Capital Market Bulletinsec.gov.ng/files/SEC May Bulletin 2013.pdf · 2013-09-19 · capital market...
Transcript of Capital Market Bulletinsec.gov.ng/files/SEC May Bulletin 2013.pdf · 2013-09-19 · capital market...
Domestically, the
economy continued
to record relative sta-
bility as witnessed in
the previous month.
Nigeria’s inflation rate
rose by 9.0% year-on-
year in May 2013 indi-
cating a decrease of
10 basis points from
the 9.1% recorded in
the preceding month.
The official exchange
rate of the Naira to
the US dollar re-
mained relatively sta-
ble, strengthening
slightly from N157.31
per dollar in April 2013
to N157.30 per dollar
in May 2013. This is
within the CBN’s ex-
change rate band of
N150 and N160 to a
dollar.
The nation’s external
reserves however
dipped marginally by
0.91% from US$48.85
billion in April 2013 to
US$48.41 billion in May
2013. The decline is
partly attributed to
the reduction in crude
The global economy
exhibited a weak and
uneven climb in May
2013. That was as a
result of the diverse
recovery level faced
by regions and coun-
tries. The principal
challenge faced by
most countries re-
mained unemploy-
ment which became
more prominent with
the advent of the
global economic crisis
that ravaged world
economy in
2007/2008 and had
continued to rise. Re-
gions like the euro
zone were still battling
with weak capitalized
banks and govern-
ment finances. The
European Central
Bank has however
started implementing
a regime of increasing
money supply to
boost economic ac-
tivities. With recession
in the euro area, the
annual GDP growth is
projected by the Euro-
pean Commission to
contract by 0.4% this
year. However, the
emerging and devel-
oping economies
continued to record
steady growth.
According to the Or-
ganisation for Eco-
nomic Cooperation
and Development
(OECD) economic
outlook for May 2013,
World real Gross Do-
mestic Product is pro-
jected to increase by
3.1% in 2013 and 4% in
2014 with OECD coun-
tries rising by 1.2% and
non OECD countries
rising by 5.5% this year.
Overview of the Nigerian Economy
“Supportive monetary poli-cies , improving financial mar-ket conditions and a gradual restoration of confidence are at the root of the [economic]
recovery”. Angel Gurria (OECD Secretary
INSIDE THIS ISSUE
May, 2013 Volume 1, Issue 5
S E C U R I T I E S A N D E X C H A N G E C O M M I S S I O N
Capital Market Bulletin
OVERVIEW OF THE
NIGERIAN ECONOMY 1
FOREWORD 2
OVERVIEW OF CAPITAL
MARKET ACTIVITIES 2
MEMORANDUM QUOTATIONS 15
ANALYSIS OF FINANCIAL
STATEMENTS 16
OVER-THE-COUNTER BOND
MARKET ACTIVITIES 18
COLLECTIVE INVESTMENT
SCHEMES 19
BUSINESS COMBINATIONS AND
RESTRUCTURING 20
MONITORING AND
INVESTIGATION ACTIVITIES 20
REGISTRATION OF CAPITAL
MARKET OPERATORS 21
COMPANY FOCUS 21
FEATURE ARTICLE 22
APPENDIX A TO S 23-30
Dear Reader,
We are happy to present
the May Edition of the
Capital Market Bulletin
for your information and
enlightenment. As usual,
the previous editions of
this publication can be
downloaded from our
website.(http://
www.sec.gov.ng/capital-
market-report.html)
Nigeria’s economy con-
tinues to remain strong
with a decrease of 10
basis points in the infla-
tion rate and an ex-
change rate of N157.30
to the US dollar in May.
In the capital market,
rebounded iwith a
13.02% growth from a
decline of 0.29% in the
previous month thereby
leading other frontier
markets’ performances
in May.
Trading activities were
quite vibrant on both the
floors of the Nigerian
Stock Exchange and the
OTC bond market.
Our company’s focus for
this month is on Cutix Plc
which had recorded a
growth of 30.72% in its
share price year-to-date.
This publication also con-
tains a continuation of
feature article on Securi-
ties lending we hope to
bring you the conclud-
ing part in our subse-
quent bulletin.
We hope you find this
publication a good and
pleasant read.
Office of the Chief Economist and
Research
Research and Planning Department
Foreword
Overview of Capital Market Activities
tive growth of 0.29% in
April 2013, the market
returned 13.02% as in-
dicated by the All
Share Index (ASI) dur-
ing the month under
review. This growth
almost competes with
the position of the ASI
in January 2013, the
only time the Index
appreciated by dou-
ble digits of 13.44%.
The Nigerian stock
market witnessed a
remarkable turn-
around in May 2013
following the Bear-run
experienced last
month. From a nega-
Page 2
Capital Market Bulletin
Trading was impres-sive in the Nigerian
capital market in May
“It has been said that arguing against globalization is like arguing against the laws of gravity”.
THE CBN TOOK
CONTRACTIONARY
POLICY DECISIONS
TO RETAIN THE
MONETARY POLICY
RATE (MPR) AT 12%;
THE CASH RESERVE
REQUIREMENT AT
12%, LIQUIDITY
RATIO AT 30%; AND
THE NET OPEN
POSITION AT 1.0%.
Overview of the Nigerian Economy (Cont’d)
oil production due to oil
theft and pipeline van-
dalism.
Against the backdrop
of stability in the bank-
ing sector, low inflation,
exchange rate stability,
strong reserve buffers
and recovery in the eq-
uities market, the
Monetary Policy Com-
mittee of the Central
Bank of Nigeria (CBN) in
May, 2013, took con-
weak infrastructure and
possible flooding from
the forecasted heavy
rains in some parts of
the country. Other con-
cerns are the possible
reduction in oil prices
and continuing leak-
ages in oil production
due to bunkering and
other illegal activities.
tractionary policy deci-
sions to retain the
Monetary Policy Rate
(MPR) at 12%; the Cash
Reserve Requirement at
12%, Liquidity Ratio at
30%; and the Net Open
Position at 1.0%.
According to analysts
going forward, the likely
key risk factors to the
performance of the Ni-
geria economy include
pervasive insecurity,
mestic to foreign partici-
pation year- to- date
closed in favour of do-
mestic investors at 51%
to 49%.
Domestic Vs foreign
investor participation:
Available statistics on
domestic/foreign par-
ticipation in the market
showed that the lead
put forth by foreign in-
vestors in the past two
months was not sus-
tained in May 2013 as
domestic investors
dominated trading ac-
tivities, to control 51.32%
of the market. Conse-
quently, the level of do-
Average Daily Trade:
An average of 403.70
million units of shares
were traded in May
2013. The average value
of trade also stood at
N4.49 billion while aver-
age number of deals
was 5,903. Thus, aver-
age volume of trades
and number of deals
appreciated by 2.13%
and 2.28% respectively
while average value de-
clined by 1.01% when
compared to their val-
ues in April 2013. See
Table 1.
