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Courtesy of UBA Capital, Afrinvest, Lead Capital, CSL Securities, here is the detailed analysis of the Nigerian Stock Exchange for the week ended Friday, August 29th.

download: Market Analysis for Week Ended Friday, August 29th (151.5KB) added: 01/09/2008 clicks: 30 description: Market Analysis for Week Ended Friday, August 29th

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Here are the weekly reports from FSDH, Forte Capital, Zenith Securities and Lead Capital.

Forte - Weekly Report - August 29th (11)
FSDH Weekly Report - August 29th (13)
Lead Capital - Weekly Report - August 29th (18)
ZSL - Weekly Report - August 29th (12)

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Here is the stock market report for the week ended Friday, August 29th, courtesy of Investor Delight:

A turnover of 3.36 billion shares worth N38.7 billion in 43,801 deals was recorded this week, in contrast to a total of 3.82 billion shares valued at N32.94 billion exchanged last week in 56,511 deals. There were no transactions in the Federal Government Development Stocks, State Government Bonds and Industrial Loans/Preference Stocks sectors.

The Banking subsector was the most active during the week (measured by turnover volume), with 1.75 billion shares worth N28.91 billion exchanged by investors in 20,934 deals. Volume in the Banking subsector was largely driven by activity in the shares of Afribank Nigeria Plc, Skye Bank Plc and Fidelity Bank Plc. Trading in the shares of the three banks accounted for 839.41 million shares, representing 48% of the subsector’s turnover.

The Insurance subsector, boosted by activity in the shares of Investment & Allied Assurance Plc, followed on the week’s activity chart with a turnover of 1.03 billion shares valued at N1.3 billion in 5,375 deals. Last week, the Banking subsector led on the activity chart and was followed by the Insurance subsector.

Price Movement
The All-Share Index rose by 7.74% to close on Friday at 47,789.20. The market capitalization of the 210 First -Tier equities closed higher at N9.74 trillion. Eighty - Seven (87) stocks appreciated in price during the week, higher than the eleven (11) in the preceding week. Chevron Oil Nigeria Plc led on the gainers’ table with a gain of N75.46 to close at N441.00 per share while Total Nigeria Plc followed with N15.34 to close at N221.55 per share. Other price gainers in the Top 10 category include:
+ Nestle Nigeria Plc - N8.52
+ Guinness Nigeria Plc - N5.88
+ Flour Mills of Nigeria Plc - N5.66
+ Julius Berger Nigeria Plc - N5.52
+ United Bank for Africa Plc - N4.52
+ Intercontinental Bank Plc - N3.93
+ Zenith Bank Plc - N3.87
+ Nigerian Breweries Plc - N3.79

Forty (40) stocks depreciated in price during the week, lower than the eighty – seven (87) in the preceding week. Mobil Oil Nigeria Plc led on the price losers’ table, dropping by N46.31 to close at N355.69 per share while Oando Plc followed with a loss of N7.36 to close at N127.26 per share. Other price losers in the Top 10 category include:
- Skye Shelter Fund Plc - N5.84
- Longman Nigeria Plc - N1.66
- R.T. Briscoe (Nigeria) Plc - N1.42
- Chemical & Allied Products Plc - N1.00
- John Holt Plc - N0.92
- Neimeth International Pharmaceuticals Plc - N0.86
- Nigerian Enamelware Co. Plc - N0.79
- Cutix Plc - N0.76

Ten equity prices were adjusted for dividend and or bonus as recommended by the Board of Directors. Ekocorp Plc was adjusted for dividend of N0.15 per share. National Sports Lottery Plc was adjusted for dividend of N0.10 per share. Aso Savings & Loans Plc was adjusted for dividend of N0.05 per share. Ashaka Cement Plc was adjusted for bonus of 1 for 6. PZ Cussons Nigeria Plc was adjusted for dividend of N0.62 per share. IPWA Plc was adjusted for dividend of N0.02 per share. Neimeth International Pharmaceutical Plc was adjusted for dividend of N0.12 per share and bonus of 1 for 4.

Union Homes Savings & Loans Plc was adjusted for dividend of N0.10 per share and bonus of 1 for 4. UNIC Insurance Plc was adjusted for dividend of N0.05 per share. Dangote Sugar Refinery Plc was adjusted for an interim dividend of N0.85 per share.

