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THE SECURITIES & EXCHANGECOMMISSION, NIGERIA

MARKET REPORT

CAPITAL

www.sec.gov.ng

An SEC NigeriaPublication

January 2010 Edition

Securities and Exchange Commission | Capital Market Bulletin, January 2010

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OVERVIEW OF THE MARKET he Primary Market rebounded in January 2010 with floatation of seven (7) new issues in equities market, a

Corporate bond and three (3) FGN bonds.

On the Secondary Market, transactions on the exchange picked up in January with the major market indicators ending the month higher than the position in the preceding month.

The details of the market performance are given below:

NEW ISSUES Equities

he seven (7) new issues in January were floated by:

Oando Plc The company issued 301.69 million ordinary shares of 50 kobo at N70.00 each valued at N21.12 billion.

The issue proceeds was to be used to refinance the acquisition of upstream assets, fund upstream business development, provide working capital for the company etc.

Hallmark Paper Products Plc Right issues of 100 million ordinary shares of 50 kobo at N2.50 each valued at 250 million were floated by the company. The proceeds from the right issue was to finance paper trading, working capital, factory extension, procurement of new machineries and equipment, office expansion, upgrade /overhauling of existing plant and machineries and to bridge loan repayment.

Nexans Kabelmetal Nigeria Plc The Commission approved a right issue of 49.78 million ordinary shares of N2.00 at N2.50 each valued at N129.42 million for this company.

Proceeds from this offer will be utilized on machinery and equipment and working capital. Interlinked Technology Plc The company floated 188.80 million ordinary shares of 50 kobo at N3.50 per share valued at N666.80 million. The issue was floated to provide additional working capital for the company and to finance the expansion of its operational facilities. Nigeria Wire and Cable Plc Private Placement of 1.180 billion ordinary shares of 50 kobo at N1.05 kobo each valued at N1.239 billion was floated by Nig. Wire and Cable Plc. The offer was made to provide working capital for the company, payment of liabilities to banks and other creditors, construction of new office building and to finance its operational facilities. African Alliance Insurance Plc During the month also, African Alliance Insurance Plc privately placed to CONAG Limited its 4,585.00 million ordinary shares of 50k each at N0.50 per share for a value of N2,292.50 million. Ecobank Nigeria Plc The bank made a private placement of about 6.662 billion ordinary shares of 50k each at N7.00 per share valued at N46.63 billion. This was to enable the bank inject additional capital in order to sustain its current level of operations and also maintained effective adequacy ratio. The Bond Market

he Debt Management Office (DMO) auctioned a total of N75.00 billion worth of bonds in three (3) issues of N20.00

billion, N25.00 billion and N30.00 billion with maturities of 3, 10, and 20 years respectively. These offers were over-

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subscribed to the tune of N148.03 billion. The DMO however, allotted a total of N93.50 billion in all. During the month, the market also witnessed the issuance of private placement of a five (5)-year corporate bond worth N2.24 billion by C&I Leasing Plc. The unsecured variable coupon redeemable convertible loan stock will be maturing in 2014. Proceeds from the issue will be utilized to finance the following in the specified percentages after deduction of the cost of issue.

q Acquisition of car spare parts,

distribution and maintenance

capacity 22.9%

q Repayment of borrowings 13.8%

q Increase in working capital 24.7%

q Additional investment in subsidiary

i. Leasafric Ghana 10%

ii. C & I Motor Limited Nigeria 22.9%

iii. Citrans Global Services 5.71%

With this issue, the number and value of FGN and Corporate bonds issued in January 2010 stood at four (4) and N77.24 billion respectively. As shown on Table 1 below, the total value of new issues (equities and debt securities) issued in January 2010, stood at N102.93 billion in ten (10) issues. Table 1: Summary of New Issues in January 2010

Mode of Offer No. of Issues

Value of Shares (N’ m)

% of Total Value

Subscription 0 0.00 0.00

Rights 4 22,158.87 14.82

Private Placement 3 50,164.66 33.54

Total Equities 7 72,323.53 48.36

Corporate Bond 1 2,240.00 1.50

State Govt. Bonds 0 0.00 0.00

FGN Bonds 3 75,000.00 50.14

Total Debt 4 77,240.00 51.64

Total 10 149,563.53 100.00

Source: SEC

ACTIVITIES ON THE NIGERIAN STOCK EXCHANGE (NSE)

here was a mixed performance in the volume and value of traded equities on the floor of The Nigerian Stock Exchange

(NSE) in January 2010 when compared with the position in the previous month. In January, about 8.37 billion ordinary shares of one hundred and eighty five (185) companies valued at N46.78 billion were traded in 296,195 deals compared to over 7.57 billion ordinary shares of one hundred and eighty two (182) companies valued at about N47.20 billion traded in 119,959 deals in the previous month. In January 2010, the volume of traded equities appreciated by 0.80 billion or 10.47% while the value declined by N0.42 billion or 0.88% Figure 1: Equities Trading volume and Value in January 2010

Source: Compiled from data supplied by The NSE

The 1st of January 2010 was declared as public holidays for New Year celebration. This reduced the number of trading days to twenty (20). The average daily turnover volume and value for each of the days were about 418 million shares and N2.34 billion respectively. In December, the daily average volume and value of over 360 million and N2.25 billion were recorded respectively in twenty one (21) trading days. SECTORAL TRADING STATISTICS A review of the sectoral trading statistics for the month revealed that the Banking sector remained the most active. As shown in Table 2 below, investors traded about 4.32 billion bank shares for about N31.43 billion in 66,929 deals. With this performance, the sector accounted for 51.68% and 67.19% of the total volume and value of equities traded during the month. In terms of volume of shares traded, the Insurance and Second-Tier sectors came the second and third. And in value terms, Food, Beverages & Tobacco and the