Page 3
Volume 1, Issue 5
Domestic investors maintain their domi-
nance of trading activi-ties in May 2013
“THE GROWTH OF
THE ASI IN MAY
2013 ALMOST
COMPETES WITH
ITS POSITION IN
JANUARY 2013,
THE ONLY TIME
THE INDEX
APPRECIATED BY
DOUBLE DIGITS OF
13.44%”
Chart 1: The Nigerian Stock Exchange All-Share Index Change Month on Month
Source: Compiled from NSE reports
Trading Days Deals Volume (units) Value (Naira)
April 2013 21 5,771 395,293,048 4,538,863,231.34
May 2013 21 5,903 403,702,523 4,493,123,051.36
Change 2.28% 2.13% 1.01%
Source: Compiled from NSE reports
Table 1: Equities Transaction Statistics (Daily Average)
Chart 2: Market Participation Domestic and Foreign
Source: Compiled from NSE reports
Performance of the
NSE ASI:
When compared to its
frontier counterparts,
the ASI of the Nigerian
Stock Exchange was in
the lead with 13.02%
appreciation followed
by Kuwait Stock Ex-
change’s price index
which also returned
double digits gain of
11.71%. Other indices
with significant appre-
ciation included Viet-
nam VN-Index (9.25%),
Abu Dhabi Index
(8.84%) and Bahrain BB
All Share Index (8.36%).
However, on year-to-
date (YTD) basis,
Ghana retained its
lead position with a
57.06% gain followed
b y th e Ku wa i t
(39.97%), UAE (35.43%)
and then Nigeria
(34.60%).
Chart 3 below cap-
tures the broad price
index gains in May
2013 for the Top-5 ex-
changes of the World
Federation of Ex-
changes (WFE)
gain of 13.50%. Others
had single digit appre-
ciations; Abu Dhabi
S t o c k E x c h a n g e
(8.84%), Gre Tai Securi-
ties Market (5.74%), Irish
vis-à-vis the Nigerian
ASI. The Nigerian Stock
Exchange’s All-Share
Index was behind
Shenzhen SZSE Com-
posite Index with a
S t o c k E x c h a n g e
(4.01%) and Indonesia
S t o c k E x c h a n g e
(0.69%).
Page 4
Capital Market Bulletin
Nigeria outperformed other frontier markets in
May 2013
Chart 3: Frontier Market Price Indices Performance as at May 2013
Source: Extracted from Bloomberg Market Data
Chart 3: The NSE All-share index Vs WFE Top 5 by Broad Price Index in April and Year-to-Date
Source: Extracted from World Federation of Exchanges (WFE) data
Five (5) new issues
were recorded in May
2013. This was the
same number re-
corded in the previous
month, but lower in
terms of value by
N18.15 billion. New
issues value for May
2013 stood at N122.91
billion as against the
N141.06 billion re-
corded in April 2013.
The floatation com-
prised of one (1) eq-
uity and four (4) FGN
bonds. In the previous
month, two (2) equities
and three (3) FGN
bonds were floated.
Details of the issues
raised in May 2013 are
detailed below:
Equities New Issues:
The only equity issue
floated in May was the
rights issue of Transna-
tional Corporation of
Nigeria (Transcorp)
Plc. The company
raised the sum of
N12.91 billion to en-
able it finance the fol-
lowing:
Refinancing of the
Acquisition of
Ughelli Power Plc -
79%
Development of
New Hotels/
Hospitality Assets in
Port Harcourt and
Lagos – 8%; and
Exploration and
Development of
Oil Prospecting Li-
cense (281) - 13%
The number and value
of new equities floata-
tion between January
and May 2013 conse-
quently stood at six (6)
and N50.78 billion re-
spectively (Details are
provided in Appendix
B). The figure is less
than the three (3) new
equity issues worth
N2.23 billion were re-
corded during the cor-
responding period of
2012,.
2017, 29th June, 2019
and 23rd July, 2030. As
indicated in Table 3
below, only the re-
quired N110.00 billion
was allotted as the to-
tal amount realized for
the offers was N227.51
billion from oversub-
Bond New Issues:
The DMO auctioned
four (4) additional FGN
bonds worth N110.0
billion, all of which
were extensions of
earlier issued bonds
with maturities of 23rd
April, 2015, 27th April
scription of all the of-
fers.
The bond market is yet
to witness corporate
and Sub-national issu-
ances this year.
The Primary Market
Page 5
Volume 1, Issue 5
Bond issuance domi-nated primary market
activities in May 2013.
Only four (4) FGN Bonds were floated in the bond market dur-ing the month under
review.
“THE ONLY
EQUITY ISSUE
FLOATED IN MAY
WAS THE RIGHTS
ISSUE OF
TRANSNATIONAL
CORPORATION
OF NIGERIA
(TRANSCORP)
PLC.”
Issuer Issue Type Offer
Price Volume Value (N)
Offer
Opening
Date Transnational Corporation of
Nigeria Plc Rights 1.00 12,906,999,142 12,906,999,142.00 3/5/2013
Total 12,906,999,142 12,906,999,142.00
Table 2: New Issues May 2013 (Equities)
Source: Securities and Exchange Commission (SEC)
(See Appendix C and D
for more details on bonds
issuances as at May 2013).
Registration of Existing Se-
curities:
The Commission registered
two existing securities
(equities) worth N4.17 bil-
lion in favour of Infinity
Trust Mortgage Bank Plc
and Ecobank Transna-
Therefore, year-to-date,
the market had witnessed
the issuance of seventeen
(17) bonds worth N461.80
billion (comprising 16 FGN
bonds and a supra-
national bond) placing this
year’s performance higher
than same period in 2012
when twelve (12) bonds
worth N369.76 were issued.
tional Incorporation Plc. Details
are shown in Table 4 below.
Allotment Cleared:
One (1) allotment proposal of
Oando Plc was approved in the
month under review. The oil and
gas service company made a
rights issue in the closing quarter
of 2012 and was 100% sub-
scribed. Details of the offer is
given on Table 5 below.
Page 6
Capital Market Bulletin
Issue Tenor Amount
Auctioned (N’Bn)
Subscrip-
tions (N’Bn)
Level of
Subscrip-
tion
Amount
Allotted (N’Bn)
Marginal Rate
(%) Applied Date Auc-
tioned
April 23, 2015 (18th Issue) 5 15.00 39.55 263.67 15.00 4.00 15/05/13
April 27, 2017 (12th Issue) 5 35.00 62.80 179.43 35.00 15.10 15/05/13
June 29, 2019 (11th Issue) 7 25.00 60.99 243.96 25.00 16.00 15/05/13
July 23, 2030 (8th Issue) 20 35.00 64.17 183.34 35.00 10.00 15/05/13
Total 110.00 227.51 110.00
Table 3: Auction Summary for FGN Bonds in May 2013
Source: Extracted from DMO reports
Issuer Volume Nominal Value (N) Value (N) Date Approved
Infinity Trust Mortgage Bank 4,170,445,720 0.50 2,085,222,860.00 21/05/13
E.T.I. Plc 1,250,000,000 3.90 4,875,000,000.00 22/05/13
Total 5,420,445,720.00 6,960,222,860.00
Table 4: Existing Securities Registered In May 2013
Source: Securities and Exchange Commission (SEC)
S/N Issuer by Offer
Type Volume of Secu-
rities Offer Price
(N) Value (N)
Level of
Subs. ( %)
Amount Capitalized
(N) Approval Date
Rights
1. Oando Plc 4,548,236,276 12.00 54,578,835,312 100 54,578,835,312 17/05/13
Table 5: Allotments Approved in May 2013
Source: Securities and Exchange Commission (SEC)
The Secondary Market
The secondary market
recorded a remark-
able growth in the
month of May, from a
decline of 0.29% in
development attrib-
uted to positive out-
look in companies’ re-
leases for the first quar-
ter of 2013 as well as
April to an apprecia-
tion of 13.02% in the
general price level; a
their performances in
the 2012 financial
year. Except for the
trading value, which
recorded marginal de-
cline, there were also
increases in number of
deals and volume of
securities traded dur-
ing the month.
