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ISSN 1597 - 8842 Vol. 1 No.

43

The Monthly NCM Report for Jul ‘10


Issued on Aug 02, 2010
Contents
Executive Summary 3
Introduction 5
All-Share Index Movement 6
Market Dynamics 9
Comparison of 2009 and 2010 Market Performance 10
Sectoral Index Movements 11
NSE -30 Index, NSE -Food Index, NSE -Banking Index, NSE -Insurance Index & NSE -Oil Index

Sectoral Analysis 15
Transactions Volume and Value Trend 16
Top Ten Trades in the Month 16
Top Ten Traded Sectors in the Month 16
Top Ten Gainers in the Month 18
Top Ten Year to Date Appreciation 18
Top Ten Decliners in the Month 19
Top Ten Year to Date Depreciation 19
Supplementary Listing in the Month 19
Corporate Declarations in the Month 20
Forecast Results in the Month 25
Dividends Declared 25
Sectoral Analysis 26
Outlook/ Analyst Opinion 33
Time Lines (April Market News/Information) 34

The Monthly NCM Report for July 2010 www.proshareng.com Page 2


The Monthly NCM Report for July 2010
ISSN 1597 - 8842 Vol. 1 No. 43

Executive Summary
"Progress is impossible without change and those who cannot change their minds cannot
change anything." - George Bernard

Equity market in the month under review has performed in line with general expectation
of both the investing public and analysts as the fortunes of equities that ended on the
downside in the month of June showcase the reverse in July.

Trends in the month showed that, for the first thirteen trading days into the month
(between 1st and 19th July, 2010), bulls and bears were striving for the control of the
market. It was observed that the bears consequently gained upper hand in the period it
lasted.

The dominance of bears in the period was not unconnected with the spill over effect of
the preceding three months below average performance. Uncertainties surrounding the
successful takeoff of Asset Management Company of Nigeria (AMCON) in the period also
contributed to the volatility and consequently, dominance of bearish trend.

Also, the statement credited to the Central Bank of Nigeria (CBN) that banks in the
country are not yet in safe territory despite their flight to profitability in their respective
first quarter results to March 31st, 2010. This created a run on most of the banking
stocks, most especially the rescued banks, hence the dominance of bears since stocks in
banking sector accounted for more than 50% of the entire market capitalisation.

Towards the latter part of the week, the market outlook improved drastically and the
upbeat has been sustained from Tuesday 20th July, 2010. The positive outlook recorded
was on the back of eventually asset to the Asset Management Company bills by the
President. The impact of the development has been felt most prominently in the banking
stocks and also in all the other sectors on the bourse.

The market pattern in the last three trading days of the month showed evidence of profit
takings by the investors, who has since besieged the market from Wednesday 28th July,
2010 to rake in profit from the previous rally. The sell pressures on the bourse
consequently climaxed in negative outlook at the close of the last trading day of the
month with -0.24% decline.

The trend could be pointing to the fact that, despite the positive development noted
above; investors’ mindsets are still not towards medium to long term basis but still at
the speculative mood. This kind of trend may still persist for sometimes as part of the
stages towards eventual market stability.

As noted in our half year report to June 30th,


2010(http://www.proshareng.com/reports/2753), the second quarter results of
companies flooded the market in the month of July. The outlook of banking sector
second quarter results showed a level of relative stability as most of them built on the
flight to profitability recorded in their first quarter results for the period ended 31st
March, 2010. The next month should indicate how Q3 will go as policy decisions become
manifest, and the direction for the market going forward set on track.

Thank you for reading and do take time to share with us your thoughts on the market,
analyst at analyst@proshareng.com. We value your feedback and comments.

The Monthly NCM Report for July 2010 www.proshareng.com Page 3


Introduction
“NSE all share index rises on the back of Asset Management Company.
The market trend in the month of July was bearish in the early part of the month with
bears taking hold of the market for the first thirteen trading days of the month between
1st and 19th of the month; the incessant interchange of bulls and bears closed with bears
on the higher side.

The dominant of bears in the period could be attributed to the spill over effect of the
bears run of the preceding month, coupled with the state of uncertainties pervading the
Asset Management Company issues. The indications that AMC might not come on stream
as expected cast doubt on the market, and the immediate reaction was the incidence of
speculative trading.

However, afterwards, with the Asset Management Company signed into law by the
President, market reacted immediately on a positive note with many equities recording
price uptrend of different magnitude. The positive outlook has since remained and this
has pushed the performance in the month to positive territory.

The fact that stocks across all the sectors had shed considerable price weight aided the
positive reactions as discerning investors seemed post optimistic stance and bids for
stocks has since remained strong.

The profit taking activities that resumed on Wednesday 28th July, 2010 was not
unexpected, it should be seen as part of the stages of further recovery to stability. The
sell pressures witnessed at the tail end of the month is not expected to drag into bearish
mode as trend in some sectors such as Food and a beverage is pointing in that direction.

The Market – Game On

The market this month recorded a total of 7.638bn units valued at N58.784bn
(US$392.679bn) exchanged in 134.213 deals compared with 9.921bn units valued
at N72.384bn (US$483.527mn) exchanged in 4187.748 deals in the previous year’s
comparable period. Comparing, the volume and value traded in the month reveals a -
23% and -18.79% decline below the volume and value recorded in the previous year’s
comparable period respectively.

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In the course of the month, the All-Share index recorded a +2.82% performance
compared with -7.09% negative growth recorded in the preceding year’s July to close at
25,286.61. The ASI trend this month when compared with the previous comparable
period July 31st, 2009 showed that July 2010 outperformed the previous year. It also
showed a level of recovery as against the negative performance by -3.23% recorded in
the month of June 2010. Market capitalisation this month appreciated by +N206.828
billion (US$1.382bn) as against –N410.665 billion (US$ 2.743bn) market
capitalisation loss recorded in the previous year’s comparable period.

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The Market – Game Changers: The outcomes/consequence recorded in the month
could be principally attributed to the issues outlined above and to some of the following
market and financial fundamentals:

The sustained political stability in the country which has made the economic and
business environment friendlier.
Planned elections (with a possibility of an early election timeframe) and the expected
beneficial impact on the NCM.
The sustained regulatory co-ordination and commitment to transparent market which
seems to have tamed the incidence of infractions very significantly.
The news by the Central Bank of Nigeria that banks are not yet in a safe territory
created a run on the banking stocks before AMC positive development climaxed to
reality.
The fact that liquidity in the system remains insufficient to support the market
capacity still creates impact. This is due dearth of loan-able funds from the banking
sector.
Corporate declarations announced by some companies – good with relative positives.
The management of the leadership issues at both the Nigerian Stock Exchange on
succession plan.
The second quarter results released so far in the banking sector must have raised the
hope of better returns in the sector, coupled with the fact that many of them might
not have many issues with the non-performing loans saga.

The recent CBN stand in resorting to dialogue in dealing with recapitalisation of the
rescued banks also raised the morale of the investing public in the sector. If the
positive development continues, there may be swelling times ahead.
Guaranteeing the domestic interbank market

The Monthly NCM Report for July 2010 www.proshareng.com Page 6


Market with upward bias, as companies’ second quarter results was released to the
market.

Assurances of improved regulatory environment

The efforts by regulatory bodies, especially the Securities and Exchange Commission
(SEC) to ensure of safety of investments in the market contributed to the market
growth.

Factors that Negatively Impacted Performance on the NSE

Uncertainty in regarding the regarding the ownership of the ailing institutions and
its recapitalization plans.
High political risks and volatility in the country's political institutions.
Reduction in oil prices
Low investor confidence
Increased broker-dealer regulation
Current levels of nonperforming loans (NPLs) across the sector
Poor corporate governance and risk-management deficiencies
Profit taking during the last few days of month as other investors exited their
short-term positions in anticipation of further decline in share prices.
Exchange rate depreciation
Retail market disappeared as a consequence of the illiquid status of investors
Margin loans from banks and brokerage firms is no longer available
Continuous selling pressure overwhelming the demand for stocks
The need to offset the margin loans by major investors in order to avoid been
classified as toxic assets had also increased supply by over the demand for stocks
Exit of foreign investors from the stock market as financial crisis in the Europe, as
well as concerns about the strength of the U.S. economic recovery, has resulted
in foreign investors scaling down their position in the market
As a critical bulk of the Nigerian investor profile reacted to the ensuing financial
crisis in Europe, a run was created on the market in the period under review, as
foreign investors sold massively to make up for their losses.
Global crisis as they were attributed to slow recovery in bank lending and the
perceived delay as regards the fate of the rescued banks

ASSET MANAGEMENT COMPANY OF NIGERIA (AMCON)

The long awaited Asset Management Company (AMCON) has eventually come on stream
as it was eventually signed into law by the president during the month
(http://www.proshareng.com/news/singleNews.php?id=11434). The market has since
witnessed reactions (though positive) from the investors as it contributed to the upward

The Monthly NCM Report for July 2010 www.proshareng.com Page 7


push of the general market performance, and the banking sector outlook in particular.
Although AMCON has led to an increase in the demand for shares and appreciation in
market indices in the last few days of the month, investors should be reminded that the
company is not the total cure for the market challenges and ailments
(http://proshareng.com/blog/?p=383).

Advantages of AMCON

Free up the balance sheet of these rescued banks

Injection of liquidity into the system

Bolster the prospects for long term growth

Toxic assets had been written off the books of the banks, so once they are bought
by AMCON, there will be some capital.

More recovery of the bad loans of the banks and pressure on debtors to pay

Recapitalization of banks in which the Central Bank of Nigeria (CBN) was forced
to intervene and help to increase access to restructuring/refinancing opportunities
for borrowers

Assist banks in efficient management and disposal of their toxic assets.

AMCON buying the toxic assets of the banks and pumping money into the
institutions, their books will improve and attract investors

Reduce the volume of stocks supplied to the market

Disadvantages of AMCON

AMCON represents one of the solutions to address the economic condition in


which the market is operating and not ‘the solution.

The long drawn out delay in executing the AMCON does not suggest to some that
the regulators and managers of the economy get it.

It may lead to another asset buddle at the nation’s capital market, owing to huge
interest of foreign investors to invest in the country.

Threat of inflation from the budget deficit and the operations of the proposed
AMCON.

Transparent pricing of toxic assets.

Ensuring the political/election campaign does not affect its workability.

Conditions for issuing the proposed $5 billion 7-year government guaranteed


bonds

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technical and legal issues

Establishing a “fair market price” for the impaired assets

Establishment of “sinking fund” provision is has been proposed to deal with this
issue, but it is not clear whether this sinking fund will be established – and with
what money

The upcoming 2011 election may also create a turbulent atmosphere inimical to
the proper sober functioning of the AMCON

Commencement date chosen for AMCON to begin operation is not yet disclosed.

Negative Net Worth of troubled banks will attract most of the AMCON funds

Market Concerns: There are serious concerns with the regulatory bodies as the recent
extension of the deadline given to Wema Bank Plc and Unity Bank Plc on the last day of
deadline showed that the CBN did not have a clear programme for its reform. SEC on the
extension of the deadline given to the Nigerian Stock Exchange to appoint a new
Director-General. Removal of some of the restrictions by CBN it imposed on the credit
operations of banks by amending relevant portions of the Prudential Guidelines that
became effective May 1, this year. AMC was supposed to ensure the smooth take-off on
July 26, 2010 but still no details have been found.

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The NSE All-Share Index Movement
The Nigerian equities started the month with a negative note amid lingering
uncertainties especially from the financial sector as S&P has said the Central Bank of
Nigeria (CBN) may need to guarantee the acquisition of the rescued banks to be able to
win the confidence of investors and rated Nigerian banks as high investment risk and
Postponement of Asset Management Company by the Central Bank of Nigeria also
attributed to the ongoing downturn.

Trends in the month showed that, for the first thirteen trading days into the month
(between 1st and 19th July, 2010), bulls and bears were striving for the control of the
market.

The Nigerian Stock market has remained positive for continues last 9 trading days of the
month as buying pressure continued to dominate trading activities after a lackluster
performance that trailed the passage of the Asset Management Company of Nigeria
(AMCON) Bill and the positive earnings declared by most of the banks for period ending
Q2, 2010.

The NSE index in July 2010 ended on a positive note drawing from the upbeat recorded
at the end of the last trading days of the month ( barring last trading day) ensuring that
July 2010 ended with a +2.82% appreciation to close at 25,844.18 compared with -7.09%
depreciations recorded in the preceding year comparable period to close at 25,286.61.
The appreciation in the month was far below the +12.97% and +8.43% recorded in the
month of March and January 2010.

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Meanwhile, at the end of the last trading day of the month under review, All-Share Index
closed above the figure recorded at the close of 31 July 2009 by +2.21%.

At the end of the last trading day of the month, All-Share Index closed above the figure
recorded at the close of 4th January 2010 by 24.02% which was -19.36% away from
January 2nd 2009 to 31st July, 2009. This shows by how much the market has recovered
in the year.

Source: NSE, Proshare Research

At the close of the last trading day of the month, All-Share Index traded above its 20
days, 50 days and 200 days moving average which closed at 25,123.97, 25,462.09 and
23,928.08 respectively. This trend is technically suggesting a bullish trend.

Source: NSE, Proshare Research

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July 2010 Market Dynamics
The market dynamics as graphically illustrated below showed the appreciation and
depreciations on the daily basis.

Assurances of improved regulatory environment, passage of AMC Bill, declaration of


Corporate results, Uncertainty regarding the ownership of the ailing institutions and its
recapitalization plans, profit taking , low investor confidence were responsible for the
dynamics recorded.

Source: NSE, Proshare Research

MARKET DYNAMICS IN THE PRECEDING YEAR COMPARABLE PERIOD (JULY, 2009)

Source: NSE, Proshare Research

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Comparison of 2009 and 2010 Market Performance
The market performance in July 2010, when compared with the 2009 comparable
period; showed a upward trend. In the period under review, ASI recorded 2.82%
appreciation compared with -7.09% depreciations recorded in 2009 July. The scenario
revealed that the appreciations in the current year’s comparable period were above the
previous year trend but the market closed at approximately in the range of 25,000.