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Breweries sectors came second and third behind the Banking sector with over N4.32 billion and N2.35 billion worth of shares traded respectively. Table 2: Trading Statistics for the Month of January 2010

Sector Deals Volume of Shares

Traded (Unit) Value (Naira)

1 Banking 66,929 4,323,350,375 31,432,191,614.62

2 Insurance 7,607 1,203,310,818 1,294,362,544.32

3 2nd-Tier Securities

159 394,028,666 202,528,918.64

4 Mortgage Companies

1,352 373,420,286 234,408,608.39

5 Food/Beverages & Tobacco

13,153 356,258,169 4,320,781,266.83

6 Conglomerates 4,624 246,744,049 1,594,700,094.35

7 Packaging

176,084 223,953,319 372,223,139.09

8 Commercial/Services

358 216,055,543 752,587,685.86

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Information, Communication & Telecommunication

1,309 140,235,088 171,711,955.25

10 Construction 1,691 140,229,803 454,805,510.08

11 Other Financial Institutions

335 94,897,045 63,381,623.05

12 Automobile & Tyre

625 87,350,200 58,504,351.28

13 Healthcare 1,962 82,465,213 211,222,227.37

14 Maritime 2,348 74,756,798 94,538,235.68

15 Agriculture 795 70,656,755 71,343,046.04

16 Building Materials

3,495 69,091,177 1,641,732,858.09

17 Hotel & Tourism 192 43,539,866 63,822,137.95

18 Breweries 4,191 43,373,225 2,350,324,956.22

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Computer & Office Equipment

359 34,700,676 21,759,136.71

20 The Foreign Listings

497 26,355,642 389,297,621.92

21 Petroleum(Marketing)

3,319 25,742,811 563,846,675.95

22 Air Services 2,068 23,245,820 161,426,540.59

23 Leasing 474 22,014,127 53,552,017.87

24 Industrial/Domestic Products

598 12,449,161 58,960,536.67

25 Media 527 10,154,365 6,260,348.35

26 Road Transportation

212 7,599,677 6,567,820.12

27 Printing & Publishing

363 7,086,962 44,481,706.63

28 Footwear 4 4,139,594 16,351,538.50

29 Real Estate 236 2,563,242 52,119,958.83

30 Chemical & Paints

182 2,527,434 12,680,601.75

31 Engineering Technology

120 2,386,509 6,992,131.77

32 Textiles 24 592,062 1,006,882.49

33 Real Estate Investment Trust

3 5,500 550,000.00

34 Aviation - 0 0.00

35 Machinery (Marketing)

- 0 0.00

Overall 296,195 8,365,279,977 46,781,024,291.26


Twenty (20) Most Traded Equities by Volume The shares of First Inland Bank Plc was the most traded during the month as investors exchanged over 816 million units of the bank’s shares in 2,545 deals. This was followed by Zenith Bank Plc with about 607 million of its shares traded. Other companies that made the top five (5) were First Bank Plc, Capital Oil Plc and Fidelity Bank Plc.

As shown on Table 3 below, the twenty (20) most traded equities accounted for about 5.31 billion (63.42%) of the total shares traded during the month while the balance of 3.06 billion shares (36.58%) traded were of one hundred and sixty-five (165) other companies on the trading list for the month. Table 3: Twenty (20) Most Traded Equities by Volume in January 2010

S/N Equity Deals Volume of Shares

Traded (Unit)

% of Total Shares Traded

1 First Inland Bank Plc

2,545 816,820,770 9.76

2 Zenith Bank Plc

5,606 606,957,367 7.26

3 First Bank Plc

17,050 485,226,109 5.80

4 Capital Oil Plc

138 393,614,166 4.71

5 Fidelity Bank Plc

3,083 309,830,185 3.70

6 Access Bank Plc

3,565 233,430,135 2.79

7 Guaranty Trust Bank Plc

7,613 227,019,282 2.71

8 Nigerian Bags Manufacturer Plc

176,051 222,523,637 2.66

9 UBA Plc

4,394 209,800,647 2.51

10 Diamond Bank Plc

1,605 209,795,442 2.51

11 National Sports Lottery Plc

26 201,008,500 2.40

12 Transnational Corporation

1,169 190,572,345 2.28

13 Resort Savings& Loans Plc

129 186,902,433 2.23

14 Unity Kapital Assurance Plc

15 165,790,500 1.98

15 Unity Bank Plc

951 159,239,412 1.90

16 Skye Bank Plc

3,029 147,404,383 1.76

17 Oceanic Bank Plc

2,792 142,102,388 1.70

18 Bank PHB Plc

2,728 137,982,211 1.65

19 Sterling Bank Plc

1,108 131,839,198 1.58

20 Guaranty Trust Assurance Plc

551 127,772,007 1.53

Top 20 Total

234,148 5,305,631,117 63.42


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Other 165 equities

62,047 3,059,648,860 36.58

Overall

296,195 8,365,279,977 100.00


Twenty (20) Most Traded Equities by Value

The total value of the twenty (20) most traded equities in January was over N37.34 billion (79.82)% of the total turnover value for the month while the balance of about N9.44 billion (20.18%) was accounted for by one hundred and sixty-five (165) companies on the trading list in January 2010. Zenith Bank Plc recorded the highest value of trade of about N9.26 billion. This was about 19.79% of the total value of shares traded. As shown on Table 4, the second and third in this list were First Bank Plc and Guaranty Trust Bank Plc with trading values of over N7.07 billion and about N3.77 billion respectively. Table 4: Twenty (20) Most Traded Equities by Value in January 2010