Transactions on the Nigerian Stock Ex-change (NSE):
The rally witnessed in
the month of May re-
sulted from the sale of
8.48 billion shares
worth N94.36 billion,
which were executed
in 123,954 deals. While
the units of shares
traded and number of
deals were higher by
2.17% and 2.27% re-
spectively when com-
pared to the level in
April, the value of
transaction was lower
by 1.01%. In April, 8.30
billion units of shares
worth N95.32 billion
exchanged hands in
121,200 deals.
As shown in Table 6
below, 2,570 units of
FGN Bonds worth
N0.30 million, and
2,040 units of NewGold
Exchange Traded Funds
worth N4.51 million, were
also traded in the month
under review.
Consequently, the ag-
gregate volume and
value of securities traded
from January to May
2013 stood at 48.61 bil-
lion and N444.77 respec-
tively, indicating 36.81%
and 64.27% appreciation
when compared with
35.53 billion units of secu-
rities worth N270.76 billion
traded in the corre-
sponding period of 2012.
Page 7
Volume 1, Issue 5
The Nigerian Capital market was bullish with total trades of
8.48 billion securities worth N94.36 billion
in May 2013.
The financial sector outperformed other sectors in terms of volume and value of
traded securities
“ONE (1)
ALLOTMENT
PROPOSAL OF
OANDO PLC
WAS APPROVED
DURING THE
MONTH UNDER
REVIEW”.
Sector Deals Volume
(units) Value (Naira)
ASEM
Construction/Real Estate 1 1,000 1,480.00
Consumer Goods 98 13,258,350 16,459,232.95
Industrial Goods 1 10,000 14,700.00
Oil And Gas 19 1,049,534 524,767.00
Services 4 410,720 915,906.40
Sub-total 123 14,729,604 17,916,086.35
MAIN BOARD
Agriculture 4,696 91,991,296 2,583,035,037.94
Conglomerates 4,683 427,031,551 2,688,699,854.81
Construction/Real Estate 2,689 240,672,925 1,239,577,692.42
Consumer Goods 23,585 502,177,477 21,493,960,946.05
Financial Services 67,726 6,384,100,245 54,186,973,861.49
Healthcare 2,012 91,154,719 298,630,136.96
Information Communication Technology 566 73,610,893 71,211,551.80
Industrial Goods 5,779 122,375,160 9,143,837,123.38
Natural Resources 85 2,197,697 10,885,528.10
Oil and Gas 7,370 286,377,038 1,851,126,044.60
Services 4,650 241,334,371 769,730,214.56
Sub-total 123,841 8,463,023,372 94,337,667,992.11
Equities (Total) 123,964 8,477,752,976 94,355,584,078.46
EXCHANGE TRADED FUND (ETF)
Newgold ETF 15 2,040 4,508,577.00
BONDS
FGN Bonds 26 2,570 296,403.00
Overall 124,005 8,477,757,586 94,360,389,058.46
Table 6: Trading Statistics by Sector in May 2013
Source: Compiled from NSE reports
Transactions by sector:
Analysis as shown on
Table 6 also indicated
that the Financial Ser-
vices sector ac-
counted for 54.63%,
75.30%, and 57.43% of
the month’s total
deals, volume and
value respectively as a
total of 6.38 billion
units of shares valued
at N54.19 billion were
traded by companies
listed under this cate-
gory in 67,726 deals.
A significant portion of
the trades also ema-
nated from the Con-
sumer Goods sector
with unit of shares
traded during the
month accounting for
19.10% of total deals,
6.08% of total volume
and 22.80% of aggre-
gate value of transac-
tions. This sector was
followed by the Indus-
trial Goods sector with
transactions covering
4.66% of total number
of deals, 1.44% of total
volume, and 9.69% to-
tal value of transac-
tions.
In all, securities trans-
actions in May 2013
involved one hundred
and fifty eight (158)
equities on the Main
board and five (5) of
those listed on the Al-
ternative Securities
Market (ASeM). Trans-
actions from the ASeM
were just 0.10%, 0.17%,
0.02% of the total
deals, volume and
value respectively.
Most Active Equities
by Volume:
The Banking subsector
dominated the Table
of the 10-most traded
equities by volume in
May 2013 (see Table
7). Of the 163 equities
on the trading list, the
Top 10 equities con-
trolled 57.51% of the
total volume of securi-
ties traded. Transna-
tional Corporation of
Nigeria Plc was the
only non-Financial In-
stitution on the table in Page 8
Capital Market Bulletin
Trading activities was again dominated by the Financial Services Sec-
tor in May
THE TOP 10
TABLE WAS
DOMINATED BY
COMPANIES
LISTED IN THE
BANKING SUB-
SECTOR
Equity
Volume Traded Price Status
Sector Units
% of
Total
Clos-
ing
Month
Gain/
Loss
%
YTD
Gain/
Loss % High Low
U B A Plc 902,975,824 10.65 8.51 23.51 86.62 9.00 4.56
Financial
Services
Unity Bank Plc 558,418,311 6.59 0.64 -5.88 28.00 1.16 0.50
Financial
Services
Zenith Bank Plc 517,654,946 6.11 22.2 10.17 13.90 22.8 19.04
Financial
Services
FBN Holdings Plc 498,270,457 5.88 18.1 -2.95 15.14 21.50 16.38
Financial
Services
First City Monument
Bank Plc. 488,303,612 5.76 5.00 11.11 33.33 5.20 4.10
Financial
Services
Access Bank Plc. 433,809,050 5.12 11.2 14.64 23.76 12.39 8.61
Financial
Services
Skye Bank Plc 425,856,139 5.02 4.75 -13.64 10.47 7.05 4.73
Financial
Services
Transnational Cor-
poration of Nigeria
Plc 386,649,767 4.56 1.25 4.17 19.05 1.96 1.03
Conglom-
erates
Fidelity Bank Plc 371,031,436 4.38 3.08 6.21 34.50 3.47 2.35
Financial
Services
Diamond Bank Plc 292,649,440 3.45 6.9 21.05 39.68 7.66 5.1
Financial
Services
Top 10 total 4,875,618,982 57.51
Total Equities Traded 8,477,752,976
Table 7: Top 10 Equities by Volume in May 2013
Source: Compiled from NSE reports
May, accounting for
4.50% of the total vol-
ume of equities
traded.
Seven (7) of the ten
stocks on the table
appreciated in prices
while the other three
(3) (FBN holdings Plc,
Unity Bank Plc and
Skye Bank Plc) re-
corded declines (of
2.95%, 5.88% and
13.64% respectively)
compared to their po-
sitions in the previous
month. However, the
change in prices of
the equities on year-to
-date basis remained
positive; UBA Plc led
with 86.62% YTD gain
from 51.10% YTD gain
recorded in the previ-
ous month. Details are
shown in Table 7.
Listings/Delistings:
No new security was
listed in the month un-
der review. However,
Crusader Nigeria Plc
was de-listed on 13th
May 2013 after the
conclusion of a
merger with Custodian
and Allied Insurance
Plc, thereby reducing
the number of equities
on the Daily Official list
to 198 from 199 in April
2013. Similarly, the
number of listed debt
securities reduced to
58 from 59 in April, fol-
lowing the de-listing of
15.00% FGN MAY 2013
bond, which had at-
tained maturity.
Hence, the total num-
ber of listed securities
stood at 257 (one (1)
ETF Inclusive).
Supplementary List-
ings:
As a result of business
combination and bo-
nus issues, five (5)
com-
panies listed
additional
shares. Details of the
listings are given in Ta-
ble 8 above.