Supplementary Listings
A total of 284,375,000 shares were added to the shares outstanding in the name of Ashaka Cement Plc following the bonus of 1 for 6. A total of 164,315,179 shares were added to the shares outstanding in the name of Neimeth International Pharmaceutical Plc following the bonus of 1 for 4. A total of 1,562,500,000 shares were added to the shares outstanding in the name of Union Homes Savings & Loans Plc following the bonus of 1 for 4.

Memorandum Listing
The 1,613,768,846 Units of Kakawa Guaranteed Income Fund of N1.00 each at par were admitted on the Daily Official List on Friday, August 29, 2008. It was listed in the Memorandum Listing subsector. Funds granted Memorandum Listing status thus increased to 21.

Company News
CEMENT COMPANY OF NORTHERN NIGERIA PLC: Audited result for the half year ended 30th June 2008 shows Turnover of N4.4 billion as against N4.6 billion in 2007. Profit after tax stood at N610.9 million compared with N189.2 million in 2007. The Directors are recommending an interim dividend of N0.45 per share. The date of closure of register of members is September 4, 2008 while payment date is September 15, 2008.

AFRIBANK NIGERIA PLC: Audited result for the year ended 31st March 2008 shows Gross Earnings of N49.2 billion as against N27.54 billion in 2007. Profit after tax stood at N10.03 billion compared with N5.2 billion in 2007. The Directors are recommending a dividend of N0.50 per share and bonus of 1 for 3. The date of closure of register of members is September 18, 2008 while payment date is September 30, 2008.

FIRST CITY MONUMENT BANK PLC: Audited result for the year ended 30th April 2008 shows Gross Earnings of N52.82 billion as against N25 billion in 2007. Profit after tax stood at N15.11 billion compared with N5.95 billion in 2007. The Directors are recommending a dividend of N0.50 per share. The date of closure of register of members is September 22, 2008 while payment date would be advised later.

UNIVERSITY PRESS PLC: Audited result for the year ended 31st March 2008 shows Turnover of N956.94 million as against N691.75 million in 2007. Profit after tax stood at N163.51 million compared with N109.42 million in 2007. The Directors are recommending a dividend of N0.35 per share. The date of closure of register of members is September 15, 2008 while payment date is September 25, 2008. The 30th Annual General Meeting (AGM) of shareholders is scheduled to hold at Jogor Centre, I Harvester Drive, Liberty Road, Off Ring Road, Ibadan, Oyo State on Thursday, September 25, 2008 by 11.00a.m

FIRST BANK OF NIGERIA PLC: Unaudited result for the first quarter ended 30th June 2008 shows Gross Earnings of N43.3 billion, as against N27.3 billion in the comparable period of 2007. Profit after tax stood at N10.7 billion compared with N5.7 billion in 2007.

AIICO INSURANCE PLC: Unaudited result for the half year ended 30th June 2008 shows Gross Premium of N3.9 billion, as against N1.8 billion in the comparable period of 2007. Profit after tax stood at N581.2 million compared with N246.83 million in 2007.

MUTUAL BENEFITS ASSURANCE PLC: Unaudited result for the half year ended 30th June 2008 shows Gross Premium of N1.6 billion, as against N957.71 million in the comparable period of 2007. Profit after tax stood at N681.4 million compared with N449.51 million in 2007.

LINKAGE ASSURANCE PLC: Unaudited result for the first quarter ended 31st March 2008 shows Gross Premium of N496.53 million, as against N468.5million in the comparable period of 2007. Profit after tax stood at N167.5 million compared with N113.1 million in 2007.

VITAFOAM NIGERIA PLC: Unaudited result for the third quarter ended 30th June 2008 shows Turnover of N6 billion, as against N4.43 billion in the comparable period of 2007. Profit after tax stood at N394.5 million compared with N302.94 million in 2007.

NEIMETH INTERNATIONAL PHARMACEUTICAL PLC: Unaudited result for the first quarter ended 30th June 2008 shows Turnover of N348.9 million, as against N309.72 million in the comparable period of 2007. Profit after tax stood at N20.7 million compared with loss after tax of N58.3 million in 2007.

