Stock Market
2013 Q2 Report


Market Turnover

Month Deals
('000)
Volume Traded
(Billion)
Value
(Billion N)
April 121 8.3 95
May 124 8.8 94
June 136 9.7 146
Total 381 26.80 336
A turnover of 26.5 billion shares worth N336.6 billion in 380 thousand deals was recorded during the quarter in contrast to the turnover of 31.31 billion shares worth N254.97 billion exchange in 387 thousand deals that was recorded during the preceding quarter.
Month MARKET CAP. % CHANGE INDEX % CHANGE
April 10994326607707.2
-
10691689787709.6
- 2.75 % 34351.87
-
33440.57
- 2.65 %
May 11031172894588.4
-
12075225694462.8
9.46 % 34502.38
-
37794.75
9.54 %
June 12084247834984.5
-
11426252504888
- 5.45 % 37822.99
-
36164.31
- 4.39 %
During the quarter under review, the All-Share Index appreciated by 5.01% between April and June ending. The market capitalisation opened at 10.9 trillion and 34,351.87 index. Market capitalization and index decreased by 2.7% in April, it then appreciated in May by 9.54% and later decreased again in June by 4.92% ending the quarter on a bearish note and finally closed at 11.43 trillion capitalisation and 36.164.31 index

New Listing/Listed Companies/Delisted Companies

New Listing

  1. Listing of C & I Leasing - N940 million 18% Fixed Rate Bond 2012/2017 under the N10 billion Issuance Programme was admitted on The Exchange on 15th April, 2013
  2. Listing of 14.75% Osun Dec 2019 – Osun State N30 billion fixed Rate Bond (Series1) 2012/2019 under the N60,000,000 debt issuance programme was admitted on The Exchange on 23rd April, 2013
  3. In compliance with Regulation 3 of Central Bank of Nigeria (CBN) in which all deposit banks were
    mandated to restructure their operations,
    First City Monument Bank FCMB adopted the Group arrangement and was admitted for trading on the Exchange on 24th of June, 2013. The outstanding shares of the FCMB group are now 19,802,710,754

Full Suspension

  1. Full suspension was placed on the shares of Crusader Plc prior to delisting of Crusader Plc and listing of the Scheme merger between Custodian and Allied Insurance Plc and Crusader Plc shares. The Full suspension took effect from Monday, April 8, 2013
  2. The shares of International Energy Insurance Plc was placed on Full Suspension by the Exchange following the approvals to consolidate its outstanding shares from 6,420,427,449 shares to 1,284,085,489 shares i.e. 1 share for every 5 shares held from Thursday 6th to Thursday 20th June, 2013. The proposed newly reconstructed shares will be listed on the Exchange at N2.50

Delisted

  1. Following the Scheme of merger between Flour Mills of Nigeria Plc with Nigerian Bag Manufacturing
    Company Plc, Nigerian Bag Manufacturing Company Plc was delisted from the Daily Official List of
    The Exchange on 11th April 2013
  2. Simultaneously, Crusader (Nigeria) Plc was delisted from trading on 13th May 2013 after conclusion of the merger with Custodian and Allied Insurance Plc
  3. Upon the maturity of 15.00% FGN MAY 2013 bond; the bond was accordingly delisted from trading on May 30, 2013
  4. West African Aluminium Plc (Waap) and Nigerian Wire Industries Plc were delisted from trading on The Exchange on 4th June, 2013. This is because of their failure to regularize their listing status with The Exchange.
  5. Having obtained the approval of Central Bank of Nigeria CBN and Quotations Committee of the
    Exchange, the Bank has concluded all arrangements for the seamless delisting of First City Monument Bank Plc from the Exchange. As a result of this, FCMB Bank Plc has subsequently been delisted from the Exchange

Half Year Index Review

The NSE Sectorial Indices were reviewed as expected on June 25, 2013. At the end of the exercise, the various indices were updated (reviewed) as shown below:
Index Incoming Exiting
NSE -30 Index Oando Plc Mobil Oil Nigeria Plc
NSE 50 Index Livestock Feeds Plc Nigerian Bag Manufacturing Co. Plc (Delisted equity)
NSE Consumer Goods Index No Change No Change
NSE Banking Index Sterling Bank Plc FCMB Group Plc
NSE Insurance Index
Mutual Benefits Assurance Plc