Price Movements:
With significant im-
provement in the prices
of most equities during
the month, the number
of equities on the gain-
ers list increased by
over 200% to seventy-
four (74) from twenty-
four (24) in April 2013;
and the number of los-
ers reduced substan-
tially to twenty-six (26)
from seventy (70) in the
previous month. The
number of equities with
static prices was ninety-
eight (98) in May 2013
as against one hundred
and five (105) in April
2013.
Gainers:
Penny stocks consti-
tuted majority of the
top 20 gainers in May
as against the preced-
ing month position
when the blue chips
dominated.
McNichols Plc re-
corded a remarkable
leap of 96.52% in its
share price to emerge
topmost on the Gain-
ers’ Table.
Page 9
Volume 1, Issue 5
No new listings oc-curred .
“AS A RESULT
OF BUSINESS
COMBINATION
AND BONUS
ISSUES, FIVE (5)
COMPANIES
LISTED
ADDITIONAL
SHARES:.
Issuer Additional
Shares Listed Outstanding
Shares Resultant Date Listed Custodian and Allied
Insurance Plc 781,017,387 5,881,864,195
Merger with Cru-
sader( Nigeria) Plc 13/05/13
BOC Gases 23,124,706 416,244,706 Bonus shares of 2012 14/05/13
Okomu Oil Plc 479,955,000 953,910,000 Bonus issue 14/05/13
CAP Plc 140,000,000 700,000,000 Scrip issue 27/05/13
UACN Plc 320,144,064 1,920,864,387 Bonus issue 27/05/13
Table 8: Details of Supplementary Listings in May 2013
Source: Compiled from NSE reports
The last time the com-
pany featured on the
Table was in March
2013 when it appreci-
ated by 13.86%. As
indicated in Table 9
below, the least price
appreciat ion re-
corded by the top 20
companies during the
month was 25% (by
Cement Co. of North-
ern Nigeria Plc, Presco
Plc and Neimeth Phar-
ma c e u t i c a l s P l c
each). In the preced-
ing month, only the
top 2 gainers had
price appreciations
above 25%.
Two companies from the
previous month (ABC
Transport Plc (with
37.31% gain) and PZ Cus-
sons Nigeria Plc (with
25.93% gain) clung to
the Top 20 Table. Impres-
sive gains were also re-
corded by Evans Medi-
cal Plc, Cadbury Nigeria
Plc, Livestock Feeds Plc
and Airline Services and
Logistics Plc of over 50%
price appreciations. No-
table also among the
gainers during the month
under review were Cour-
teville Business Solutions
Plc, ABC Transport Plc,
Cutix Plc, Costain (W A)
Plc, DN Meyer Plc, Union
Bank Nig. Plc and May &
Baker Nigeria Plc with
appreciations ranging
from 30% and 40%.
Four (4) companies had
year-to-date, recorded
more than twofold ap-
preciations in their share
prices. The companies
were Evans Medical Plc
(256.32%), McNichols Plc
(179.01%), Livestock
Feeds Plc (177.08%) and
Cement Co. of Northern
Nigeria Plc (102.83%).
On the table, only Co-
stain (WA) Plc recorded
a decline of 40.23% YTD.
Page 10
Capital Market Bulletin
PRICE
APPRECIATIONS YTD,
EVANS MEDICAL PLC
(256.32%),
MCNICHOLS PLC
(179.01%),
LIVESTOCK FEEDS
PLC (177.08%) AND
CEMENT CO. OF
NORTHERN NIGERIA
PLC (102.83%)
S/
N Equity
Closing Price Gain Year-to-Date
Mar Apr Naira % High Low % Change
1 McNichols Plc 1.15 2.26 1.11 96.52 2.26 0.72 179.01
2 Evans Medical Plc. 1.65 3.10 1.45 87.88 3.10 0.79 256.32
3 Cadbury Nigeria Plc. 32.21 55.49 23.28 72.28 64.53 29.00 91.34
4 Livestock Feeds Plc. 2.50 3.99 1.49 59.60 3.99 1.42 177.08
5 Airline Services and Logistics Plc 3.00 4.70 1.70 56.67 5.90 3.00 12.44
6 Courteville Business Solutions Plc 0.50 0.70 0.20 40.00 0.96 0.50 40.00
7 ABC Transport Plc 0.67 0.92 0.25 37.31 1.11 0.50 84.00
8 Cutix Plc. 1.46 2.00 0.54 36.99 2.32 1.42 30.72
9 Costain (W A) Plc. 1.17 1.59 0.42 35.90 2.66 0.72 -40.23
10 DN Meyer Plc. 1.38 1.86 0.48 34.78 2.66 1.15 20.00
11 Union Bank Nigeria Plc. 8.61 11.33 2.72 31.59 11.33 7.37 54.15
12 May & Baker Nigeria Plc. 1.70 2.21 0.51 30.00 2.56 1.60 42.58
13 Nigerian Aviation Handling Company Plc 6.00 7.70 1.70 28.33 8.79 5.08 42.86
14 Lafarge Wapco Plc. 77.00 98.04 21.04 27.32 98.04 54.00 67.50
15 International Breweries Plc. 20.65 26.28 5.63 27.26 28.67 16.20 62.22
16 Dangote Sugar Refinery Plc 7.49 9.50 2.01 26.84 10.50 6.43 58.33
17 P Z Cussons Nigeria Plc 40.50 51.00 10.50 25.93 55.00 27.56 82.14
18 Cement Co. of North Nigeria Plc 8.60 10.75 2.15 25.00 12.99 5.35 102.83
19 Presco Plc 24.00 30.00 6.00 25.00 30.02 18.50 76.47
20 Neimeth International Pharmaceuticals Plc 0.80 1.00 0.20 25.00 1.25 0.72 2.04
Table 9: Top 20 Price Gainers (by Percentage) in May 2013
Source: Compiled from NSE Reports
Few equities, mainly blue
-chips, recorded signifi-
cant absolute Naira ap-
preciations. Notable
among them were Nes-
tle Nigeria Plc (N111.01),
Dangote Cement Plc
(N29.0) and Total Nigeria
Plc (N22.0). See Table 10
below.
ciation of 37.93% in
April) while that of
Paints & Coatings
Manufacturers Plc de-
clined by 25.13% (from
an appreciation of
28.97% last month).
New losers such as
Vono products Plc
(18.85%), Juli Plc
(18.63%), RT Briscoe Plc
(12.50%) and B.O.C.
Gases (12.12%) also
emerged in May 2013.
Further analysis re-
vealed that five (5) of
the top losers re-
corded positive ap-
preciation year-to-
date. Notable among
them was Wapic Insur-
ance Plc with 53.45%
increase year to date
although down from
87.93% in the previous
month.