Source: NSE, Proshare Research

Market Capitalisation Market Capitalisation ($


Dates NSE ASI
(trillion) billions)
Jan-02-09 31,357.24 6.93 43.31
Jul-01-09 27,217.59 6.2 38.75
Jul-31-09 25,286.61 5.79 36.19
Yearly Return -19.36% -16.45% -16.45%
Monthly Return -7.09% -6.61% -6.61%

Jan-04-10 20,838.90 4.99 33.27


Jul-01-10 25,134.63 6.12 40.53
Jul-30-10 25,844.18 6.32 41.85
Yearly Return 24.02% 26.65% 25.81%
Monthly Return 2.82% 3.27% 3.27%
Source: NSE, Proshare Research

From the table above, the year to date performance of the year 2009 as at 31st July,
2009 closing at -19.36% indicated a depressing outlook when compared with the positive

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year to date performance for the year 2010 as at 30th July, 2010 standing in the positive
performance growth of +24.02% for the period under review.

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Sectoral Index Movements
NSE-30 Food and
% Beverages % Banking % Insurance % Oil and Gas
Date Change change Change Change % Change
01/07/2010 -1.02 -0.954 -1.63 -0.84 -0.251
02/07/2010 0.41 1.528 0.04 -1.77 -0.051
06/07/2010 -0.32 -0.226 -0.16 1.98 -0.511
07/07/2010 -0.32 -0.248 -0.52 1.84 0.000
08/07/2010 -1.24 -2.239 -1.88 -0.50 0.000
09/07/2010 -2.34 -4.525 -3.60 0.62 -0.907
12/07/2010 0.32 -0.020 0.28 -0.08 -0.876
13/07/2010 0.91 -0.122 1.57 -1.69 -0.032
14/07/2010 -0.51 -0.679 -0.75 -1.24 -0.505
15/07/2010 -0.06 -0.413 -0.67 1.28 -0.528
16/07/2010 0.32 0.695 0.80 1.90 -1.414
19/07/2010 -0.16 0.157 -0.74 -1.36 0.000
20/07/2010 0.01 0.401 -1.00 0.09 -0.515
21/07/2010 0.60 1.612 0.97 0.39 0.000
22/07/2010 0.19 -0.214 0.43 -0.65 -0.895
23/07/2010 0.74 0.244 2.55 0.49 -0.049
26/07/2010 0.89 0.508 1.93 0.17 -0.645
27/07/2010 1.38 0.910 1.17 0.62 -0.420
28/07/2010 0.22 -0.666 0.47 -0.25 -0.005
29/07/1930 0.22 2.288 -1.44 3.25 -1.251
30/07/2010 -0.01 -0.442 -0.37 0.04 -0.747
Monthly %
Change 0.24 -2.41 -2.54 4.27 -9.60

In the month under review, NSE-30 and Insurance index emerged the best performing
sector with +3.13% and +1.68% appreciation respectively, followed by Banking index

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which appreciated by +1.48% and NSE-Food index followed with +1.10% appreciation.
However, the declining trend recorded in Oil and Petroleum sectors stood at -8.47%.

June and July Sectoral Indexes Compared

Source: NSE, Proshare Research

When compared with June trend of sectoral indexes, the performance in the month of
July was above the preceding month’s trend in all other sectoral indexes with the
exception of Oil & Gas index which underperformed the preceding month very
considerably.

NSE -30 INDEX

Source: NSE, Proshare Research

By the committee’s action, the shares of Cadbury Nigeria Plc and Ecobank Nigeria Plc,
were replaced with the shares of Julius Berger Nigeria Plc and Mobil Oil Nigeria Plc.

The trend recorded in the blue chips stocks is reflected in the index movement. There
were interruptions at the many points in the index performance in the month due to the
volatility that pervaded the entire market in the period, mainly in the early part of the

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month before the positive development in AMC. The sector would most probably have
repeated the negative performance of the preceding month but for the positive
developments in the market. The index recorded appreciation by +3.13% as against -
2.97% depreciations recorded in the month of June.

NSE -FOOD INDEX

Source: NSE, Proshare Research

Shares of Tantalizers Plc were admitted while that of Northern Nigeria Flour Mills Plc was
removed to rebalance the sub-sector’s index.

The stocks in the sector still closed on a positive note in the month to record +1.10%
compared with -2.54% recorded in the month of June. This is against appreciations by
+39.09% recorded in the first three months of the year. Trend in the sector towards
the close of the month suggested positive trend in the days ahead as stocks in the sector
have potentials for impressive returns .Performance trail of the sector showed that the
sector recorded +18.43% appreciation in the month of March alone compared with
+13.20% and +3.75% appreciation recorded in January and February respectively.

NSE -BANKING INDEX

The Monthly NCM Report for July 2010 www.proshareng.com Page 17


Source: NSE, Proshare Research

Under NSE – Banking Index shares of Fidelity Bank Plc and Skye Bank Plc were replaced
tby hat of Union Bank of Nigeria Plc, and Ecobank Nigeria Plc.

NSE-Banking index closed the month of July with +1.48% appreciations compared with -
3.48% depreciations recorded in June. The performance growth was against +10.30%,
+1.76% and +18.34% appreciations recorded in the months of January, February and
March respectively. The trend recorded could be attributed to atmosphere of uncertainty
that pervaded the sector before AMC bills eventually became a reality. Enthusiasm about
the impact of the AMC plan for the banks might have also raised the investor’s
enthusiasm about the stocks in the sector in the latter parts of the month.

We don't see any of the rescued banks delivering good between now and the third
quarter as the results have failed to lift market sentiment and the share capital is still
negative as we do not see growth in lending and increase in deposits but non-performing
loans that were provisioned for earlier by the banks later re-paid to the banks were
written back into the books as profit, interest rates at inter-bank market have dropped,
while yield on bonds where the banks fled to as safe haven is not promising either.

NSE -INSURANCE INDEX

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Source: NSE, Proshare Research

The shares of International Energy Insurance Plc, Mutual Benefits Assurance Plc,
Standard Alliance Insurance Plc, AIICO Insurance Plc, Cornerstone Insurance Plc, Equity
Assurance Plc, and Goldlink Insurance Plc were admitted, while that of Unity Kapital
Assurance Plc, Prestige Assurance Plc, Staco Insurance Plc, African Alliance Insurance
Plc, Investment and Allied Insurance Plc, Oasis Insurance Plc, and Universal Insurance
Plc were removed from the NSE Insurance.

Insurance sector posted +1.68% appreciations in the month of July as against -6.15%
decline recorded in the previous month. This could be attributed to the fact that stocks in
the sector are subject to high rate of volatility as dearth of impressive returns remains
the main discouragement to investors. The pattern may not change in the coming days.

NSE -OIL INDEX

Source: NSE, Proshare Research

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The sector recorded -8.47% performance declines in the months of July compared with
-2.13% decline recorded in June. Trend in the sector posted the highest decline in the
month among the NSE sectoral indexes, as there was a massive bear run in the sector
during the period under review. Considering the massive rate of decline recorded so far,
there may be reverse in the coming days as investors may want to cash in on the low
prices.

LAST TRADING DAY - SNAPSHOT

http://www.proshareng.com/investors/theAnalyst.php

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SECTORAL ANALYSIS

SECTOR PREFORMANCE
YTD
Sector
%Change
HOTEL & TOURISM 54.22%
FOOD/BEVERAGES & TOBACCO 40.94%
BREWERIES 35.54%
BUILDING MATERIALS 26.50%
CONSTRUCTION 24.14%
HEALTHCARE 23.04%
MARITIME 22.88%
AIRLINE SERVICES 18.35%
PETROLEUM(MARKETING) 18.21%
CONGLOMERATES 11.95%
ENGINEERING TECHNOLOGY 10.17%
CHEMICAL & PAINTS 9.16%
BANKING 8.69%
PRINTING & PUBLISHING 7.86%
THE FOREIGN LISTINGS 6.67%
COMMERCIAL/SERVICES 4.14%
LEASING 3.02%
REAL ESTATE 2.97%
PACKAGING 0.68%
AVIATION 0.00%
AGRICULTURE -0.89%
INFORMATION & COMMUNICATION
-3.85%
TECHNOLOGY
SECOND-TIER SECURITIES -7.15%
ROAD TRANSPORTATION -8.22%
INSURANCE -9.25%
COMPUTER & OFFICE EQUIPMENT -9.76%
OTHER FINANCIAL INSTITUTIONS -11.72%
MEDIA -13.28%
MORTGAGE COMPANIES -13.74%
FOOTWEAR -14.08%
INDUSTRIAL/DOMESTIC PRODUCTS -18.50%
AUTOMOBILE & TYRE -30.57%
TEXTILES -43.68%

Source: NSE, Proshare Research

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Transactions Volume and Value Trend

Market July '09' July '10' % Change


Average Daily Volume of Stocks Traded (in millions) 431.34 347.18 -19.51%
Average Daily Value of Stocks Traded (in N'millions) 3,147.13 2,672.13 -15.09%
Average Daily Value of Stocks Traded (in USD$ millions) 19.67 17.70 -10.03%

Total Volume of Stocks Traded (in millions) 9921.02 7638.05 -23.01%


Total Value of Stocks Traded (in N'millions) 72,384.09 58,786.94 -18.78%
Total Value of Stocks Traded (in USD$ billion) 452.40 389.32 -13.94%

New Listing and Delisting July '09' July '10'


Number of Equities Delisted 1 0
Number of New Listings 3 0

Source: NSE, Proshare Research

The transaction volume in the month of July when compared with the preceding year
comparable period closed lower by -23.01% to close at 7.63 billion units compared
with 9.92 billion units traded in July 2009. This could be an indication that the
investors’ patronage of the market in the month under review was significantly different.

Also, the transaction value in the month under review closed lower by -18.78% at
N58.78 billion ($389.32 million) compared with N72.38 billion ($452.40 million)
of July 2009.

July 2010 vs. 2009 Daily Volume Chart

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Source: NSE, Proshare Research

Top Ten Trades for the Month of July 2010


Zenith Bank Plc topped the transaction volume for the month. Banking stocks generally
dominated the charts with eight of the stocks in the sector emerging in the top ten
trades chart for the month.

Company Total Trades Total Volume Total Value


ZENITHBANK 8437 456,503,373.00 5,970,956,270.81
TRANSCORP 790 454,735,532.00 227,374,538.00
SKYEBANK 3019 434,291,159.00 3,072,342,488.24
FIRSTBANK 16476 424,521,645.00 5,624,195,394.88
GUARANTY 11012 370,934,545.00 6,273,365,008.92
DIAMONDBNK 1772 355,824,863.00 2,626,332,625.91
UBA 6015 299,892,893.00 3,109,690,590.35
NIGERINS 233 292,486,329.00 316,262,591.82
FIRSTINLND 1562 255,676,965.00 136,211,718.29
UBN 3648 251,286,123.00 1,288,008,423.10
Grand Total 134213 7,637,990,081.00 58,784,142,060.02

Recall Top Ten Trades for the Month of July 2009


Company Total Trades Total Volume Total Value
ZENITHBANK 7,878.00 737,929,184.00 9,418,426,706.14
FIRSTBANK 31,611.00 664,594,875.00 12,451,567,446.25
GOLDINSURE 467.00 512,217,330.00 258,570,094.24
GUARANTY 11,190.00 473,984,638.00 6,612,120,027.79

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ACCESS 5,759.00 455,194,932.00 3,096,514,040.41
UBA 8,218.00 421,240,035.00 5,297,029,099.83
FIRSTINLND 1,619.00 336,174,653.00 703,161,667.52
DIAMONDBNK 3,014.00 320,426,681.00 2,296,133,534.11
AIICO 10,809.00 316,979,260.00 325,525,643.80
SKYEBANK 5,252.00 301,914,411.00 1,875,212,154.59

Top Ten Traded Sectors for the Month of July


Total %
Sector Total Volume Total Value
Trades Contribution

4,220,352,269.0 55.25%
BANKING 72,858.00 0 32,882,327,122.20

1,004,118,449.0 13.15%
INSURANCE 6,165.00 0 1,050,804,494.65
7.47%
CONGLOMERATES 5,732.00 570,929,355.00 3,787,327,018.91
FOOD/BEVERAGES &
3.51%
TOBACCO 13,859.00 267,717,514.00 6,773,125,613.31
3.17%
HOTEL & TOURISM 346.00 242,390,283.00 1,088,549,363.03
SECOND-TIER
2.78%
SECURITIES 57.00 212,702,951.00 106,660,185.50
INFORMATION &
COMMUNICATION 2.76%
TECHNOLOGY 1,243.00 211,142,141.00 228,103,889.82
1.73%
CONSTRUCTION 1,260.00 132,457,777.00 349,267,317.28
MORTGAGE
1.45%
COMPANIES 797.00 110,821,195.00 61,351,178.83

PETROLEUM(MARKETI 1.01%
NG) 6,400.00 77,026,997.00 4,166,178,266.24

7,637,990,081.0
Grand Total 134,213.00 0 58,784,142,060.02

Source: NSE, Proshare Research

Top Ten Gainers in the Month


1-Jul- 30-Jul- %
COMPANY Change
10 10 Change
INTERCONT 1.53 2.25 0.72 47.06%

The Monthly NCM Report for July 2010 www.proshareng.com Page 24


NIGERINS 0.83 1.15 0.32 38.55%
OCEANIC 1.61 1.97 0.36 22.36%
NBC 30 35.87 5.87 19.57%
UNHOMES 0.62 0.74 0.12 19.35%
CONTINSURE 1.1 1.3 0.2 18.18%
FTNCOCOA 0.67 0.79 0.12 17.91%
FIRSTINLND 0.5 0.58 0.08 16.00%
UBN 4.9 5.63 0.73 14.90%
UPL 6.72 7.65 0.93 13.84%
Source: NSE, Proshare Research

