EQUATORCAPITAL
\\
Weekly Market Review– 29/07/’11
Equator Capital Limited
Plot 154, Prince Ade Odedina Street, Victoria Island, Lagos
www.equatorcapitalng.com,
Email to; [email protected]
NEWS ROUNDUP…
CBN Raises Benchmark Interest Rate to 8.75 Percent
The Central Bank of Nigeria (CBN) raised its benchmark interest rate by a bigger-than-expected 75 basis points to 8.75
percent on Tuesday, the fourth increase this year in a fight against inflation. The apex bank had in May raised rates by 50
basis points. Speaking at a press conference in Abuja, CBN governor, Lamido Sanusi, said the inflation outlook appears
uncertain owing to the expected implementation of the new national minimum wage policy and the imminent deregulation
of petroleum products. He stated that the significant injection of liquidity from government in the third quarter, coupled
with the impact of the Asset Management Corporation of Nigeria (AMCON) recapitalising banks, would add to inflationary
pressures.
Forex Dealers Cry Out Over Fake Dollars
Air travelers and other airport users have been alerted about the circulation of fake United States dollars at the
Murtala Muhammed International Airport (MMIA), Lagos. Bureau de Change operators at the airport have cried
out against the circulation of the currency and millions of dollars exchange for the Naira every day at the airport.
Reacting to the arrest of two ladies caught with over 2000 fake dollars at the Hajj camp of the Bureau de change
office, the Chairman of Hajj Camp Forex Exchange Market, Arewa Complex, Mr. Abubakar Usman said the trend
had become a source of worry to them. THIS DAY
Businesses lose billions of Naira to Lagos floods
Two weeks after the floods that shut down activities in Lagos, several businesses are beginning to count their
losses which run into billions of naira, Business Day’s investigation has revealed. Industry experts put the
conservative estimate of the loss incurred by the companies as a result of the one-week shut down at N3 billion.
Muda Yusuf, director general, Lagos Chamber of Commerce and Industry, noted that, “Lagos suffered significant
losses in assets and productivity as a result of the flood. The state’s Gross Domestic Product is estimated at N3.5
trillion. BUSINESS DAY
Prices of foodstuffs escalate as Ramadan approaches
Abuja: A few days to the commencement of the Ramadan fast, the prices of foodstuffs and other essential
commodities have escalated in most markets across the country, according to a national survey. Correspondents,
who monitored market prices in some state capitals, report that the prices of foodstuffs and other essential
commodities, such as fruits, vegetables, eggs and beverages that are in high demand during the Ramadan fast had
soared. Traders attributed some of the reasons for the hike in price to the Ramadan fast, the increase in the
minimum wage of workers, high cost of transportation and increase in the cost of diesel, amongst others.
VANGUARD
1
EQUATORCAPITAL
Equator Capital Limited
Plot 154, Prince Ade Odedina Street, Victoria Island, Lagos
www.equatorcapitalng.com,
Email to; [email protected]
Weekly Market Review–29/07/’11
JULY END ON A BEARISH NOTE:BENCHMARK INDEX SHED 3.52 PERCENT
The last week of July ended on the bear’s camp. Though the week started on an optimistic note; the bulls could not sustain
their grip on the market, consequently, market values declined further. In the week in review, the CBN raised the MPR
(Monetary Policy Rate) by 75 basis points. Consequently with the MPR now at 8.75 percent, many analysts have predicted a
flight to safety in the capital market. It is believed that with the attractiveness of higher interest rates in the money market;
the capital market will bear the brunt. The market closed Monday with a gain of 0.50 percent and further gained 0.05
percent on Tuesday, however, we observed that following the news of the hike in MPR the market could not sustain the gain
as it lost 0.19 percent on Wednesday and further shed 0.44 percent and 0.33 percent respectively on the last two trading
days of the week. Comparatively, the All Share Index has shed 0.41 percent when compared to what it closed at the previous
Friday, last week the Index gained 0.39 percent. However, compared to July’s open, the index depreciated by 3.52 percent.
