Archive for August, 2009

It is a tale of 2 different views of the same economy. <a href=”http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSLL52057020090821?sp=true”>Standard and Poor cut Nigeria’s credit rating</a> a notch to B-plus from BB-minus because of the impact of the costly bank bailout and falling oil revenues. <a href=”http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSLL52057020090821?sp=true”>Fitch on the other hand</a>, left it the same as it believes it might have a positive impact on the economy.

NSE Report For Week Ended August 21, 2009

The Nigerian Tribune had an article today on the complaints of the stakeholders of the banks taken over by the CBN.

You can read excerpts of the report below. My comments follow.

Below are the CBN Governor’s statement on the bank takeovers and the list of bank debtors:

Here are the main news stories as a result of the recent firing of the heads of Intercontinental, Oceanic, Finbank, Afribank, and Union Banks:

The CBN Governor announced on Friday, August 14th that the heads of Intercontinental, Oceanic, Finbank, Afribank, and Union Banks had been replaced. Those replaced are Erastus Akingbola of Intercontinental Bank Plc, Cecilia Ibru of Oceanic Bank Plc, Bart Ebong of Union Bank Plc, Okey Nwosu of FinBank Plc and Sebastian Adigwe of Afribank Plc. And the CBN will be injecting N400billion into these banks. Here is the report from <a href=”http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ajWuDKceXqWk”>Bloomberg</a>:

FSDH Securities recently released their report/outlook for the second half of 2009 for the Nigerian economy. Below is an excerpt of their summary of the outlook. You can also download the report below.

NSE Report For The Week Ended August 7th 2009

The Central Bank of Nigeria recently released the May 2009 Economic Report. The summary and copy of the report are below:

The Central Bank recently held the <a href=”http://www.cenbank.org/fican/2009/index.asp”>14th Seminar for Finance Correspondents and Business Editors</a>. This year’s event was focussed on the Global Economic Crisis And Its Impact On The Nigerian Economy.
Papers were delivered by notable personalities such as Dr Atuche, CEO of Bank PHB, Mr Odoko of WAMA etc.
You can read and download the papers below:

July 31, 2009 Market Report
Source: Nigerian Stock Exchange

A turnover of 2.5 billion shares worth N17.75 billion in 44,166 deals was recorded this week, in contrast to a total of 1.8 billion shares valued at N13.23 billion exchanged last week in 34,566 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 1.41 billion shares worth N11.6 billion exchanged by investors in 23,879 deals. Volume in the Banking subsector was largely driven by activity in the shares of First Inland Bank Plc, Zenith Bank Plc, Skye Bank Plc, First Ba nk of Nigeria Plc and UBA Plc. Trading in the shares of the five banks accounted for 790.7 million shares, representing 56.02% of the subsector’s turnover.
The Insurance subsector, boosted by activity in the shares of International Energy Insurance Plc and AIICO Insurance Plc, followed on the week’s activity chart with a turnover of 397.65 million shares valued at N353.8 million in 5,167 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 5.7% to close on Friday at 25,286.61. The market capitalization of the 195 First -Tier equities closed higher at N5.8 trillion. Also, The NSE-30 Index rose by 6.45% to close at 905.37.

 

Three of the four sectoral indices appreciated, while one depreciated – The NSE Food/Beverages Index rose by 11.74% to close at 505.51. The NSE Banking Index rose by 7.4% to close at 412.22. The NSE Insurance Index rose by 1.9 % to close at 348.65. However, The NSE Oil/Gas Index dropped by 1.7% to close at 359.37.

Sixty – Seven (67) stocks appreciated in price during the week, higher than the thirty – four (34) in the preceding week. Two Building Materials stocks led on price gainers’ table. Benue Cement Company Plc led with a gain of N10.10 to close at N47.90 per share while Lafarge Cement WAPCO Nig. Plc followed with N3.66 to close at N30.87 per share. Other price gainers’ in the Top 10 category include:

+ Julius Berger Nigeria Plc – N3.45
+ Flour Mills Nigeria Plc – N3.08
+ Guinness Nigeria Plc – N3.00
+ Ashaka Cement Plc – N2.85
+ Dangote Sugar Refinery Plc – N2.82
+ Zenith Bank Plc – N2.48
+ Conoil Plc – N2.48
+ Glaxo Smithkline Consumer Plc – N2.42

 

Forty – Two (42) stocks depreciated in price during the week, lower than the eighty – two (82) in the preceding week. Two Petroleum (Marketing) stocks led on the loser s’ table. African Petroleum Plc led, dropping by N3.82 to close at N72.68 per share while Oando Plc followed with a loss of N3.47 to close at N91.00 per share. Other price losers in the Top 10 category include:

- UAC of Nigeria Plc – N3.39
- Nigerian Breweries Plc – N3.28
- PZ Cussons Nigeria Plc – N0.98
- G Cappa Plc – N0.98
- Intercontinental Bank Plc – N0.87
- University Press Plc – N0.67
- John Holt Plc – N0.56
- Guaranty Trust Bank Plc – N0.55

The price of Prestige Assurance Plc was adjusted for N0.20 per share as recommended by the Board of Directors.


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This blog is dedicated to informing users on the latest business and economic news news from the CBN and Nigerian Stock Exchange. Happy reading!

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