Report On The OTC Market For Federal Government Bonds
A turnover of 180.31 million units worth N179.14 billion in 1,614 deals was recorded this week, in contrast to a total of 127.4 million units valued at N126.85 billion exchanged in 1,156 deals during the week ended August 21, 2008. The most active bond (measured by turnover volume) was the 3rd FGN Bond 2009 Series 11 with a traded volume of 20.3 million units valued at N21.44 billion in 203 deals

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As part of efforts to restore investor confidence in the stock market, the Federal Government announce the following steps:

1. NSE with effects from Wednesday, August 27, 2008 (today) will reduce its fees by 50 percent.
2. Stabilization fund will be established with its modalities to be worked out very soon.
3. The Office of the attorney general of the federation has been directed to issue an exemption to the provision of the relevant sections of the company and allied matter act, 1990 on share buy backs to permit quoted companies buy up to 20 percent of their shares.
4. Banks were also advised to restructure existing credit facilities extended to market players to allow for longer repayment periods.
5. CBN is also taking appropriate measures to review the liquidity situation in the economy and appropriate measures to improve the liquidity in the system if required.
6. NSE is also taking steps to review its trading rules and regulations. In the interim, effective from today; one per cent maximum downward limit on daily price movement whilst the current five percent limit on upward movement is retained.
7. SEC will also release guidelines for market makers on the NSE before the end of the week and delist moribund companies earlier advertised.
8. There will be strict enforcement of NSE listing requirement with zero tolerance for infractions.
9. Nigerian banks will also partner with market maker to inject fund into the capital market through appropriate structured credit facilities.

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Market reports from Investor Delight and CSL Securities:
Investor Delight - Weekly Report - August 22nd (9)
CSL - Weekly Report - August 22nd (11)

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Here is the report for the week ended Friday, August 22nd courtesy of Investor Delight:

A turnover of 6.4 billion shares worth N47.94 billion in 60,803 deals was recorded this week, in contrast to a total of 3.25 billion shares valued at N43.71 billion exchanged last week in 72,486 deals.

There were no transactions in the Federal Government Development Stocks, State Government Bonds and Industrial Loans/Preference Stocks sectors.

The Banking subsector was the most active during the week (measured by turnover volume), with 4.5 billion shares worth N37.4 billion exchanged by investors in 30,244 deals. Volume in the Banking subsector was largely driven by activity in the shares of Spring Bank Plc. Trading in the shares of the Bank accounted for 3.45 billion shares, representing 77.2% of the subsector’s turnover.

The Insurance subsector, boosted by activity in the shares of Investment & Allied Assurance Plc, followed on the week’s activity chart with a turnover of 1.42 billion shares valued at N1.7 billion in 8,088 deals.

Price Movement
The All-Share Index dropped by 4.4% to close on Friday at 47,517.87. The market capitalization of the 210 First -Tier equities closed lower at N9.7 trillion.

Twenty - Six (26) stocks appreciated in price during the week, higher than the seventeen (17) in the preceding week. Also, as in the preceding week, Chevron Oil Nigeria Plc led on the gainers’ table with a gain of N62.00 to close at N286.44 per share while Mobil Oil Nigeria Plc followed with N51.00 to close at N315.00 per share. Other price gainers in the Top 10 category include:
+ Julius Berger Nigeria Plc - N9.27
+ BOC Gases Plc - N6.36
+ The Okomu Oil Palm Plc - N4.86
+ Guinness Nigeria Plc - N4.52
+ Berger Paints Plc - N2.75
+ Longman Nigeria Plc - N2.60
+ Neimeth International Pharmaceuticals Plc - N1.43
+ 7-Up Bottling Co. Plc - N0.60

Eighty (80) stocks depreciated in price during the week, lower than the eighty-eight (88) in the preceding week. Total Nigeria Plc led on the price losers’ table, dropping by N34.29 to close at N206.21 per share while Oando Plc followed with a loss of N20.30 to close at N149.15 per share. Other price losers in the Top 10 category include:
- UACN Plc - N6.86
- Chemical & Allied Products Plc - N4.88
- Intercontinental Bank Plc - N4.72
- Academy Press Plc - N4.00
- Ashaka Cement Plc - N3.99
- First Bank of Nigeria Plc - N3.32
- Dangote Flour Mills Plc - N3.00
- Lafarge WAPCO Plc - N2.90

Five equity prices were adjusted for dividend and or bonus as recommended by the Board of Directors. Academy Press Plc was adjusted for dividend of N0.06 per share and bonus of 1 for 2. Flour Mills Nigeria Plc was adjusted for dividend of N1.00 per share and bonus of 1 for 10. Nigerian Bag Manufacturing Co. Plc was adjusted for dividend of N0.05 per share. Diamond Bank Plc was adjusted for dividend of N0.56 per share and bonus of 1 for 10. Intercontinental WAPIC Insurance Plc was adjusted for dividend of N0.125 per share and bonus of 1 for 5.

