Industries Transparency Initiative (NEITI) in Lagos recently.

    Rescued banks: Shareholders warn local banks to stay clear-Shareholders

    have warned local banks in the country planing to buy into the eight rescued banks

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    54/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 54

    whose executive man agement the Central Bank of Nigeria (CBN) sacked in

    August last year to stay away until the legal issues beclouding the intervention of

    the apex bank are sorted out.The Chairman of Independent Shareholders

    Association of Nigeria (ISAN), Sir Sunny Nwosu, who spoke the minds of his

    members during an interview with Vanguard said,We shareholders are warning the

    local banks that are planning to buy into the rescued banks to stay away because

    they would be buying litigation cases. We will not allow our investment to go down

    the drain. We are in court and we will see to the end of it.

    New Prudential Guidelines :A major CBN policy summersault-The Central

    Bank of Nigeria, CBN, made a major and unprecedented policy summersault when

    it released a new prudential guidelines less than two months after the previous one

    was released. The new guidelines, released July 9th and effective from July 1st,

    was in every ramification a watered down version of the one released in May,

    lacking most of the restrictions and regulations which would have curtailed the

    excesses and malpractices that have bedevilled the industry for long.

    Bauchi NSE woos investors-Bauchi State branch of the Nigerian Stock Exchange

    (NSE) is wooing civil servants in the state to invest in the stock market.The branch

    manager of the NSE in Bauchi, Ahmed Maigari Misau, stated this at the weekend

    during a sensitisation lecture for the senior staff of the Ministry of Information in

    Bauchi, organised by the Nigerian Stock Exchange.

    World recovery continues but risks increase, says IMF-Balancing the strong

    growth numbers for the first half of 2010 and the adverse impact of increased

    financial turbulence, the International Monetary Fund (IMF) forecasts world growth

    to rise to 4 per cent this year, before falling somewhat to 4 per cent in 2011 - with

    the world average masking large differences around the globe.But despite the

    stronger than expected first half recovery, the IMF warned that uncertainties

    surrounding sovereign and financial sector risks in parts of the euro area could

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    55/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 55

    spread more widely, posing difficulties for both financial stability and the economic

    outlook.

    Bailout: N130bn approved for disbursement BOI-A total of N130bn has been

    approved by the Bank of Industry for disbursement to manufacturers and operators

    of Small and Medium Scale Enterprises. This amount forms part of the N200bnearmarked by the Central Bank of Nigeria for the refinancing and restructuring of

    the manufacturing sector.This was disclosed by the Managing Director/Chief

    Executive Officer, BOI, Ms. Evelyn Oputu, during the Quarterly Business Luncheon

    organised by the Lagos Chamber of Commerce and Industry on Friday.

    Foreign exchange reserves climb to $38.5bn-Nigerias foreign exchange

    reserves climbed by 2.95 per cent to $38.53bn by mid-July from $37.42bn at the

    end of June. Reuters quoted forex traders as saying that demand for foreign

    exchange at the bi-weekly forex auctions supervised by the Central Bank of Nigeria

    had slowed. The forex reserves stood at $43.12bn on June 7, last year. The CBN

    has consistently said it is comfortable with Nigerias reserves, which are sufficient

    to finance more than 17 months of the countrys imports. Meanwhile, consumer

    inflation eased to 10.3 per cent, year-on-year, in June from 11 per cent the

    previous month, its lowest level for more than two years, the National Bureau of

    Statistics said on Friday.

    Budget inflow crashes inter-bank rates-Inter-bank lending rates retreated to

    1.41 per cent on the average last week, from 8.25 per cent the previous

    week, following large injection of funds from government allocations to

    public sector agencies, traders said on Friday. The Federal Government on

    Tuesday distributed N413.28bn from the Federation Account to the three

    tiers of government for June. Some of the funds entered the system by

    Thursday, forcing down inter-bank lending rates, traders said.

