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Although the market
attempted a recovery during the week, the bear still ran off with good
portion of what it snatched from the market. The index opened the week
on a bearish note and continued through the second trading day while a
weak recovery of the bull returned 0.22% back to the market on
Wednesday. The bear strongly returned on Thursday taking another 1.39%
and went flat on the last trading day of the week. Putting the week’s
opening and closing figures side by side, NSE ASI closed in the red by
3.44% or 809.02 points from 23,802.79 points to 22,993.77.

The market
capitalisation of the listed equities equally closed low at N5.634
trillion. NSE-30 Index shed point equivalent to 3.20% from 994.19 to
962.77 points. All the four sectoral indexes depreciated.
NSE-Food/Beverages moved from 770.54 to 719.45 losing 6.81%.
NSE-Banking dropped 4.30% of the opening figures of 344.50 and wrapped
the week’s transactions up at 329.89. NSE-Insurance closed in the red
by 6.25% at 161.25 points against the opening 171.74 points.
NSE-Oil/Gas closed at 337.90, having dropped 6.96% from the opening
337.90 points.

Technical view

On 9/17/2010, NSE
closed below the lower band by 5.8%. Although prices have broken the
lower band and a downside breakout is possible, the most likely
scenario is for the current trading range that NSE is in to continue.
Bollinger Bands are 62.00% narrower than normal. NSE is currently
experiencing very low volatility as compared to its normal range. The
probability of volatility increasing with a sharp price move is likely
in the near future. The current trough of R-squared is greater than the
previous trough. This indicates strength of the long term trend. NSE
closed down by 809.0195 at 22,993.7695 on volume of 24.48% below
average.

Performance for the week

The market recorded
a turnover of 1.334 billion shares valued at N16.01 billion in 29,656
transactions for the week. The banking sector emerged the most active
during the week with 867.40 million units of shares that was chiefly
boosted by volume on the shares of Guaranty Trust Bank Plc, First Bank
of Nigeria Plc, First City Monument Bank Plc, and Zenith Bank Plc.
Volume in the sector accounted for 65.01% of the volume on all equities
through the whole week. The insurance sector’s volume was boosted by
trading on the shares of AIICO Insurance Plc, Intercontinental Wapic
Insurance Plc, and it followed on the week’s performance with 86.61
million shares in 1,006 deals. Recall that volume in the insurance
sector was topped by AIICO Insurance in the previous week.

Percentage gainers and losers for the week

A total of 70
stocks shed from their opening prices while only 19 equities gained and
112 closed on a flat note. Rating in terms of percentage gain/loss,
Afromedia Plc, tops the gainers’ chart with 15.69%, followed by Vono
Products with 13.64%. Ashaka Cement closed at N25.26 having gained
8.88%, Lafarge Wapco, Ikeja Hotel, and Berger Paints followed with
8.57%, 6.19%, and 4.99% respectively.

Due to price
adjustment for dividend and bonuses (as applicable), Academy Press and
7-Up top the losers’ chart with 26.00% and 22.65% respectively. Profit
taking activities further dipped the price of Intercontinental Bank by
21.51%, while Spring Bank, Oceanic Bank, and Dangote Flour followed
with 20.83%, 19.15%, and 18.44% respectively.

Corporate action for the week report on the over-the-counter market for fgn bonds

A total of 193.3
million units of bonds worth N186.61 billion exchanged in 1,801 deals
were transacted in the concluded week in contrast to 141.71 million
units valued at N129.01 billion crossed in 1,257 deals during the week
ended Tuesday, September 7, 2010.

Measured by
volume/turnover, the 10% FGN July 2030 series was the most active with
a traded volume of 44.1 million units worth N39.185 billion and
exchanged in 387 deals. It was followed by 4% FGN April 2015 series
with a traded volume of 421 million units valued at N35.98 billion in
275 deals. Eleven (11) of the available thirty-seven (37) FGN Bonds
were traded in the week covered against ten (10) recorded in the
previous week.

Dangote flour mills plc

The milling heavy
weight, Dangote Flour last week reported its belated Q4 ‘09, Q1 ‘10 and
Q2 ‘10 results to the market. Indicators revealed improved performance
over comparable periods in 2008 and 2009. Lead measurable indexes
recorded double digit growth (see below table). For Q4 ‘09,
profitability index grew by 26.96% resulting in FY EPS growth of 85% at
111k. Latest Q2 ‘10 results show a low PE multiple of 15.9 at market
price of N14.60 last week Friday.

The board of
Dangflour are recommending dividend of 50k per share to shareholders
resulting to a dividend yield of 3.42%. Recall that an interim dividend
of 30 kobo was paid earlier in the year. The company book closes on
September 20, 2010 while payment date is fixed on October 25, 2010. The
Annual General Meeting (AGM) is scheduled to hold at Tahir Hotel, Kano,
on Wednesday, October 6, 2010.

Conoil PLC

The directors of
Conoil Plc reported its overdue FY 2009 results to the market last
week. The performances index showed mixed growths. Sales revenue within
the period plunged by 18% while PBT and PAT grew by 15.3% and 26.96%
respectively. Shareholders funds equally went up by 13.6%.

Despite the fact
that the company faced challenged business environment in 2009,
performance ratios showed appreciable improvement against 2008 figures.
EPS and net profit margin grew moderately at 27.1% and 2.3%.

A dividend of 150 kobo per share has been recommended to
shareholders. Shareholders’ register closes on October 4, 2010 while
payment date is November 2, 2010.