Losers:
Regrettably, the top
two companies in April
2013 (Okomu Oil Palm
Plc and Paints & Coat-
ings Manufacturers
Plc) recorded signifi-
cant price losses to
top the Losers’ Chat
during the month un-
der review. The share
price of Okomu Oil
Palm Plc declined by
54% (from an appre-
Page 11
Volume 1, Issue 5
“FEW EQUITIES,
MAINLY BLUE-
CHIPS,
RECORDED
SIGNIFICANT
ABSOLUTE NAIRA
APPRECIATIONS”
S/N Equity
Closing Price Gain Year-to-Date
Apr May Naira % High Low %
Change
1. Nestle Nigeria Plc. 890.00 1001.0
1 111.01 12.47 1088.0
0 700.00 43.00 2. Dangote Cement Plc 162.00 191.00 29.00 17.90 191.00 125.00 49.10 3. Total Nigeria Plc. 142.00 164.00 22.00 15.49 180.00 120.57 36.02 4. Unilever Nigeria Plc. 54.89 68.00 13.11 23.88 76.00 42.90 46.24 5. Nigerian Brew. Plc. 164.90 177.90 13.00 7.88 179.00 145.65 21.02 6. Flour Mills Nig. Plc. 76.00 88.40 12.40 16.32 89.90 65.00 36.00 7. Guinness Nig Plc 265.28 276.00 10.72 4.04 297.41 253.04 0.36 8. P Z Cussons Nigeria Plc. 40.50 51.00 10.50 25.93 55.00 27.56 82.14
Table 10: Price Losers (in monetary terms) in May
Source: Compiled from NSE reports
S/
N Equity
Closing Price Loss Year-to-Date
Mar Apr Naira % High Low % Change
1 Okomu Oil Palm Plc. 100.0
0 46.00 -54.00 -54.00 107.81 42.50 8.24
2 Paints and Coatings Manufactures Plc 1.87 1.40 -0.47 -25.13 1.96 1.33 -28.57
3 Vono Products Plc. 2.60 2.11 -0.49 -18.85 2.88 2.11 -26.74
4 Juli Plc. 2.63 2.14 -0.49 -18.63 2.63 2.14 -18.63
5 Wapic Insurance Plc 1.09 0.89 -0.20 -18.35 1.55 0.58 53.45
6 Multi-trex Integrated Foods Plc 0.60 0.50 -0.10 -16.67 0.95 0.50 -47.37
7 Skye Bank Plc 5.50 4.75 -0.75 -13.64 7.05 4.73 10.47
8 Academy Press Plc. 1.85 1.61 -0.24 -12.97 2.82 1.60 -0.62
9 R T Briscoe Plc. 2.00 1.75 -0.25 -12.50 2.45 1.35 15.13
10 B.O.C. Gases Plc. 8.5 7.47 -1.03 -12.12 9.35 6.24 19.52
Table 11: Top 10 Price Losers (by Percentage) in May 2013
Source: Compiled from NSE Reports
All-Share Index (ASI):
The favourable im-
provement in the
prices of equities re-
sulted in an apprecia-
tion of 13.04% in value
of the ASI; a move
similar to the perform-
ance in January 2013
when the index
gained 13.44%. It rose
steadily from 33,440.57
points in April 2013
and attained a peak
value of 38,016.80
points on 30th May,
2013 before ending
the month at 37,794.75
points.
The market re-
bounded from a de-
cline of 0.29% in April,
which followed suc-
cessive marginal ap-
preciations of 3.84%
and 1.39% in February
and March respec-
tively. The current
standing of the indica-
tor represents 71.28%
appreciation over the
last 12 months.
led with appreciation of
21.53% followed by Lotus Is-
lamic Index (NSE-LII), which re-
turned 19.74%. Also outper-
forming the ASI were the NSE-
Consumer Goods (13.64%)
Sector Indices:
All the sector indices re-
corded growth in May 2013
due to the bullish trend in
the market. The newly intro-
duced NSE-Industry Index
and NSE30 (13.47%). The newly in-
troduced Alternative Securities
Market (ASeM) index recorded an
appreciation of 1.92%, while the
NSE-Insurance recorded the least
appreciation of 1.57%.
Page 12
Capital Market Bulletin
The current standing of the indi-cator represents 71.28% appre-ciation over the last 12 months.
Chart 4: NSE All-Share Index Movement January to May 2013
Source: Compiled from NSE reports
Chart 5: Sector Indices performance vs All-Share Index (May 2013)
Source: Compiled from NSE reports
Market Capitalization:
Equities Market Capi-
talization recorded a
gain of 12.94% in May
as against a marginal
decline of 0.38% in
April. Just like the ASI,
the indicator attained
a peak of N12.152 tril-
lion on 30th May, 2013
before it ended lower
at N12.075. Equities
capitalization had
closed April 2013 at
N10.696 trillion.
The market capitaliza-
tion of debt securities
and the only listed Ex-
change Traded Fund
on the other hand,
closed lower at N4.658
trillion and N0.862 bil-
lion thus recording a
decline of 6.21% and
4.52% respectively in
May 2013.
accounted for 72.16% of
May’s total market capi-
talization, up from 68.28%
in the previous month.
This significantly reduced
the coverage of the
debt capitalization to
27.83% from 31.71% in
April 2013 while capitali-
zation of ETF remained
static at 0.01%.
Out of the eleven (11)
equities market sector
classification of the NSE,
, the Financial Services,
Hence, total market
capitalization of all listed
securities stood at
N16.738 trillion during the
month, a 6.86% appre-
ciation when compared
with N15.664 trillion in the
preceding month. Equity
market capitalization
Page 13
Volume 1, Issue 5
TOTAL MARKET
CAPITALIZATION
OF ALL LISTED
SECURITIES
STOOD AT
N16.738
TRILLION IN
MAY 2013
Chart 6: Growth in Equity Market Capitalization January to May 2013
Source: Compiled from NSE reports Industrial Goods and
Consumer Goods sec-
tors still controlled larger
portions in terms of mar-
ket capitalization, ac-
counting for 32.58%,
29.98% and 28.96% re-
spectively while the
other sectors contrib-
uted only 8.47% as indi-
cated in Chart 7. Chart 7: Market Capitalization by Product and Sector
Source: Compiled from NSE reports
After being displaced
last month, Diamond
Bank Plc made a
comeback on the ta-
ble of the 20 most
capitalized equities in
May 2013. With a price
appreciation of
21.05% in May, the
bank capitalization
was high enough to
displace First City
Monument Bank Plc
which occupied the
20th position in April.
Apart from this devel-
opment, the other
companies on the top
20 table in the previ-
ous month only
switched positions.
Also, among the 20
most capitalized com-
panies, only FBN Hold-
ings Plc recorded
price decline of 2.95%
in May. The others
made appreciable
price gains to even
admit them on the
gainers table. Hence,
the total capitalization
of the top 20 compa-
nies improved by
N1.289 billion (14.01%)
to close at N10.485 tril-
lion from N9.196 trillion
recorded in April.
Market value of the
top 20 companies also
represented 86.80% of
total equity market
capitalization while
the other 178 listed eq-
uities recorded N1.595
trillion to account for
13.20% of total equity
market value.
Page 14
Capital Market Bulletin
The capital market was gener-ally Bullish in May .
S/N Equity Market Cap.
(Naira)
% of Eq-
uity Mkt.