Top Ten Year to Date Appreciation


4-Jan- 30-Jul- %
COMPANY Change
10 10 Change
INTBREW 2.27 6.99 4.72 207.93%
CADBURY 10.49 29 18.51 176.45%
JBERGER 25.79 55.01 29.22 113.30%
CAPHOTEL 1.38 2.92 1.54 111.59%
FLOURMILL 36.2 75 38.8 107.18%
BERGER 3.2 6.52 3.32 103.75%
DANGFLOUR 10.42 20.7 10.28 98.66%
STERLNBANK 1.26 2.16 0.9 71.43%
CONOIL 27.63 47.03 19.4 70.21%
BAGCO 1.52 2.58 1.06 69.74%
Source: NSE, Proshare Research

Top Ten Decliners in the month


1-Jul- 30-Jul- %
COMPANY 10 10 Change Change
AP 36.58 27.08 -9.5 -25.97%
WAPIC 0.82 0.61 -0.21 -25.61%
DAARCOMM 0.79 0.6 -0.19 -24.05%
OKOMUOIL 14.28 11.2 -3.08 -21.57%
UTC 1.32 1.04 -0.28 -21.21%
ABCTRANS 0.85 0.67 -0.18 -21.18%
CORNERST 0.63 0.5 -0.13 -20.63%
REDSTAREX 3.93 3.17 -0.76 -19.34%
LIVESTOCK 0.73 0.6 -0.13 -17.81%
UNTL 1.29 1.07 -0.22 -17.05%

Top Ten Year to Date Depreciation

COMPANY 4-Jan- 30-Jul- Change %

The Monthly NCM Report for July 2010 www.proshareng.com Page 25


10 10 Change
UNITYKAP 2.38 -
-1.88
0.5 78.99%
ALUMACO -
27.71 8.15 -19.56 70.59%
BECOPETRO 2.53 -
0.8 -1.73 68.38%
OASISINS -
1.49 0.51 -0.98 65.77%
CRUSADER 1.5 -
0.53 -0.97 64.67%
STACO 1.19 -
0.5 -0.69 57.98%
ECOBANK 10.1 -
4.6 -5.5 54.46%
INCAR 4.12 -
1.97 -2.15 52.18%
UNIC 1.15 -
0.56 -0.59 51.30%
OKOMUOIL 22.75 -
11.2 -11.55 50.77%

The Monthly NCM Report for July 2010 www.proshareng.com Page 26


Corporate Declarations in the Month

The Monthly NCM Report for July 2010 www.proshareng.com Page 27


Forecast Results in the Month

DECLARED FORECASTS FOR JULY


Gross Earnings in PAT in N'
Company Year End Period N' billion billion
Beco Petroleum Plc December Q3 2010 1.020 0.75
Presco Plc December Q3 2010 4.3 0.703
Alumaco Plc December Q3 2010 0.32 0.13
RT Briscoe Plc December Q3 2010 0.9 0.107
Seven-Up Bottling Company Plc December Q3 2010 9.469 0.351
FCMB December Q3 2010 17.557 3.011
Afromedia Plc September Q4 2010 3.593 0.82
John Holt Plc December Q3 2010 0.187 -0.8
John Holt Plc December Year End 3.2 -0.25
Japaul Oil & Maritime Services Plc December Q3 2010 5.265 1.204
Access Bank Plc December Q3 2010 22.569 2.318
Juli Plc December Q3 2010 0.71 -0.3
Fidson Healthcare Plc December Q3 2010 1.081 0.88

Dividends Declared

DIVIDENDS DECLARED FOR JULY


Price
Dividend Bonus Adjustment
Company Declared Declared AGM Date Date
24th Aug, 10th - 13th
30k
Red Star Express Plc 2010 Aug, 2010
20th Oct, 13th - 17th
N2.00 1 for 10
Flour Mills Nigeria Plc 2010 Sept, 2010
Nigerian Bag 19th Oct, 13th - 17th
Manufacturing Company 13k
2010 Sept, 2010
Plc
Law Union & Rock 3k Nil Nil
Insurance Plc
5th August,
0.01k
Resort Savings & Loans Plc 2010
23rd Aug, 9th - 10th
1 for 19
Unity Kapital Assurance Plc 2010 Aug, 2010
NAHCO Aviance Plc 25k (interim) Nil Nil
23rd - 27th
September
86K August,
9th, 2010
PZ Cussons Nig Plc 2010

The Monthly NCM Report for July 2010 www.proshareng.com Page 28


Sectoral Analysis

SECTOR ANALYSIS
YTD
Symbol Symbol
30-Jul 4-Jan YTD %
Price Price Change Change
AGRICULTURE
AFPRINT 0.86 AFPRINT 0.86 0 0.0%
ELLAHLAKES 4.26 ELLAHLAKES 4.26 0 0.0%
FTNCOCOA 0.79 FTNCOCOA 0.54 0.25 46.3%
LIVESTOCK 0.6 LIVESTOCK 0.59 0.01 1.7%
OKITIPUPA 6.21 OKITIPUPA 6.53 -0.32 -4.9%
OKOMUOIL 11.2 OKOMUOIL 22.75 -11.55 -50.8%
Presco 5.68 Presco 5.6 0.08 1.4%
Average -0.9%
AIRLINE SERVICES
AIRSERVICE 2.46 AIRSERVICE 2.65 -0.19 -7%
NAHCO 10.33 NAHCO 7.18 3.15 44%
Average 18.4%
AUTOMOBILE & TYRE
DUNLOP 0.5 DUNLOP 0.5 0 0%
INCAR 1.97 INCAR 4.12 -2.15 -52%
RTBRISCOE 3.72 RTBRISCOE 6.15 -2.43 -40%
Average -30.6%
AVIATION
ALBARKAIR 0.58 ALBARKAIR 0.58 0 0%
Average 0.0%
BANKING
ACCESS 9.09 ACCESS 7.55 1.54 20%
AFRIBANK 2.08 AFRIBANK 2.43 -0.35 -14%
DIAMONDBNK 7.51 DIAMONDBNK 7.19 0.32 4%
ECOBANK 4.6 ECOBANK 10.1 -5.5 -54%
FIDELITYBK 2.53 FIDELITYBK 2.52 0.01 0%
FIRSTBANK 13.4 FIRSTBANK 14 -0.6 -4%
FCMB 7.89 FCMB 7.01 0.88 13%
FIRSTINLND 0.58 FIRSTINLND 0.55 0.03 5%
GUARANTY 16.8 GUARANTY 15.78 1.02 6%
INTERCONT 2.25 INTERCONT 1.69 0.56 33%
OCEANIC 1.97 OCEANIC 1.77 0.2 11%
PLATINUM 1.49 PLATINUM 1.38 0.11 8%
SKYEBANK 7.3 SKYEBANK 5.48 1.82 33%
SPRINGBANK 0.66 SPRINGBANK 0.73 -0.07 -10%
IBTC 9.1 IBTC 7.16 1.94 27%
STERLNBANK 2.16 STERLNBANK 1.26 0.9 71%
The Monthly NCM Report for July 2010 www.proshareng.com Page 29
UBA 10.5 UBA 10.81 -0.31 -3%
UBN 5.63 UBN 6.25 -0.62 -10%
UNITYBNK 1.11 UNITYBNK 0.87 0.24 28%
WEMABANK 1.08 WEMABANK 0.97 0.11 11%
ZENITHBANK 14.21 ZENITHBANK 13.5 0.71 5%
Average 8.7%
BREWERIES
CHAMPION 2.58 CHAMPION 3.15 -0.57 -18%
GOLDBREW 0.54 GOLDBREW 0.54 0 0%
GUINNESS 169 GUINNESS 127.5 41.5 33%
INTBREW 6.99 INTBREW 2.27 4.72 208%
JOSBREW 3.36 JOSBREW 3.58 -0.22 -6%
NB 70.24 NB 53 17.24 33%
PREMBREW 0.93 PREMBREW 0.93 0 0%
Average 35.5%
BUILDING MATERIALS
ASHAKACEM 19.1 ASHAKACEM 11.39 7.71 68%
BCC 64.5 BCC 43.01 21.49 50%
CCNN 17.05 CCNN 13 4.05 31%
WAPCO 41 WAPCO 30 11 37%
NIGERCEM 5 NIGERCEM 5 0 0%
NIGROPES 9.14 NIGROPES 9.14 0 0%
NIGWIRE 2.58 NIGWIRE 2.58 0 0%
Average 26.5%
CHEMICAL & PAINTS
AFRPAINTS 3.32 AFRPAINTS 3.49 -0.17 -5%
BERGER 6.52 BERGER 3.2 3.32 104%
CAP 31.92 CAP 28 3.92 14%
DNMEYER 4.74 DNMEYER 5.39 -0.65 -12%
IPWA 0.99 IPWA 1.45 -0.46 -32%
NIG-GERMAN 14.29 NIG-GERMAN 15.04 -0.75 -5%
PREMPAINTS 13.4 PREMPAINTS 13.4 0 0%
PORTPAINT 5.67 PORTPAINT 5.67 0 0%
Average 9.2%
COMMERCIAL/SERVICES
COURTVILLE 0.51 COURTVILLE 0.5 0.01 2%
NSLTECH 2.92 NSLTECH 4.35 -1.43 -33%
REDSTAREX 3.17 REDSTAREX 2.15 1.02 47%
TRANSEXPR 6.45 TRANSEXPR 6.45 0 0%
Average 4.1%
COMPUTER & OFFICE EQUIPMENT
HALLMARK 3.22 HALLMARK 3.22 0 0%
NCR 7.35 NCR 8.51 -1.16 -14%

The Monthly NCM Report for July 2010 www.proshareng.com Page 30


OMATEK 0.54 OMATEK 0.5 0.04 8%
THOMASWY 1.38 THOMASWY 1.84 -0.46 -25%
TRIPPLEG 3.96 TRIPPLEG 4.84 -0.88 -18%
WTN 2.92 WTN 2.92 0 0%
Average -9.8%
CONGLOMERATES
AGLEVENT 3.61 AGLEVENT 2.47 1.14 46%
CHELLARAM 8.5 CHELLARAM 14.13 -5.63 -40%
JOHNHOLT 9.28 JOHNHOLT 9.28 0 0%
PZ 34 PZ 25 9 36%
SCOA 8.71 SCOA 8.81 -0.1 -1%
TRANSCORP 0.5 TRANSCORP 0.52 -0.02 -4%
UACN 45 UACN 36.75 8.25 22%
UNILEVER 25.8 UNILEVER 19 6.8 36%
Average 11.9%
CONSTRUCTION
ARBICO 26 ARBICO 26 0 0%
CAPALBETO 95.49 CAPALBETO 95.49 0 0%
COSTAIN 6.25 COSTAIN 3.8 2.45 64%
GCAPPA 14.46 GCAPPA 14.46 0 0%
JBERGER 55.01 JBERGER 25.79 29.22 113%
MULTIVERSE 0.5 MULTIVERSE 0.5 0 0%
ROADS 3.01 ROADS 3.3 -0.29 -9%
Average 24.1%
ENGINEERING TECHNOLOGY
CUTIX 3.61 CUTIX 3 0.61 20%
INTERLINK 5.15 INTERLINK 5.15 0 0%
NIWICABLE 0.64 NIWICABLE 0.97 -0.33 -34%
Average 10.2%
FOOD/BEVERAGES & TOBACCO
7UP 49.35 7UP 29.4 19.95 68%
BIGTREAT 0.64 BIGTREAT 0.66 -0.02 -3%
CADBURY 29 CADBURY 10.49 18.51 176%
DANGFLOUR 20.7 DANGFLOUR 10.42 10.28 99%
DANGSUGAR 19 DANGSUGAR 14.9 4.1 28%
FLOURMILL 75 FLOURMILL 36.2 38.8 107%
HONYFLOUR 6.41 HONYFLOUR 8.5 -2.09 -25%
FOREMOST 0.51 FOREMOST 0.51 0 0%
MANDRID 5.66 MANDRID 5.95 -0.29 -5%
NNFM 33.58 NNFM 22.94 10.64 46%
NASCON 7.03 NASCON 4.56 2.47 54%
NESTLE 364 NESTLE 239.5 124.5 52%
NBC 35.87 NBC 22.49 13.38 59%

The Monthly NCM Report for July 2010 www.proshareng.com Page 31


TANTALIZER 0.8 TANTALIZER 0.75 0.05 7%
UTC 1.04 UTC 0.86 0.18 21%
UNIONDICON 4.22 UNIONDICON 6.01 -1.79 -30%
Average 40.9%
FOOTWEAR
LENNARDS 3.66 LENNARDS 4.26 -0.6 -14%
Average -14.1%
HEALTHCARE
ABOSELAB 4.92 ABOSELAB 4.92 0 0%
EKOCORP 5.58 EKOCORP 5.58 0 0%
EVANSMED 1.39 EVANSMED 1.02 0.37 36%
FIDSON 3 FIDSON 1.86 1.14 61%
GLAXOSMITH 29.93 GLAXOSMITH 22.4 7.53 34%
MAYBAKER 5.6 MAYBAKER 3.86 1.74 45%
MORISON 11.67 MORISON 12.28 -0.61 -5%
NEIMETH 2.53 NEIMETH 1.5 1.03 69%
PHARMDEKO 4.73 PHARMDEKO 4.97 -0.24 -5%
UNIONDAC 0.61 UNIONDAC 0.64 -0.03 -5%
Average 23.0%
HOTEL & TOURISM
CAPHOTEL 2.92 CAPHOTEL 1.38 1.54 112%
IKEJAHOTEL 1.4 IKEJAHOTEL 0.87 0.53 61%
TOURIST 4.76 TOURIST 5.28 -0.52 -10%
Average 54%
INDUSTRIAL/DOMESTIC PRODUCTS
-
ALUMACO ALUMACO
8.15 27.71 -19.56 70.59%
ALEX 12.39 ALEX 13.04 -0.65 -4.98%
-
BOCGAS BOCGAS
10.18 13.48 -3.3 24.48%
-
ENAMELWA ENAMELWA
43.06 55.63 -12.57 22.60%
FIRSTALUM 0.5 FIRSTALUM 0.5 0 0.00%
VITAFOAM 6.48 VITAFOAM 5.37 1.11 20.67%
-
VONO VONO
0.5 0.69 -0.19 27.54%
-
Average 18.50%
INFORMATION & COMMUNICATION TECHNOLOGY

