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
-
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
-
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
-
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
-
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
-
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
-
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
-
Simultaneously, Crusader (Nigeria) Plc was delisted from trading on 13th May 2013 after conclusion of the merger with Custodian and Allied Insurance Plc
-
Upon the maturity of 15.00% FGN MAY 2013 bond; the bond was accordingly delisted from trading on May 30, 2013
-
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.
-
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