Cap
Price Changes
May 2013
% YTD %
1 Dangote Cement Plc 3,254,736,914,355.00 26.94 17.90 49.10
2 Nigerian Breweries Plc 1,345,405,118,452.80 11.14 7.88 21.02
3 Guaranty Trust Bank Plc 838,788,607,884.00 6.94 10.47 23.91
4 Nestle Nigeria Plc 793,456,834,814.52 6.57 12.47 43.00
5 Zenith Bank Plc 697,002,162,049.20 5.77 10.17 13.90
6 FBN Holdings Plc 590,640,726,843.60 4.89 -2.95 15.14
7 Guinness Nigeria Plc 415,625,139,888.00 3.44 4.04 0.36
8 Lafarge Wapco Plc 294,276,864,392.16 2.44 27.32 67.50
9 United Bank for Africa Plc 280,671,608,186.66 2.32 23.51 86.62
10 Unilever Nigeria Plc 257,264,145,000.00 2.13 23.88 46.24
11 Access Bank Plc 256,348,416,553.60 2.12 14.64 23.76
12 Flour Mills Nigeria Plc 210,893,066,228.00 1.75 16.32 36.00
13 P Z Cussons Nigeria Plc 202,494,329,295.00 1.68 25.93 82.14
14 Ecobank Transnational Incorporated Plc 196,007,321,153.92 1.62 1.87 35.34
15 Union Bank Nigeria Plc 191,882,687,316.43 1.59 31.59 54.15
16 Cadbury Nigeria Plc 173,638,650,998.40 1.44 72.28 91.34
17 Stanbic IBTC Holdings Plc 160,100,000,000.00 1.33 14.36 45.55
18 Dangote Sugar Refinery Plc 114,000,000,000.00 0.94 26.84 58.33
19 U A C N Plc 111,410,134,446.00 0.92 1.75 38.10
20 Diamond Bank Plc 99,879,177,424.50 0.83 21.05 39.68
Grand Total 10,484,521,905,281.80 86.80
Other 178 equities 1,594,917,507,446.00 13.20
Equity Market Capitalization 12,079,439,412,727.80 100.00
Table 12: Top 20 Equities by Market Capitalization in May 2013
Source: Compiled from NSE reports
Memorandum Quotations
Page 15
Volume 1, Issue 5
Scheme As at 31st May, 2013 As at 30th April, 2013 % Change
Offer
Price (N) Bid Price
(N) Bid/
Offer
Spread
(N)
Offer
Price (N) Bid
Price
(N)
Offer
Price
(%)
Bid
Price
(%)
1 UBA Equity Fund 1.31 1.29 0.02 1.16 1.14 12.93 13.16
2 Afrinvest W. A. Equity Fund 161.27 160.20 1.07 143.59 144.38 12.31 10.96
3 Stanbic IBTC Ethical Fund 1.19 1.15 0.04 1.07 1.04 11.21 10.58
4 BGL Nubian Fund 1.15 1.14 0.01 1.07 1.05 7.48 8.57
5 Stanbic IBTC Nigerian Equity Fund 11,745.35 11,398.85 346.5 10,855.53
10,528.9
2 8.20 8.26 6
The Coral Growth Fund 2574.74 2524.78 49.96 2382.64 2335.05 8.06 8.13 7
UBA Balanced Fund 1.48 1.46 0.02 1.41 1.39 4.96 5.04 8
Stanbic IBTC Guaranteed Investment Fund 141.93 141.45 0.48 138.34 137.92 2.60 2.56 9
UBA Money Market Fund 1.20 1.20 0.00 1.18 1.18 1.69 1.69 10
The Frontier Fund 118.54 116.48 2.06 117.34 114.72 1.02 1.53 11 Coral Income Fund 1,548.13 1,548.13 0.00 1,529.91 1,529.91 1.19 1.19 12 Nigeria International Debt Fund (NIDF) 1,823.39 1,815.04 8.35 1,805.48 1,799.18 0.99 0.88 13
BGL Sapphire Fund 1.16 1.16 0.00 1.15 1.15 0.87 0.87 14
UBA Bond Fund 1.28 1.28 0.00 1.27 1.27 0.79 0.79 15
Arm Aggressive Growth 9.17 9.08 0.09 9.17 9.08 0.00 0.00 16
Kakawa Guaranteed Income Fund 1.00 1.00 0.00 1.00 1.00 0.00 0.00 17
The Lotus Capital Halal Investment Fund 0.80 0.78 0.02 0.80 0.78 0.00 0.00 18
FBN Money Market Fund 100.00 100.00 0.00 100.00 100.00 0.00 0.00 19
FBN Fixed Income Fund 1,000.00 1,000.00 0.00 1,000.00 1,000.00 0.00 0.00 20
Continental Unit Trust 1.39 1.33 0.06 1.39 1.33 0.00 0.00 21
Centre-Point Unit Trust 1.87 1.80 0.07 1.87 1.80 0.00 0.00 22
The Discovery Fund 193.00 191.08 1.92 193.00 191.08 0.00 0.00 23
Fidelity Nigfund 1.67 1.62 0.05 1.67 1.62 0.00 0.00 24
Intercontinental Integrity Fund 1.05 1.03 0.02 1.05 1.03 0.00 0.00 25
Legacy Fund 0.78 0.76 0.02 0.78 0.76 0.00 0.00 26
FBN Heritage Fund 115.83 115.13 0.70 115.83 115.13 0.00 0.00 27
Canary Growth Fund 0.74 0.72 0.02 0.74 0.73 0.00 -1.37 28
Paramount Equity Fund 14.39 13.69 0.70 15.86 15.09 -9.27 -9.28
The performances of Collective Investment Schemes (CIS) listed on memorandum quotation sector
of the NSE were impressive in May 2013 when compared to their respective positions in April. Four-
teen (14) out of the twenty eight (28) CIS quoted recorded appreciation in their offer and bid prices,
Table 13: Comparative Positions of Memorandum Quotations as at April and May,
Source: Generated from The NSE’s Data
twelve (12) remained
static in both offer and
bid prices while one
(1) scheme declined
in both its offer and
bid prices. Only one
(1) scheme recorded
a static offer price and
decline in its bid price.
In April 2013, only six
(6) schemes recorded
appreciation in both
offer and bid prices,
eighteen (18) others
were static while the
remaining four (4) de-
clined in both offer
and bid prices.
As shown in Table 13,
the range of appre-
ciation recorded was
from 0.79% to 12.93%
and 0.79% to 13.16% in
offer and bid prices
respectively with UBA
Bond Fund leading the
pack. The only com-
pany that recorded
losses in both its bid
and offer prices was
Paramount Equity
Fund. The losses were
9.27% and 9.28% lower
that the bid and offer
prices recorded in
April 2013. Most of the
schemes remain liquid
considering the bid-
offer spread which
ranged mainly from
N0.00 to N1.92.
Analysis of Financial Statements released in May
The market is unlikely
to experience major
decline in share prices
as a result of price ad-
justments which fol-
lows dividend/bonus
payment. However,
investors may want to
channel their invest-
ments to other sectors
of the economy which
would yield higher in-
terest which could ulti-
mately lead to fall in
companies share
prices.
Analysis of the compa-
nies that proposed
one form of corporate
actions or the other
are given below and
they are classified ac-
cording to the sectors
where they belong on
the Daily Official List:
Consumer Goods
International Brewer-
ies Plc
International Breweries
Plc is a subsidiary of
Brauhaase Interna-
tional Management
GmbH and is primarily
engaged in the brew-
ing, packaging and
marketing of beer and
non-alcoholic malt
drinks.
The Company’s
15months to 31 March,
2013 audited result
submitted showed an
impressive perform-
ance with a 75%
Twenty four (24) com-
panies released their
end-of-year reports
during the month with
only nine (9) proposing
corporate actions for
their shareholders. The
dividends proposed
by the companies
ranged from 5kobo to
N23.34kobo; and only
one company pro-
posed a bonus of one
(1) share for every five
(1) held by its share-
holders. In the previ-
ous month, thirty nine
(39) companies re-
leased their end of
year report with
twenty three (23) cor-
porate actions pro-
posed.
Page 16
Capital Market Bulletin
TWENTY FOUR
(24)
COMPANIES
RELEASED THEIR
END OF YEAR
REPORT
DURING THE
MONTH.
increase in revenue
while profit after tax
also improved from a
loss position of
N1.69billion to a profit
of N2.51billion (an in-
crease of 249%). The
directors proposed a
dividend of 25kobo for
the year ended.