S/N Company

Volume of Shares Traded

(Unit) Value

(Naira) % of Total

1 Zenith Bank Plc 606,957,367 9,258,388,779.14 19.79

2 First Bank Plc 485,226,109 7,074,917,721.99 15.12

3 Guaranty Trust Bank Plc 227,019,282 3,768,237,739.24 8.06

4 UBA Plc 209,800,647 2,402,014,920.63 5.13

5 Access Bank Plc 233,430,135 1,890,839,584.02 4.04

6 Nigerian Breweries Plc 30,962,384 1,765,000,205.13 3.77

7 Diamond Bank Plc 209,795,442 1,628,529,083.77 3.48

8 Dangote Flour Mills Plc 102,362,178 1,280,826,945.61 2.74

9 Nestle Nigeria Plc 3,634,805 922,724,336.44 1.97

10 Skye Bank Plc 147,404,383 862,651,730.23 1.84

11 Dangote Sugar Refinery Plc 52,911,802 793,300,419.38 1.70

12 Fidelity BankPlc 309,830,185 781,113,310.58 1.67

13 First City Monument Bank Plc 91,484,524 743,207,037.38 1.59

14 National Sports Lottery Plc 201,008,500 727,088,237.82 1.55

15 Benue Cement Company Plc 13,314,571 653,355,179.10 1.40

16 UACN Property Development Plc 16,688,962 649,804,055.95 1.39

17 Unilever Nigeria Plc 24,985,826 580,237,884.23 1.24

18 Guiness Nigeria Plc 4,400,231 565,362,957.09 1.21

19 First Inland Bank Plc 816,820,770 524,161,024.66 1.12

20 Union Bank of Nigeria Plc 73,738,618 470,146,616.42 1.00

Top 20 total 3,861,776,721 37,341,907,769 79.82

Other 165 equities 4,503,503,256 9,439,116,522 20.18

Overall 8,365,279,977 46,781,024,291 100.00


In January 2010, the market registered a total turnover value of about N46.78 billion from the sale of 8.36 billion shares executed in 296,195 deals. Figure 2 below shows the monthly trends of these two indices. Figure 2: Equities Trading volume and Value on The NSE


SUPPLEMENTARY LISTINGS

here were two (2) supplementary listings during the month. Cadbury

Nigeria Plc added a right issue of about 2.03 billion to its number of shares while Custodian and Allied Insurance Plc added 348,027,267 units of shares from its debt instrument converted to equity. THE NSE ALL–SHARE INDEX

he value of All-share index rose to 22,594.90 points in January 2010 from

20,827.17 points in December to record an appreciation of 8.49%. The figure had declined by 0.92% between November and December. Figure 3:

Source: Compiled from data supplied by The NSE A look at the movement in the value of the index as shown on Figure 4 and Table 5,

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indicates that the value only experience major upward movement between 8th and 11th of January 2010. During these days, the indicator appreciated by 1.92% to close at 22,057.64 points on January 11, 2010 compared to 22,030.18 points reached on 22nd of January 2010. As shown on the Table, a net appreciation of 8.49% was registered during the month. Table 5: Weekly Movement of All-Share Index in January 2010

Date Index

(Points) % Change

Cumulative Change

(% )

Dec - 31 20,827.17 - -

Jan - 4 20,838.90 0.06 0.06

8 21,658.69 3.94 4.00

11 22,057.64 1.92 5.92

15 22,060.36 0.01 5.93

18 22,183.80 0.59 6.52

22 22,030.18 -0.74 5.78

25 22,254.56 1.08 6.86

29 22,594.90 1.63 8.49

Source: Compiled from data supplied by The NSE Note: This data was collated using the first and last trading days of each week for the month under consideration.

EQUITIES MARKET CAPITALISATION

quities market capitalization as at January 29, 2010 stood at over N5.44

trillion compared with about N4.98 trillion reached in December 2009, the indicator appreciated by 9.06%. A decline of 0.20% was recorded between November and December 2009. As shown on Table 6 and figure 4, equities market capitalization appreciated from the first week through second week but ended the last day of the third week with a decline of 0.18%. The indicator picked up again in the fourth week and reached its highest point on the last day of the month. As indicated on the Table a positive cumulative change of 9.06% was registered at the end of the month. Table 6: Weekly Movement of Equities Market Capitalisation in January 2010

Date

Market Capitalisation*

B’N

% Change (% )

Cumulative Change (% )

Dec - 31 4,989.39

Jan - 4 4,992.19 0.06 0.06

8 5,188.59 3.94 4.00

11 5,284.16 1.92 5.92

15 5,284.81 0.01 5.93

18 5,314.38 0.59 6.52

22 5,305.59 -0.18 6.34

25 5,359.62 1.08 7.42

29 5,441.59 1.64 9.06

Source: Compiled from data supplied by The Nigerian Stock Exchange Note: This data was collated using the first and last trading days of each week for the month under consideration. *1st Tier Market only

Figure 4: Equities Market Capitalisation and All share Index movement in January 2010


Twenty (20) Most Capitalized Equities Most of the companies on the list of the twenty (20) most capitalized equities in December also made the Table in January 2010 with the exception of Ecobank Nigeria Plc which was replaced by Skye Bank Plc. The first five (5) companies maintained their position while others switched positions. However, their total value, which stood at N3,469.20 billion in December, rose by N294.60 billion to close January at N3,763.80 billion. As presented on Table 7 below, market value of the twenty (20) most capitalized companies represents 69.11% of the total equities capitalization while the other one hundred and ninety six (196) companies account for 30.89%. A review of the companies’ performance in January compared to the level in December show that market values of seventeen (17) of the companies appreciated, one (1) depreciated in value while prices of the other two (2) remained static. First Bank of Nig. Plc and Nigerian Breweries Plc retained the first and second positions on the Table with values of N426.97 billion and N409.51 billion respectively.