CHAMS 0.59 CHAMS 0.59 0 0.00%


-
ETRANZACT ETRANZACT
4.97 6.4 -1.43 22.34%
IHS 4.02 IHS 4.24 -0.22 -5.19%
MTECH 0.91 MTECH 0.91 0 0.00%

The Monthly NCM Report for July 2010 www.proshareng.com Page 32


MTI 0.5 MTI 0.5 0 0.00%
STARCOMMS 1.88 STARCOMMS 1.8 0.08 4.44%
Average -3.85%
INSURANCE
-
AFRINSURE AFRINSURE
0.5 0.87 -0.37 42.53%
AIICO 1.38 AIICO 0.82 0.56 68.29%
CONFDINS 0.64 CONFDINS 0.64 0 0.00%
CONTINSURE 1.3 CONTINSURE 1.15 0.15 13.04%
CORNERST 0.5 CORNERST 0.52 -0.02 -3.85%
CUSTODYINS 3.5 CUSTODYINS 2.86 0.64 22.38%
EQUITYASUR 0.5 EQUITYASUR 0.5 0 0.00%
-
GOLDINSURE GOLDINSURE
0.68 0.91 -0.23 25.27%
GNI 0.5 GNI 0.5 0 0.00%
GUINEAINS 0.5 GUINEAINS 0.5 0 0.00%
HMARKINS 0.5 HMARKINS 0.5 0 0.00%
-
WAPIC WAPIC
0.61 1.15 -0.54 46.96%
-
INTENEGINS INTENEGINS
0.5 0.6 -0.1 16.67%
IAINSURE 0.5 IAINSURE 0.5 0 0.00%
-
LASACO LASACO
0.5 0.57 -0.07 12.28%
LAWUNION 0.51 LAWUNION 0.51 0 0.00%
LINKASSURE 0.5 LINKASSURE 0.5 0 0.00%
-
MBENEFIT MBENEFIT
0.5 0.64 -0.14 21.88%
NEM 0.5 NEM 0.54 -0.04 -7.41%
NIGERINS 1.15 NIGERINS 0.97 0.18 18.56%
-
OASISINS OASISINS
0.51 1.49 -0.98 65.77%
-
PRESTIGE PRESTIGE
3.32 4 -0.68 17.00%
REGALINS 0.5 REGALINS 0.5 0 0.00%
SOVRENINS 0.5 SOVRENINS 0.5 0 0.00%
-
STACO STACO
0.5 1.19 -0.69 57.98%
-
STDINSURE STDINSURE
0.5 0.57 -0.07 12.28%
-
UNIC UNIC
0.56 1.15 -0.59 51.30%
UNIVINSURE 0.5 UNIVINSURE 0.5 0 0.00%
Average -9.25%
LEASING
CILEASING 2.73 CILEASING 2.65 0.08 3.02%
Average 3.02%

The Monthly NCM Report for July 2010 www.proshareng.com Page 33


MARITIME
JAPAULOIL 1.45 JAPAULOIL 1.18 0.27 22.88%
Average 22.88%
MEDIA
-
AFROMEDIA AFROMEDIA
0.56 0.8 -0.24 30.00%
DAARCOMM 0.6 DAARCOMM 0.58 0.02 3.45%
-
Average 13.28%
MORTGAGE COMPANIES
-
ABBEYBDS ABBEYBDS
1.39 1.61 -0.2213.66%
-
ASOSAVINGS ASOSAVINGS
0.5 0.56 -0.06 10.71%
-
UNHOMES UNHOMES
0.74 0.89 -0.15 16.85%
-
Average 13.74%
OTHER FINANCIAL
INSTITUTIONS
-
CRUSADER CRUSADER
0.53 1.5 -0.97 64.67%
DEAPCAP 2.02 DEAPCAP 2.02 0 0.00%
FIRSTCAP 0.45 FIRSTCAP 0.45 0 0.00%
NESF 552.2 NESF 552.2 0 0.00%
ROYALEX 0.7 ROYALEX 0.66 0.04 6.06%
-
Average 11.72%
PACKAGING
ABPLAST 3.98 ABPLAST 3.98 0 0.00%
AVONCROWN 7.65 AVONCROWN 7.65 0 0.00%
BETAGLAS 15.58 BETAGLAS 14.26 1.32 9.26%
-
NAMPAK NAMPAK
4.44 6.99 -2.55 36.48%
-
POLYPROD POLYPROD
2.83 4.45 -1.62 36.40%
BAGCO 2.58 BAGCO 1.52 1.06 69.74%
STUDPRESS 2.92 STUDPRESS 2.92 0 0.00%
VANLEER 15.03 VANLEER 15.03 0 0.00%
WAGLASS 0.63 WAGLASS 0.63 0 0.00%
Average 0.68%
PETROLEUM(MARKETING)
-
AP AP
27.08 33.51 -6.43 19.19%
AFROIL 20.71 AFROIL 20.71 0 0.00%
-
BECOPETRO BECOPETRO
0.8 2.53 -1.73 68.38%
CHEVRON 90.1 CHEVRON 69.79 20.31 29.10%

The Monthly NCM Report for July 2010 www.proshareng.com Page 34


CONOIL 47.03 CONOIL 27.63 19.4 70.21%
ETERNAOIL 7.11 ETERNAOIL 4.74 2.37 50.00%
MOBIL 158 MOBIL 98.8 59.2 59.92%
-
OANDO OANDO
69.95 93.99 -24.04 25.58%
TOTAL 250 TOTAL 149 101 67.79%
Average 18.21%
PRINTING & PUBLISHING
ACADEMY 5.89 ACADEMY 5.4 0.49 9.07%
DTIMES 0.69 DTIMES 0.69 0 0.00%
-
LONGMAN LONGMAN
6.18 9.03 -2.85 31.56%
UPL 7.65 UPL 4.97 2.68 53.92%
Average 7.86%
REAL ESTATE
UAC-PROP 20.45 UAC-PROP 19.86 0.59 2.97%
Average 2.97%
ROAD TRANSPORTATION
ABCTRANS 0.67 ABCTRANS 0.73 -0.06 -8.22%
Average -8.22%
TEXTILES
-
UNTL UNTL
1.07 1.9 -0.83 43.68%
-
Average 43.68%
THE FOREIGN LISTINGS
ETI 17 ETI 15 2 13.33%
PNG 7.28 PNG 7.28 0 0.00%
Average 6.67%
SECOND-TIER SECURITIES
-
ADSWITCH ADSWITCH
1.9 2.3 -0.4 17.39%
AFRIK 0.5 AFRIK 0.5 0 0.00%
-
CAPOIL CAPOIL
0.5 0.59 -0.09 15.25%
FLEXIBLE 0.5 FLEXIBLE 0.5 0 0.00%
-
JULI JULI
3.05 3.54 -0.49 13.84%
KRABO 0.13 KRABO 0.13 0 0.00%
NEWPAK 1.1 NEWPAK 1.1 0 0.00%
RAKUNITY 0.31 RAKUNITY 0.31 0 0.00%
ROKANA 0.6 ROKANA 0.6 0 0.00%
SMURFIT 1.52 SMURFIT 1.52 0 0.00%
TROPICPET 0.44 TROPICPET 0.44 0 0.00%
UDEOFSON 0.5 UDEOFSON 0.5 0 0.00%
UNIONVENT 0.63 UNIONVENT 0.63 0 0.00%

The Monthly NCM Report for July 2010 www.proshareng.com Page 35


WAAP 0.5 WAAP 0.5 0 0.00%
MCNICHOLS 1.02 MCNICHOLS 1.02 0 0.00%
UNITYKAP UNITYKAP -
0.5 2.38 -1.88 78.99%
GTASSURE 2.11 GTASSURE 2.18 -0.07 -3.21%
RESORTSAL 0.5 RESORTSAL 0.5 0 0.00%
Average -7.15%

Source: NSE, Proshare Research

The Monthly NCM Report for July 2010 www.proshareng.com Page 36


Outlook /Analyst Opinion
Apparently, equity market in the month of July presented the two sides of the market
dynamism going by the trend of price movements recorded in the month. As noted in
the report, the scourge of bearish run that held sway for the first thirteen trading days of
the month (from 1st to 19th July) was halted by the recovery recorded in the latter part of
the month, the rebound that resumed on Tuesday 20th July has since remained.

The rebound which cut across all the sectors in the market was on the back of success
story recorded on the Asset Management Company which was assented to by the
President. Banking sector has been the most beneficial of the positive development as
investors’ enthusiasm seems to have eventually returned to the sector.

The fact that many stocks have shed considerable price weight accounted for the trend
as discerning investors and speculators took advantages of low prices across the market
to take positions for capital appreciations, and possibly holding on to some stocks with
prospects of good returns.

With the ongoing stability in the system- both political and economic, we expect that the
business environment will continue to post more attractive outlook for both local and
foreign investors; and this is expected to rob much more positively on the equity market
in particular and the whole economy in general.

While we hold our view that Asset Management Company is not the total cure for the
market challenges and ailments (http://proshareng.com/blog/?p=383) , we expect that
all things being equal, the expected positive impact on the back of AMC should rob much
more in the market. This is expected to be much more pronounced in the banking sector
which stands as the most beneficiary of the company.

The second quarter results released so far in the banking sector (with others still being
awaited as at the time of filling this report), and with quarterly results in some other
sectors as well, the results in many of these entities seem to be projecting better days
ahead for investors. It may be safe then to conclude that market outlook should be more
robust as against bearish run recorded in the preceding year comparable period.

We are of the view that lending is likely pick up in 2010, as the economy continues to
grow and commercial activity resumes after the slowdown in 2009 but Harmonization of
the fiscal and monetary policies Nigerian economy is a key and important aspect.

Moreover, as the economic recovery continues and scourge of job losses continues to
subside, with improved access to credit since banks should be able to resume lending
properly, improvement in liquidity situations seems inevitable (ceteris paribus.)

We are hopeful that the approaching transition period which tempo is expected to be
more intense as the year closes by will not create any hitch on the market recovery. We
hope the transition through election should be managed with transparency to forestall
any possibility of crisis that may send wrong signals to foreign investors.

In the same vein, leadership issues of the Nigerian Stock Exchange should be managed
properly even as the incumbent’s tenure expires before the year runs out. The smooth

The Monthly NCM Report for July 2010 www.proshareng.com Page 37


transitions both in the nation’s political sphere as well as in the capital market will surely
bring nothing but pluses to the market.

Market direction will be clear when the results of the bids would be released by
September or October (as expected by CBN) clarifying the ownership of the ailing
institutions as banks really had nothing to offer in terms of net worth as the equity is
negative but There are rooms for building and maintaining wealth as against depletion of
fortunes that had been before now.

The Monthly NCM Report for July 2010 www.proshareng.com Page 38


Time Lines - (News/Information in the month and Reaction of Market)

Date Timelines Gain Lose ASI and Market Capitalisation Remarks


ers rs

July 1 18 40 At the close of trading session, the All-Share Index


declined by -0.98% to close at 25,134.63 as compared
S&P: CBN Requires Guarantee to Sell Banks• Says govt’s propensity to
with depreciation by -0.11% recorded yesterday to
support uncertain-Standard & Poor’s, one of the world’s most reputable rating close at 25,384.14. Market capitalisation also
agencies, has said the Central Bank of Nigeria (CBN) may need to guarantee the depreciated by N60.691 billion (US$405.415 million)
to close at N6.114 trillion (US$40.840 billion)
acquisition of the rescued banks to be able to win the confidence of investors.S&P,
compared depreciation by N6.871 billion (US$45.895
which some days ago rated Nigerian banks as high investment risk, in a report , million) recorded yesterday to close at N6.174 trillion
titled “Banking Industry Country Risk Assessment: Nigeria”, identified a number of (US$41.245 billion). The market report for the day
was titled: Red Star Express gives 30k dividend as
hurdles in the way of the recapitalisation of the rescued banks, the execution of the
market tumbles southward by 0.98%
banking reforms and the return of the financial institutions to profitability. (http://www.proshareng.com/news/singleNews
Insurance industry premium hits N200bn-The nation’s insurance industry has .php?id=11206)

recorded a premium income of N200.6 billion for the financial year ended December
31, 2009, as against N150.3 billion it posted the same period in 2008, indicating a
33.5 percent growth. The growth, according to analysts, may have been as a result
of market expansion and increased business resulting from the industry’s increased
capacity since after its recapitalisation in 2007.

CBN releases guidelines for granting liquid asset status to state govt.
Bonds- Three months after the Central Bank of Nigeria (CBN) decided to confer
liquid asset status on eligible state government bonds, it has finally issued
guidelines to operationalise the decision. With the guidelines, the Securities and
Exchange Commission (SEC) is expected to monitor the execution of projects
carried out with proceeds from state government bonds. The apex bank decided to

The Monthly NCM Report for July 2010 www.proshareng.com Page 39


confer a status of liquid assets on states government so as to allow the bonds
issued relative ease in transfer of ownership by way of being traded in an open
market.