National Salt Com-
pany of Nigeria Plc
The company is one of
the salt manufacturing
giants in Nigeria and
has historically paid
dividends to its share
holders. NASCON to
grow its revenue and
profit after tax by 30%
and 27% respectively
while total assets im-
proved by 6% from
N 1 0 . 0 5 b i l l i o n t o
N10.69billion. Cash
flow position also im-
proved by 16%.
The directors pro-
posed a dividend of
90kobo per share for
the 2012 year end.
Conglomerates
UAC of Nigeria Plc Shareholders of UACN
would be smiling to their
banks if the proposed
dividends of N1.60K is
approved at the forth-
coming annual general
meeting of the com-
pany. The company’s
directors are also pro-
posing a bonus of 1
share for every 5 shares
held.
The Company registered
a revenue increase of
16.8% while profit after
tax increased by 108%.
The increase in profit af-
ter tax relative to its reve-
nue was as a result of a
reduction in distribution/
admin expenses and the
less than proportionate
increase in cost of sales
relative to increase in
revenue.
Page 17
Volume 1, Issue 5
Construction/Real Es-
tate
UACN Property De-
velopment Com-
pany Plc The property develop-
ment company pro-
posed a dividend of
70kobo for the year
ended 2012 from an im-
pressive 78% growth in
revenue and a 31%
growth in profit after tax.
Total asset increased by
3.4% and cash position
dipped by 15%.
Financial Services NPF Microfinance
Bank Plc The bank which offers
banking services to re-
tired and serving police
officers, has been consis-
tent with dividend pay-
out since listing on the
NSE The bank proposed
a dividend of 10kobo for
S/N Company Year End Date Released Corporate Action
1 Adswitch Plc April-12 08/05/2013 Nil
2 Aluminum Extrusion Plc December-12 23/05/2013 5kobo
3 Anino International Plc December-12 08/05/2013 Nil
4 Arbico Plc December-12 08/05/2013 Nil
5 Champion Breweries Plc December-12 31/05/2013 Nil
6 Dangote Flour Mills Plc December-12 30/05/2013 Nil
7 Deap Capital Plc December-12 07/05/2013 Nil 8 Ekocorp Plc December-12 03/05/2013 Nil
9 Fidson Plc December-12 02/05/2013 N12kobo
10 International Breweries Plc March-13 24/05/2013 25kobo
11 Japaul Oil & Maritime Serv. Plc December-12 03/05/2013 Nil
12 John Holt Plc December-12 23/05/2013 Nil
13 May & Baker Plc December-12 09/05/2013 Nil
14 Mcnichols Plc December-12 14/05/2013 Nil
15 Morison Industries Plc December-12 21/05/2013 Nil
16 Mrs. Oil Nigeria Plc December-11 16/05/2013 N23.34kobo
17 Multi-Trex Plc April-12 02/05/2013 Nil
18 Multiverse December-12 14/05/2013 Nil
19 NASCON Plc December-12 03/05/2013 90kobo
20 Nigerian Ropes Plc December-12 08/05/2013 Nil
21 NPF Microfinance Plc December-12 15/05/2013 10kobo
22 UACN Plc December-12 02/05/2013 N1.60, Bonus 1 for 5
23 UBA Plc December-12 10/05/2013 50kobo
24 UPDC Plc December-12 02/05/2013 70kobo
Table 14: Audited Financials of Companies submitted in May 2013
Source: The NSE
the year 2012. Profit for
the year grew by 412%
compared to figure re-
ported in the 2011 finan-
cials. Total assets also
improved by 19% from
N 6 . 5 4 b i l l i o n t o
N7.79billion.
United Bank for Africa
Plc
The UBA group ac-
count showed a 19%
improvement in interest
and similar income
while profit for the year
increased by only
7.36%. Total assets in-
creased by 18% while
the cash position im-
proved by 69% culmi-
nating into a proposed
dividend of 50kobo for
the 2012 year end.
Healthcare
Fidson Healthcare
Pharmaceuticals Plc
Although the com-
pany’s revenue grew
marginally by only 1%,
profit after tax in-
creased by 272% while
total assets grew by
15%. The significant im-
provement in profit
was as a result of cost
control as seen in the
decrease in distribu-
tion/admin cost and
finance charges. The
company proposed a
dividend of 12kobo for
the 2012 year end.
Natural Resources
Aluminium Extrusion
Industries Plc
The Company wit-
nessed a marginal fall
of 0.6% in revenue
while its profit after tax
fell by 10.74% from
N 4 5 . 1 1 m i l l i o n t o
N50.54milion. Total as-
sets improved by 31%
and the directors of
the company pro-
posed a dividend of
5kobo per share.
Oil and Gas
MRS Oil Nigeria Plc
In the financial year
ending 2012, the com-
pany proposed a divi-
dend of N23.34kobo.
Revenue increased by
1 1 . 5 % f r o m
N 7 1 . 4 9 b i l l i o n t o
N79.73billion, but profit
after tax fell to N205mil-
lion from N616million
representing a fall of
67%. The fall was as a
result of a whopping
163% increase in fi-
nance cost.
deals, 772.21 million
units and N890.77 bil-
lion respectively.
Investors seemed to
be gunning for short
and intermediate
bonds with high cou-
pon rates as the
16.39% FGN Jan 2022
bond continued to
dominate trading dur-
ing the month with the
sale of 257.59 million
units (accounting for
33.36% of total vol-
Trading on the OTC
bond market was im-
pressive with positive
movement in terms of
number of deals, trad-
ing volume and value.
Unlike the previous
month when there
was a general decline
across board, the
number of deals, vol-
ume and value appre-
ciated by 29.04%,
14.83% and 9.17% to
closed May at 5,065
ume) valued at a unit
price of N1,309.47 in
1,887 deals. The sec-
ond most traded bond
was the 16.00% FGN
Jun 2019 bond with a
total of 156.95 million
units (20.33% of total
volume) sold in 1,120
deals.
The 15.00% FGN Nov
2028 bond was the
lowest traded with
Over-the-Counter (OTC) Bond Market Activities
Page 18
Capital Market Bulletin
Most companies recorded im-pressive performances in 2012.
THE NUMBER OF
DEALS, VOLUME
AND VALUE ON
THE OTC
MARKET
APPRECIATED
BY 29.04%,
14.83% AND
9.17%
RESPECTIVELY.
value was sustained by
the general increase in
the NAV of almost all the
funds. The only fund with
a lower NAV were the
bond market funds
which is unconnected
with the decline in the
value of debt market
The Net Asset Value (NAV)
of forty six (46) out of the
forty eight (48) registered
Unit Trust Schemes stood
at N119.14 billion and
increase of about 5%
when compared to the
N113.56 billion posted in
the previous month. The
capitalisation in April.
The number of unit hold-
ers increased by 0.01%
from 195,671 in April to
195,691 during the
month under review.