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Table 7: Positions the Twenty Most Capitalized Equities as at January 29, 2010

Name of Company Mkt.

Cap. N'B

% of Top 20

% of Total

1 First Bank Of Nig. Plc 426.97 11.34 7.84

2 Nigerian Breweries Plc 409.51 10.88 7.52

3 Zenith Bank Plc 384.54 10.22 7.06

4 GT Bank Plc 331.85 8.82 6.09

5 United Bank For Africa Plc 268.38 7.13 4.93

6 Benue Cement Company Plc 195.78 5.20 3.60

7 Guinness Nigeria Plc 189.82 5.04 3.49

8 Dangote Sugar Refinery Plc 181.20 4.81 3.33

9 Nestle Nigeria Plc 166.46 4.42 3.06

10 Stanbic IBTC Bank Plc 155.63 4.13 2.86

11 First City Monument Bank Plc 144.97 3.85 2.66

12 Access Bank Plc 135.28 3.59 2.48

13 Ecobank Transnational Incorporated Plc 128.65 3.42 2.36

14 Diamond Bank Plc 121.59 3.23 2.23

15 Lafarge WAPCO Plc 102.05 2.71 1.87

16 Unilever Nig. Plc 87.66 2.33 1.61

17 Union Bank Nig. Plc 87.14 2.32 1.60

18 Oando Plc 85.07 2.26 1.56

19 PZ Cussons Nig. Plc 82.59 2.19 1.52

20 Skye Bank Plc 78.66 2.09 1.44

Top 20 Market Capitalization 3,763.80 100.00 69.11

Capitalization of other 196 equities 1,682.03 30.89

Total Equities Market Capitalization 5,445.83 100.00


As shown on Table 8 and Figure 5, the equities segment (1st and 2nd tiers) had market capitalization of over N5.44 trillion (73% of the total market capitalization as at January 29, 2010) while the debt market capitalization stood at about N2.05 trillion. Consequently, the total market capitalization of 262 listed securities, as at January 29, 2010, stood at about N7.49 trillion. Table 8: Total Market Capitalisation as at January 29, 2010

Type of Securities Market Capitalisation N'B

Equities:

1st Tier 5,441.59

2nd Tier 4.24

Sub Total 5,445.83

*Debt Securities 2,045.00

Grand Total 7,490.83

Source: Compiled from data supplied by The NSE *provisional

Figure 5: Distribution of Market Capitalisation as at January 29, 2010


PRICE PERCENTAGE GAINERS/LOSERS

n January, the bull dominated activities in the market. The price gainers

outnumbered the losers; the market closed the month with eighty five (85) gainers, forty one (41) losers while the prices of ninety (90) companies remained static. There was an improvement in companies’ share prices during the month when compared to December’s record when forty four (44) companies made the gainers’ table, eighty-four (84) shed their prices while eighty six (86) static prices emerged. This impressive performance may not be unconnected with renewed investors’ confidence due to a number of measures being put in place to stabilize the market. The gainers posted appreciations ranging from 0.47% to 68.18% while declines registered by the losers were between 0.23% and 46.32%. The top ten (10) gainers and losers, as shown on Appendix F & G, registered price appreciations ranging from 39.64% to 68.18% and depreciation ranging from 20.80% to 46.32% respectively. AVERAGE PRICE MOVEMENTS

he average price of all listed companies shown on appendix E depreciated by

N11.32 i.e (43.94%) to end the month at N14.44 in January from N25.76 in December. However, between November

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and December, depreciation of N14.34 (i. e.35.76%) was recorded. Figure 6: Monthly Average Price Movement of Quoted Companies


As depicted on Figure 7, the average price of quoted companies started depreciating in the first week to close that week at N14.32. It continued to decline and finally closed the month at N14.48. Figure 7: Weekly Average Price Movement of Quoted Companies


The sectoral averages on Appendix E in January 2010 revealed that out of thirty five (35) sectors, eighteen (18) appreciated in their average prices, prices of three (3) sectors remained static and the remaining fourteen (14) sectors depreciated In the preceding month, prices of twenty four (24) sectors depreciated, six (6) advanced in prices while price of the remaining five (5) sectors remained unchanged

TOP TEN (10) PRICE LEADERS

ll the companies on this list, except Nigerian Breweries made the list last

month. During the month in review, the prices of five (5) of the companies on the list remained static while the other five (5) appreciated. Table 9: Top 10 Price Leaders as at January 29, 2010