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    56/66

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    57/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 57

    Banks, capital market set for recovery on back of AMCON-A new vista may

    have been opened in the banking industry and a return of the bull run in the capital

    market imminent, following the signing into law of the Asset Management Bill by

    President Goodluck Jonathan on Monday. The new law provides for the purchase of

    non performing loans from bailed-out banks and clears the hurdles on the path of

    their return to granting credit to the real s

    FG to raise additional N315bn bonds in Q3-A week after the Federal

    Government announced plans to raise N105 billion and about $700 million in

    different tenor of bonds this month, the Debt Management Office (DMO) yesterday

    said it plans to raise another N315 billion ($2.10 billion) in the third quarter of this

    year. The bonds which experts say had become necessary following the huge

    financing gap in the 2010 budget will come in three, five and 20-year sovereign

    bonds. The DMO said in its offer calendar that it would issue N105 billion,

    comprising N35 billion each in three, five and 20-year bonds, every month in the

    third quarter

    Regulators review margin lending guidelines- Reviewed guidelines on margin

    lending in the stock market will be released by next month. Arunmah

    Otteh, the director general of the Securities and Exchange Commission

    (SEC) said the organisation and the Central Bank of Nigeria (CBN) will

    jointly issue the guidelines in a bid to correct the negative impact of

    margin lending on the capital market.Speaking in Lagos at a press briefing

    at the weekend, Ms. Oteh said the Financial Services Regulation

    Coordination Committee (FSRCC), which comprises SEC, CBN, National

    Pension Commission, Nigerian Stock Exchange, National Insurance

    Commission, Corporate Affairs Commission, and the Ministry of Finance,

    have been deliberating on the margin guidelines.

    July 21 CBN: Federally-collected Revenue Drops 20% in April-Nigerias total 42 20 At th

    inche

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    58/66

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    59/66

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    60/66

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    61/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 61

    N100 million.

    CBN bureaucracy delays disbursement of N500bn real sector fund-Like

    similar schemes before it, the N500 billion real sector fund has fallen victim of

    internal bureaucracy of the Central Bank of Nigeria (CBN). Investigation revealed

    that two months after the release of the operational guidelines, banks are yet todisburse money or grant any loan to the real sector under the Fund as the CBN is

    yet to release money to the Bank of Industry (BOI), which is the managing agent of

    the Fund.

    We dont have succession crisis NSE-The management of the Nigerian Stock

    Exchange said on Monday that there was no succession crisis at the Exchange as

    published by a newspaper (not The Punch), on Monday. According to a statement

    signed by the management of the NSE, the succession process of the NSE is in

    progress, in line with the directives of the Securities and Exchange Commission and

    Accenture, a consulting firm, handling the recruitment exercise.

    July 28 CBN seeks five laws to drive financial sector reforms Wants re-enactment

    of BOFIA: The Central Bank of Nigeria (CBN) has sought five legislations which

    should strengthen the ongoing reforms in the financial systems and create a

    clement environment for the banking sector to thrive. The laws are expected to

    come alongside the issuance of new regulations by the apex bank abolishing

    universal banking.One of the laws is a re-enactment of the Banks and Other

    Financial Institutions Act (BOFIA). Others are Office of the Nigerian Financial

    Ombudsman Bill; the Nigerian Financial International Centre (Establishment) Act;

    National Alternative Dispute Resolution Regulation Commission, and the Electronic

    Transaction Bill.

    People Cant Buy Banks-Central Bank of Nigeria (CBN) said yesterday in Lagos

    that while it ensures that all parties are carried along in the recapitalisation of the

    28 32 At th

    inche

    with

    close

    appre

    close

    with

    millio

    (US$4

    drive

    25,88

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    62/66

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    63/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 63

    stocks in that order.

    Nigeria crude Sept output to top 2m bpd Trade- Nigeria will export an

    average of 2.10 million bpd of crude oil in September, up slightly from a revised

    2.08 million bpd in August, according to data from oil companies and traders.

