Nigeria Content Online

The stock market took a swift turn away from the bearish trend
it started the week with following the development at the Nigerian Stock
Exchange which led to change in the leadership of the Nigerian Stock Exchange.

The market had began the week on a bearish note but later
recovered on the third day of trading, gaining significantly by 1.07%. The
positive streak was sustained throughout the last three days of trading of the
week. At the close of trade on Friday NSE All Share Index gained 0.09% to close
at 25,738.79 while the market capitalization also appreciated by N5.72 billion
to close at N6.295 trillion.

A review of the week’s activity showed a turnover of 1.1 billion
shares worth N9.11 billion in 27,401 deals was recorded last week, in contrast
to a total of 2.11 billion shares valued at N17.7 billion exchanged last week
in 33,067 deals.

The NSE All-Share Index depreciated by 105.39 points or 0.4% to
close on Friday at 25,738.79 while the market capitalization of the 199 First
-Tier equities closed lower at N6.3 trillion. However, the NSE-30 Index appreciated
by 0.22 points or 0.04% to close at 1,076.12. Last week, ASI and NSE-30 Index
appreciated by2.3% and 2.7%, respectively.

Three of the four Sectoral Indices depreciated during the week.
The NSE Food/Beverage Index depreciated by 5.47 points or 0.62% to close at
834.95, the NSE Banking Index depreciated by 2.53 points or 0.62% to close at
388.06 and the NSE Insurance Index depreciated by 8.19 points or 4.41% to close
at 179.40. However, the NSE Oil/Gas Index appreciated by 0.79 points or 0.22% to
close at 375.41.

Overall, the market depreciated by 0.41% both in market
capitalization and index. While the market has recorded 26.16% (YTD) yield in
market capitalisation.

Forty Five (45) stocks appreciated in price during the week,
lower than the forty-four (44) of the preceding week. PZ led on the gainers’
table with a gain of 5.00% to close at N35.70 per share while

Livestock followed with 5.00% to close at N0.63 per share. Other
price gainers’ in the Top 5 category include; Ikeja Hotel 5.00%, NASCON 4.98%,
and WAPIC 4.92%, closing at N1.47, N7.38, and N0.64 respectively.

Forty three (43) stocks depreciated in price during the week,
lower than the forty-nine (48) of the preceding week.

Honey flour led on the price losers’ table, dropping by 4.99% to
close at N6.09 per share while AG Leventis followed with a loss of 4.99% to
close at N3.43 per share. Other price losers in the Top 5 category include; HIS
4.98%, FCMB 4.94%, and 4.93% closing at N3.82, N7.50, and N34.10 respectively.

Most active sectors

The Banking subsector was the most active during the week
(measured by turnover volume), with 479.5 million shares worth N4.1 billion
exchanged by investors in 14,606 deals. Volume in the Banking subsector was
largely driven by activity in the shares of Zenith Bank Plc,

First Bank of Nigeria Plc, UBA Plc and Guaranty Trust Bank Plc.
Trading in the shares of the four Banks accounted for 215.2 million shares,
representing 44.9% and 19.8% of the subsector’s turnover and total volume
traded during the week, respectively. The Insurance subsector, boosted by
activity in the shares of Unity Kapital Assurance Plc and Continental
Reinsurance Plc, followed on the week’s activity chart with a turnover of 289
million shares valued at N227.6 million in 1,004 deals.

Corporate results for the
week

During the week, the following Companies released their results
to the floor of the NSE: International Breweries Plc released its unaudited
second quarter (Q2 June) 2010 results; Premier Paints Plc also released its
audited year ended December 2009 results while NCR (Nigeria) Plc announced its
audited year ended December 2009 results.

Here are details of the financial results submitted by the
companies:

World Stock Markets Summary US stocks posted modest gains during
the first week of August, led by the S&P 500 index with a gain of 1.82%.

Within the S&P, health care and energy companies rose the
most.

Pork belly future contracts jumped 18% for the week, while the
US dollar fell to a 15-year low against the Japanese yen.

The Dow ended up 187.62 or 1.79% for the week, logging
3-consecutive weeks of gains The S&P 500 ended up 24.04 or 1.82% for the
week, its first weekly increase since 7/23 when it rose 3.55% The S&P has
posted weekly percent gains of 1.5% or more approximately 31% of the time this
year, including the current week 366 (~73%) of the S&P 500 components
advanced for the week, and 4 companies were flat The NASDAQ Composite ended up
33.77 or 1.5% for the week, its first weekly increase since 7/23 when it rose
4.15% The NASDAQ has posted weekly percent gains of 1.5% or more approximately
37% of the time this year, including the current week 78 of the NASDAQ 100
components increased for the week, only 1 company finished flat.

Nigerian money market
update

Nigerian interbank rates were flat at 1.08 percent on average
this week, with excess liquidity of more than 300 billion naira ($2.3 billion)
in the banking system keeping a lid on the cost of borrowing. Borrowing costs
between banks could stay flat next week as well, with liquidity likely to
remain flush due to additional inflows from monthly budgetary allocations.

The secured Open Buy Back (OBB) was unchanged at 1.05 percent, 5
basis points above the Standing Deposit Facility (SDF) rate and 4.95 percentage
points below the central bank’s benchmark rate. Overnight and call were also
flat at 1.10 percent each.

Liquidity had been boosted by the central bank’s injection of
130 billion naira in intervention funds for the refinancing of debt in the
manufacturing sector last week, despite withdrawals by state energy firm NNPC
on Friday.

Market outlook

In the aftermath of the leadership crisis at the Nigerian Stock
Exchange, the week ahead will see investors increasing its activities in the
stock market as confidence gradually return into the system. We expect the
market to further rally in the weeks ahead.