New Listing
The 1,548,780,000 shares in favour of Capital Hotels Plc were admitted to the Daily Official List at a price of N6.50 per share on Thursday, August 14, 2008 by way of Introduction. The shares were listed in the Hotel & Tourism subsector. By this action, the number of listed companies and securities increased to 226 and 319, respectively.

Supplementary Listings
A total of 100,800,000 shares were added to the shares outstanding in the name of Academy Press Plc following the bonus of 1 for 2. A total of 155,306,666 shares were added to the shares outstanding in the name of Flour Mills Plc following the bonus of 1 for 10. A total of 1,315,931,191 shares were added to the shares outstanding in the name of Diamond Bank Plc following the bonus of 1 for 10. A total of 843,634,000 shares were added to the shares outstanding in the name of Intercontinental WAPIC Insurance Plc the bonus of 1 for 5.

Special Sale
There was Special Sale on the floors of The Exchange on Thursday August 14, 2008 of 637,919,840 shares of Capital Hotels Plc by the Federal Government of Nigeria through the Bureau of Public Enterprises (BPE). The shares would be allocated and sold in the six geo-political zones on specific Trading Floors of The Exchange on specified dates.

Change of Name and Sector Reclassification
The name of Royal Exchange Assurance (Nigeria) Plc was changed to Royal Exchange Assurance Plc following business restructuring. Also, the company was moved from the Insurance sector and listed in the “Other Financial Institutions” sector.

Technical Suspension
The Full Suspension on Spring Bank Plc was downgraded to Technical Suspension on Monday, August 11, 2008. The downgrade became imperative as the management of The Exchange is satisfied with the progress being made at resolving the issues that led to the imposition of the full suspension.

COMPANY NEWS
UNION HOMES SAVINGS & LOANS PLC: Audited result for the year ended 31st March 2008 shows Turnover of N8.92 billion as against N8.4 billion in 2007. Profit after tax stood at N2 billion compared with N1.0 billion in 2007. The Directors are recommending a dividend of N0.10 per share and bonus of 1 for 4. The date of closure of register of members is August 25, 2008 while payment date is September 15, 2008.

ZENITH BANK PLC: Unaudited result for the year ended 30th June 2008 shows Gross Earnings of N158.3 billion, as against N94.9 billion in the comparable period of 2007. Profit after tax stood at N41.04 billion compared with N18.8 billion in 2007.

DANGOTE SUGAR REFINERY PLC: Unaudited result for the half year ended 30th June 2008 shows Turnover of N43.1 billion, as against N40.8 billion in the comparable period of 2007. Profit after tax stood at N12.84 billion compared with N11.5 billion in 2007. The Directors are recommending an interim dividend of N0.85 per share. The date of closure of register of members is August 29, 2008 while payment date is September 8, 2008.

NESTLE NIGERIA PLC: Unaudited result for the half year ended 30th June 2008 shows Turnover of N22.9 billion, as against N20.21 billion in the comparable period of 2007. Profit after tax stood at N3.3 billion compared with N3.1 billion in 2007.

TOTAL NIGERIA PLC: Unaudited result for the half year ended 30th June 2008 shows Turnover of N85.85 billion, as against N66.4 billion in the comparable period of 2007. Profit after tax stood at N2.225 billion compared with N1.4 billion in 2007.

AFRICAN PETROLEUM PLC: Unaudited result for the half year ended 30th June 2008 shows Turnover of N80.75 billion, as against N48.82 billion in the comparable period of 2007. Profit after tax stood at N3.9 billion compared with N2.15 billion in 2007.

CONOIL PLC: Unaudited result for the half year ended 30th June 2008 shows Turnover of N75.1 billion, as against N32.83 billion in the comparable period of 2007. Profit after tax stood at N2.65 billion compared with N866 million in 2007.

