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The Nigerian Stock Exchange All Share Index (NSE-ASI) had mixed performance through the week under review.

Ordinarily, prices
are expected to drop, but for the continued flow of corporate actions,
the resistance remains strong. NSEASI recorded three black days that
took 1.37%, and two black days that added just 0.40%. It actually had a
turnover of 1.586 billion shares in 28,169 transactions. Comparing the
opening index of 25,042.16 and the closing figure of 24,800.47, a
negative difference of 0.97% or 241.69 points is noticed.

The banking sector
dominated performance during the week with the 814.362 million shares
traded on its equities in 15,696 deals through the week. The said
performance was boosted by volume on the shares of Zenith Bank Plc,
Oceanic Bank Plc, Access Bank, and United Bank for Africa Plc.

The insurance
sector was enhanced by volume on the shares of Lasaco Assurance,
African Alliance, and AIICO Insurance Plc, as it traded 259.754 million
shares on all its equities through the week.

Gainers and losers

A total of 33
stocks closed the week above their respective opening prices; 39 closed
in the red, while 130 stocks end the week on a flat note. Advancing
equities traded 566.498 million shares or 35.71% of market volume,
declining ones did 629.740 million shares or 40%, while the unchanged
stocks accounted for the remaining 390.185 million shares, same as
24.60% of market volume.

CORPORATE REPORTS

Intercontinental Bank Plc

One of the lead
bank ultimately declared by CBN as massively exposed to hang-over fund
in the stock market. Activities in the bank, in terms of operation and
profitability, are gradually looking up, but grey areas remain weighty.
In the recent interim Q3 statistics of the company, the massive decline
of sales revenue and negative shareholders’ fund should give concern to
shareholders.

In the review
period, Q3 turnover slashed 39.80% of N124.29 billion posted in
comparable Q3 2009 at current N74.82 billion. After accounting for tax
of N2.55 billion, Profit After Tax (PAT) stood at N10.19 billion,
revealing significant 106.3% recovery from loss after tax of N161.68
billion in Q3 2009.

Despite triple
digit growth in the bottom line, shareholders’ fund remains deep rooted
in liability at net loss of N368.88 billion. Total non-performing loans
to total loans and advances at the group level stood at 82%, against
76% in Q3 2009; while within the bank, it stood at 81%, compared to 75%
in Q3 2009.

Analysis on ratios
revealed that Q3 EPS now stands at 52 kobo, against loss per share of
832 kobo in Q3 2009. Price earnings multiple of 4.54 strengthen return
period of Intercontinental Bank. Net profit margin returned 13.6%
growth.

OBSERVATION: Deep
rooted negative shareholders’ fund is not healthy for stake holders.
Nevertheless, the massive drive in recovery of hang-up fund could
override the current shareholders’ fund position in the recent future,
especially with the AMCON set to start operation soon.

UAC Nigeria Plc

The conglomerates
group, UAC Nigeria Plc, provided its numerical numbers (results) for Q3
ended September 30, 2010. Cursory assessment on the figure revealed
abysmal performance. Turnover dropped lower by 11.59% against all
expectation.

In the same vein,
bottom line dipped by 19.23% at N3.74 billion. The current performance
conveys the possibility of lower full year gross revenue and PAT
against FY 2009. If this obtains, dividend payment may drop lower
against FY 2009 figure.

Additional analysis
shows that at Q3 EPS of 234 kobo, earnings strength has depreciated by
19.03%, when compared to 289 kobo in Q3 2009. Order ratio indicators
revealed lower growth in numbers; ROE- 10% and net profit margin –
10.07% against 12% and 11.02% posted respectively in Q3 2009.

OBSERVATION: UACN is a defensive stock and remains attractive for long term investors.