Courtesy of Meristem Securities, here is the stock market report for the week ended Fbruary 20th 2009:

STOCK MARKET BRIEF FOR THE WEEK ENDED FRIDAY, FEBRUARY 20, 2009 – Activities Remain Sluggish as Index Dips 391bps

Despite the lull which had commenced since upper weekend, the bulls struggled to keep their horns high as trading this week saw the energetic bears combating hard to gain complete market dominance over the bulls. As daily decline in market returns tilt towards zero, expectations are high as to what the week ahead has to unfold.

However, overall stock market returns for the week lie in the negative terrain as the NSE ASI shed 391bps (basis points) to close at 22,711.91 points and the market capitalisation of the 214 listed equities depreciated by 3.90 percent to stand at 5.081trillion NGN (34.82billion USD).

Penny stocks were investors’ toast for the week under review definitely because of their cheap prices. The banking and insurance sector was also at the center of activities as they enjoy liquidity from trading.

Volume of shares exchanged this week was 0.88 percent higher than previous week’s as transactions was on the low side. The number of deals and value of transactions dipped by 14 percent and 18 percent respectively to stand at 36,804 trades and 7.67billion NGN (52.58million USD) in that order. Total volume of shares traded was 1.54billion shares compared with 1.53billion shares executed previous week.

 Sector News

1. Sectoral activities for the week reeled off from the banking sector as the sector’s shares dominated proceedings. Investors exchanged stakes in 696.62million shares in 20,375 trades which was valued at 5.13billion NGN (35.19million USD). This feat was made possible by transactions in OCEANIC (192.7m units), ACCESS (82.8m units) and FIRSTBANK (82.6M units) which accounted for over 50 percent of the sector’s activity.
2. Insurance sector was also active owing to high level of liquidity (number of shares) in the sector, accounting for 289.14million shares exchanged in 3,186 deals worth over N209.54milllion NGN (1.67million USD).
   Conglomerate sector ranked third on activity chart with 124.77million shares were swapped in 3,417 trades grossed at 209.54million NGN (1.44million USD).
3. After the squeeze experienced in the bid camp through the week, Friday ended with more equities tossed on bid. Penny stocks rounded transactions up owing to the fact that their prices are abysmally low after been trampled upon by the bears. Stocks like UNIONDAC, ASOSAVINGS, MBENEFIT, GUINEAINS, NEM, NASCON, SOVRENINS and TRANSCORP were atop the bid chart. On the flip side, IAINSURE, EQUITYASUR, CRUSADER, CAPHOTEL, and STACO were prominent on the offer chart.

Business News

1. More companies graced proceedings on the floor of the stock exchange with their quarterly performance results. FIRSTBANK PLC, FIDELITYBK PLC, PLATINUM PLC, UBA PLC, ZENITH PLC, CADBURY PLC, and IPWA PLC released their unaudited scorecard while CADBURY PLC, COSTAIN PLC and LIVESTOCK PLC announced their quarterly forecast profit & loss figures.
2. The board of WAPCO PLC proposed a dividend of 60kobo. For its financial year ended December 31, 2008. Closure date was scheduled for May 14, 2009, payment date and AGM date fixed for May 27, 2008.
3. In contrast to the bearishness witnessed through the week, the bulls spur up trading today as some stocks suddenly got bullish. 36 stocks as against 51 preceding week gyrated northwards into the bullish camp while 64 equities in contrast to 43 last Friday tilted southwards into the losers’ camp by close of trading this week.
4. Measured in absolute terms, NESTLE rode with the bulls all week long as it led the gainers, camp with a N21.40k ($0.15) price appreciation to close the week at N136.60K while the petroleum (marketing) sector dominated the losers’ territories for the week. AP, since after lifted off technical suspension continue to wane in the bear’s territory as it lost another N41.90k ($0.29) off its shares price to hit N143.42k by close of market Friday.
5. Dividends: The board of WAPCO PLC proposed a dividend of 60kobo For its financial year ended December 31, 2008. Closure date was scheduled for May 14, 2009. Payment Date and AGM fixed for May 27, 2008.

Company Results