Naija Lo Wa

Courtesy of FSDH Securities, here is the NSE report for the week ended July 23rd 2010:

Money and Fixed Income markets
The money market was tight as a result of about N105bn that left the system through Federal Government Bond auction. Consequently, inter-bank rates inched up at the end of the week. Available data showed that 7-day NIBOR closed the week at 2.03%, 84 basis point increase from the previous week’s figure of 1.88%, while 90-day NIBOR closed the week at 7.13%, a 71 basis point increase from the previous week’s figure of 6.83%.

There was no activity at the 91-day, 182-day and 364-day Treasury Bills auction. However, at the re-opening of the 3-year FGN Bond auction, the DMO offered N35bn, while it was 220% subscribed at N77bn. The Bond carried a marginal rate of 7.48%. At the re-opening of the 5-year FGN Bond auction, the DMO offered N35bn, while it was 175.26% subscribed at N61.34bn. The Bond carried a marginal rate of 8.85%. The 20-year FGN Bond auction was a new issue, the DMO offered N35bn while it was 209.37% subscribed at N73.28bn. The Bond carried a coupon rate of 10%.

In all, this week, there was a total outflow of N105bn from the primary segment of the government securities market.

At the foreign exchange auction held on Monday, July 19, 2010, the CBN offered and sold a total of US$250mn, while demand stood at US$311.25mn, representing 124.50% of what was offered. On Wednesday, July 21, 2010, the CBN offered US$250mn, demand stood at US$205.50mn, representing 82.20% of what was offered, while the total sale was same as demand of US$205.50mn. During the week, a total of US$455.80mn was sold, compared to US$500mn sold in the previous week, while US$516.75mn was demanded, representing 103.35% of what was offered.

The value of Naira appreciated at the inter-bank and parallel markets, but depreciated at the official market segment of the foreign exchange market. At the inter-bank market segment of the foreign exchange market, the value of Naira appreciated by 66kobo to close at N149.90/US$1, compared to N150.56/US$1 in the previous week. At the parallel market segment of the foreign exchange market, the value of the Naira appreciated by 30kobo to close at N152.20/US$1, compared to the previous week’s figure of N152.50/US$1. At official market, the value of the Naira depreciated by 10kobo to close at N148.72/US$1 from N148.62/US$1 in the previous week.

Equities Market
Investors’ interest was sustained in the market during the week on account of good earnings reported and the progress made in establishing the Asset Management Corporation of Nigeria (AMCON). Consequently, the Nigerian Stock Exchange All Share Index (NSE ASI) closed the week on a positive note. The NSE ASI appreciated by 1.70% to close at 25,269.36 points, compared to the marginal appreciation of 0.96% recorded in the previous week; bringing the Year-To-Date (YTD) to 21.33%. The appreciation in the Index was as a result of the gains recorded in the Banking and Manufacturing & Allied sub-sectors. Similarly, the market capitalization appreciated to close the week at N6,179.97bn (approximately US$41.55bn), recording an appreciation of 1.70%, compared to the marginal appreciation of 0.96% recorded in the previous week.

The value of stocks in the Banking Sector  by 1.72% to close the week at 277.46 points, compared to the previous week’s appreciation of 3.79%. The appreciation in the Index was due to the gains recorded in the share prices of Sterling Bank (Up 7.39% to N2.18), First Bank (Up 6.92% to N14.06), Diamond Bank (Up 5.63% to N7.50), Access Bank (Up 4.94% to N8.50), UBA (Up 3.78% to N10.43), Stanbic IBTC (Up 2.00% to N9.18) and Fidelity Bank (Up marginally 0.44% to N2.29). However, there were depreciation in the share prices of FCMB (Down 6.17% to N7.30), Zenith Bank (Down 1.00% to N12.86), Skye Bank (Down marginally 0.69% to N7.20) and GT Bank (Down marginally 0.41% to N17.01).

The value of stocks in the Manufacturing & Allied sector appreciated by 1.38% to close the week at 305.51 points, compared to the previous week’s appreciation of 1.27%. The appreciation in the Index was due to gains recorded in the share prices of Cadbury (Up 12.06% to N29.00), Ashakacem (Up 11.63% to N19.00), UACN (Up 7.29% to N43.99), PZ Cussons (Up 6.56% to N32.50), Dangote Flour (Up 5.24% to N20.50), Honeywell Flour (Up 3.94% to N6.80), CCNN (Up 3.70% to N16.80), NAHCO (Up 2.50% to N10.25), Dangote Sugar (Up 1.71% to N17.80), Unilever (Up 1.44% to N24.00), UPDC (Up marginally 0.14% to N21.00) and Benue Cement (Up marginally 0.08% to N62.05).

The value of stocks in the Petroleum Marketing sector depreciated by 1.88% to close at 421.50 points, compared to the previous week’s depreciation of 1.27%. The depreciation in the index was due to losses recorded in the share prices of Mobil Oil (Down 5.00% to N185.94), Conoil (Down 4.81% to N49.50), and Oando (Down marginally 0.41% to N69.71). All other stocks in the index closed the week unchanged.

The value of stocks in the Insurance Index depreciated by 1.18% to close the week at 98.05 points, compared to the previous week’s marginal depreciation of 0.34%. The depreciation recorded in the Index was because of the losses recorded in the share prices of Intercontinental WAPIC (Down 19.12% to N0.56), N.E.M Insurance (Down 5.66% to N0.50), AIICO Insurance (Down 4.20% to N1.14), Law Union & Rock (Down 3.70% to N0.52), Oasis Insurance (Down 3.51% to N0.55) and Custodian & Allied Insurance (Down 3.10% to N3.44).

Other top gainers for the week were Afribank (Up 26.16% to N2.17), Wema Bank (Up 23.53% to N1.05), Oceanic Bank (Up 19.63% to N1.95), Union Diagnostic (Up 16.36% to N0.64) and CHAMS (Up 15.69% to N0.59); while other top losers for the week were Afromedia (Down 12.50% to N0.56), Beco Petroleum (Down 11.24% to N0.79), Livestock Feeds (Down 10.45% to N0.60), FTN Cocoa (Down 9.72% to N0.65) and Okomu Oil (Down 9.65% to N12.26). Overall, forty-six (46) stocks recorded gains in their share prices; forty-three (43) stocks recorded losses, while one hundred and twenty-six (126) stocks closed the week unchanged.

Over-the–Counter Bond Market
A turnover of 261.75mn units worth N291,668.8mn in 3,286 deals was recorded this week in contrast to a total of 255mn units valued at N293,555.5mn exchanged in 2,554 deals during the week ended Thursday, July 15, 2010. The most active bond (measured by turnover volume) was the 4th FGN Bond 2014 Series 11 with a traded volume of 57.05mn units valued at N66,880.72mn in 1,135 deals. This was followed by the 7th FGN Bond 2015 Series 1 with a traded volume of 56.1mn units valued at N54,980mn in 548 deals. Eighteen (18) of the available thirty-seven (37) FGN Bonds were traded during the week, compared with twenty-four (24) in the preceding week.

The reports from FSDH, Afrinvest and IBTC are available for download below:

1. FSDH – NSE Report – July 23rd 2010
2. IBTC – NSE Report – July 23rd 2010
3. Afrinvest Forthnightly NSE Report – July 23rd 2010