    Nigerias crude oil exports are set to top 2 million barrels per day (bpd) for the third

    month running in September, trade sources said on Wednesday, as Africas largest

    energy producer improves output reliability.

    World Banks package for acquisition of distressed banks excites analysts -

    Its tacit support for our reforms, says CBN Disbursement of N45 billion to GTBank

    and First Bank by the World Bank to aid in the acquisition of distressed banks has

    been described as a good omen that will hasten resolution of the crisis in the

    industry.

    Sanusi Wants Electricity Tariff Raised by 200% - Governor of the Central Bank

    of Nigeria (CBN) Mallam Sanusi Lamido Sanusi yesterday called for an immediate

    increase of 200 per cent on the current N7 per a unit of electricity. Sanusi argued

    that this is a sure way of reviving the power sector, saying the present rate is not

    competitive enough to bring the country out of its energy demand shortfall.

    Sanusi: No Cause for Alarm on National Economy - Sanusi declared that the

    economy is, as expected has, steadily growing in Gross Domestic Product, pointing

    out that there been moderation in inflation. Governor of the Central Bank of Nigeria

    (CBN), Malam Sanusi Lamido Sanusi, yesterday did a critical review of the national

    economy at the meeting of the Federal Executive Council (FEC) and concluded that

    there was no cause for alarm.

    No Rush to Raise Interest Rates, Says Bank of England Governor- Mervyn

    King today signalled the Bank of England is in no hurry to raise interest rates as he

    warned several risks remained to the recovery and that there was no talk of"applying the brakes" yet.

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    64/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 64

    July 30 Citigroup agrees $75m fraud fine - Banking giant Citigroup has agreed to pay

    $75m (48m) to settle civil charges that it misled investors over potential losses

    from high-risk mortgages.It agreed the settlement with US financial watchdog the

    Securities and Exchange Commission (SEC).

    CBN partner Security Commission on single registrar - The Central Bank of

    Nigeria (CBN) has said it is working with the Securities and Exchange Commission

    (SEC) towards creating a single registrar for all securities in the capital market.

    CBN: 10 Banks Have N1.5tr Negative Capital - Ten banks that failed a joint

    examination conducted last year for 24 of them by the Central Bank of Nigeria

    (CBN) and the Nigeria Deposit Insurance Corporation (NDIC) currently have a

    negative capital of N1.5 trillion, the apex bank Governor Sanusi Lamido Sanusi has

    said.

    SEC may step into Stock Exchange crisis - An opportunity appears to have

    been opened for the Arunma Otteh-led Securities and Exchange Commission (SEC)

    to push its agenda of full regulatory oversight following a fresh allegation of

    financial impropriety against the management of the Nigerian Stock Exchange

    (NSE) which grossed a hefty N42.2 billion income in four years.

    SECsays Afribank, executives manipulated 2007 public offer- The Securities

    and Exchange Commission (SEC) yesterday accused Afribank and its senior

    executives of manipulating the banks December 2007 public offer in an elaborate

    scheme that was deliberately designed to buy back its shares deceive the market.

    22 42 The

    appre

    with

    close

    Petro

    days

    taking

    The m

    by N

    N6.32

    appre

    recor

    billion

    inves

    deep

    ngleN

  • 8/9/2019 Monthly NCM Report for July 2010 - Proshare

    65/66

    The Monthly NCM Report for July 2010 www.proshareng.com Page 65

    ADVICE TO USERS OF THIS REPORTYou are given the limited right to print this report and todistribute it by any means. You can print out pages and usethem in your private discussion groups as long as youacknowledge PROSHARE and you do not alter the report

    in any way. Most importantly, you should not charge for it.

