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PEOPLES DAILY, MONDAY, MARCH 4, 2013
NSE loses 0.202 billion shares on investment Stories from Ngozi Onyeakusi, Lagos
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nvestment losses occasioned by drop in the share prices of some listed equities on the floor of the Nigeria Stock Exchange (NSE) last week has resulted in the stock market losing 0.202 billion shares as a turnover of 2.280 billion shares worth N24.633 billion in 28,170 deals was recorded in contrast to a total of 2.482 billion shares valued at N22.815 billion in 32,471 deals recorded the previous week. Similarly, the NSE All-Share Index depreciated by 711.88 basis points or 2.10% to close on Friday at 33,183.20 while the market capitalization of the listed equities depreciated by 2.10% to close at N10.618 trillion. As usual, the financial services sector was the most active during the week, contributing 67.70%, 58.52% and 55.59% to the total equity turnover volume, value and number of trades respectively in 1.543 billion shares valued at N14.417 billion exchanged hands by investors in 15,660 deals.
The Conglomerates sector followed with a turnover volume of 275.094 million shares worth N554.361 billion in 1,530 deals contributing 12.07%, 2.25% and 5.43% to the total equity turnover volume, value and number of deals respectively. The Consumer Goods sector came third with a turnover volume of 138.015 million shares worth N7.719 billion in 4,820 deals. Review of the market revealed that trading in the top three equities namely Transnational Corporation of Nigeria Plc, FBN Holdings Plc and Zenith Bank Plc (measured by turnover volume) accounted for 642.568 million shares worth N8.085 billion in 5,325 deals contributing 28.19%, 32.82% and 18.90% to the total equity turnover volume, value and deals respectively. Also traded during the week were 2,681 units of NewGold Exchange Traded Funds (ETFs) valued at N6.562 million exchanged hands in 8 deals in contrast to a total of 193 units valued at N471,970 transacted last week in 4 deals. In addition, 1,887 units of
TransCorp Plc
T FGN bonds valued at N2.314 million were traded during the week in 20 deals in contrast to 16,050 units valued at N19.339 million transacted last week in 66 deals. However, there were no transactions in the State/Local Government Bonds and Corporate Bonds/Debentures sectors. The Bloomberg NSE Banking and Bloomberg NSE Oil/Gas appreciated by 0.63% and 1.83% respectively. While Bloomberg NSE 30, Bloomberg NSE Consumer Goods, Bloomberg NSE Insurance and NSE Lotus II depreciated by 1.89%, 1.26%, 3.59% and 1.97% respectively. A review of the equity price
Capital Oil turnover hits N1.2 bn
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apital Oil Plc. has recorded turnover to the tune of N1.2 billion for the financial year ended 31st Decembe2011, against N144.821 million written in 2010. According the company’s audited result released by the Nigeria Stock Exchange (NSE) last week, the firm’s Profit/(Loss) after Tax stood at (N98.161 million) in 2011 compared to (N324.782 million) written in 2010, while Net Assets which stood at N1.8 billion in 2010
decreased to N1.781 billion in 2011. Similarly, the firm in 2010 equally recorded a turnover of N144.821 million, compared to N1.142 billion recorded in 2009, while its Profit/(Loss) After Tax for the 2010 stood at (N324.782 million), against (N233.164m) of 2009. Net Assets, which stood at N2.204 billion in 2009 financial year, depreciated to N1.879b in 2010.
It could be recalled that the firm recorded a turnover of N1.142 billion for the financial year ended 31st December, 2009 against N257.595 million written in preceding period of 2008. Profit/ (Loss) after Tax also stood at (N233.164m) in 2009 compare to (N39.413m) recorded in the previous year. Interestingly, the firm’s Net Assets increased to N2.204 billion in the period of 2009 compare to N13.342 million written in 2008.