GLAXO SMITHKLINE CONSUMER PLC: Unaudited result for the half year ended 30th June 2008 shows Turnover of N6.03 billion, as against N4.4 billion in the comparable period of 2007. Profit after tax stood at N786.05 million compared with N334.75 million in 2007.

RED STAR EXPRESS PLC: Unaudited result for the first quarter ended 30th June 2008 shows Turnover of N967.5 million, as against N745.6 million in the comparable period of 2007. Profit after tax stood at N99.22 million compared with N65.33 million in 2007.

MAY & BAKER NIGERIA PLC: Unaudited result for the half year ended 30th June 2008 shows Turnover of N2.3 billion, as against N1.6 billion in the comparable period of 2007. Profit after tax stood at N96.2 million compared with N89.1 million in 2007.

CONTINENTAL REINSURANCE PLC: Unaudited result for the half year ended 30th June 2008 shows Gross Premium of N2.6 billion, as against N1.12 billion in the comparable period of 2007. Profit after tax stood at N927.13 million compared with N498.74 million in 2007.

REGENCY ALLIANCE INSURANCE PLC: Unaudited result for the half year ended 30th June 2008 shows Gross Premium of N821.25 million, as against N610.43 million in the comparable period of 2007. Profit after tax stood at N176.43 million compared with N90.73 million in 2007.

CUSTODIAN & ALLIED INSURANCE PLC: Unaudited result for the half year ended 30th June 2008 shows Gross Premium of N2.01 billion, as against N1.31 billion in the comparable period of 2007. Profit after tax stood at N648.61 million compared with N435.83 million in 2007.

EQUITY ASSURANCE PLC: Unaudited result for the half year ended 30th June 2008 shows Gross Premium of N1.24 billion, as against N1.05 billion in the comparable period of 2007. Profit after tax stood at N504.25 million compared with N188.71 million in 2007.

ALUMINIUM EXTRUSION INDUSTRIES PLC: Unaudited result for the half year ended 30th June 2008 shows Turnover of N605.7 million, as against N549.8 million in the comparable period of 2007. Profit after tax stood at N29.32 million compared with N18.4 million in 2007.

THOMAS WYATT NIGERIA PLC: Audited result for the year ended 31st March 2008 shows Turnover of N162.75 million as against N121.85 million in 2007. Profit after tax stood at N2.02 million compared with profit after tax and extra-ordinary income of N0.273 million in 2007. The Directors are recommending a bonus of 1 for 10. The date of closure of register of members is September 8, 2008.

FTN COCOA PROCESSORS PLC: Audited result for the 4 months ended 30th April 2008 shows Turnover of N324.6 million, as against N267.1 million during the year ended December 31, 2007. Profit before tax stood at N143.2 million compared with profit after tax and extra-ordinary items of N142.8 million during the year ended December 31, 2007.

STARCOMMS PLC: Unaudited result for the half year ended 30th June 2008 shows Turnover of N17.4 billion, as against N8.7 billion in the comparable period of 2007. Loss after tax stood at N1.01 billion compared with N381 million in 2007.

EVANS MEDICAL PLC: Audited result for the year ended 31st December 2007 shows Turnover of N3.15 billion as against N2.91 billion in 2006. Loss after tax stood at N317.02 million compared with profit after tax of N132.2 million in 2006. The date of closure of register of members is September 8, 2008.

EVANS MEDICAL PLC: Unaudited result for the first quarter ended 31st March 2008 shows Turnover of N1.2 billion, as against N746.9 million in the comparable period of 2007. Profit after tax stood at N111.0 million compared with loss after tax of N21.0 million in 2007.

NIGERIAN INTERNATIONAL DEBT FUND: Audited result for the year ended 31st December 2007 shows Total investment Income of N180.4 million as against N406.6 million in 2006. The Net loss stood at N85.3 million compared with net profit of N228.93 million in 2006.

REPORT ON THE OTC MARKET FOR FGN BONDS
A turnover of 147.44 million units worth N144.7 billion in 1,339 deals was recorded this week, in contrast to a total of 191 million units valued at N189.6 billion exchanged in 1650 deals during the week ended August 7, 2008. The most active bond (measured by turnover volume) was the 5th FGN Bond 2018 Series 2 with a traded volume of 21.82 million units valued at N20.33 billion in 153 deals.-

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Here are research reports and analysis of recent results of UNIC, Dangote Sugar Refinery, Oando, and Skye Bank by Meristem and FSDH.