Name of Company

Price as at 29th January

2009 N:K

Earnings per

Share N:K

*Div yield%

Price Earnings

Ratio

1 Nigeria Energy Sector Fund Plc 552.20 60.61 27.53 9.11

2 Nestle Foods Nigeria Plc 252.00 15.23 0.77 16.55

3 Total Nigeria Plc 150.00 11.20 2.27 13.39

4 Guinness Nigeria Plc 128.70 8.51 5.83 15.12

5 Skye Shelter Fund Plc 100.00 5.73 4.65 17.45

6 Mobil Oil Nigeria Plc 99.95 4.16 5.00 24.03

7 Cappa & D’alberto Plc 95.49 4.50 0.52 21.22

8 Oando Plc 93.99 10.41 3.19 9.03

9 Chevron Oil Nigeria Plc 69.79 3.04 10.75 22.96

10 Nigerian Breweries Plc 54.15 3.88 2.77 13.96

Source: Compiled from data supplied by The NSE * Based on dividends paid in 2008 and 2009

MEMORANDUM QUOTATIONS

n January 2010, movement in the price levels of the schemes was impressive

compared to the position in December. This may, be due to increase in some of the schemes unit prices. Out of the twenty six (26) quoted schemes, prices of sixteen (16) recorded appreciations while the remaining ten (10) were static. The top three (3) gainers, as shown on Table 10 below were Coral Ethical Fund, Stanbic IBTC Nigerian Equity Fund and UBA Equity Fund In all, the gainers registered appreciations ranging from 1.03% to 10.94% and 0.85% to 10.07% in their respective offer and bid prices.

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Table 10: Memorandum Quotations as at January 2010

Scheme

As at January 29, 2009

As at December 31, 2009 % Change

Bid Price Offer price Bid Price

Offer price

Bid Price

Offer price

Coral Ethical Fund 434.39 438.50 394.64 395.25 10.07 10.94 Stanbic IBTC Nigerian Equity Fund 7,231.04 7,428.85 6,775.36 6,961.88 6.73 6.71 UBA Equity Fund 0.99 1.01 0.93 0.95 6.45 6.32 Stanbic IBTC Ethical Fund 1.00 1.03 0.94 0.97 6.38 6.19 Intercontinental Integrity Fund 1.07 1.09 1.02 1.03 4.90 5.83 FBN Heritage Fund 85.50 88.04 82.77 85.22 3.30 3.31 Fidelity NigFund 1.57 1.62 1.52 1.57 3.29 3.18 UBA Balanced Fund 1.26 1.27 1.22 1.22 3.28 4.10 Afrinvest W. A. Equity Fund 104.67 105.97 101.38 102.45 3.25 3.44 The Coral Growth Fund 1,584.95 1,612.77 1,539.74 1,566.59 2.94 2.95 UBA Money Market Fund 1.25 1.25 1.23 1.23 1.63 1.63 UBA Bond Fund 1.37 1.37 1.35 1.35 1.48 1.48 The Lotus Capital Halal Investment 0.82 0.85 0.81 0.84 1.23 1.19 The Frontier Fund 102.18 104.18 101.01 102.91 1.16 1.23 Coral Income Fund 1,230.97 1,230.97 1,220.48 1,220.48 0.86 0.86 Stanbic IBTC Guranteed Investment Fund 115.71 115.97 114.73 114.79 0.85 1.03 Arm Aggressive Growth Fund 9.08 9.17 9.08 9.17 0.00 0.00 Kakawa Guaranteed Income Fund 0.84 0.84 0.84 0.84 0.00 0.00 Paramont Equity Fund 14.53 15.26 14.53 15.26 0.00 0.00 First Interstate Unit Trust 2.38 2.41 2.38 2.41 0.00 0.00 Continental Unit Trust 3.42 3.48 3.42 3.48 0.00 0.00 Centre-Point Unit Trust 1.80 1.87 1.80 1.87 0.00 0.00 The Discovery Fund 191.08 193.00 191.08 193.00 0.00 0.00 Legacy Fund 1.02 1.03 1.02 1.03 0.00 0.00 Oceanic Vintage Fund 0.61 0.64 0.61 0.64 0.00 0.00 Nigeria International Debt Fund 5,495.33 5,495.33 5,495.33 5,495.33 0.00 0.00


MERGERS AND ACQUISITIONS

n January 2010, new application on merger between Obajana Cement Plc and

Benue Cement Company Plc was received by the Commission. As presented on Appendix D, in January 2010, the number of business combination applications under review stood at twenty (20), nine (9) of which were mergers while eleven(11) were acquisitions, takeover, Restructure bids. Most of the applications filed are at various stages of processing. THE SECONDARY FGN BOND MARKET

he volume of FGN bonds traded off the exchange in January 2010 was

impressive when compared to the volume traded in December 2009. During the month, investors exchanged about 1.15 billion units

of FGN bonds for about N1.31 trillion in 13,818 deals. In December, about 732.13 million FGN bonds worth about N830.80 billion were traded in 8,274 deals. Series 3 of the 4th FGN Bond 2014 was the highest traded of the twenty four (24) bonds on trading list in January 2010. In all, 114,053,426 units of the bond were exchanged for N136.21 billion in 2,283 deals. The highest price of the twenty four (24) different categories of bonds traded during the month was the 5th FGN Bond 2028 series 5, sold at N1,671.04 per unit. The least priced in the month, 6th FGN Bond 2019 series 4, went for N918.64 per unit. As shown on Table 11 below, the volume and value of bonds traded in this segment of the market since trading commenced on this platform in February 2006 to date was over 32.56 units and N34.42 trillion respectively. This was transacted in 262,050 deals. Table 11: Details of Bonds Traded On Secondary FGN Bond Market

PERIOD DEALS VOLUME (UNIT) FACE VALUE CONSIDERATION (N) Feb – Dec 2006 5,482 585,410,867 585,410,867,000 607,018,136,539.09