Law Union & Rock Insurance Plc
Linkage Assurance Plc

Goldlink Insurance Plc.
NSE Oil/Gas Index


Eterna Oil Plc Japaul Oil & Maritime Services Plc
NSE Industrial Index
Beta Glass Co. Plc

Paints and Coatings Manufacturers Plc
Nigerian Bag Manufacturing Co. Plc (Delisted equity)

DN Meyer Plc
NSE LII Julius Berger Nigeria Plc, Chemical & Allied Products Plc, Presco Plc Japaul Oil & Maritime Service Plc
Honeywell Flourmills Plc
Dangote Flour Mills Plc

Supplementry Listing

The table below shows the companies which added to their respective outstanding shares on the floor of the Exchange either as supplementary or new issues.
Company Volume Type of Issue
FLOURMILLS 50,893,281 MERGER
RAKUNITY 43,051,159 SPECIAL PLACING
LIVESTOCK FEEDS 800,000,000 SPECIAL PLACING
CUSTODIN 781,017,387 MERGER
BOC GASES 23,124,706 BONUS SHARES
OKOMUOIL 479,955,000 BONUS 1:1
CAP PLC 140,000,000 BONUS 1:4
UACN 320,144,064 BONUS 1:5
FCMB 761,642,721 BONUS1:25
OANDO 4,548,236,276 RIGHT ISSUE OF 2:1

Corporate Actions

The underlisted companies declared benefits (Dividend and Bonus) during the quarter:
Company Dividend Paid Bonus
1 ABC TRANSPORT PLC ₦ 0.13 Nill
2 A.G LEVENTIS NIGERIA PLC ₦ 0.14 Nill
3 AIRLINE SERVICES AND LOGISTICS PLC ₦ 0.25 Nill
4 BERGER PAINTS NIGERIA PLC ₦ 0.70 Nill
5 BETAGLAS ₦ 0.34 Nill
6 BOCGAS ₦ 0.20 Nill
7 CADBURY NIGERIA PLC ₦ 0.50 Nill
8 CAP PLC ₦ 0.70 1:4
9 DANGOTE CEMENT PLC ₦ 3.00 Nill
10 DANGOTE SUGAR REFINERY PLC ₦ 0.50 Nill
11 FCMB Nill 1:25
12 FIDELITY BANK PLC ₦ 0.21 Nill
13 FBN HOLDINGS PLC ₦ 1.00 Nill
14 GLAXOSMITHKLIME NIG. PLC ₦ 1.30 Nill
15 GUARANTY TRUST BANK PLC ₦ 1.30 Nill
16 LAFARGECEMENT WAPCO NIG PLC ₦ 1.20 Nill
17 LEARN AFRICA PLC ₦ 0.20 Nill
18 MANSARD ₦ 0.07 Nill
19 MOBIL OIL NIGERIA PLC ₦ 5.00 Nill
20 NATIONAL SALT COMPANY OF NIGERIA PLC ₦ 0.90 Nill
21 NESTLE NIGERIA PLC ₦ 18.50 Nill
22 NPF MICROFINANCE BANK PLC ₦ 0.10 Nill
23 OKOMU OIL PALM COMP. PLC ₦ 7.00 1:1
24 PAINTS AND COATINGS MAN. PLC ₦ 0.12 Nill
25 SKYE BANK PLC ₦ 0.50 Nill
26 STANBIC IBTC HOLDINGS PLC ₦ 0.10 Nill
27 STERLING BANK PLC ₦ 0.20 Nill
28 TOTAL NIGERIA PLC ₦ 8.00 Nill
29 UAC OF NIGERIA PLC ₦ 1.60 1:5
30 UAC PROPERTY DEV. CO. PLC ₦ 0.70 Nill
31 UBA ₦ 0.50 Nill
32 UNILEVER NIGERIA PLC ₦ 1.40 Nill
33 ZENITH BANK PLC ₦ 1.60 Nill
A total of thirty three (33) companies declared dividend while only (4) companies declared bonus during the quarter.

