Stock Market
2013 Q3 Report


Market Turnover

Month Deals
('000)
Volume Traded
(Billion)
Value
(Billion N)
July 125 10.4 75
August 103 6.1 68
September 93 5.1 51
Total 321 21.60 194
A turnover of 21.51 billion shares worth N193.96 billion in 321 thousand deals was recorded during the quarter in contrast to the turnover of 26.5 billion shares worth N336.6 billion exchange in 380 thousand deals that was recorded during the preceding quarter indicating the declining rate of the market so far.
Month MARKET CAP. % CHANGE INDEX % CHANGE
July 11347760859291.3
-
12007166156655.2
5.81 % 35832.16
-
37914.33
5.81 %
August 12126794174556.6
-
11496607675640.6
- 5.20 % 38292.07
-
36248.53
- 5.34 %
September 11524715190916.1
-
11652874043061.8
1.11 % 36337.15
-
36585.08
0.68 %
During the quarter under review, the market capitalisation opened at 11.35 trillion and 35,832.16 index. Market capitalization and index increased by 5.81% in July, it then depreciated in August by 5.34% and later increased again in September by 0.68% at 11.65 trillion capitalisation and 36,585.08 index. In summary the All-Share Index appreciated by 2.69% between July and ending of September, ending the quarter on a bullish note.

New Listing/Listed Companies/Delisted Companies

Corporate Actions

Below is the list of the companies that declared final dividend, Interim and bonus during the quarter;
Company Dividend Paid Bonus
1 7 UP ₦ 2.20 NIL
2 ABC TRANSPORT PLC ₦ 0.13 NIL
3 ALUMINIUM EXTRUSION INDUSTRIES PLC ₦ 0.25 NIL
4 CHELLARAMS ₦ 0.50 NIL
5 CONSOLIDATED HALLMARK ₦ 0.30 NIL
6 COURTEVILLE BUSINESS SOLUTIONS ₦ 0.50 NIL
7 FLOURMILLS ₦ 2.00 NIL
8 HONEYWELL FLOUR MILLS ₦ 0.16 NIL
9 HMARKINS ₦ 0.03 NIL
10 INTERNATIONAL BREWERIES PLC ₦ 0.25 1 FOR 85
11 MRS OIL NIGERIA PLC ₦ 0.23 NIL
12 NORTHERN NIGERIA FLOUR MILLS ₦ 0.40 NIL
13 OANDO PLC ₦ 0.75 NIL
14 PRESCO PLC ₦ 1.00 NIL
15 SMART PRODUCTS NIGERIA ₦ 0.25 NIL
16 TRANS-NATIONWIDE EXPRESS PLC ₦ 0.50 NIL
17 STANBIC IBTC HOLDINGS PLC (INTERIM) ₦ 0.70 NIL
18 CAP (INTERIM) ₦ 0.70 NIL
19 ₦ 0.70
20 ₦ 0.70
A total of sixteen (16) companies declared final dividend, 2 declared interim dividend and only 1 declared bonus during the quarter.

Sectoral Performance

The Financial sector was the most active during the period (measured by turnover volume) with 12.36 billion shares worth N103 billion exchanged by investors in 173,693 deals. The Conglomerate sector followed with 5.12 billion shares valued at N9.67 billion in 13,786 deals. Others follow as shown in the table below.
Sector Deals Volume Value
1 FINANCIAL 173,693 12,357,987,428 103,172,536,489.04
2 CONGLOMERATE 13,786 5,117,251,462 9,672,971,619.16
3 CONSUMERGOODS 57,833 868,571,273 42,156,975,646.63
4 ICT 2,033 701,661,346 1,309,620,767.96
5 OIL AND GAS 27,214 636,812,356 6,382,207,330.94
6 SERVICES 10,230 507,423,392 1,164,450,240.94
7 INDUSTRIAL GOODS 15,783 399,978,808 20,755,476,495.38
8 HEALTHCARE 7,210 321,429,556 3,306,256,323.66
9 NATURALRESOURCES 375 235,430,754 2,174,897,838.46
10 CONSTRUCTION 4,416 194,542,136 2,174,897,838.46
11 AGRICULTURE 7,985 167,511,589 2,174,897,838.46
12 7,985 167,511,589 3,727,130,446.60

57% of the total market turnover was accounted for by the FINANCIAL sector, followed by the CONGLOMERATE sector 24%, CONSUMER GOODS 4% respectively. The remaining 15% was accounted for 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 3,237.70
2 NB 7.56 1,270.53
3 NESTLE 0.79 791.47
4 GUARANTY 29.43 747.55
5 ZENITHBANK 31.40 627.93
6 FIRSTBANK 32.63 551.48
7 GUINNESS 1.51 401.62
8 WAPCO 3.00 297.16
9 UBA 32.98 250.36
10 ACCESS 22.88 240.27
11 UNILEVER 3.78 229.31
12 ETI 15.95 217.12
13 FLOURMILL 2.39 198.01
14 STANBIC 10.00 192.00
15 UBN 16.94 172.75
16 PZ 3.97 150.88
17 CADBURY 3.13 144.16
18 DANGSUGAR 12.00 132.00
19 UACN 1.92 117.36
20 JBERGER 1.20 92.39

Stock(s) to Watch

Below is our recommendation on some stocks:

Buy Recommendation

JULIUS BERGER
• Has a good dividend history
• Has declared a dividend of N250k
• Current price (N76.99) is good for entry

Recommendation: Buy

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

Recommendation: Buy

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 (N16.40) is good for entry
• Has a good quarterly report

Recommendation: Buy

Hold or Buy Recommendation

WAPCO
• Has a good performance history
• Current price (N99.00) is good for entry

Recommendation: Hold/Buy

FLOURMILLS
• Has a good price history
• Currently the 14th most capitalised stock
• Has a good dividend/ bonus history
• Current price (N83.00) is good for entry

Recommendation: Hold/Buy

TRANSCORP
• Current price (N1.61) 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

Recommendation: Buy/Hold

NIGERIAN BREWERIES
• Second most capitalised company
• Has a good bonus/dividend history
• They have declared a dividend of N300k
• Has a steady growth
• Current price (N165) is good for entry
Recommendation: Buy/ Hold

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 and an interim dividend of N0.25k
• Current price (N25.1) is good for entry

Recommendation: Hold/Buy