2007 30,241 3,947,284,982 3,947,284,982,000 4,141,556,108,055.44

2008 80,135 10,090,235,806 10,090,235,806,000 10,186,249,772,740.00

2009 132,374 16,789,262,632 16,789,262,632,000 18,178,582,782,462.90

Jan 2010 13,818 1,148,805,308 1,148,805,308,000 1,306,761,177,466.13 TOTAL (Feb 06 – Jan 10 262,050 32,560,999,595 32,560,999,595,000 34,420,167,977,264.00

Source: CSCS Ltd. Figure 8: Value of Traded FGN Bonds in the Secondary Market (2006 – January, 2010)

Source: compiled from data supplied by CSCS Ltd

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Appendix A: NEW ISSUES OF PUBLIC COMPANIES (JANUARY, 2010)

COMPANY TYPE OF ISSUE

NOMINAL VALUE

(N) OFFER PRICE

(N) VOLUME

(MILLION) VALUE

N'M ISSUING HOUSE DATE OPENED

Nexans Kabelmetal Nig. Plc Rights 2.00 2.60 49.78 129.43 Lead Capital Ltd. 11/01/10

Interlinked Technology Plc Rights 0.50 3.50 188.80 660.80 Radix Capital Partners Ltd. 11/01/10

Hallmark Paper Production Plc Rights 0.50 2.50 100.00 250.00 Profound Securities Ltd. 18/01/10

Oando Plc Rights 0.50 70.00 301.69 21,118.30 Vetiva Capital MgtLtd/ FCMB Capital Markets

Ltd/Stanbic IBTC Bank 25/01/10

Nig. Wire and Cables Plc Private

Placement 0.50 1.05 1,180.00 1,239.00 Lead Capital Ltd. 07/01/10

African Alliance Insurance Plc Private

Placement 0.50 0.50 4,585.00 2,292.50 Apt Securities and Ins Ltd. 27/01/10

Ecobank Nigeria Plc Private

Placement 0.50 7.00 6,661.88 46,633.16 Intercontinental Capital Markets Ltd 06/01/10

Total 13,067.15 72,323.19 Source:SEC

Appendix B: STATE GOVERNMENT/CORPORATE BOND (JANUARY, 2010)

ISSUER TYPE OF ISSUE OFFER PRICE

(N) VOLUME

(MILLION) VALUE

N'M ISSUING HOUSE DATE OPENED

C & I Leasing Plc

Unsecured Variable Coupon Redeemable Convertible

stock 1,000.00 2,240.00 2,240.00 Afri Invest W. A. Plc 04/01/10

Total 2,240.00 2,240.00 Source: SEC

Appendix C: AUCTION SUMMARY FOR FGN BONDS (JANUARY, 2010)

Date Auctioned/Maturity Tenor (Yrs)

Amount Auctioned (N’BILLION)

Level of Subs (% )

Amount Subscribed (N’BILLION)

Amount Allotted (N’BILLION)

*Marginal Rate (% )

January 20/May 22, 2012** 3 20.00 202.15 40.43 38.50 6.83

January 20/October 23, 2019** 10 25.00 168.40 42.10 25.00 8.14

January 20/November 20, 2029** 20 30.00 218.33 65.50 30.00 8.50

Total 75.00 148.03 93.50 Source: DMO *The Marginal Rate is the rate which is applied to all successful bids ** Re-opened


10

Appendix D: MERGERS AND ACQUISITIONS APPLICATIONS AS AT JANUARY 2010

Pending Mergers

S/No. Application Received Resultant Company 1. Crown Flour Mills Limited, Interstate Flour Mills Limited and Mix & Bake Flour Mills Industries Limited Crown Flour Mills Limited 2. Rubber Estate Nigeria Limited, Araromi Rubber Estate Limited, Osse River Rubber Estate Limited, Utagbo Uno Rubber Estate Limited & Waterside Rubber Estate Limited Rubber Estate Nigeria Limited 3. Technology Support Centre Limited and Brian Integrated Systems Limited TSC-Brain Limited 4. West African Cotton Ltd and West African Cotton Development Company Ltd. Not stated 5. First Alliance and Arm Pension Managers (PFA) Arm Pension Managers (PFA) 6. ADIC Insurance Limited and ADIC Life Assurance Limited ADIC Insurance Limited 7. A&G Insurance Limited and A&G Life Plc A&G Insurance Plc 8. Stokvis Nigeria Plc and Naturelle Extracts Ltd. Stokvis Nigeria Plc 9. Obajana Cement Plc and Benue Cement Company Plc Obajana Cement Plc

Source: SEC

Pending Acquisition/Takeovers/Restructure

S/No. Application Received Target Company

1 Top Management of Asset and Resource Management Limited (Management Buy Out) Asset and Resource Management Limited 2 Oceanic Bank Plc Corporate Ideals Insurers Limited

3 Investment and Allied Assurance Ltd Gold Standard Insurers Ltd and First Chartered Insurance Company Ltd

4 NEM Insurance Plc Lombard Insurance Plc

5 Reckitt Benckiser Plc, Uk Maddison Square Holding B. V. (Share Transfer)

6 Zenith General Insurance Company Limited Piccadilly Insurance Company Limited

7 Consolidated Breweries Plc Mandatory takeover bid to acquire 16,850,590 ordinary shares of Dil/Maltex Nig. Plc

8 Diamond Securities Ltd Transfer of Diamond Bank Plc’s shareholding in Diamond Securities Ltd to Diamond Capital & Financial Markets Ltd

