Money & Fixed Income Markets

Available data at the inter-bank market showed that the 7-day NIBOR inched up to close the week at 14.79%, a 154 basis point increase from the previous week’s figure of 13.25%. Also, the 90-day NIBOR inched up to close the week at 16.45%, a 5 basis point increase from the previous week’s figure of 16.40%. As at the time of this report, there was no report of Treasury Bill (TB) transactions from the CBN. However as at last week Thursday May 07, 2009, at the 91-day TB auction, the CBN offered and allotted N15.11bn worth of TB, it was over subscribed by 40.96% at N21.30bn. The bill was issued at discount rate of 3.40%. Also at the 182-day TB auction last week, a total of N30bn worth of TB was offered and allotted, while N45.01bn was subscribed leading to an over subscription of 50.04%. A total of N10bn was repaid leading to an outflow of N20bn from this segment of the market. The bill was issued at discount rate of 5.15%.

At the 365-day TB auction, a total of N30bn worth of TB was offered and allotted, while N36bn was subscribed leading to an over subscription of 20%. A total of N15bn was repaid leading to an outflow of N15bn from this segment of the market. The bill was issued at discount rate of 6.75%. In all last week, there was total net outflow of N50.11bn from the primary segment of the money market. Also last week, at the secondary segment of the government securities market, a total of N122.08bn worth of Repo & EDW (Expanded Discount Window) was injected, while N135.58bn was withdrawn. This led to withdrawal of about N13.49bn
from this segment of the market. The tenor days on the OMO Repo and EDW ranged from 7 days to 30 days. The discount rate on the bills ranged between 8.25% and 12.50%.

As at the time of this report, we only had auctions held by the Central Bank until Wednesday, May 13, 2009. At the auction held on Monday, May 11, 2009, the CBN offered US$100mn, while it sold US$119.69mn.The sale was 19.69% higher than what it offered. On Tuesday, May 12, 2009, the CBN offered US$100mn, while it sold US$98.48mn; the sale was lower than what it offered by 1.52%. On Wednesday, May 13, 2009, the CBN offered at total of US$100bn, while it sold US$103.17mn; the sale was higher than what it offered by 3.17%. In all, this week a total of US$300mn was offered, while the CBN sold US$321.34mn. The sale was 7.11% higher than what it offered.

In all last week, there was a total net outflow of N110.57bn from both segments of the government securities and the foreign exchange markets. The value of the Naira depreciated at both the official and parallel markets. The value of the naira depreciated by 31kobo and 70kobo to close the week at N146.32/US$1 and N180.70/US$1 compared with the previous week’s figures of N146.01/US$1 and N180.00/US$1 in the official and parallel markets respectively. As at the time of this report the inter-bank market remain closed by the CBN.

Equities Market
The equities market closed the week higher despite some profit taking towards the end of the week. The Nigerian Stock Exchange All-Share Index (NSE ASI) closed the week on a positive note. The NSE ASI closed the week at 24,796.42 points, up from the previous week’s figure of 23,516.26 points, an appreciation of 5.44%, compared with the appreciation of 9.42% recorded in the preceding week. The appreciation in the index was on account of the gains recorded in the Banking, Insurance and Petroleum Marketing sub-sectors. The market capitalization also appreciated to close the week at N5,631.76bn (approximately US$39.26bn). It
appreciated by 5.39%, compared with the appreciation of 9.42%, recorded in the preceding week. The difference between the NSE ASI and Market capitalization was due to supplementary listing and delistings during the week.

Investors’ interest continued in the heavily capitalized banking sector for most part of the week. The share prices of Zenith Bank (Up 27.39% to N20.56), Stanbic IBTC (Up 21.62% to N9.00), FCMB (Up 14.60% to N7.22), Bank PHB (Up 13.94% to N7.11), Union Bank (Up 13.05% to N14.38), Diamond Bank (Up 12.57% to N6.45) and Access Bank (Up 12.08% to N7.70) all appreciated.

In the Insurance sector, the share prices of Continental Reinsurance (Up 24.36% to N0.97), Law Union & Rock (Up 19.61% to N1.22), Consolidated Hallmark (Up 16.00% to N0.58), Prestige Assurance (Up 115.38% to N3.75), Mutual Benefits (Up 14.29% to N0.96), Standard Alliance (Up 14.06% to N0.73), AIICO (Up 12.38% to N1.18) and International Energy (Up 9.09% to N1.20) all appreciated.

The share prices of African Petroleum (Up 11.46% to N78.00), Mobil Oil (Up 10.24% to N111.33), Oando (Up 6.59% to N87.40) and TOTAL (Up 4.17% to N150). In the Manufacturing and Allied sector, the share prices of Nigerian Breweries (Down 12.19% to N46.10), Guinness (Down 11.86% to N104.00) and NBC (Down 5.39% to N26.50) decreased. However, there were gains recorded in the share prices of Benue Cement (Up 27.47% to N34.80), Flour Mills (Up 16.61% to N24.50), Dangote Flour (Up 15.95% to N9.74), and Ashakacem (Up 12.20% to N11.31).

Other top gainers for the week were Unity Bank (Up 25.85% to N1.85), Livestock Feeds (Up 25.22% to N1.44), MTI (Up 22.22% to N0.66), UNIC (Up 21.92% to N0.89) and Longman (Up 21.06% to N5.46); while other top losers for the week were Deap Capital (Down 22.44% to N3.11), Airline Services (Down 18.42% to N7.04), UTC (Down 13.95% to N2.59), Cutix (Down 13.93% to N5.50) and Crusader (Down 13.83% to N2.68). Overall, eighty-four (84) stocks recorded gains in their share prices; thirty (30) stocks recorded losses, while ninety-two (92) stocks closed the week unchanged.

Supplementary Listing
A total of 5,740,000,000 shares were added to the shares outstanding in the name of Capital Oil Plc having concluded its’ placing with Proven Insight Consultants Ltd and True Bond Energy Ltd. The Technical  suspension on the stock was subsequently lifted.

Delisting
The Council of the NSE approved the delisting of nine (9) companies following the expiration of the time given to them to regularize their status with the Exchange. The companies delisted were: Ferdinand Oil Mills Plc, Footwear Accessories Manufacturing & Distribution Plc, BCN Plc, Chrislieb Plc, Epic Dynamics Plc, Liz Olofin & Company Plc, Oluwa Glass Company Plc, Aba Textiles Mills Plc and Asaba Textile Mills Plc. By this action, the number of quoted companies and securities dropped to 206 and 294 respectively.

Over-the-Counter Bond Market
A turnover of 469.4mn units worth N475.82bn in 3,541 deals was recorded this week, in contrast to a total of 298.91mn units valued at N301.86bn exchanged in 1,805 deals during the week ended Thursday, May 7, 2009. The most active bond (measured by turnover volume) was the 4th FGN Bond 2014 Series 11 with a traded volume of 84.4mn units valued at N84.99bn in 841 deals. This was followed by the 5th FGN Bond 2013 Series 1 with a traded volume of 54.1mn units valued at N52.78bn in 211deals. Twenty?five (25) of the available forty (40) FGN Bonds were traded during the week, compared to twenty- six (26) in the preceding week.

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