Meristem Company Analysis - UNIC (9)
FSDH - Dangote Sugar Q2 2008 Analysis (13)
FSDH - Oando Q2 2008 Analysis (7)
FSDH - Skye Bank Q3 ‘08 Analysis (13)

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Below are the excerpts of an article in a recent copy of The Economist magazine analyzing Nigerian banks. And it doesnt paint a rosy picture at all.

The prices of the banking stocks have been dropping all year. They alluded to a research by JP Morgan Chase (you can read it here) which stated that the banks, with a combined value of over $40billion are about 56% overvalued.
Some of the problems identified in the article are:

1. Lack of transparency. The example of UBA which was fined over $15m by the US banking regulations is cited.
2. Weak regulations.
3. Shady bank practices - banks lending money to investors to buy shares from the banks which result in the rise in their stock prices.

Yet share prices have been dropping throughout 2008, suggesting a lack of confidence. Would-be investors have started to eye Nigeria’s banks, in particular their regulatory practices, more warily. Some wonder whether the apparent gains of the past few years are all they seem. “The foundation is not there, it’s weak,” says an analyst, Osaruyi Orobosa-Ogbeide, of a Lagos-based firm, Financial Derivatives.

Though banking standards have certainly risen a lot in recent years, they still lag behind those of America and the European Union, particularly in terms of transparency. In April, United Bank for Africa, one of the country’s biggest, fell foul of American regulators who served the bank with a $15m fine for ignoring anti-money-laundering regulations despite several warnings. “There’s no resemblance at all between operating in Britain or America and operating in Nigeria,” says Fola Fagbule, a research analyst with Afrinvest. “It’s light years apart, and it’s an issue [the banks] need to address”.

The top seven Nigerian banks, with a combined market value of almost $40 billion, are overvalued by as much as 56%, according to a report published in May by JPMorgan, an American financial-services company. Part of the problem is that banks have used their own money to push up their stock prices by engaging in risky lending to corporations and individuals who invest in the banks’ own shares.

Those in charge of imposing some order on the sector have also been found wanting. After share prices began to fall earlier this year, the central bank set a floor on trading in a bid to buoy the market. Investors were left with no choice but to hold on to stocks; that unnerved many of them. Bismarck Rewane of Financial Derivatives described the action as “a disorderly intervention in a chaotic market.”

Lamido Sanusi, a risk-control officer who will take over next January as the head of Nigeria’s oldest bank, First Bank, is disappointed that regulators are not tougher in insisting on transparency and disclosure of information. Foreign investors demand open banking procedures, he says, yet banks are not now obliged to open their books to scrutiny. “Are these banks being properly managed? Are these assets being properly deployed?” asks Mr Sanusi. “We don’t know the reality.”

Nigeria is sub-Saharan Africa’s second-biggest economy after South Africa’s and the world’s eighth-largest oil exporter, yet the continent’s most populous country (with 140m-plus citizens) has yet to fulfil its economic potential. A robust banking sector that everyone can have confidence in is essential; the country’s reformers and regulators cannot rest on their laurels.

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Here are the NSE weekly reports from Lead Capital, FSDH, and Zenith Securities. Others will be posted as I receive them.

Weekly Report - FSDH - Aug 22 (18)
Weekly Report - Lead Capital - Aug 22 (6)
Weekly Report - ZSL - Aug 22 (9)

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Here is the spreadsheet analysis for the week ending today, Friday August 22nd. You can also view all the results released this week on the Weekly Reports page.