9 Intercontinental Capital Market Ltd Restructuring the shareholdings of Intercontinental Bank Plc, Intercontinental Securities Ltd, Intercontinental Finance & Investment Ltd and Intercontinental Trustees Ltd

10 Flour Mills Nigeria Plc 51% Holdings of Eagle Flour Mills Ltd

11 CFAO Nigeria Plc and CFAO Intercontinental Ltd Restructuring of both companies Source: SEC


11

Appendix E SECTORAL AVERAGE PRICE MOVEMENT FOR JANUARY 2010

SECTOR

No. of Listed

equities

Monthly Average (December 2009)

N:K Week 1

N:K Week 2

N:K Week 3

N:K Week 4

N:K

Monthly Average (January 2010)

N:K

Gains/ losses N:K

% Change

1 Agriculture/Agro-Allied 7 5.84 5.88 5.91 5.88 5.77 5.86 0.02 0.34

2 Airline Services 2 5.11 5.00 5.21 5.56 5.72 5.37 0.26 5.09

3 Automobile and Tyre 3 4.42 3.16 3.27 3.17 3.04 3.16 ( 1.26) ( 28.51)

4 Aviation 1 0.58 0.58 0.58 0.58 0.58 0.58 0.00 0.00

5 Banking 21 5.70 5.80 6.09 6.10 6.25 6.06 0.36 6.32

6 Breweries 7 27.44 27.68 28.12 28.18 28.00 28.00 0.56 2.04

7 Building Materials 7 16.22 16.71 17.28 17.80 18.15 17.49 1.27 7.83

8 Chemical and Paints 8 9.63 9.46 9.45 9.19 9.43 9.38 ( 0.25) ( 2.60)

9 Commercial/Services 4 3.46 3.35 3.31 3.24 3.25 3.29 ( 0.17) ( 4.91)

10 Computer & Office Equipments 6 3.65 3.61 3.61 3.62 3.56 3.60 ( 0.05) ( 1.37)

11 Conglomerates 8 14.62 14.64 15.30 15.64 15.58 15.29 0.67 4.58

12 Construction 7 24.36 24.31 24.74 24.61 24.22 24.47 0.11 0.45

13 Engineering Technology 3 2.99 3.11 3.24 3.24 3.18 3.19 0.20 6.69

14 Food/Beverages and Tobacco 16 25.18 26.05 27.55 27.37 27.74 27.18 2.00 7.94

15 Footwear 1 4.26 4.26 4.26 4.13 4.01 4.17 ( 0.09) ( 2.11)

16 Healthcare 10 6.02 5.94 6.09 6.08 6.33 6.11 0.09 1.50

17 Hotel & Tourism 3 2.55 2.53 2.59 2.63 2.70 2.61 0.06 2.35

18 Industrial/Domestic Products 7 16.92 16.59 16.49 15.89 15.43 16.10 ( 0.82) ( 4.85)

19 Information, Communication & Telecommunications 6 2.42 2.42 2.48 2.41 2.31 2.41 ( 0.01) ( 0.41)

20 Insurance 30 0.97 0.99 0.97 0.95 0.94 0.96 ( 0.01) ( 1.03)

21 Leasing 1 2.56 2.53 2.38 2.47 2.69 2.52 ( 0.04) ( 1.56)

22 Machinery (Marketing) 2 0.15 0.15 0.15 0.15 0.15 0.15 0.00 0.00

23 Maritime 1 1.13 1.26 1.27 1.26 1.23 1.26 0.13 11.50

24 Media 2 0.71 0.69 0.62 0.60 0.62 0.63 ( 0.08) ( 11.27)

25 Mortgage Companies 4 0.93 1.14 0.93 0.93 0.93 0.98 0.05 5.38

26 Other Financial Institutions* 5 511.66 111.36 111.34 111.31 111.28 111.32 ( 400.34) ( 78.24)

27 Packaging 9 6.43 6.38 6.45 6.37 6.40 6.40 ( 0.03) ( 0.47)

28 Petroleum (Marketing) 9 56.16 55.92 56.99 57.02 56.96 56.72 0.56 1.00

29 Printing and Publishing 4 4.95 5.07 5.34 5.51 5.75 5.42 0.47 9.49

30 Real Estate 1 20.19 19.99 20.90 20.50 20.19 20.40 0.21 1.04

31 Real Estate Investment Trust 1 100.00 100.00 100.00 100.00 100.00 100.00 0.00 0.00

32 Road Transportation 1 0.75 0.71 0.77 0.92 1.09 0.87 0.12 16.00

33 Textiles 1 2.12 1.90 1.90 1.78 1.50 1.77 ( 0.35) ( 16.51)

34 The Foreign Listings 2 10.78 10.96 10.97 10.93 10.95 10.95 0.17 1.58

35 Second Tier Securities 16 0.91 0.90 0.89 0.89 0.88 0.89 ( 0.02) ( 2.20)

Overall Simple Average 216 25.76 14.32 14.50 14.48 14.48 14.44 ( 11.32) ( 43.94) Source: Compiled from data supplied by The NSE