Bonds: SEC to monitor state govt projects-Henceforth, funds generated


through the issuance of bonds by state governments will be strictly channeled
towards the specific projects for which the money is sourced. To ensure this, the
Securities and Exchange Commission will play the role of a watchdog, while the
projects are being executed.

July 2 CBN: AMCON to Clear N1.5tr Bad Loans by Dec•Successful bids on rescued 39 23 The All-Share Index in the week under review inched
banks out Oct •Warns against another asset bubble-The Central Bank of up by +0.28% to close at 25,223.70 as against
depreciation by -2.74% recorded last week to close at
Nigeria (CBN) has said the proposed Asset Management Corporation of Nigeria
25,154.26. The bearish run that featured strongly in
(AMCON) will clear $10 billion (about N1.5trillion) of bad loans from the banking the two trading days of the week accounted for the
system by the end of this year. CBN Governor Sanusi Lamido Sanusi made the marginal gain recorded.

disclosure yesterday in an interview he granted Bloomberg News in London.


He said the debt purchases would cost the CBN “roughly” $5 billion as commercial The market capitalisation recorded appreciated by
banks don’t have collateral to cover the bad loans. N16.624 billion (US$111.053 million) to close at
N6.135 trillion (US$40.982 billion) as against decline
Senate cuts 2010 budget by N400bn-The Senate, yesterday, agreed to cut the by N172.133 billion (US$1.150 billion) recorded last
N4.3 trillion 2010 Budget expenditure by N400 billion with the Amendment Bill week to close at N6.118 trillion (US$40.871 billion).
The market report for the week was titled: Market
passing a second reading. The Appropriation Act originally empowered the Federal
gains marginally by 0.28% in the week amidst
Government to spend N4.3 trillion, with N183.575 billion as statutory transfer and dividends reward
N542.38 for debt service. Also, N2.105 trillion was budgeted for recurrent (http://www.proshareng.com/news/11222)

expenditure, while N1.37 trillion was for capital project. The N400 billion the Senate
proposes to cut is, however, a far cry from President Jonathan’s request in which he
had asked for a 40 per cent reduction, which translates to about N1.2 trillion from
the total budget.
Rescued banks: CBN to clear toxic debts by year end – Sanusi- The Governor
of the Central Bank of Nigeria, Mr. Lamido Sanusi, has said that the CBN plans to
clear the toxic debts from the banking system by the end of the year as it tries to

The Monthly NCM Report for July 2010 www.proshareng.com Page 40


revive lending and boost growth. He also said that it would cost roughly N750bn to
purchase the bad debts hanging around the rescued banks. Sanusi, in an interview
with Bloomberg News in London on Thursday, said the debt purchases would cost
the bank ”roughly” $5bn as commercial banks did not have collateral to cover the
bad loans.

Foreign reserves fall to $37bn-Nigeria‘s foreign reserves declined to $37.17bn


on Tuesday from $38.79bn at the end of May.The reserves have fallen steadily
since January because of a surge in dollar demand at the local forex market.
Demand for funds from the Central Bank of Nigeria has averaged $600m weekly in
the last two months, while the regulator has sold an average of $500m during the
same period.

Hope rises for sick banks •Get CBN’s N1.5trn lifeline-Succour may have
finally come the way of weak banks in the country, as the Central Bank of Nigeria
(CBN) plans to clear about N1.5 trillion ($10 billion) of toxic debts from the banking
system by the end of the year. The move by the apex bank, which is aimed at
reviving lending and boosting growth in the banking sector, will indicate a debt
purchase, valued roughly at about N750 billion as commercial banks don’t have
collateral to cover their bad loans.

CBN governor sees no rate rise, warns of bubble-Four international banks to bid for
rescued banks • Bid starts end of July-The Central Bank of Nigeria governor
said on Thursday he saw no reason to raise interest rates, days before a
monetary policy committee meeting, but said he was concerned about the
risk of another asset bubble forming. Governor Lamido Sanusi also said
four international banks were among the likely bidders for Nigerian banks
rescued last year in a $4 billion bailout and that he expected bids to be in
by the end of the month.

The Monthly NCM Report for July 2010 www.proshareng.com Page 41


July 5 NSE DG: Uncertainty Reigns as Search Intensifies-As the Nigerian Stock 30 35 At the close of trading session, the All-Share Index
Exchange (NSE) intensifies the search for a replacement for its incumbent Chief declined by -0.29% to close at 25,149.59 as against
the appreciation by +0.35% recorded at the close of
Executive Officer CEO) Prof. Ndi Okereke-Onyiuke, and the Executive Directors
trading on Friday to close at 25,223.70. Market
(EDs), the chances of any of the current top executives of the Exchange becoming capitalisation also depreciated by N11.627 billion
the new CEO are getting uncertain. Okereke-Onyiuke will be retiring by November (US$77.671 million) to close at N6.123 trillion
(US$40.905 billion) as against appreciation by
2, 2010 and it is expected that one of the current General Managers (GMs) will
N21.398 billion (US$142.940 million) recorded on
succeed her. But in line with the directive of the Securities and Exchange Friday to close at N6.135 trillion (US$40.983 billion).
Commission (SEC) that the position be open to other candidates in a bid to recruit The market report for the day was titled: Starcomms,
Berger Paints, RT Briscoe lead losers as NSE ASI
the best, NSE has been advertising in some of the national newspapers. The
turns
Exchange also spread the hunt to the international scene last week by advertising south(http://proshareng.com/news/singleNews
in the Economist magazine. .php?id=11243)

Four International Banks to bid for failed banks-The Central Bank Governor,
Sanusi Lamido Sanusi, yesterday in London, said four international banks were
among the likely bidders for banks rescued last year in a $4 billion bailout and that
he expects bids to be in by the end of the month. Sanusi added that the results of
the bids would be released by September or October. However, Sanusi stated that
the CBN would not be raising the nation's interest rates, giving insight into the
possible outcome of the next Monetary Policy Committee Meeting billed for Tuesday
and Wednesday next week.

Nigerian investors can buy rescued banks –Aganga-The Minister of Finance,


Mr. Olusegun Aganga, on Sunday said that local investors were not excluded from
buying salvaged banks. The minister, who was quoted to have said this in a
statement issued by his Special Assistant on Media, Mr. Okwudili Ojukwu, noted
that both local and foreign investors were allowed to buy the banks being
restructured by the Central Bank of Nigeria. Aganga said that the current debate in
some quarters about the propriety of selling the restructured banks to foreigners
was unnecessary.

The Monthly NCM Report for July 2010 www.proshareng.com Page 42


CBN comfortable with naira-dollar exchange rates – Sanusi-The Governor of
the Central Bank of Nigeria, Mr. Lamido Sanusi, has said that the country is
”comfortable” with current naira levels. According to him, the currency is unlikely to
come under pressure, with foreign reserves capable of funding 17 months of
imports. The naira has appreciated to the strongest level in more than three
months versus the dollar, strengthening by 0.1 per cent to N149.7 as at Thursday.

Union Bank, Ecobank removed from NSE Banking 10 Index-The Nigerian


Stock Exchange has removed Union Bank of Nigeria Plc and Ecobank Nigeria Plc
from the NSE Banking -10 Index. The index committee, after reviewing the banking
index in its quarterly meeting, replaced the two banks with Fidelity Bank Plc and
Skye Bank Plc. The committee also reviewed the NSE-30 and other sectoral indices,
such as the NSE Food, Beverages and Tobacco-10 Index, the NSE Insurance-10
Index and the NSE Oil and Gas-5 Index. Two companies were also removed from
the NSE-30. The companies– Cadbury Nigeria Plc and Ecobank Nigeria Plc–were
replaced by Julius Berger Plc and Mobil Oil Nigeria Plc.

Banks’ crisis: Mergers and acquisitions to be concluded in Q3 –CBN-The


Central Bank of Nigeria and financial experts agree that the planned
commencement of operations of the Asset Management Corporation of Nigeria to
coincide with the conclusion of mergers and acquisitions will make the nation’s
banks bounce back, YEMI KOLAPO reports. Mergers and acquisitions in the Nigerian
banking sector will be concluded in the third quarter of 2010, the Central Bank of
Nigeria has said.

Inter-bank rates climb on big cash outflow-Inter-bank lending rates rose to two
per cent on average last week from 1.1 per cent the previous week after
large chunks of cash flowed out to treasury bills and foreign exchange
purchases drained liquidity from the system. The secured Open Buy Back
climbed to 1.50 per cent, from 1.05 per cent, 50 basis points above the

The Monthly NCM Report for July 2010 www.proshareng.com Page 43


Standing Deposit Facility rate and 4.50 percentage points below the six per
cent Central Bank of Nigeria benchmark rate.
July 6 CBN governor sees money supply, credit growth challenges-Central Bank of 28 34 At the close of trading session, the All-Share Index
Nigeria (CBN) governor, Sanusi Lamido Sanusi, said on Monday negative growth in gained marginally +0.08% to close at 25,170.31 as
against the depreciation by -0.29% recorded at the
money supply and credit to the private sector remained key challenges inflation
close of trading yesterday to close at 25,149.59.
.Inflation, he said, remained a "real threat" due to an expected public sector pay Market capitalisation also inched up by N5.922 billion
rise and an anticipated rise in food prices caused partly by food shortages in (US$37.522 million) to close at N6.129 trillion
(US$40.943 billion) as against depreciation by
neighbouring Niger republic.
N11.627 billion (US$77.671 million) recorded
yesterday to close at N6.123 trillion (US$40.905
CBN: Banks Not Yet in ‘Positive Territory’•Manufacturers to access N150bn billion). The market report for the day was titled:
from intervention fund •Interest rate unchanged at 6%-Despite the modest Multiverse, GT Bank, Internegins lift market
profits recorded by some of the banks in the first quarter, Nigerian banks still have volume; NSE ASI turns
northward(http://www.proshareng.com/news/
a long way to go in addressing the holes in their balance sheets, Central Bank
singleNews.php?id=11255)
(CBN) Governor Sanusi Lamido Sanusi said yesterday.He also disclosed that N150
billion out of the N500 billion intervention fund is ready for drawdown and will be
accessed by 150 manufacturers before the end of this month.

D-8 Summit: Nigeria Woos Investors for Energy, Agric Sectors-Nigeria


yesterday threw its investment window open to member countries of the D-8
business community to avail themselves of the abundant opportunities that abound
in the country in the areas of industrial development, power sector, agriculture,
communication technology, oil and gas. Minister of Commerce and Industry,
Senator Jubril-Martins Kuye, who addressed the D-8 Business Forum in Abuja said
the reason for mounting the business forum during the summit was to create the
needed awareness among investors from member countries on potential areas of
investment in the country.

Manufacturing gets CBN’s N150b push-The comatose manufacturing sector is


to receive a N150 billion life-line from the Central Bank of Nigeria (CBN). Some 150
entrepreneurs and existing industries are to get N1 billion each to revive their
operations. The N150 billion is part of the N500 billion infrastructural revival fund

The Monthly NCM Report for July 2010 www.proshareng.com Page 44


packaged late last year for power and other baseline infrastructure revival. The
credit carries a 15-year tenure with an interest of seven per cent.The CBN
Governor, Malam Sanusi Lamido Sanusi, who announced the good news in Abuja
yesterday said plans had been concluded for the signing of agreement with banks
that would be used for the disbursement of the funds next week

NSE council approves N93.6b issues-The Council of the Nigerian Stock


Exchange (NSE) has approved is isues worth N93.6bn through its quotation
committee. Mr Sola Oni, the Assistant General Manager and Head, Corporate
Communications, said in a statement given to the News Agency of Nigeria (NAN) in
Lagos that the approval was in respect of four companies, a state government and
two financial instruments.The statement said the approval was a sign of rising
investors’ confidence in the stock market. “Bayelsa State Government got the
council’s approval for its offer for subscription of N50bn Fixed Rate Development
Bond 2016 of N1,000 each at par.
FG’s spending on fuel subsidy hits N120bn-The Federal Government‘s spending
on fuel subsidy has hit N120bn, our correspondent has gathered. It was learnt that
the amount was the total expenditure on subsidy between the first and second
quarters of the year.A top official in one of the government agencies managing the
disbursement of the subsidy to importers told our correspondent on Monday, “I can
tell you that the Federal Government has spent not less than N120bn so far,
between January and June, on fuel subsidy.

CBN to maintain interest rates at 6%-The Central Bank of Nigeria will keep its
benchmark interest rate unchanged at 6 percent on today, as the need to
stimulate growth seems to outweigh inflation risks in the nation’s
economy. The CBN had earlier said it would review whether to start
tightening its monetary policy at its meeting in July because of increased
inflationary risks from government spending and the soaking up of bad

The Monthly NCM Report for July 2010 www.proshareng.com Page 45


bank loans. But inflation has since declined, falling to 11 percent year-on-
year in May from 12.5 percent the previous month.
July 7 NSE Presidency: A’Court Strikes Out Dangote’s Application-Court of Appeal 25 33 At the close of trading session, the All-Share Index
sitting in Lagos yesterday struck out an application filed by business mogul, Alhaji declined by -0.40% to close at 25,070.85 as against
the appreciation by +0.08% recorded at the close of
Aliko Dangote, asking it to stay further proceedings in a suit challenging his election
trading yesterday to close at 25,170.31. Market
as the President of the Nigerian Stock Exchange. The ruling was sequel to an oral capitalisation also declined by N23.246 billion
application made by counsel to Dangote, Seyi Sowemimo (SAN), who informed the (US$155.282 million) to close at N6.105 trillion
(US$40.787 billion) as against appreciation by N5.922
court that the application should be withdrawn.
billion (US$37.522 million) recorded yesterday to close
SEC Lauded on Improved Disclosure by Forms-A leading shareholder activist at N6.129 trillion (US$40.943 billion). The market
and founding member of the Nigeria Shareholders Solidarity Association (NSSA), report for the day was titled: NSE ASI closes in red
as Union Bank shares drive volume on the NSE.(
Alhaji Gbadebo Olatokunbo, has commended the Securities and Exchange
http://www.proshareng.com/news/singleNews.
Commission (SEC) for the enforcement of timely release of information by listed php?id=11279)
companies. This development, he said has empowered shareholders to make
better-informed investment decisions.