The hike in MPR was a strategic move by the apex bank to check excessive public spending ahead of the implementation of
the new national minimum wage of N18, 000; a proactive measure taken to deal with the expected huge injection of liquidity
into the system, especially the N1.3trillion disbursed last week to the three tiers of government as their statutory allocations.
According to the CBN Governor, Mr. Lamido Sanusi, these indicators have made inflation outlook in the immediate to
medium-term uncertain.
Index gained 0.39
The Exchange experienced an influx of both audited and quarterly reports in the review week. Among the lot were FBN which
declared N31.26b PAT for Qtr 2, Nestle with PAT of N6.257b for the same Qtr, Transcorp reported a profit of N5.389b for the
financial year ended December 2010 while PZ Cussons with PAT standing at N5, 217b for the FYE ending May 2011 declared a
bonus of 1 for 4 and a dividend of 86k per share. Expectedly, the demand for the PZ has shot up the price by 10 percent in
two trading days.
Market turnover grew by 34.95 percent while value of transaction dropped by 7.44 percent. Last week, market turnover
moved up by 27.36% while value of total turnover also appreciated by 35.52%. Total volume traded stood at 1.560 billion
shares valued at N8,932 billion traded in 23,233 deals as against a previous 1,156 billion shares worth N9,650 billion traded in
21,712 deals, last Friday. Top on the gainers list are Cadbury, PZ Cussons, Red Star Express and Diamond Bank Plc with the
total week’s gain standing at 11.76 percent 10.35 percent, 5.76 percent and 5.38 percent respectively. On the flipside are
Oceanic Bank, Prestige Assurance, Platinum Habib Bank and Union Bank of Nigeria with 17.24 percent, 16.92 percent, 15.94
percent and 11.97 percent respectively. Overall, 21 equities appreciated as against a previous 39 while 41 declined as against
33 of the previous week
Further analysis revealed that banking sector accounted for 51 percent of total turnover followed by the conglomerate and
Insurance sub sectors as they accounted for 29 and 9.35 percent respectively of overall market turnover. The most traded
equity was that of Transcorp.
Market Outlook
The coming week is expected to display further mixed reactions. Following a trend analysis, there may likely be further
downward movement in the first few days followed by an upward trend as speculators take profit. However, our advice
remains a long term investment approach as overall market outlook will remain bearish in the short run.
2
EQUATORCAPITAL
Equator Capital Limited
Plot 154, Prince Ade Odedina Street, Victoria Island, Lagos
www.equatorcapitalng.com,
Email to; [email protected]
EXPECTED
RESULTS
Weekly
Market
Review–29/07/’11
ASI MOVEMENT
BEST TEN PERFORMERS IN % TERMS
WORST TEN PERFORMERS IN % TERMS
MARKET CAPITALIZATION IN BILLION
INDEX
Week Open
Week Close
% Change (Wk)
NSE ASI
Year
Opening
24,770.52
23,906.27
23,826.99
-0.33
YTD (%
Change)
-3.81
NSE 30-INDEX
1,081.95
1,069.31
1,064.22
-0.48
-1.64
NSE FOOD/Bev/Tob.
778.47
797.47
796.86
-0.08
2.36
NSE Banking Index
399.08
356.18
352.30
-1.09
-11.72
NSE Insurance Index
163.34
159.19
159.79
-0.38
-2.17
NSE Oil/Gs Index
338.85
293.24
293.24
0.00
-13.46
3
EQUATORCAPITAL
Equator Capital Limited
Plot 154, Prince Ade Odedina Street, Victoria Island, Lagos
www.equatorcapitalng.com,
Email to; [email protected]
Weekly Market Review– 29/07/’11
BEST PERFORMING STOCKS FOR THE WEEK
CORPORATE NEWS
(GAINERS)
DIVIDEND ADJUSTMENT
The following equity prices were adjusted for dividend
and/or bonus as recommended by the Board of Directors.