Special thanks to Meristem Securities, FSDH, UBA Capital, CSL Securities, and Afrinvest.

download: Market Analysis for Week Ended August 22nd (162.5KB) added: 22/08/2008 clicks: 31 description: Market Analysis for Week Ended August 22nd

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Thanks to CSL, SBA and UBA Capital, here are the major news stories over the week:

1. Nigeria’s crude oil production for July 2008 was 1.9mn barrels daily.
2. Union Homes Reit to provide investors alternative investment outlets: Union Homes Hybrid Real Estate Investment Trust (Reit) will provide alternative investment outlets for long-term investors in the Nigerian capital market. Mr. Abayomi Sanya, managing director of Goldman Asset Limited, the issuing house to the on-going Union Homes Hybrid Reit said that worldwide, Reit has proved to be one of the most reliable medium to long term investments because of its inherent qualities and unique features. Union Homes Savings and Loans Plc, the fund manager of the Reit is raising N50 billion through an offer for subscription of 970.9 million units of N50.00 each at N51.50 per unit in the Union Homes Hybrid Reit.
3. New EU agriculture policy threatens livelihood of 10 million Nigerians: At least 10 millions Nigerians and their dependants representing about 6.7 percent of the nation’s population who live on cocoa are due for the labour market if the ministry of agriculture and water resources continues to pretend not to have been informed officially or otherwise of the new Maximum Residue Limits (MRLs), on agricultural commodities by the European Union (EU) which comes into effect from September 1, 2008.
4. Virgin Atlantic, the technical partner to Virgin Nigeria (Nigeria’s flag carrier) is currently considering plans to sell its 49% stake in Virgin Nigeria. The company is currently in talks with likely buyers. However, there is no official reason for the sale yet.
5. Multinational oil-trading companies have threatened to stop the importation of fuel for the Nigerian National Petroleum Corporation (NNPC) in protest against the application of unfavourable demurrage on imported fuel cargoes.
6. Lagos State Government has concluded plans to raise N275bn through the issuance of bonds at the Nigerian Capital Market over the last three years.
7. Zenith Bank has announced a change in its financial year-end from June 30 to September 30. The Bank had, last week, reported its 12-month (to June 30, 2008) with over N41bn as net profits.
8. ETI floats N295 billion first sub-regional IPO: Ecobank Transnational Incorporated (ETI) the pan-African bank, Monday floated a $2.5 billion first initial public offering (IPO) in the West African sub-region.
9. GT Bank commences operation in the United Kingdom: This makes GT Bank the first Nigerian new generation bank to operate as full-fledged commercial bank; licensed to operate corporate and Retail banking services in the UK.
10. CBN lists challenges to meeting economic targets: The Central Bank of Nigeria (CBN) has identified a number of constraints to the smooth implementation of the Financial System Strategy 2020 (FSS 2020) programme which seeks to drive rapid and sustainable growth of the nation’s economy.The CBN said corruption and inappropriate laws and regulations for the financial sector have continued to thwart its efforts to fully implement the FSS document.Professor Chuklwuma Soludo, Governor of the CBN, said other challenges include instability in the country’s macro-economy, depth of the banking sector and poor state of infrastructure. The Central Bank of Nigeria (CBN) is targeting single-digit inflation by year end. The regulator explained that food prices are expected to drop as the economy enters the harvest period in the months ahead. Inflation rate had, in June 2008, galloped to 12% compared with 9.7% in the preceding month (May, 2008).
11. Inflationary pressure intensifies, rises to 14 percent: Inflationary pressure on Nigeria’s economy is intensifying with rate of consumer price increases soaring to 14 percent in July in what analysts say is a steady response to the spiraling food prices, poor state of infrastructure that has in turn increased the cost of doing business and global rice in fuel prices.This is against 12 percent recorded in June, the National Bureau of Statistics (NBS) confirmed yesterday in its latest price statistics.“The year-on-year average consumer levels as at July 2008 rose by 14 percent. This was higher than 12 percent observed in June. The corresponding urban and rural indices by 12.9 percent and 14.5 percent respectively over the period, the Bureau noted.Since the beginning of the year, inflationary pressure on the economy has continued to mount, erasing governments hopes of retaining the figure at a single digit within the year.
12. CBN recalls suspended Wema Bank’s MD, to resume September.
13. Neimeth to raise N10 billion for expansion, new businesses: Neimeth International Pharmaceuticals plc is currently awaiting shareholders’ approval with a view to increase its authorized capital base by 1.2 billion shares and thereafter move to the capital market to raise N10 billion.If the shareholders concede to this idea and Neimeth scale all regulatory hurdles, the N10 billion is expected to be raised through a hybrid offer of rights issue of 3 billion shares and public offer of 7 billion shares.
14. Change of Service Chiefs in Military High Commission: The President of the federation has made a routine change in the military high command. This move is part of the administration strategic decision to strengthen the new administration.

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