CBN moves to free more credit for economic growth-Following the financial
crisis that hit the banking sector in 2009, most banks that had huge
amounts provided for in their financials as a result of non-performing loans
given out to the capital market and the oil and gas sector must have learnt
a bitter lesson they would not want to repeat itself.
July 8 Jonathan: D-8 Nations’ Summit’ll Boost Economic Relations-As the Summit 12 49 At the close of trading session, the All-Share Index
of Eight Developing Nations (D-8) opens today in Abuja, President Goodluck declined by -1.18% to close at 24,776.04 compared
with the depreciation by -0.40% recorded at the close
Jonathan has assured that the summit would help in strengthening economic
of trading yesterday to close at 25,070.85. Market
relations among member nations. capitalisation also declined by N72.660 billion
(US$485.370 million) to close at N6.033 trillion
CBN unveils new guidelines risk management-After identifying factors that led (US$40.302 billion) as against depreciation by
to the creation of extremely fragile financial system that was tipped into N23.246 billion (US$155.282 million) recorded
crisis by the global financial meltdown, the Central Bank of Nigeria (CBN) yesterday to close at N6.105 trillion (US$40.787
billion). the market report for the day was titled:
has unveiled revised prudential guidelines for Deposit Money Banks Market remains in bear’s territory as banking &
(DMBs) to reduce potential risks in the future. beverages stocks dip
massively(http://www.proshareng.com/news/s

The Monthly NCM Report for July 2010 www.proshareng.com Page 46


ingleNews.php?id=11293)

July 9 CBN Extends Implementation of Prudential Guidelines-The Central Bank of 15 46 The All-Share Index in the week under review dipped
Nigeria (CBN) has extended by two months the implantation date for the new by -2.44% to close at 24,609.30 as against
appreciation by 0.28% recorded last week to close at
Prudential Guidelines for Banks.The guidelines which were first issued in May, this
25,223.70. The continued bearish hold on the market
year was re-issued yesterday and the effective date for implementation moved in the week accounted for the negative outlook
from May 1 to July 1, 2010. A circular signed by CBN’s Director of Banking recorded.

Supervision, Mr Samuel Oni, addressed to all deposit money banks referenced:


BSD/DIR/GEN/NPG/02/126 and dated July 8, 2010, stated that banks are required The market capitalisation recorded depreciated by
to be guided by the regulations and ensure strict adherence. N104.609 billion (US$698.788 million) to close at
N6.018 trillion (US$40.206 billion) as against
Budget: FG cuts 2010 revenue to N2.39trn-President Goodluck Jonathan,
appreciation by N16.624 billion (US$111.053 million)
yesterday, asked the National Assembly to reduce the oil production assumption in recorded last week to close at N6.135 trillion
the country’s 2010 spending plans to 2.2 million barrels per day, bpd, from 2.25 (US$40.982 billion). The market report for the week
was titled: Intercontinental Bank releases results
million, according to a letter to the National Assembly. The President in the letter
as bear’s stronghold remains in the market.(
said that recent information from the Nigerian National Petroleum Corporation, http://www.proshareng.com/news/singleNews.
NNPC, indicated that oil production for the 2010 fiscal year was likely to average at php?id=11312)

about 2.2 million bpd.


Sanusi admits failure to stem irregularities in CBN-Central Bank of Nigeria,
CBN, Governor Sanusi Lamido Sanusi, yesterday, admitted that some members of
management of the bank failed to take action despite knowing the irregularities
going on in banks.He said this while delivering a lecture to Senior Executive Course
32 members of the National Institute for Policy and Strategic Studies, NIPPS, Kuru,
Plateau State.
Investors faults CBN, SEC on regulation- Investors have faulted the Central
Bank of Nigeria and the Securities and Exchange Commission on regulations
affecting their investments. According to shareholders who spoke to our
correspondent in a telephone interview on Thursday, the regulatory bodies have no
clear direction on how to achieve their reforms. They noted that the recent
extension of the deadline given to Wema Bank Plc and Unity Bank Plc showed that

The Monthly NCM Report for July 2010 www.proshareng.com Page 47


the CBN did not have a clear programme for its reform. They also faulted the SEC
on the extension of the deadline given to the Nigerian Stock Exchange to appoint a
new Director-General.

July 12 18 29 At the close of trading session, the All-Share Index


Govt begins tracking of foreign loans’ management-The Federal Government has
inched up by +0.10% to close at 24,632.78 as against
flagged-off the tracking of all foreign loans secured by it. The move is to
decline by -0.67% recorded at the close of trading
ensure that the credit facilities are channelled to purposes they were yesterday to close at 24,609.30. Market capitalization
meant for, to achieve value for money. Currently, an estimated $4.23 also inched up by N5.742 billion (US$38.361 million)
to close at N6.025 trillion (US$40.245 billion) as
billion has been secured by the Federal Government, which recently
against depreciation by N14.324 billion (US$95.688
expressed concern on the poor implementation and administration million) recorded yesterday to close at N6.018 trillion
bottlenecks that have negatively impacted on projects across the country. (US$40.206 billion). The market report for the day
was titled
http://proshareng.com/news/singleNews.ph
p?id=11344 120710: Firstbank, GTbank,
UBA lead volume as Petroleum stocks lose
massively

July 13 30 28 At the close of trading session, the All-Share Index


CBN begins process of bailout to airlines, manufacturers-Respite has come the
inched up by +0.85% to close at 24,842.01 compared
way of the hitherto domestic airlines enmeshed in financial mess as the
with the appreciation by +0.10% recorded at the close
process has reached an advanced stage for the Central Bank of Nigeria of trading on yesterday to close at 24,632.78. Market
(CBN) to release the N1 billion bailout loans to each of the airlines capitalisation also inched up by N50.174 billion
(US$335.167 million) to close at N6.024 trillion
(US$40.245 billion) compared with appreciation by
N5.743 billion (US$38.361 million) recorded yesterday
to close at N6.024 trillion (US$40.245 billion). The
market report for the day was titled: Flourmills Plc
rewards investors with dividends and bonus: ASI
gains 0.85%
(http://proshareng.com/news/singleNews.php?
id=11363)

The Monthly NCM Report for July 2010 www.proshareng.com Page 48


July 14 28 29 At the close of trading session, the All-Share Index
Credit from bailed out banks rises by 53.51%-In what appears to signpost a
nosedived by -0.32% to close at 24,761.79 as against
gradual return to normalcy in the banking industry, credit from the eight
appreciation by +0.85% recorded the following day to
banks bailed out by the Central Bank of Nigeria (CBN) rose by 53.51 close at 24,842.01. Market capitalisation also declined
percent between 10th April and 10th May this year. From just N18.19 by N19.617 billion (US$131.041) to close at N6.055
trillion (US$40.449) as against appreciation by
billion granted from January to April 10, the bailed out banks showed
N50.174 billion (US$335.167 million) of the previous
growing adventure by increasing their credit to N27.92 billion between day to close at N6.024 trillion (US$40.245 billion)
April 10 and May 10. titledhttp://www.proshareng.com/news/singl
eNews.php?id=11381 140710: Investors
jostle for Nigeria Flourmills Plc rewards as
market remains volatile

July 15 NNPC Not Bankrupt, Says FG-The Federal Government yesterday faulted the 28 29 At the close of trading session, the All-Share Index
claim that the Nigeria National Petroleum Corporation (NNPC) was insolvent. dipped marginally by -0.07% to close at 24,744.95
compared with depreciation by -0.32% recorded at the
Minister of State for Finance, Mr. Remi Babalola had said NNPC owed debts the
close of trading on yesterday to close at 24,761.79.
federation account N450 billion. Babalola, referring to a letter from NNPC group Market capitalisation also dipped by N3.124 billion
managing director, Mr. Austin Oniwon, said: “NNPC is insolvent as current liabilities (US$20.865 million) to close at N6.052 trillion
(US$40.428 billion) compared with decline by N19.617
exceed current assets… NNPC is incapable of repaying the N450 billion owed to the
billion (US$131.041 million) recorded yesterday to
Federation Account unless it is reimbursed the N1.156 trillion (in subsidies) it has close at N6.055 trillion (US$40.448 billion). The
requested from the Federal Ministry of Finance.” market report for the day was titled: Nigerian
Breweries declares 5.8% PAT decline in Q2 as
NSE Presidency: Court Summons Dangote, Onyiuke, Igbinosun over
market dips by
Contempt Charges-For his continuing claim to the Nigeria Stock Exchange (NSE) 0.07%(http://www.proshareng.com/news/113
presidency contrary to a court order nullifying his election, a Federal High Court in 97)

Lagos yesterday ordered business mogul and Chairman Dangote Group, Alhaji Aliko
Dangote, to appear before it to answer contempt charges preferred against him
by some aggrieved shareholders of African Petroleum.

Recapitalization: CBN Meets Rescued Banks’ Boards-The Central Bank of


Nigeria (CBN) is meeting today with the Boards of Directors of the rescued banks to
resolve outstanding issues in the recapitalization of the financial institutions. The

The Monthly NCM Report for July 2010 www.proshareng.com Page 49


apex bank had in a memo to the respective banks last Friday invited all the
managing directors as well as the executive and non- executive directors of the
affected banks to a town hall meeting in Abuja with top officials of the CBN.

SEC suspends 34 stockbrokers for alleged default in reporting


requirements-The Securities and Exchange Commission (SEC) has suspended the
operating licences of 34 stockbrokers for allegedly defaulting in the commission’s
statutory reporting requirements. Director-General of SEC, Arunma Oteh, explained
yesterday that the suspension would not be lifted until the affected stockbrokers
comply with all the necessary statutory mandates. The suspension is coming barely
three months after SEC dispatched letters of queries to some stockbroking firms for
allegedly indulging in unethical practices.

CBN makes U-turn on new guidelines-The Central Bank of Nigeria, CBN, has
backpedalled on its directive that banks should disclose executive
compensation and bonuses in their annual accounts. The apex bank, last
week, issued a new prudential guidelines which replaced the one issued in
May which mandated banks to disclose in their annual accounts monies
paid to executives and staff as compensation, profit sharing and bonuses.
Also deleted from the new prudential guidelines is the limit on credit to
directors and significant shareholders and the general provisioning of one
per cent for all loans.
July 16 Nigeria denies state oil firm NNPC bankrupt-The Nigerian government has 31 27 The All-Share Index in the week under review
strongly denied claims that the state oil company is bankrupt, shortly after a junior appreciated by +0.96% to close at 24,846.64 as
against decline by -2.44% recorded last week to close
minister said it was insolvent.On Tuesday, Junior Finance Minister Remi Babalola
at 24,609.30. The positive trends recorded in the three
said the Nigerian National Petroleum Corporation was unable to pay debts of $5bn of the five trading days of the week accounted for the
(£3.3bn).However, two senior cabinet ministers flatly contradicted him.Nigeria is a positive outlook.

major producer and exporter of crude oil but depends almost entirely on imported
fuel.Finance Minister Segun Aganga told journalists the NNPC was a going concern The market capitalisation in the week recorded a boost
by N58.048 billion (US$387.765 million) to close at

The Monthly NCM Report for July 2010 www.proshareng.com Page 50


and an important arm of government. N6.077 trillion (US$40.594 billion), a contrast with
depreciation by N104.609 billion (US$698.788 million)
CBN: Shareholders Now to Recapitalise Rescued Banks-The Central Bank of recorded last week to close at N6.018 trillion
(US$40.206 billion). The market report for the week
Nigeria (CBN) has enhanced the participation of shareholders in the recapitalisation
was titled: Equity market YTD performance closes
of rescued banks by bestowing on them the power to midwife the process. They at 19.30% as market turns
would also take the final decision on who invests in the financial institutions. With north(http://www.proshareng.com/news/1141
3)
this development, the apex bank has heeded to the wishes of the shareholders,
who have been clamouring that they be allowed to recapitalise the banks.

Money Laundering Bill Runs into Hitch-The clause-by-clause consideration of


the Senate Committee on Drugs, Narcotics, Financial Crimes and Anti-Corruption on
the Money Laundering Act 2004 (Repeal and Re-enactment) Bill 2010 was stalled
on the floor of the Senate yesterday following disagreements over some of its
provisions. Since deliberations on the draft Bill began about four weeks ago, many
senators have expressed misgivings over some of its provisions, which they believe
to be “too draconian and unrealistic”.

Bank lending to real estate drops 60% as credit squeeze lingers-The real
estate sector of the economy has seen a substantial drop in bank lending that
hovers between 60 and 70 percent following the credit squeeze in the banking
sector. Due more to the on-going banking reform than the global economic
recession, the Nigerian banking sector is having serious liquidity challenges. The
situation is such that most of the banks appear to have outlawed lending. The few
that lend are very selective, lending only to individuals and institutions that they
like most, especially those that pose minimal risk.

Asset management company takes off July 26- Barring any unforeseen
circumstance, the Asset Management Company (AMC), an establishment that will
soak up bad debts in the banking sector, is set to take off in the next two weeks.
This follows the receipt of the harmonised Asset Management Company (AMCON)
bill by President Goodluck Jonathan last weekend. AMCON, when signed into law,

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will give birth to AMC that is expected to buy an estimated $10 billion bad debt
from the financial system.