    Stock trading is inherently risky and you agree to assumecomplete and full responsibility for the outcomes of alltrading decisions that you make, including but not limitedto loss of capital . None of the stock trading calls made byProshare, its analyst board, employees, contributingpartners and companies associated with it should be

    construed as an o ffer to buy or sell securities, nor advice todo so. Proshare is not responsible for any errors,omissions or representations on any of the pages in thisreport. Proshare does not endorse in anyway anyadvertisers or firm(s) used as case studies in the report.Please verify the veracity of all information on your ownbefore undertaking any alliance.

    Our opinions and analyses are based on sources believed

    to be reliable and are written in good faith, but norepresentation or warranty, expressed or implied , is madeas to their accuracy or completeness. The information inthis report is updated from time to time. Proshare howeverexcludes any warranties (whether expressed or implied),as to the quality, accuracy, efficacy, completeness,performance, fitness or any of the contents of the report,including (but not limited) to any comments, feedback,interviews, articles reproduced and advertisementscontained in the report.

    All information contained in our report or on our websiteshould be independently verified with the companiesmentioned.

    The editor and publisher are not responsible for errors oromissions. You should consult a qualified broker or otherfinancial advisor prior to making any actual investment ortrading decisions. You agree to not make actual stocktrades based on comments in the report, nor on anytechniques presented nordiscussed in this report or anyother form of information presentation. All i nformation isfor educational and informational use only. You agree toconsult with a registered investment advisor, which we arenot, prior to making any trading decision of any kind.Hypothetical or simulated performance results havecertain inherent limitations. Unlike an actual performancerecord, simulated results do not represent actual trading.Since the trades have not been executed, the results mayhave under or over compensated for the impact. Norepresentation is being made that any account will or islikely to achieve profits or losses similar to those shown inthe report.

    Proshare receives no compensation of any kind from anycompanies that may be mentioned in our reports or on ourweb site. Any opinions expressed are subject to changewithout notice. Owners, employees and writers may holdpositions in the securities that are discussed in our reportor on our web site. Any reference to a trade mentioned inthe report or website, e-mail, publication or material ishypothetical and is not an actual trade. Hypotheticalperformances and results do not represent actual cost of atrade.

    We encourage all investors to use the information in thereport as a resource only to further their own research onall featured companies, stocks, sectors, markets andinformation presented in the report and on our site.

    Nothing published in this report and on our site should beconsidered as investment advice. Any prediction made othe direction of the stock market or on the direction ofindividual stocks may prove to be incorrect

    Readers/Users/visitors are expected to refer to otherinvestment resources to verify the accuracy of the datapublished in the report on their own. Neither Proshare noits principals, agents, associates, employees or licensedstockbrokers, are licensed to provide investment advicethrough this publication.

    No materials in the report, either on behal f of Proshare, o

    any participant in The Analyst Network should be taken ainvestment advice directly, indirectly, implicitly, or in anymanner whatsoever, including but not limited to trading ofstocks on a short term or long term basis, or trading of anfinancial instruments whatsoever. Past Performance IsNot Indicative o f Future Returns. All analyst commentaryprovided in this report is provided for information purposesonly. This information is NOT a recommendation orsolicitation to buy or sell any securities. Your use of this

    and all information contained in this report is governed bthis Terms and Conditions of Use. This material i s basedupon information that we consider reliable, but we do notrepresent that it is accurate or complete, and that it shoulbe relied upon, as such.

    You should not rely solely on the Information in making anyinvestment. Rather, you should use the Information onlyas a starting point for doing additional independentresearch in order to allow you to form your own opinionregarding investments. By using this report including anysoftware and content contained therein, you agree thatuse of the Service is entirely at your own risk. Anyinformation, opinions, advice or offers posted

    by any person or entity logged in to the Proshare websiteor any of its associated sites is to be construed as publ icconversation only. Proshare makes no warranties andgives no assurances regarding the truth, timeliness,reliability, or good faith of any material posted at Proshare.

    Proshare Nigeria is the country's premier investorrelations/education and analyst services platformproviding a critical role in ensuring that market confidenc& safety is enshrined in the conduct of/and market


Recommended