COMPANY
CADBURY
17.85
19.95
11.76%
COMPANY
DIVIDEND
PZ
38.06
42.00
10.35%
REDSTAREX
3.30
3.49
5.76%
Longman
0.15k
BAGCO
2.23
2.35
5.38%
CONTINSURE
1.05
1.10
4.76%
TRANSCORP
1.03
1.07
3.88%
NASCON
4.94
5.10
3.24%
28.00
28.90
3.21%
ECOBANK
2.83
2.90
2.47%
INTBREW
6.07
6.20
2.14%
CORPORATE BENEFITS
COMPANY
Dividend
Payment
Date
15/08/2011
Closure
Date
Payment
Date
REDSTAREX PLC
30K
24/8/2011
15/9/2011
SOVERINS PLC
3K
11/8/2011
15/9/2011
PZ CUSSIONS
86K
26/8/2011
22/9/2011
OPEN
CAP
CLOSE
%CHANGE
CBN RESCUED BANK
Afribank
Sept 29
Price
1.28
29/07/2011
Change
0.73
-0.55
change
%
-42.97%
WORST PERFORMING STOCKS FOR THE
WEEK (LOSERS)
COMPANY
OPEN
CLOSE
%CHANGE
Finbank
0.5
0.5
0.00
0.00%
OCEANIC
1.16
0.96
-17.24%
Intercont
1.27
0.86
-0.41
-32.28%
PRESTIGE
2.01
1.67
-16.92%
Oceanic
1.09
0.96
-0.13
-11.93%
PLATINUM
0.69
0.58
-15.94%
UBN
2.59
2.28
-11.97%
UBN
3.46
2.28
-1.18
-34.10%
DANGSUGAR
12.2
10.85
-11.07%
Bank PHB
0.91
0.58
-0.33
-36.26%
RTBRISCOE
2.07
1.86
-10.14%
Spring
0.57
0.87
0.30
52.63%
AFRIBANK
0.81
0.73
-9.88%
Wema
0.88
0.89
0.01
1.14%
DIAMONDBNK
5.25
4.75
-9.52%
Unity
Bank
0.67
0.77
0.10
14.93%
INTERCONT
0.95
0.86
-9.47%
FIDELITYBK
2.3
2.12
-7.83%
4
EQUATORCAPITAL
Equator Capital Limited
Plot 154, Prince Ade Odedina Street, Victoria
Island, Lagos
www.equatorcapitalng.com,
Weekly Market Review– 29/07/’11
AUDITED EARNINGS
PZ CUSSONS PLC
FYE, MAY 2011
Turnover
Profit before tax
Taxation
Profit after Tax
Non- Controlling Interest
Profit Attributable To
Shareholders
Balance Sheet
Fixed Assets
Stocks
Trade debtors
Cash and Bank Balances
Other Debit Balances
Trade Creditors
Other Credit balances
Non- Controlling Interest
Net Assets
AFRIK PHARMACEUTICAL
FYE, DECEMBER 2010
Turnover
Profit before tax
Taxation
Profit after Tax
Balance Sheet
Fixed Assets
Stock
Trade debtors
Cash and Bank Balances
Other Debit Balances
Short term borrowings
Other Credit Balances
Working Capital
Net Assets
2011
2010
65.9b
8.0b
(2.3b)
5.7b
(479.5m)
5.217b
62.7b
7.9b
(2.3b)
5.6b
(282.9m)
5.301b
25.0b
17.5b
8.1b
3.8b
14.5b
2.2b
23.6b
(1.97b)
41.2b
24.7b
15.4b
6.7b
9.3b
2.8b
1.5b
17.1b
(1.62b)
37.7b
2010
2009
40.590m
(2.234m)
-222,800
2.457m
45.968m
2.173m
-236,150
1.937m
193.396m
6.040m
1.732m
1.431m
1.315m
9.344m
37.627m
9.952m
156.944m
20.716m
5.996m
13.851m
1.583m
186,547
7.339m
20.430m
10.348m
14.565m
FCMB PLC
2011
2010
Turnover
34.955b
29.761b
Profit before tax
6.648b
3.469b
(1.329b)
(693.887m)
5.318b
2.775b
Fixed Assets
19.446b
19.932b
Investments
132.126b
74.188b
Stock
21.547b
22.588b
Loans and Advances
304.837b
326.899b
Cash and Bank Balances
28.271b
13.406b
Other Debit Balances
82.272b