July 19 Reserves Rise over Reduced Funding for Forex-Nigeria’s external reserves 25 35 At the close of trading session, the All-Share Index
rose to $38.53 billion last weekend, from about $37 billion at the end of June, dipped by -0.32% to close at 24,766.14 as against
appreciation by +0.41% recorded on Friday to close at
2010, which represented about 3 per cent rise within just a fortnight.
24,846.64. Market capitalisation also dipped by
Analysts attributed the rise to the shortfall in demand for foreign exchange, which N19.688 billion (US$131.518 million) to close at
they said lowered the utilisation of reserves for market intervention by the Central N6.057 trillion (US$40.463 billion) compared with
appreciation by N24.872 billion (US$166.144 million)
Bank of Nigeria (CBN).
recorded on Friday to close at N6.077 trillion
Banks Rule Out New Exposure to Aviation Sector-Many of the country’s banks (US$40.594 billion).
have ruled out any new exposure to the aviation sector, especially the airlines, The market report for the day was titled:
Intercontinental, Platinum lead losers on 0.32%
except in the future when the economic environment improves.The banks,
slide; AMCON law signed by President.(
according to THISDAY investigations, have merely deployed resources to participate http://www.proshareng.com/news/11433)
in the aviation Fund, planned by the Central Bank of Nigeria (CBN), as part of the
N500 billion intervention to critical economic sectors.It was gathered that the
modalities for disbursing the aviation component of the Fund has still not been
worked out, owing to the peculiar nature of the sector – which is affecting decisions
on the right funding and target carriers.

NSE DG: Candidates to Face Interview Panel-The search for a new Director-
General and other principal officers of the Nigerian Stock Exchange (NSE) has
entered into a crucial stage as those who applied for the positions will soon face an
interview panel, THISDAY can report.The NSE DG, Ndi Okereke-Onyiuke, is
expected to retire on November 2, 2010. This has compelled the NSE to advertise
for prospective candidates to apply for the post of DG and other principal officers.

CBN stirs market confidence with shifts in banking policy-After a series of


harsh words which depressed the banking industry, the recent recant of the Central
Bank of Nigeria (CBN) on some core issues in its industry reforms is set to blow
some desperately needed air of optimism over traumatised operators.A succession
of policy reviews by the apex bank, especially that on the controversial proposal to

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sell the bailed out banks, may have been designed to send positive signals to the
Nigerian financial markets to ease what has been described as a year-long tension
that kept them in slow motion. At a meeting last week with the shareholders and
management of the troubled banks, CBN had agreed to leave their recapitalisation
in the hands of the shareholders, effectively jettisoning the plan to sell the banks to
new investors.

Inflation dips to lowest for two years- Consumer inflation eases to 10.3%
in June •Growth in food prices declines to 12%-Inflation year-on-year eased
to 10.3 percent in June, a drop from 11 percent recorded in May and the lowest
since June 2008 when impact of global food crisis pushed it to a double digit.
Growth in food prices also eased to 12.0 percent year-on-year from 12.3 percent in
May.The growth in consumer prices is the lowest monthly year-on-year increase
since May 2008, when it rose to 9.7 percent, according to figures from National
Bureau of Statistics (NBS) weekend. “Once again, despite ample domestic liquidity,
Nigerian inflation surprises with a year-on-year fall,” said Razia Khan, head of
Africa research at Standard Chartered.

Nigeria earns N33 trillion from oil, gas in six years’-Production activities from
the nation’s oil and gas sector raked-in about $220 billion (N33 trillion) into the
Federal Government’s coffers between 2003 and 2009. Statistics obtained from the
International Oil Companies (IOCs) also revealed that the cumulative capital
investment in the sector (excluding exploration) reached about $81 billion (N12.150
trillion) during the period under review.The Chairman of the Oil Producing Trade
Section (OPTS) of the Lagos Chamber of Commerce and Industry, Mr. Andrew
Fawthorpe, disclosed this at the South West Road Show of the Nigeria Extractive
Industries Transparency Initiative (NEITI) in Lagos recently.

Rescued banks: Shareholders warn local banks to stay clear-Shareholders


have warned local banks in the country planing to buy into the eight rescued banks

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whose executive man agement the Central Bank of Nigeria (CBN) sacked in
August last year to stay away until the legal issues beclouding the intervention of
the apex bank are sorted out.The Chairman of Independent Shareholders
Association of Nigeria (ISAN), Sir Sunny Nwosu, who spoke the minds of his
members during an interview with Vanguard said,“We shareholders are warning the
local banks that are planning to buy into the rescued banks to stay away because
they would be buying litigation cases. We will not allow our investment to go down
the drain. We are in court and we will see to the end of it.”

New Prudential Guidelines :A major CBN policy summersault-The Central


Bank of Nigeria, CBN, made a major and unprecedented policy summersault when
it released a new prudential guidelines less than two months after the previous one
was released. The new guidelines, released July 9th and effective from July 1st,
was in every ramification a watered down version of the one released in May,
lacking most of the restrictions and regulations which would have curtailed the
excesses and malpractices that have bedevilled the industry for long.

Bauchi NSE woos investors-Bauchi State branch of the Nigerian Stock Exchange
(NSE) is wooing civil servants in the state to invest in the stock market.The branch
manager of the NSE in Bauchi, Ahmed Maigari Misau, stated this at the weekend
during a sensitisation lecture for the senior staff of the Ministry of Information in
Bauchi, organised by the Nigerian Stock Exchange.

World recovery continues but risks increase, says IMF-Balancing the strong
growth numbers for the first half of 2010 and the adverse impact of increased
financial turbulence, the International Monetary Fund (IMF) forecasts world growth
to rise to 4 per cent this year, before falling somewhat to 4 per cent in 2011 - with
the world average masking large differences around the globe.But despite the
stronger than expected first half recovery, the IMF warned that uncertainties
surrounding sovereign and financial sector risks in parts of the euro area could

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spread more widely, posing difficulties for both financial stability and the economic
outlook.

Bailout: N130bn approved for disbursement – BOI-A total of N130bn has been
approved by the Bank of Industry for disbursement to manufacturers and operators
of Small and Medium Scale Enterprises. This amount forms part of the N200bn
earmarked by the Central Bank of Nigeria for the refinancing and restructuring of
the manufacturing sector.This was disclosed by the Managing Director/Chief
Executive Officer, BOI, Ms. Evelyn Oputu, during the Quarterly Business Luncheon
organised by the Lagos Chamber of Commerce and Industry on Friday.

Foreign exchange reserves climb to $38.5bn-Nigeria’s foreign exchange


reserves climbed by 2.95 per cent to $38.53bn by mid-July from $37.42bn at the
end of June. Reuters quoted forex traders as saying that demand for foreign
exchange at the bi-weekly forex auctions supervised by the Central Bank of Nigeria
had slowed. The forex reserves stood at $43.12bn on June 7, last year. The CBN
has consistently said it is comfortable with Nigeria‘s reserves, which are sufficient
to finance more than 17 months of the country‘s imports. Meanwhile, consumer
inflation eased to 10.3 per cent, year-on-year, in June from 11 per cent the
previous month, its lowest level for more than two years, the National Bureau of
Statistics said on Friday.

Budget inflow crashes inter-bank rates-Inter-bank lending rates retreated to


1.41 per cent on the average last week, from 8.25 per cent the previous
week, following large injection of funds from government allocations to
public sector agencies, traders said on Friday. The Federal Government on
Tuesday distributed N413.28bn from the Federation Account to the three
tiers of government for June. Some of the funds entered the system by
Thursday, forcing down inter-bank lending rates, traders said.

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July 20 NDIC to Peg Depositors’ Refund-The Nigeria Deposit Insurance Corporation 34 19 At the close of trading session, the All-Share Index
(NDIC) has disclosed its plans to peg depositors refund from failed banks at inched up marginally by +0.08% to close at 24,784.85
as against depreciation by -0.32% recorded on
between N200,000 and N500,000. Managing Director of NDIC, Alhaji Umaru
Monday to close at 24,766.14. Market capitalisation
Ibrahim gave the indications at the opening ceremony of a conference in Calabar, also appreciated by N4.575 billion (US$30.563 million)
Monday, to fine tune the proposed amendments to the NDIC Act. to close at N6.062 trillion (US$40.493 billion) as
against depreciation by N19.688 billion (US$131.518
Recapitalizations: NDIC Tackles Savannah Bank- The Nigeria Deposit million) recorded on Monday to close at N6.057 trillion
Insurance Corporation (NDIC) has summoned the Interim board and management (US$40.463 billion). The market report for the day
of Savannah Bank of Nigeria (SBN) Plc to explain why it has failed to recapitalize was titled: FBN, Diamond, BankPHB release
quarterly results; Afribank leads gainers
and commence operation. This follows the expiration of the deadline given to it by
(http://www.proshareng.com/news/singleNews
the Central Bank of Nigeria (CBN) after a Court of Appeal restored the bank’s .php?id=11443)
operating licence.
New Law ‘to Ease Liquidity Crunch’ As Jonathan assents to AMCON Bill
President Goodluck Jonathan yesterday signed into law the Asset Management
Corporation of Nigeria (AMCON) Bill in a move that is expected to stabilise the
financial sector.
With the passage of the law allowing AMCON to take effect immediately, the
expectation is that market liquidity will receive a boost, though that will depend on
the liquidity needs of the banks.

OPEC: Oil Market Well Supplied-The oil market will stay well supplied and an
overhang of stocks will be more than sufficient to meet any extra demand next
year, the Organisation of Petroleum Exporting Countries (OPEC) has said,
suggesting there was no need for more OPEC production for some time.OPEC cut its
estimate of demand for its own crude oil this year, saying supply from countries
outside the producer group will rise more than expected and it forecast only a small
increase in demand for its oil next year.
"The overall outlook indicates that the current stock overhang would be more than
sufficient to supply the additional volumes needed in 2011," Reuters quoted OPEC's
Monthly Oil Market Report.

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Banks, capital market set for recovery on back of AMCON-A new vista may
have been opened in the banking industry and a return of the bull run in the capital
market imminent, following the signing into law of the Asset Management Bill by
President Goodluck Jonathan on Monday. The new law provides for the purchase of
non performing loans from bailed-out banks and clears the hurdles on the path of
their return to granting credit to the real s

FG to raise additional N315bn bonds in Q3-A week after the Federal


Government announced plans to raise N105 billion and about $700 million in
different tenor of bonds this month, the Debt Management Office (DMO) yesterday
said it plans to raise another N315 billion ($2.10 billion) in the third quarter of this
year. The bonds which experts say had become necessary following the huge
financing gap in the 2010 budget will come in three, five and 20-year sovereign
bonds. The DMO said in its offer calendar that it would issue N105 billion,
comprising N35 billion each in three, five and 20-year bonds, every month in the
third quarter

Regulators review margin lending guidelines- Reviewed guidelines on margin


lending in the stock market will be released by next month. Arunmah
Otteh, the director general of the Securities and Exchange Commission
(SEC) said the organisation and the Central Bank of Nigeria (CBN) will
jointly issue the guidelines in a bid to correct the negative impact of
margin lending on the capital market.Speaking in Lagos at a press briefing
at the weekend, Ms. Oteh said the Financial Services Regulation
Coordination Committee (FSRCC), which comprises SEC, CBN, National
Pension Commission, Nigerian Stock Exchange, National Insurance
Commission, Corporate Affairs Commission, and the Ministry of Finance,
have been deliberating on the margin guidelines.
July 21 CBN: Federally-collected Revenue Drops 20% in April-Nigeria’s total 42 20 At the close of trading session, the All-Share Index
inched up marginally by +0.72% to close at 24,963.99

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federally-collected revenue dropped by 19.9 per in April, 2010 against the monthly compared with appreciation by +0.08% recorded on
budget estimate for the year, the Central Bank of Nigeria (CBN) said in its Tuesday to close at 24,784.85. Market capitalisation
also appreciated by N43.467 billion (US$290.363
Economic Report for April, 2010 released yesterday.“The country generated an
million) to close at N6.105 trillion (US$40.784 billion)
estimated N537.74 billion, representing a shortfall of 19.9 per cent from the compared with appreciation by N4.575 billion
proportionate monthly budget estimate,” CBN said. (US$30.563 million) recorded on yesterday to close at
N6.062 trillion (US$40.493 billion). The market report
for the day was titled: Zenith Bank announces Q2
FG, CBN Constitute AMCON Board-The Federal Ministry of Finance and the results; Cadbury, NASCON lead gainers as upbeat
continues(http://www.proshareng.com/news/1
Central Bank of Nigeria (CBN) will soon announce the Board members of
1461)
the Assets Management Corporation of Nigeria (AMCON), which was
signed into law by the President last Monday, the banking watchdog has
said. CBN’s Head of Corporate Communications, Mohammed Abdullahi, said
that the monetary authority and the finance ministry had been working
towards early appointments of the Board members and their assumption of
duty, in anticipation of the President’s assent.

July 22 Banks, CBN Plan N1.5trn Fund to Acquire Bad Debts•AMCON may begin 34 32 At the close of trading session, the All-Share Index
operation before January •NDIC set to review banks’ premium-Banks and inched up by +0.37% to close at 25,056.07 compared
with appreciation by +0.72% recorded yesterday to
the Central Bank of Nigeria (CBN) yesterday, in Abuja, unanimously agreed to
close at 24,963.99. Market capitalisation also
contribute N1.5 trillion (about $10 billion) over the next 10 years to fund the newly appreciated by N22.521 billion (US$150.439 million)
established Asset Management Corporation of Nigeria (AMCON) set up to buy bad to close at N6.127 trillion (US$40.934 billion)
compared with appreciation by N43.467 billion
debts in the banking industry.
(US$290.363 million) recorded yesterday to close at
Shareholders want core investors for rescued banks-Following the statement N6.105 trillion (US$40.784 billion. the market report
by the Governor of the Central Bank of Nigeria, Mr. Lamido Sanusi, that for the day was titled: Julius Berger, RT Briscoe,
others declare results: PZ tops gainers as ASI
Shareholders were free to recapitalise the rescued banks, some shareholdrs have
gains
called for core investors for the banks. The President of the Association for the 0.37%(http://www.proshareng.com/news/singl
Advancement of the Rights of Nigeria Shareholders, Dr. Farouk Umar, has advised eNews.php?id=11479)

shareholders to support moves to get core investors into the rescued banks, in a
bid to salvage them and prevent them from being liquidated by the apex bank.

