Nigeria Content Online

The stock market recorded a turnover of
1.002 billion shares valued at N9.98 billion in 19,493 transactions.
Recall that the stock market opened for three trading days due to two
days public holidays for the celebration of Eid-el-Kabir. Thus,
Nigerian Stock Exchange All Share Index (NSE ASI) shed 407.88 points or
1.62% from its opening figure of 25,959.95 and closed down at 24,959.95
points. The drop was strictly linked to traders taking short profit
from most of the banking stocks that have returned so much due to
favourable market fundamentals. Meanwhile the market capitalization of
the listed equities closed up at N7.97 trillion.

NSE-30 Index shed 3.21 points or 0.30%
while NSE Banking and NSE-Oil/Gas closed up by 0.01% and 0.80%
respectively and NSE Insurance and NSE Food/Beverages closed in the red
by 1.21% and 0.04% in that order. 50 stocks end the week below their
various opening prices, 35 gained and 118 ends the week on a flat note.
Gaining and Losing equities did 42.86% each of the market volume while
unchanged stock accounted for the remaining 14.28%.

Market outlook

If the market will follow the trend,
then traders should see a recovery during the new week. Ordinarily,
this should come within the first two trading days of the week. Traders
are to watch closely and take strategic positions in adjusting stocks.
Investors are to clearly avoid panic exit, as most equities promise to
hit new highs on recovery.

Juli Plc

Juli Plc was incorporated on September
14, 1972 as a private liability company under the name Juli Pharmacy
Limited to transact the following businesses; Marketing of wholesales
& Retail of Pharmaceuticals, Running of Super-Market &
Laboratory Services.

The company went public through an
offer for subscription on February 10, 1986 and was listed on November
7, 1986 as the first indigenously promoted company in Nigeria to be
quoted on The Nigerian Stock Exchange. Its name was changed from Juli
Pharmacy Plc to Juli Plc on August 22, 1991 to reflect the flexibility
in its marketing strategy.

The company’s affairs are scrutinized
by 7-man board headed by Julius Adelusi-Adeluyi who doubles as the
chairman and chief executive officer. The day-to-day management team is
lead by Oludare Olubamise who holds the office of Managing Director. He
sits upon four other management members.

Juli Plc is listed on the emerging
market section of The Nigerian Stock Exchange. It is one of the few
actively traded stocks in this sub-sector and currently has 178,000,000
ordinary outstanding numbers of shares 100% owned by Nigerians.

Recent corporate performance

The company recently released its Q3
results for the period ended September 30, 2010. A cursory view of the
scorecards revealed that performance was mixed. Sales revenue within
the period dissipated by 12.66% ostensibly high operating expenses.
Sales dipped from N216 million in Q3 2009 to N188.65 million. It had a
tax holiday as such PBT and PAT retained same figure and dipped by
35.45% respectively against Q3 2009 figures. For detail see the table
below.

NOTE: Juli is not a liquid stock and currently sells at N3.05. It is over priced at current position of performance indexes.

Union Bank Nigeria Plc

Directors of Union Bank Nigeria Plc
yesterday reported its unaudited Q3 results for the period ended
September 30, 2010 in the market. Examination on the available figures
showed mixed performance.

It is heartwarming to note that the
stallion bank’s negative bottom line value of N127.89 billion in Q3 ‘09
had returned a profit value of N6.81 billion in Q3 ‘10. It is worth
recalling that the magnitude of the aforementioned loss in Q3 ‘09 was
as a result of colossal provision for bad debt at the instance of CBN.

Interim Q3 revenue dropped by 40% from
N142.62 billion in Q3 ‘09 to N85.57 billion. This was ultimately due to
16.58% slashed in depositors’ fund in the bank. Irrespective of the dip
in revenue, bottom line grew by 105.32% at N6.81 billion to herald
important era in Union Bank. Marginal 0.64% growth in cash and bank
balances showed that UBN was liquid within Q3 ‘10. Major concern on UBN
accounts remains net liability of N244.15 billion in the stakeholders’
equity position. It is expected that the net liability will be wiped
off by the time AMCON picks up UBN’s non-performing loans and existing
margin loans. Loans and advances within the period dropped by 20.96% at
N371.20 billion.

Further analysis revealed that Q3 EPS
stood at 50 kobo against LPS of 947 kobo in Q3 ‘09. At current market
price of N5.00 PE multiple of 10 was computed. The bank recorded a net
loss of 3% in capital employed.

OBSERVATION: The ability of the
management to effectively consolidate on this recovery through
efficient use of human capital and improve service delivery to
customers is a major challenge the bank faces henceforth.

Total Nigeria Plc

The directors of Petroleum Giant, Total
Nigeria Plc had informed the Exchange that it will be paying interim
dividend of N2.00 per share to its shareholders for the period ended
September 30, 2010. Recall that Q3 result was recently reported in the
market. It had an EPS N12.26 and stakeholders’ equity’s return of 50%.
The register of members closes on November 30, 2010 while payment date
is December 13, 2010.

Report on the otc market for FGN bonds

A total turnover of 88.7 million units
valued at N74.68 billion exchanged in 700 deals was recorded last week,
in contrast to a total of 184.43 million units worth N179.78 billion in
1,068 deals during the week ended Thursday, November 11, 2010.

The most active bond (measured by
turnover volume) was the 10.00% FGN July 2030 (7th FGN Bond 2030 Series
3) with a traded volume of 37.6 million units valued at N28.84 billion
in 343 deals. This was followed by 4.00% FGN April 2015 (7th FGN Bond
2015 Series 2) with a traded volume of 19.2 million units valued at
N14.48 billion in 181 deals.

Nine (9) of the available thirty-five (35) FGN Bonds were traded
during the week, compared with twenty-one (21) in the in the preceding
week.</