12

APPENDIX F: TOP 10 PRICE GAINERS ON THE NSE FOR THE MONTH OF JANUARY 2010

POSITION

COMPANY

PRICE ON 29/01/09

N:K

PRICE ON 31/12/09

N:K

Absolute GAIN N:K

Percentage GAIN

%

*DIVIDEND YIELD

%

P/E

RATIO

1 Bank PHB Plc 2.22 1.32 0.90 68.18 20.27 0.00

2 Cadbury Nig. Plc 16.39 10.49 5.90 56.24 7.93 0.00

3 National Salt Co. Nig. Plc 6.73 4.35 2.38 54.71 5.94 11.22

4 Spring Bank Plc 1.12 0.76 0.36 47.37 0.00 0.00

5 First Inland Bank Plc 0.77 0.53 0.24 45.28 0.00 0.00

6 Asssociated Bus Co. Plc 1.10 0.76 0.34 44.74 9.09 13.75

7 Capital Hotel Plc 1.98 1.38 0.60 43.48 2.53 5.35

8 Intercontinental Bank Plc 2.30 1.61 0.69 42.86 32.61 0.00

9 May & Baker Nig. Plc 5.50 3.86 1.64 42.49 7.27 9.65

10 Oceanic Bank Int'l. Plc 2.36 1.69 0.67 39.64 43.22 0.00 Source: Compiled from data supplied by The NSE * Based on dividends paid in 2008/2009 Financial year

APPENDIX G: TOP 10 PRICE LOSERS ON THE NSE FOR THE MONTH OF JANUARY 2010

POSITION COMPANY

PRICE ON 29/01/09

N:K

PRICE ON 31/12/09

N:K Absolute LOSS

N:K

Percentage LOSS

%

*DIVIDEND YIELD

%

P/E

RATIO

1 Goldlink Insurance Plc 0.51 0.95 0.44 46.32 0.00 4.25

2 Incar Nig. Plc 2.39 4.33 1.94 44.80 2.09 0.00

3 Crusader Nigeriaa Plc 1.05 1.57 0.52 33.12 14.29 0.00

4 Unic Insurance Plc 0.74 1.10 0.36 32.73 6.76 14.8

5 Unity Kapital Assurance Plc 1.70 2.38 0.68 28.57 0.00 0.00

6 Alumaco Plc 21.47 27.71 6.24 22.52 0.23 0.00

7 Ecobank Nigeria Plc 8.24 10.63 2.39 22.48 2.91 0.00

8 Presco Plc 4.37 5.60 1.23 21.96 6.86 0.13

9 United Nigeria Textile Plc 1.49 1.90 0.41 21.58 6.71 0.00

10 Staco Insurance Plc 0.99 1.25 0.26 20.80 2.02 14.14 Source: Compiled from data supplied by The NSE * Based on dividends paid in 2008/2009 Financial year


13

APPENDIX H MAJOR MACRO ECONOMIC AND CAPITAL MARKET INDICATORS

Source: SEC, CBN, NBS, The NSE & ASCE *Cumulative **Provisional ***Revised N/A: Not Available

2004 2005

2006 2007 2008 December

2009 January

2010

GDP at 1990 basic prices (N'B)*** 527.58 561.93 593.57 634.66 682.79** N/A N/A

GDP (at 1990 basic prices) growth rate (%) 6.58 6.23 5.63 6.22 6.77** N/A N/A

GDP at current basic prices (N'B)*** 11,411.07 14,572.24 18,067.83 23,280.71 29,953.82** N/A N/A

Inflation rate (%) 16.2 11.6 8.5 6.60 15.10 12.00 12.30

Exchange Rate (N = US$1.00) 132.4 129.0 127.02 116.30 130.75 147.60 148.33

Average Lending Rate % Prime

Maximum

18.9

20.1

17.8

19.5

16.46

18.21

17.33

18.66

16.08

21.18

19.03

23.26

18.38

23.18

Monetary Policy Rate (%)/MRR 15.0 13.0 10.00 9.50 9.75 6.00 6.00

Withholding Tax (%) 10 10 10 10.00 10.00 10.00 10.00

New Issues (equities) (B'N)* 183.7 405.9 255.7 1,338.58 939.06 31.24 72.32

New Issues Debt (B'N)* 11.7 146.9 451.7 596.50 570.17 669.10 77.24

Total New Issues (B'N)* 195.4 552.8 707.4 1,935.08 1,509.23 700.34 149.56

Equity listings 207 214 202 212 213 216 216

Debt Securities listing 70 74 86 98 88 49 49

Total Listing 277 288 288 310 301 265 265

Volume of Equities Trans. (B' Shares)* 19.3 26.5 36.7 138.07 193.13 102.85 8.37

Value of Equities Transactions (B'N)* 223.9 254.7 468.6 2,083.42 2,375.61 685.72 46.78

Equities Market Capitalisation (B'N) (1st Tier Securities Mkt.) 1,925.9 2,523.5 4,227.1 10,293.19 6,984.61 4,989.39 5,441.59 Equities Market Capitalisation (B'N) (2nd Tier Securities Mkt.) 0.5 1.3 1.4 7.84 2.89 4.80 4.24

Debt Market Capitalisation (B'N)) 186.1 375.3 892.4 2,993.56 2,575.48 2,038.55 2,045.00

Total Market Capitalisation (B'N) 2,112.5 2,900.1 5,120.9 13,294.59 9,562.97 7,032.74 7,490.83

Market cap. As % of GDP 18.5 19.8 28.34 57.11 31.93** N/A N/A

Turnover Ratio % (Equity) 11.6 10.1 11.1 20.22 34.00 13.75 0.86

Stock Index (1984=100) 23,844.5 24,085.8 33,189.3 57,990.22 31,450.78 20,827.17 22,594.90

% Change in Index 18.5 1.0 37.8 74.73 (45.77) (0.87) 8.49 Warehouses Registered with ASCE - - 4 4 4 4 4

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