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SEC, NSE investigates alleged manipulation of AP‘s accounts-The Securities and
Exchange Commission and the Nigerian Stock Exchange are currently
investigating an alleged manipulation of the accounts of African Petroleum
Plc in the 2009 financial year.The commission, which spoke through its
Assistant Director and Head of Media, Mr. Lanre Oloyi, on Wednesday, said
the SEC had received a letter from the company‘s Finance Director, Mr.
Clement Aviomoh, alleging that the accounts of the company, which
reflected a profit of N957m was not real.
July 23 NNPC to join stock exchange-The aim of listing the Nigeria National Petroleum 40 22 The All-Share Index in the week under review
Corporation (NNPC), Nigeria’s oil behemoth, on the Nigerian Stock Exchange may appreciated by +1.70% to close at 25,269.36
compared with appreciation by +0.96% recorded last
just be a matter of time. Timothy Okon, group general manager corporate planning
week to close at 24,846.64. The positive trends
and control at the NNPC, said a major plank of the ongoing business transformation recorded in the four of the five trading days of the
of the entity is for Nigerians to be given equity stake in order to make it a more week accounted for the positive outlook.

efficient and accountable business enterprise.

The market capitalisation in the week recorded a boost


SEC goes tough on errant stockbrokers-The Securities and Exchange by N103.037 billion (US$688.287 million) to close at
Commission has vowed not to spare stockbroking firms that do not give N6.180 trillion (US$41.282 billion), compared with
appreciation by N58.048 billion (US$387.765 million)
prompt reports or fail to comply with other rules governing capital market recorded last week to close at N6.077 trillion
operations. Speaking exclusively with our correspondent, on Thursday, the (US$40.594 billion). The market report for the week
Director-General of the SEC, Ms. Arunma Oteh, said stockbroking firms was titled: Afribank, Oceanic bank, Wema bank
lead rally as ASI surges
were expected to present their accounts and reports on their operations to
northward(http://www.proshareng.com/news/
the commission periodically, adding that those who defaulted henceforth, singleNews.php?id=11491)
would face the wrath of the SEC.
July 26 Fresh succession crisis hits Nigerian Stock Exchange-A fresh succession crisis 35 29 At the close of trading session, the All-Share Index
has gripped the Nigerian Stock Exchange (NSE) after it became evident yesterday inched up by +1.02% to close at 25,527.44 compared
with appreciation by +0.85% recorded on Friday to
that there has been growing disaffection following the failure of Ndidi Okereke-
close at 25,269.36. Market capitalisation also
Onyiuke, director-general, to formally tender her notice of retirement.Trading will appreciated by N63.117 billion (US$421.622 million)
open today on the floor of the NSE but it will be overcast by this brewing crisis that to close at N6.243 trillion (US$41.704 billion)
compared with appreciation by N52.162 billion
could put the little recovery made so far by the market in jeopardy. The Council of
(US$348.441 million) recorded at the close of trading

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the Exchange had, months ago, assured the Securities and Exchange Commission on Friday to close at N6.179 trillion (US$41.282
(SEC) that it was mounting a credible succession programme that will lead to the billion). The market report for the day was titled:
Redstar, Zenith, Contisure drive upbeat as NSE
selection of a new Chief Executive at the end of this month, via a process anchored
ASI gains
by Accenture. 1.02%.(http://www.proshareng.com/news/sing
leNews.php?id=11501)
Stakeholders decry prolonged commencement of AMCON-As the transfer of N1tn
into a sinking fund for the Asset Management Corporation gets approval,
stakeholders of the rescued banks have condemned the date of
commencement of the corporation. The stakeholders, who spoke with our
correspondent on Saturday, said that the commencement date chosen for
AMCON to begin operation was too far-flung. According to the Managing
Director and Chief Executive Officer, Mutual Alliance Investments and
Securities Limited, Dr. Olakunle Ologun, government ought to have
considered a quick solution to the problem in the financial sector
July 27 New NSE DG May Emerge This Week-Strong indications emerged last week that 36 18 At the close of trading session, the All-Share Index
a successor to the incumbent Director-General of the Nigerian Stock Exchange inched up by +1.32% to close at 25,863.81 compared
with appreciation by +1.02% recorded on Monday to
(NSE), Prof. Ndi Okereke-Onyiuke, may emerge this week.
close at 25,527.44. Market capitalisation also
Okereke-Onyiuke is expected to retire on November 2, 2010. The search for her appreciated by N82.266 billion (US$549.538 million)
successor and other principal officers has been on. to close at N6.325 trillion (US$42.254 billion)
compared with appreciation by N63.117 billion
Controversy continues over succession at NSE-The succession crisis which (US$421.622 million) recorded at the close of trading
gripped the Nigeria Stock Exchange (NSE) has deepened by the emergence of a yesterday to close at N6.243 trillion (US$41.704
plot to have the current Director General Ndi Okereke-Onyiuke to remain on the billion). The market report for the day was titled:
Banking stocks lift market indices as investors’
council of the exchange for three years after expected retirement this year.
worth rises by N82.266 billion.(
http://www.proshareng.com/news/singleNews.
CBN pegs minimum deposit in merchant banks at N100m-In its continued php?id=11523)
effort at reforming the financial system, the Central Bank of Nigeria (CBN) has
reviewed its guidelines for licensed specialised institutions. Specifically, the new
guidelines stipulate that merchant banks take deposits in an amount not below

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N100 million.

CBN bureaucracy delays disbursement of N500bn real sector fund-Like


similar schemes before it, the N500 billion real sector fund has fallen victim of
internal bureaucracy of the Central Bank of Nigeria (CBN). Investigation revealed
that two months after the release of the operational guidelines, banks are yet to
disburse money or grant any loan to the real sector under the Fund as the CBN is
yet to release money to the Bank of Industry (BOI), which is the managing agent of
the Fund.

We don’t have succession crisis – NSE-The management of the Nigerian Stock


Exchange said on Monday that there was no succession crisis at the Exchange as
published by a newspaper (not The Punch), on Monday. According to a statement
signed by the management of the NSE, the succession process of the NSE is in
progress, in line with the directives of the Securities and Exchange Commission and
Accenture, a consulting firm, handling the recruitment exercise.

July 28 CBN seeks five laws to drive financial sector reforms• Wants re-enactment 28 32 At the close of trading session, the All-Share Index
of BOFIA: The Central Bank of Nigeria (CBN) has sought five legislations which inched up by +0.10% to close at 25,889.98 compared
with appreciation by +1.32% recorded yesterday to
should strengthen the ongoing reforms in the financial systems and create a
close at 25,863.81. Market capitalisation also
clement environment for the banking sector to thrive. The laws are expected to appreciated by N6.398 billion (US$42.742 million) to
come alongside the issuance of new regulations by the apex bank abolishing close at N6.332 trillion (US$42.296 billion) compared
with appreciation by N82.266 billion (US$549.538
universal banking.One of the laws is a re-enactment of the Banks and Other
million) recorded yesterday to close at N6.325 trillion
Financial Institutions Act (BOFIA). Others are Office of the Nigerian Financial (US$42.254 billion).- 280710: AIICO, Finbank, CAP
Ombudsman Bill; the Nigerian Financial International Centre (Establishment) Act; drive upbeat: NSE ASI gains 0.10% to close at
25,889.98
National Alternative Dispute Resolution Regulation Commission, and the Electronic
Transaction Bill.

People Can’t Buy Banks’-Central Bank of Nigeria (CBN) said yesterday in Lagos
that while it ensures that all parties are carried along in the recapitalisation of the

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banks, it has a duty to ensure that wrong persons do not buy or take over the
institutions. CBN Deputy Governor, Financial System Stability, Kingsley Moghalu,
made the apex bank’s position known at the annual public lecture of the Association
of Corporate Affairs Managers of Banks (ACAMB).

Deregulation Inevitable for Economy, Say CBN, NNPC• As Port Harcourt


refinery commences production-Central Bank of Nigeria (CBN) and Nigeria
National Petroleum Corporation (NNPC) spoke in unison yesterday to declare that, it
only augurs well for the economy if the downstream end of the oil and gas sector
was deregulated.CBN Governor, Mallam Sanusi Lamido Sanusi, said there was no
alternative to deregulation while the Group Managing Director of the Corporation
(NNPC), Austen Oniwon, submitted that for the downstream sector to grow the
economy and attract investors it was expedient for the Federal Government to
commence the full implementation of the deregulation policy without further delay.

Sanusi: CBN Sees Interest in all Rescued Banks- Governor, Central Bank of
Nigeria (CBN), Sanusi Lamido Sanusi, said yesterday that there was still interest
from potential investors in all of the banks rescued last year.
"I can confirm that there are parties interested in combining with each and every
one of the banks," Sanusi was quoted by Reuters as saying in Abuja.

July 29 Sanusi: CBN Sees Interest in all Rescued Banks- Governor, Central Bank of 34 39 At the close of trading session, the All-Share Index
Nigeria (CBN), Sanusi Lamido Sanusi, said yesterday that there was still interest inched up by +0.06% to close at 25,905.36 compared
with appreciation by +0.10% recorded yesterday to
from potential investors in all of the banks rescued last year.
close at 25,889.98. Market capitalisation also
"I can confirm that there are parties interested in combining with each and every appreciated by N3.763 billion (US$25.136 million) to
one of the banks," Sanusi was quoted by Reuters as saying in Abuja. close at N6.335 trillion (US$42.321 billion) compared
with appreciation by N6.398 billion (US$42.742
Market gains marginally as sell pressures mount on banking & petroleum
million) recorded yesterday to close at N6.332 trillion
stocks - The sell pressures were most significant in the banking and petroleum (US$42.296 billion).- 290710: Market gains
marketing stocks as the two sectors topped the NSE-sectoral indexes depreciation marginally as sell pressures mount on banking &
petroleum stocks
trend. The top three decliners for the day were petroleum marketing and banking

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stocks in that order.
Nigeria crude Sept output to top 2m bpd – Trade- Nigeria will export an
average of 2.10 million bpd of crude oil in September, up slightly from a revised
2.08 million bpd in August, according to data from oil companies and traders.
Nigeria’s crude oil exports are set to top 2 million barrels per day (bpd) for the third
month running in September, trade sources said on Wednesday, as Africa’s largest
energy producer improves output reliability.
World Bank’s package for acquisition of distressed banks excites analysts -
It’s tacit support for our reforms, says CBN Disbursement of N45 billion to GTBank
and First Bank by the World Bank to aid in the acquisition of distressed banks has
been described as a good omen that will hasten resolution of the crisis in the
industry.
Sanusi Wants Electricity Tariff Raised by 200% - Governor of the Central Bank
of Nigeria (CBN) Mallam Sanusi Lamido Sanusi yesterday called for an immediate
increase of 200 per cent on the current N7 per a unit of electricity. Sanusi argued
that this is a sure way of reviving the power sector, saying the present rate is not
competitive enough to bring the country out of its energy demand shortfall.
Sanusi: No Cause for Alarm on National Economy - Sanusi declared that the
economy is, as expected has, steadily growing in Gross Domestic Product, pointing
out that there been moderation in inflation. Governor of the Central Bank of Nigeria
(CBN), Malam Sanusi Lamido Sanusi, yesterday did a critical review of the national
economy at the meeting of the Federal Executive Council (FEC) and concluded that
there was no cause for alarm.
No Rush to Raise Interest Rates, Says Bank of England Governor - Mervyn
King today signalled the Bank of England is in no hurry to raise interest rates as he
warned several risks remained to the recovery and that there was no talk of
"applying the brakes" yet.

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July 30 Citigroup agrees $75m fraud fine - Banking giant Citigroup has agreed to pay 22 42 The All-Share Index in the week under review
$75m (£48m) to settle civil charges that it misled investors over potential losses appreciated by 2.27% to close at 25,844.18 compared
with appreciation by +1.70% recorded last week to
from high-risk mortgages.It agreed the settlement with US financial watchdog the
close at 25,269.36. Selling pressure on banking and
Securities and Exchange Commission (SEC). Petroleum Marketing stocks on third and fourth trading
CBN partner Security Commission on single registrar - The Central Bank of days of the week was observed and trend of profit
taking was getting stronger.
Nigeria (CBN) has said it is working with the Securities and Exchange Commission
(SEC) towards creating a single registrar for all securities in the capital market.
CBN: 10 Banks Have N1.5tr Negative Capital - Ten banks that failed a joint The market capitalization in the week recorded a boost
by N140.58 billion (US$937.20 million) to close at
examination conducted last year for 24 of them by the Central Bank of Nigeria
N6.32 trillion (US$42.137 billion), compared with
(CBN) and the Nigeria Deposit Insurance Corporation (NDIC) currently have a appreciation by N103.03 billion (US$688.28 million)
negative capital of N1.5 trillion, the apex bank Governor Sanusi Lamido Sanusi has recorded last week to close at N6.18 trillion (US$41.28
said. billion). - 300710: PZ Plc & NAHCo reward
investors with dividends as NSE crisis
SEC may step into Stock Exchange crisis - An opportunity appears to have
deepens (http://www.proshareng.com/news/si
been opened for the Arunma Otteh-led Securities and Exchange Commission (SEC) ngleNews.php?id=11613)
to push its agenda of full regulatory oversight following a fresh allegation of
financial impropriety against the management of the Nigerian Stock Exchange
(NSE) which grossed a hefty N42.2 billion income in four years.
SEC says Afribank, executives manipulated 2007 public offer - The Securities
and Exchange Commission (SEC) yesterday accused Afribank and its senior
executives of manipulating the bank’s December 2007 public offer in an elaborate
scheme that was deliberately designed to buy back its shares deceive the market.

The Monthly NCM Report for July 2010 www.proshareng.com Page 64


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