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THE
NIGERIAN STOCK EXCHANGE FACTBOOK 2008 Published
Under the Authority of the Council
of: THE NIGERIAN STOCK EXCHANGESTOCK EXCHANGE HOUSE Telephone: 234-01-2660287, 2660305,
2660335, 2669978, 2661293 Telex 23567 STEX.NG Fax: 234-01-2668281, 2668724 E-mail: nse@nigerianstockexchange.biz Website:www.nigerianstockexchange.com BRANCHES: Yola Uyo EDITORIAL BOARD Prof. Ndi Okereke-Onyiuke,
PhD, OON (Chairman) Mr. Kene Okafor
(Editor) Mr. Farooq Oreagba
(Editor) Mr. Arize Nwobu
(Deputy Editor) Copyright: The Nigerian Stock
Exchange ISBN 978 0262 - 1 - 6 Design/Typesetting by: Management Information Technology Department of
The Nigerian Stock Exchange, Produced by: Pathway Communications
Ltd., 5/6, Next to AfriBank Estate, Ilupeju - Tel: 01-7911733 |
FACTBOOK 2008 |
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2008 HALF-YEAR REVIEW OF PERFORMANCE
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1.0 Introduction Official statistics
showed that GDP growth during the first quarter of the year was 6.5%, down
from the 7.8% recorded during the fourth quarter of 2007. GDP growth was largely
driven by the non-oil sector, which grew by 9.67%. While expecting official
confirmation, economic activities appeared to slow down significantly during
the second quarter of the year especially from the debilitating energy crisis
and resurgence of inflationary pressures. The Niger Delta remained a critical issue in the polity as
militants continued to disrupt crude oil and gas production. Besides the
numerous kidnappings and the untold family stress, the impact of the Niger
Delta problem on the nation’s economy is enormous following the
continuous shut down of oil facilities and power generating plants. For the first time,
offshore production facilities were not spared from attacks. In June, the
225,000 barrels per day Bonga Oil Field built at a
cost $3.6 billion was attacked and partially damaged. This facility operated
by Shell Nigeria Exploration and Production Company (SNEPCO) accounts for
one-tenth of In the latest edition of its sovereign ratings, Fitch has
raised The economy grappled with excess liquidity especially from
the releases from statutory allocations and excess crude oil account.
However, we commend the apex bank for the tight monetary policy stance to
curtail the excess liquidity. For instance, our database indicated that new
bills of various maturities totaling N1.52 trillion were offered during the
first half of the year while the subscription level was N2.01 trillion
culminating in a subscription rate of 132%. The All-maturities average NIBOR
closed at 13.6%, up from 11.6% in December 2007. In a bid to curtail inflationary pressures, the apex bank
jerked up the anchor rate, the Monetary Policy Rate (MPR) twice from 9.5% to
10.25%. However, the efforts at controlling inflation proved abortive as
shown by the upward spike in the year-on-year inflation rate from 6.6% in
December 2007 to 9.7% in May 2008 consequent upon the rise in food prices,
building materials and energy. The official Naira exchange rate was stable closing at
N116.63/$, compared to N116.80/$ in end-December 2007. The CBN had been able
to adequately defend the exchange rate during the period with the burgeoning
external reserve level. The gross official reserves that opened the year at
$51.33billion stood at $59.16 billion on May 28, 2008 and capable of
supporting 27 months of imports. The reserve level had earlier on May 13,
2008 crossed the $60 billion mark to stand at N62.239 billion. Estimates from
the IMF indicated that We implore the government to sustain the current economic
reform and maintain sound fiscal and monetary policy so that the medium term
objectives of Vision 202020 would be realized. 2.0
Market Turnover Transactions in the stock market were boosted by profit
taking and portfolio reviews especially with the hike in interest rates in
the money market. However, prices were depressed by the harmonization of
banks year-end and the initial reactions to the rumours
surrounding the never confirmed “suspension of margin
trading”. The Exchange recorded transactions for 121.62 billion
shares worth N1.73 trillion, in contrast to 64.07 billion shares worth
N866.24 billion recorded in the corresponding period of 2007. In volume terms, the half-year 2008
transaction surpassed the 138.1 billion shares recorded in the whole of 2007. The Insurance sector dominated activity on the market with
transaction volume of 57.5 billion valued at N239.42 billion while the
Banking sector followed with transaction volume of 38.9 billion valued at
N1.05 trillion. The Federal Government
Development Stocks Sector recorded a turnover of N1.0 million through the
stock market. However, the bulk of transactions were executed over the counter
(OTC) where 3.93 billion units valued at N3.95 trillion in 30,062 deals were
traded. The Industrial Loans Sector recorded a turnover of N3.52 billion
while the State Government Bonds and Preference Stocks sectors were inactive.
