Archive for July, 2011

Courtesy of FSDH, Afrinvest, and Lead Capital, here are the NSE reports and stats for the week ended July 15th 2011:

  1. The market moved southwards this week, with a cumulative loss of 197 bps.
  2. Incessant selling at the bourse continued with no respite throughout the week, leading to losses across board.
  3. The likes of Stanbic IBTC, Intercontinental Bank and Wema Bank however recorded varied gains in the banking sector this week, as the top-tier banks shed varied points. This trend may reverse in the coming week as buyers are likely to key in at the current low prices.
  4. In the breweries sector, a last day price appreciation in NB led to a 4.6% gain, while Guinness succumbed to bearish pressure, shedding marginal points.
  5. Companies in the food and beverages were not spared from the bearish trend prevalent in the market, as the sector failed to record any gain this week. Thus, Flour Mills, NNFM, Dangote Sugar, Nascon and Cadbury all shed points in excess of 3.0% apiece, while other stocks in the sector remained unchanged.

Here are excerpts from B. J. Rewane’s Monthly Economic Views and News presentation for July 2011:

- Economic expansion to continue and will be buoyed by robust non oil sector growth
– In 2011, the economy has suffered from deferred investment decisions due to political uncertainty
– GDP growth for 2011 expected to be 5.9% before increasing in 2012 to 6.2%
– Expansionary fiscal policy and higher food import prices will pose inflation threats
– Capacity expansion in key sectors to be funded mainly by debt and offshore credit
– Mainly in telecom data network expansion
– Aggressive cement capacity expansion in the building material space now targeting 20million tonnes per year
– Lafarge, Dangote and Flour Mills Nigeria fighting for market share
– Substantial Brewing industry capacity expansion and reactivation of dormant breweries
– Consolidation and growing demand in the Food and beverage sector
– Civil works and engineering for power stations, roads, bridges at both State and FGN levels
– Budget discipline and due process will be on the front burner
– The entry of Ngozi the task mistress means hold the feet of Ministers to the fire
– Deficit funding and management will be a major challenge

You can download the entire presentation below:

Below is the summary of the NSE for the week of July 8th.

- The NSE All-Share Index cumulatively shed 157bps at the end of this week.
– Bearish sentiments continued to dominate proceedings on the bourse this week despite the marginal appreciation recorded towards the end of the week. Some stocks in the banking sector however recorded marginal gains, with the likes of Stanbic IBTC, Diamond Bank, FinBank and Unity Bank bagging varied points. On the other hand, Wema Bank, Union Bank and Afribank shed points in excess of 11.0% apiece. The sector is likely to trade around this level in coming sessions; there is however a possibility that activities from new entrants could reverse this trend.
– In the food and beverages sector, NBC and Cadbury recorded marginal gains this week. On the flip side, NNFM, Honeywell Flour, Nascon, Dangote Flour and Flour Mills went southwards, shedding points between 1.3% and 11.5%. Other stocks in the sector traded sideways. A dearth of new and positive information may lead to a continuation of the trend witnessed in the sector last week in the near term.
– Japaul Oil was divergent to the market trend this week, with a 3.8% gain.

And here are the reports from FSDH, Afrinvest, and Lead Capital for the weeks ending July 1st and 8th:

July 8th:

Afrinvest Weekly Market Update July 8 2011 (418).

NSE Weekly Report - FSDH - July 8th 2011 (449).

NSE Weekly Report - Lead Capital - July 8th 2011 (411).

Afrinvest Weekly Update 8th July 2011 (436)

July 1st:

Afrinvest Weekly Market Update July 1 2011 (399).

Afrinvest Weekly Update 1st July 2011 (424).

NSE Weekly Report - FSDH - July 1 2011 (500).

NSE Weekly Report - Lead Capital - July 1st 2011 (422)

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