Sectoral Performance

The Financial sector was the most active during the period (measured by turnover volume) with 18.2 billion shares worth N160 billion exchanged by investors in 210,975 deals. The Conglomerate sector followed with 2.05 billion shares valued at N74.95 billion in 13,205 deals. Others follow as shown in the table below.
Sector Deals Volume Value
1 FINANCIAL 210,975 18,191,821,405 160,743,795,320.72
2 CONGLOMERATE 13,205 2,047,352,042 6,540,798,443.10
3 CONSUMERGOODS 67,710 1,569,827,039 74,965,176,188.12
4 OIL AND GAS 23,014 874,456,265 7,129,294,389.25
5 SERVICES 12,255 547,265,154 1,657,844,528.96
6 AGRICULTURE 14,874 411,238,612 9,615,737,810.50
7 INDUSTRIAL GOODS 17,113 860,341,019 65,345,770,874.63
8 HEALTHCARE 7,546 333,600,786 1,559,238,950.71
9 ICT 1,493 797,616,743 1,402,501,211.53
10 CONSTRUCTION 5,648 336,832,039 2,367,722,275.07
11 NATURALRESOURCES 238 18,716,750 32,654,703.23

SECTORAL DISTRIBUTION OF THE VOLUME TRADED DURING THE QUARTER

70% of the total market turnover was accounted for by the FINANCIAL sector, followed by 8% by the CONGLOMERATE sector, 6% by the CONSUMER GOODS and the remaining 16% was by other sectors as shown in the figure below:

20 Most Capitalized Companies

Company Quality on Issue
(Billion)
Market Capitalization
(Billion)
1 DANGCEM 17.04 3,118.58
2 NB 7.56 1,181.37
3 NESTLE 0.79 760.95
4 GUARANTY 29.43 717.83
5 ZENITHBANK 31.40 627.93
6 FIRSTBANK 32.63 587.38
7 GUINNESS 1.51 378.08
8 UAC-PROP 20.93 303.66
9 UBA 32.98 268.14
10 WAPCO 3.00 252.13
11 ACCESS 22.89 241.47
12 UNILEVER 3.78 217.54
13 UBN 16.94 208.48
14 FLOURMILL 2.39 201.11
15 ETI 13.24 197.25
16 CADBURY 3.13 168.98
17 PZ 3.97 162.39
18 IBTC 10.00 152.10
19 DANGSUGAR 12.00 138.00
20 FCMB 19.80 94.46

Stock(s) to Watch

It is imperative to always have the mind to invest in shares for future purposes and not for instant gain. Although it is equally possible to enter and exit the market after a short while and still make good profit. Below is our recommendation on some stocks:

Buy Recommendation

NIGERIAN BREWERIES

• Second most capitalised company
• Has a good bonus/dividend history
• They have declared a dividend of N300k
• Has a steady growth

TRANSCORP

• Current price (N1.35) is good for entry and investors are advised invest more in the stock
• It is a good stock for long term investment
• Has just changed its management and this is expected the have a positive impact on the stock
• Apart from the Hospitality business (Hotel), they are also involved in Oil and Gas business and will soon be involved in Power distribution (PHCN)
• A leading stock in the Conglomerate sector

FIRST BANK PLC

• A good stock with steady growth
• One of the leading stocks in the Financial sector
• Has declared a dividend of N100k
• Current price (N18.00) is good for entry
• Has a good quarterly report

ZENITH BANK

• A good stock with steady growth
• One of the leading stock in the Financial sector
• Has declared a dividend of N160k
• Current price (N20.00) is good for entry
• Has a good quarterly report

JULIUS BERGER

• Has a good dividend history
• Has declared a dividend of N250k
• Current price (N66.49) is good for entry

Hold Recommendation

DANGOTE CEMENT PLC

• The most capitalised stock at the end of June
• It has a good bonus and dividend history
• They have declared a dividend of N300k
• Current Price (N182.00) is also high


Hold or Buy Recommendation

GTBANK PLC

• A good stock with steady growth
• Has a good quarterly report
• One of the leading stocks in the financial sector
• Declares dividend every twice a year
• Has declared a dividend of N130k
• Current price (N24.39) is good for entry as an interim dividend is expected to be announced by third quarter 2013

FLOURMILLS

• Has a good price history
• Currently the 14th most capitalised stock
• Has a good dividend/ bonus history
• Current price (N84.30) is good for entry

WAPCO

• Has a good performance history
• Current price (N84.00) is good for entry