Turnover Ratio for the market improved to 15.2% from
13.77% in June 2007 while the rate of return on a dividend-adjusted basis
stood at 46.8% compared to 70% in June 2007 on account of declines in stock
prices. 3.0 Market
Capitalization The
value of the 317 outstanding securities on The Nigerian Stock Exchange
increased by 7.0% to close in June at N14.225 trillion compared to N13.294
trillion in December 2007. The increase was largely due to new listings
(including supplementary equity issues). The 223 listed companies (equities)
accounted for N11.24 trillion or 79.05% down from 88.36% in June 2007. New Listings Equity ·
Dangote Flour Mills Plc ·
Universal Insurance Co. Plc ·
Goldlink Insurance Co. Plc ·
Consolidated Hallmark Insurance Plc ·
Skye Shelter Fund Plc ·
Nigerian Bag Manufacturing Co. Plc ·
Aso Savings & Loans Plc ·
Investment & Allied Assurance Plc ·
Regency Alliance Insurance Plc ·
Fidson Healthcare Plc ·
Omatek Ventures Plc ·
Tantalizers Plc There
were thirty-one supplementary/capitalization issues during the first half of
the year, arising from scrip issues, public offers, rights issues, placing,
debt-equity conversion and stock split by quoted companies, compared with
twenty-nine in the same period in 2007 Four
securities were delisted during the period under
review: ·
NFI Insurance Plc ·
FRN 22nd DS 2008 ·
FGN Bond 2011 Local contractors Debt ·
FGN Bond 2012 (Local Contractors Debt Series 3) Company
Migration Cutix Plc migrated from the Second-tier
market to the First-tier and was reclassified in the Engineering Technology
sector Stock Split On
June2, 2008, the Board of Directors of Ecobank
Transnational Incorporated executed stock split in the ratio of 5:1. Memorandum Listing One
Memorandum Listing – FBN Heritage Fund was undertaken during the review
period. 4.0
The All-Share Index The Nigerian Stock Exchange All-Share Index dropped by
3.52% to close the first half of the year at 55,949.00, having opened the
year at 57,990.22. The index had on March 5, 2008 attained its highest value
of 66,371.20 before dropping to its end-June position. The decline in the
index can be attributed to the drop in prices of equities especially the
highly capitalized ones. 5.0
New Issues The Exchange considered and approved a total of thirty
applications for new and supplementary share issues valued at N674.71 billion
compared with twenty-nine applications valued at N760.81 billion in 2007. The
non-bank corporate issues accounted for 51.8% of the new issues approved
during the half year 2008, with 24 applications valued at N349.23 billion,
while the banking sector accounted for 48.2% with 6 applications valued at
N325.5 billion. Further analysis of new issues approved during
half year 2008 showed that the sum of N21.55 billion was raised through
Initial Public Offering (IPO); N320.3 billion through supplementary issues
and N65.44 billion through rights issues. Listing by Introduction accounted
for N150.3 billion while shares placings accounted
for N88.95 billion. Also, The Exchange approved one merger/acquisition
application in the insurance sector valued at N3.8 billion and four
applications by Unit Trust for the issuance of securities valued at N13.4
billon. Out of the number of issues approved during the first half
of the year, 14 applications valued at N292.65 billion have been concluded
and admitted on the Daily Official List. 5.0
Market Development On January 9, 2008, Diamond Bank Plc achieved the feat of
being the first West African Bank to be listed on the Professional Securities
Market (PSM) of the London Stock Exchange (LSE). This was the second Nigerian
company to be listed on the London Stock Exchange and the first on the
Professional Securities Market. The Exchange commissioned the Ilorin
Branch and its Electronic Trading Floor on Monday January 14, 2008. The
Executive Governor of Also, The Nigerian Stock Exchange on Friday February 15
2008 commissioned the Electronic /Automated Trading Floor of the new branch
office complex donated by the Anambra State
Government in As part of its oversight function, the 13-member Senate
Committee on Capital Market visited the Lagos Head Office of The Nigerian
Stock Exchange on Monday, April 28, 2008. The visit enabled the committee
members to have first hand knowledge of The Exchange’s operations and
avail them the opportunity to interact with the executive management of The
Exchange, management of The Exchange’s Clearing House – CSCS
Limited and Stockbrokers. During the half year, The Nigerian Stock Exchange and
major market operators participated in International Investment Road Shows
that took participants to 7.0 Outlook (July – December 2008) We are hopeful that the Niger Delta Summit being proposed
by the Federal Government would hold as scheduled and lasting peace can be
sought for the area. The government has proposed to withdraw N1.2 trillion
from the excess crude oil account, out of which N628billion is expected to be
committed to completing ongoing energy projects. A sincere implementation of
this programme would benefit the real sector of the
economy. The privatization programme has
been inactive since the beginning of the year. Perhaps, this might be the
consequences of the delay in passing major laws affecting the programme by the National Assembly. It is our hope that
the second half of the year would witness increased momentum in the
implementation of the privatization programme We expect the primary market to remain active,
especially from the banking and manufacturing sectors, while more mergers and
acquisitions are expected from the insurance sector. Also, we expect that the
improved liquidity in the secondary market would be sustained, particularly
from the anticipated listing of companies and supplementary issues previously
approved. Also, the second half of the year promises to be active in
the bond market especially Federal Government Bonds considering the renewed
drive to curtail inflationary pressure by the apex bank. This action would
boost activity in the primary market.
Indeed, the outlook for the market in the second half of the year is
promising. Statistical Summary of Market Performance
in the First Half of 2008
2008 2007 Volume 121.62 billion shares 64.09 billion shares
Value (N) 1.73
trillion 866.72
billion New Issues Approval (N) 674.71
billion 760.81billion The NSE All-Share Index 55,949.00 51,330.46 Market Capitalization (N) 14.225
trillion 8.85
trillion Number of Listed Companies 223 205 Total Number of Listed Securities 317 302 Rate of Return (%) 46.8 70 |
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Important Note: While every effort is made to ensure accuracy, no responsibility is accepted for any error, which may occur in this book. Home | The Stock Exchange| Quoted Companies | Issuing Houses | The Registrars © Nigerian Stock Exchange All Rights Reserved |
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