movements indicated that thirty-eight (38) equities gained while forty-six (46) equities recorded price declines and one hundred and thirteen (113) equities remained constant. When compared with the preceding week, thirty-eight (38) equities gained while fiftyfive (55) equities recorded price declines and one hundred and four (104) equities remained constant. Presco Nigeria Plc led the gainers table gaining N3.68 kobo, followed by ConOil Nigeria Plc. N2.10 kobo, and Ashaka Cement gaining N1.58 kobo. Other stocks that gain appreciation during the week include Lafarge Wapco Cement Plc., N1.40 kobo, Okomu Oil Palm N1.19 kobo, Oando Plc. N0.98 kobo, NCR (Nigeria) Plc., N0.87 kobo among others. On the other hand, Dangote Cement Plc topped the losers chart losing N12.01 kobo, followed by Nigeria Brew. Plc, N4.50 kobo and Nestle Nigeria Plc., N4.00 kobo. Other stocks that depreciated during the week under review include Cadbury Nigeria Plc N1.55 kobo, Mobile Oil Nigeria N1.50, MRS Oil Nigeria Plc N1.45 kobo, UACN Property Dev.,N1.10 kobo among others.
Nigerian market outperforms American equities by a large margin
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nvestors who have done well buying U.S. stocks this year could be doing even better with Nigeria. The Nigerian market, in fact, has outperformed American equities by a large margin, up more than 20 percent this year versus the U.S. gain of a stillrespectable 6 percent. Ditto for Dubai, Iceland, Vietnam and Abu Dhabi. Taken together, the countries form an unlikely quintet that leads the global equity markets and poses
opportunities for investors wary of all the stomach-churning turmoil closer to home. “If you don’t know something, you tend not to buy it. That’s human nature,” said Nadav Baum, executive vice president at BPU Investment Management in Pittsburgh. “People know what Coke does. People understand what Heinz is,” he added. “But when you’re playing in those international markets, people get concerned about currency risk, they get
INVESTORS NEWS BITS
concerned about liquidity, and they really don’t understand the companies out there.” Stuart Oakley, Managing Director, Asian Currency Trading at Nomura, and John Woods, Chief Investment Strategist at Citi Private Bank says expect more market consolidation before a pick up. While equity flows have turned positive in 2013, far more money has gone to global markets than the U.S. The U.S. market is actually
just about middle of the road when compared to others across the globe. It ranks 29th of 77 global exchanges and third among G-7 countries, behind Japan and Britain, which have seen big pops in their stock markets as their respective currencies have tumbled in value, according to Bespoke Investment Group. The world’s worst-performing market is Brazil, down about 7.5 percent. (Source: ProShare Nigeria)
Source:Pro-share Nigeria
ransnational Corporation of Nigeria Plc has notified the Nigerian Stock Exchange of the decision of its Board of Directors to convene an Extraordinary General Meeting (EGM). The EGM is scheduled to take place on Thursday, March 28, 2013 at Lagos Oriental Hotel, 3, Lekki Road, Victoria Island Lagos at 10.00 a.m. The Company intends to, amongst others, pass resolutions to increase the authorized share capital of the Company from N18 billion to N22.55 billion ordinary shares of 50 kobo each by the creation of 9 billion new ordinary shares of 50 kobo each and to authorize the Directors to issue up to 13 billion ordinary shares of 50 kobo each from the Company’s share capital by way of Rights.
Bonds
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igerian bond yields were mixed across various tenors as the Central Bank of Nigeria (CBN) conducted open market operations (OMO), to mop up liquidity as the Federal Accounts Allocations Committee (FAAC) injected liquidity into the system. The FAAC disbursed N270billion as monthly budgetary allocation, while the CBN offered N900 billion worth of OMO bills with tenors ranging from 90day to 161day while N724.60 billion was sold at marginal rates ranging between 10.05 percent and 10.87 percent. This was the highest OMO sale by the CBN in recent months. The yield on Nigeria’s 3 year domestic bonds due 2014 fell one basis point to 10.43 percent last Monday, from 10.44 percent a week earlier according to data on the Financial Markets Dealers Association (FMDA) website.
London Stock Exchange
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he London Stock Exchange expects an increase in new listings from African companies this year as businesses in the continent’s fast-growing economies seek to attract foreign investors. London, which has seen a general drop off in listing activity over the past few years due to the global financial crisis, expects companies from countries including Chad, Mozambique, Nigeria and Kenya could go public on its markets. “Africa is a very big focus for us in terms of future opportunity,” Ibukun Adebayo, the LSE’s Head of Equity Primary Markets for Africa, Middle East and South Asia, said. “You will see Africa have its fair share among this year’s listings.”