81.574b
Customer deposits
363.817b
334.821b
Short term borrowings
23.303b
25.116b
Other Credit Balances
68.085b
43.882b
Net Assets
588.501b
538.590b
2010
2009
5.248b
5.058b
Profit before tax
70.322m
538.406m
Taxation
Profit after Tax
(27.268m)
43.054m
(105.242m)
433.164m
Balance Sheet
Fixed Assets
Investments
1.698b
225.747m
1.173b
233.687m
Stock
Trade debtors
Cash and Bank Balances
2.515b
2.119b
430.524m
2.285b
1.977b
201.682m
Other Debit Balances
Insurance funds
Other Credit Balances
1.643b
1.594b
1.548b
1.952b
1.445b
1.417b
Net Assets
4.716b
4.673b
QTR 2, JUNE 20011
Taxation
Profit after Tax
Balance Sheet
STACO INSURANCE PLC
FYE DECEMBER 2010
Turnover
5
EQUATORCAPITAL
Equator Capital Limited
Plot 154, Prince Ade Odedina Street,
Victoria Island, Lagos
www.equatorcapitalng.com
Weekly Market Review– 29/07/’11
OANDO PLC
2011
2010
267.812b
172.858b
(234.580b)
(145.153b)
Profit before tax
12.770b
9.595b
Taxation
(6.090b)
(4.262b)
6.679b
5.332b
Fixed Assets
159.507b
152.513b
Investments
1m
1m
Stock
30.744b
22.386b
Trade debtors
116.012b
80.240b
Cash and Bank Balances
16.685b
12.187b
Other Debit Balances
56.269b
58.658b
Trade Creditors
92.745b
60.467b
Other Credit Balances
119.447b
99.305b
Working Capital
11.920b
17.206b
Net Assets
97.535b
95.192b
2011
2010
139.698b
35.730b
(4.466b)
31.264b
122.282b
31.687b
(6.337b)
25.350b
55.621b
496.999b
61.505b
1.226tr
132.148b
941.069b
1.919tr
115.502b
556.583b
321.043b
53.986b
352.613b
23.769b
1.143tr
75.517b
655.759b
1.450tr
124.617b
389.448b
340.626b
PORTLAND PAINTS PLC
QTR 2, JUNE 2011
Turnover
Cost of Sales
Profit before tax
Taxation
Profit after Tax
Balance Sheet
Fixed Assets
Investments
Stock
Trade debtors
Cash and Bank Balances
Other Debit Balances
Trade Creditors
Short term borrowings
Other Credit Balances
Working Capital
Net Assets
QTR 2, JUNE 2011
Turnover
Cost of Sales
Profit after Tax
Balance Sheet
FIRST BANK PLC
HALF YR, JUNE 2011
Turnover
Profit before tax
Taxation
Profit after Tax
Balance Sheet
Fixed Assets
Investment
Treasury bills
Loans and Advances
Cash and Bank Balances
Other Debit Balances
Deposit
Short term borrowings
Other Credit Balances
Net Assets
TRIPPLE GEE &COMPANY
PLC
FYE, March 2011
Turnover
Cost of Sales
Profit before tax
Taxation
Profit after Tax
Balance Sheet
Fixed Assets
Investments
Stock
Trade debtors
Cash and Bank Balances
Other Debit Balances
Trade Creditors
Other Credit Balances
Working Capital
Net Assets
6
2011
2010
1.165b
(675.572m)
140.630m
(45.001m)
95.629m
1.137b
(657.498m)
152.861m
(43.489m)
109.372m
422.189m
450,000
732.964m
193.533m
135.123m
311.713m
257.955m
NIL
553.579m
820.281m
984.438m
