Courtesy of Cordros Capital Nigeria, here is the NSE report for the week ended April 23rd 2010:

Market overview
The stock market had been mixed so far in the week having given up part of the gains accrued in the past weeks. The market ended last week’s trades with some declines after witnessing fluctuations in terms of its daily performance. By the end of the week, the NSE AS index closed at 27,400.21 basis points, down by 2.10 per cent while the market capitalisation lost N142.34 billion in a week after closing at N6.63 trillion.

The volatile movement of the market’s indices was as a result of profit taking transactions on one hand and purchase activities, which were mostly speculative, on the other. The decline was also occasioned by losses with stocks in major blue chip companies. Furthermore, listed companies continued to announce their annual results for the year 2009.

First Bank, Skye Bank, NAHCO, and BIGTREAT were among the companies who released their corporate earnings and performance in the just concluded week. However, the market further retreated due to disappointing earnings reports from some of these companies. Meanwhile, the acting president Goodluck Jonathan during the week signed into law the 2010 appropriation bill of N4.6 Trillion. The budget is aimed to accelerate economic recovery through targeted fiscal interventions designed to stimulate the economy and support sustained private sector growth. This has been based on assumptions reflecting outlook for the fiscal year, including: oil production of 2.35 mb/d; benchmark oil price of US$67/barrel, and average exchange rate of N150 to the US dollar.

Looking ahead, the market will focus over the coming weeks on more corporate results and other economic indicators even as speculation and the taking of swift profits continue to dominate market activities. Currently, attention is drawn to 2010’s first quarter results in light of NSE’s registered gains during the first three months of the year. The market will remain steady in the coming weeks as investors monitor new moving factors on the strength of future corporate earnings.

During the week, both the market capitalisation and the NSE AS Index lost 2.10% respectively. So far, the market has recorded a YTD-high market capitalisation of N6.78 trillion, representing a YTD yield of 35.88%. Overall, the market traded a total of 3.36 billion units of shares, valued at N35.82 billion in 52,134 deals.

Most Active Sector
The Banking sub -sector remain the most active (measured in terms of traded volume) as it recorded 1.43 billion shares valued at N19.64 billion exchanged in 18,798 deals while the Insurance sub-sector was second with traded volume of 494.24 million shares valued at N532.78 million in 3,467 deals.

Corporate actions and results In the past week
First Bank Plc proposed a dividend of 10 kobo and one new share for every eight shares held in its corporate earnings and benefits announced. Guaranty Trust Plc also released its interim report for the period ended (Q1) March 31, 2010 to the floor of the Nigerian Stock Exchange. The company declared a Gross Earnings of N44.382 billion and a Profit After Tax of N8.847 billion. In addition, Skye Bank Plc released its full year audited financial report. The bank declared a gross income of N126.665 billion and a profit after tax of N1.130 billion. The directors also recommended a dividend of 5 kobo per share. Market outlook The stock market will likely be driven again by company earnings reports over the next two weeks, as investors try to get a sense of how well corporate profits and benefits will hold up in second quarter of the year.