Nigeria Content Online

Market overview The stock market
had been mixed so far in the week having given up part of the gains
accrued in the past weeks. The market ended last week’s trades with
some declines after witnessing fluctuations in terms of its daily
performance. By the end of the week, the NSE AS index closed at
27,400.21 basis points, down by 2.10 per cent while the market
capitalisation lost N142.34 billion in a week after closing at N6.63
trillion .
The volatile
movement of the market’s indices was as a result of profit taking
transactions on one hand and purchase activities, which were mostly
speculative, on the other. The decline was also occasioned by losses
with stocks in major blue chip companies.
Furthermore, listed
companies continued to announce their annual results for the year 2009.
First Bank, Skye Bank, NAHCO, and BIGTREAT were among the companies who
released their corporate earnings and performance in the just concluded
week. However, the market further retreated due to disappointing
earnings reports from some of these companies.
Meanwhile, the
acting president Goodluck Jonathan during the week signed into law the
2010 appropriation bill of N4.6 Trillion. The budget is aimed to
accelerate economic recovery through targeted fiscal interventions
designed to stimulate the economy and support sustained private sector
growth. This has been based on assumptions reflecting outlook for the
fiscal year, including: oil production of 2.35 mb/d; benchmark oil
price of US$67/barrel, and average exchange rate of N150 to the US
dollar.
Looking ahead, the
market will focus over the coming weeks on more corporate results and
other economic indicators even as speculation and the taking of swift
profits continue to dominate market activities. Currently, attention is
drawn to 2010’s first quarter results in light of NSE’s registered
gains during the first three months of the year. The market will remain
steady in the coming weeks as investors monitor new moving factors on
the strength of future corporate earnings.
During the week,
both the market capitalisation and the NSE AS Index lost 2.10%
respectively. So far, the market has recorded a YTD-high market
capitalisation of N6.78 trillion, representing a YTD yield of 35.88%.
Overall, the market traded a total of 3.36 billion units of shares,
valued at N35.82 billion in 52,134 deals.
Most Active Sector The Banking sub
-sector remain the most active (measured in terms of traded volume) as
it recorded 1.43 billion shares valued at N19.64 billion exchanged in
18,798 deals while the Insurance sub -sector was second with traded
volume of 494.24 million shares valued at N532.78 million in 3,467
deals.
Corporate actions and results In the past week,
First Bank Plc proposed a dividend of 10 kobo and one new share for
every eight shares held in its corporate earnings and benefits
announced.
Guaranty Trust Plc
also released its interim report for the period ended (Q1) March 31,
2010 to the floor of the Nigerian Stock Exchange. The company declared
a Gross Earnings of N44.382 billion and a Profit After Tax of N8.847
billion.
In addition, Skye
Bank Plc released its full year audited financial report. The bank
declared a gross income of N126.665 billion and a profit after tax of
N1.130 billion. The directors also recommended a dividend of 5 kobo per
share.
Market outlook The stock market
will likely be driven again by company earnings reports over the next
two weeks, as investors try to get a sense of how well corporate
profits and benefits will hold up in second quarter of the year.