230.399m
450,000
681.986m
254.649m
82.354m
303.191m
248.965m
173.469m
178.488m
83.708m
952.107m
2011
2010
541.605m
(393.078m)
(45.342m)
(3.880m)
(49.222m)
517.926m
(365.753m)
(46.120m)
(4.730m)
(50.850m)
926.117m
174.820m
44.522m
125.461m
18.601m
154.374m
(108.356m)
699.513m
(388.291m)
636.026m
917.471m
175.949m
28.778m
106.081m
5.105m
194.180m
(111.719m)
630.597m
(322.738m)
685.248m
EQUATORCAPITAL
Weekly Market Review– 29/07/’11
NESTLE NIG PLC
2011
2010
Turnover
44.913b
37.761b
Cost of Sales
Profit before tax
25.582b
9.035b
20.081b
9.173b
Taxation
(2.777b)
(3.137b)
Profit after Tax
6.257b
6.036b
Balance Sheet
Fixed Assets
45.976b
40.241b
Stock
9.440b
8.494b
Trade debtors
2.835b
4.970b
Cash and Bank Balances
1.235b
3.092b
Other Debit Balances
3.270b
3.548b
Trade Creditors
1.337b
4.085b
Short term borrowings
9.646b
3.398b
Other Credit Balances
Net Assets
38.940b
12.833b
37.997b
14.865b
2010
2009
Turnover
13.927b
12.995b
Exceptional Items
2.849b
NIL
Profit before tax
6.908b
3.233b
(1.518b)
(2.006b)
5.389b
1.226b
QTR 2, JUNE 2011
TRANSCORP PLC
FYE, DECEMBER 2010
Taxation
Profit after Tax
Balance Sheet
Fixed Assets
7.832b
Investments
2.852b
6.727b
Stocks
680.541m
654.946m
Trade debtors
841.757m
698.976m
Cash and Bank Balances
8.338b
5.783b
Other Debit Balances
22.419b
20.887b
Trade Creditors
1.223b
872.680m
Short term borrowings
528.571m
291.538m
Other Credit balances
14.575b
10.641b
Working Captal
31.870m
380.986m
Net Assets
26.638b
22.947b
Equator Capital Limited
Plot 154, Prince Ade Odedina Street, Victoria Island,
Lagos
www.equatorcapitalng.com
C & I LEASING PLC
FYE, DECEMBER 2010
Turnover
Cost of Sales
Exceptionary item
Profit before tax
Taxation
Profit after Tax
Balance Sheet
Fixed Assets
Investments
Stocks
Trade debtors
Cash and Bank Balances
Other Debit Balances
Trade Creditors
Short term borrowings
Other Credit balances
Net Assets
FTN COCOA PROCESSORS
PLC
FYE DECEMBER 2010
Turnover
Cost of Sales
Profit before tax
Taxation
Profit after Tax
Balance Sheet
Fixed Assets
Investment
Stock
Trade debtors
Cash and Bank Balances
Other Debit Balances
Trade Creditors
Short term borrowings
Other Credit Balances
Working Capital
7 Net Assets
2011
2010
8.6b
6.7b
NIL
(109.4m)
(47.4m)
(156.9m)
8.2b
6.3b
114.1m
111.1m
(118.1m)
107.1m
720.9m
46.4m
NIL
4.2b
357.6m
7.3b
NIL
4.5b
6.4b
1.5b
653.6m
46.6m
NIL
4.1b
2.3b
5.7b
NIL
5.3b
5.5b
1.9b
2010
2009
1.196b
(1.014b)
63.647m
1.361b
(1.146b)
259.710m
-51,000
259.659m
63.647m
2.865b
1.490m
398.369m
331.972m
1.267m
725.292m
107.327m
149.875m
1.806b
867.315m
2.260b
1.946b
838,000
625.441m
296.509m
46.061m
565.772m
111.498m
980.656m
1.303b
2.389b