The aggregate earnings
after tax of these funds
Collective Investment Schemes
tion of the bond which
has negative impact
on the interest rate of
15% compared to the
most traded bond at
16.39%. A total of
eleven bonds were
traded in May 2013.
only 400,000 units
(0.05% of total volume)
sold in 2 deals. The
poor patronage may
be linked to the dura-
Page 19
Volume 1, Issue 5
Period Deals Volume (Units) Face Value Amount
January 2013 4,841 769,163,939 769,163,939,000 878,083,623,588.49
February 2013 4,407 819,530,732 819,530,732,000 984,984,817,063.63
March 2013 4,691 797,588,042 797,588,042,000 990,398,819,009.62
April 2013 3,925 672,495,342 672,495,342,000 815,967,748,621.64
May 2013 5,065 772,208,385 772,208,385,000 890,765,021,336.55
Total 22,929 3,830,986,440 3,830,986,440,000 4,560,200,029,619.90
Table16: OTC Bond Trading Statistics
Source: CSCS Plc
Type of Fund Number as at
May 2013 Net Asset Value (N) %
Change Number of Unit Hold-
ers %
Change Earnings After Tax %
Change April
2013 N 'Billion
May 2013 N ‘Billion
April 2013
May 2013 April 2013
N 'Billion
May 2013
N’ Billion Equities 19 49.11 53.41 8.76 107,108 106,879 (0.21) 1.84 5.98 225.00 Money Market 3 17.24 18.21 5.63 4,416 4,624 4.71 0.12 0.17 41.67 Bond Market 9 16.08 15.64 (2.74) 10,303 10,483 1.75 0.10 0.17 70.00 REITS 2 15.97 15.99 0.13 7,843 7,843 0.00 0.02 0.02 0.00 Balanced 7 5.76 5.76 0.00 7,953 7,995 0.53 0.07 0.30 328.57 Ethical 4 6.80 7.37 8.38 31,321 31,124 (0.63) 0.51 1.28 150.98 Sector 1 0.06 0.06 0.00 26,608 26,608 0.00 0.00 0.00 0.00 Sub-Funds 1 (3 umbrella
funds) 2.53 2.68 5.93 119 135 13.45 0.07 0.17 142.86
Total 46 113.56 119.14 4.91 195,671 195,691 0.01 2.73 8.09 196.34
recorded the best per-
formance as the value
appreciated by 196.34%
from N2.73 billion in April
to N8.09 billion at the
close of business in May.
Table 15 below gives the
summary.
Table 15: Types of Funds and their Net Asset Value and Number of Unit Holders
Source: SEC
One (1) application
for acquisition was
received and re-
viewed together
with fifteen (15)
other outstanding
applications com-
prising of mergers
(4), acquisitions (9),
takeover (1), and
restructuring (1).
However, a total of
five (5) approvals
were granted to ap-
plications for three
(3) acquisitions and
two (2) restructuring
transactions during
the month under re-
view.
One of the acquisition
transactions approved
involved the ratifica-
tion of the acquisition
of Thai Farms Interna-
tional Limited by Flour
Mills of Nigeria Plc. The
others were for the ac-
quisition of 95% of
Oceanic Health Man-
agement Company
by Alpha Partners Lim-
ited and the acquisi-
tion of the majority eq-
uity stake in Portland
Paints and Products
Nigeria Plc by UAC of
Nigeria Plc.
Details are provided in
Appendices M to S.
kers, eighteen (18)
against Registrars,
while three (3) were
against other market
operators.
The number of cases
resolved and closed
stood at twenty four
(24). Ten (10) of
these cases were
against Stockbro-
kers, six (6) against
Registrars, and eight
(8) against other op-
erators.
Complaints received
from the Commis-
sion’s seven (7) zonal
offices were one
hundred and twenty
Complaints re-
ceived at the Head
Office in May 2013
were forty two (42),
a slight reduction
when compared to
the forty three (43)
received in April.
An analysis of these
complaints, showed
that non receipt of
dividend warrants
and non issuance of
share certificates
continued to top
the list.
Out of the com-
plaints received in
May 2013, twenty
one (21) were
against Stockbro-
six (126). In the pre-
vious month, one
hundred and four
(104) complaints
were received. The
zonal offices were
also able to resolve
forty three (43) minor
cases while those
that needed further
investigation and
sanctioning were
forwarded to the
head office.
In all a total of one
hundred and sixty
eight (168) com-
plaints were re-
ceived while sixty
seven were closed
and resolved in May
2013.
Business Combinations and Restructuring
Monitoring and Investigation Activities
Page 20
Capital Market Bulletin
One hundred and sixty eight (168) cases were re-ceived while sixty seven were closed and resolved
ONLY ONE (1)
APPLICATION
FOR
ACQUISITION
WAS RECEIVED
BY THE
COMMISSION
IN MAY 2013.
Seven (7) new appli-
cations were received
in May 2013 from firms
seeking registration as
capital market opera-
tors. The applications
were for registration as
Receiving Banker (1),
Estate Surveyor and
Valuers (1), Investment
Advisers (3), Broker/
Dealer (1), and Capi-
tal Market Consultant
(1). However no appli-
cation was approved
The company migrated
to the First Tier Securities
segment (main board)
of the NSE in February
2008 after posting re-
markable growth in its
2007 financials.
Since the commence-
ment of business this
year, the company’s
price has appreciated
by 30.72% from N1.52 to
N2.0 on 31st May 2013.
The company also fea-
tured as one of the top
ten gainers during the
month. Chart 9 shows
Cutix Plc was incorpo-
rated on November 4,
1982 as a Private Limited
Company, manufactur-
ing electric cables and
wires.
The company became a
public company and
debuted on the Daily
Official List of the NSE in
1987 through a public
offer and was quoted on
the Second Tier Securi-
ties Market (now Alterna-
tive Securities Market
(ASeM)).*
the price movement of
the stock from January
to May 2013.
In May 2013, the com-
pany traded 4.10 million
units of its share valued
at N8.24 million in 151
deals. This represented
0.05%, 0.01% and 0.12%
of total volume, value
and number of deals
respectively during the
Registration of Capital Market Operators
Company Focus (Cutix Plc)
Page 21
Volume 1, Issue 5
Quoted on the NSE in 1987
the month.
The eligibility of the
applicants will be de-
termined through the
on-going review of the
applications and sub-
sequent registration
meetings.
S/
N Function Application Received Approval
Granted as at
May 2013
Approval Denied
as at May 2013 Q1 2013 April
2013 May 2013 Total
1. Solicitor 6 2 - 8 1 1 2. Reporting Accountant/Auditor 17 1 - 18 1 -
3. Investment Adviser 6 1 3 10 3 - 4. Rating Agency 4 - - 4 - -
5. Fund/Portfolio Manager 6 2 - 8 3 -
6. Issuing House 3 2 - 5 - - 7. Venture Capital 2 - - 2 - -
8. Exchange Traded Platform 1 - - 1 - -
9. Multiple Functions - - - 0 2 - 10. Inter Broker Dealer - - - 0 1 -
11. Broker Dealer - 1 1 2 1 - 12. Receiving Banker - - 1 1 - - 13. Estate Surveyors and Valuers - - 1 1 - -
14. Capital Market Consultant - - 1 1 - -
Total 45 9 7 61 12 1
Table 16: Application for various functions in the Capital Market as at May 2013
Source: SEC
month under review.
Chart 10 depicts the
daily trades of the com-
pany in terms of vol-
umes and value of
trades. The Core Val-
ues of the Company
are Boldness, Excel-
lence, innovation, In-
tegrity and Openness.
* source: Cutix Plc website.
Feature Article — Short Selling (Part 2)
In a short selling agree-
ment, the “borrowed”
shares and proceeds are
credited into the borrow-
ers account. On or be-
fore the agreed date
the borrower must repur-
chase the exact number
of shares which is cred-
ited into the account it
was borrowed from. This
is called Short Covering.
If an investor speculates
that the stock probably
after attaining a level
would depreciate be-
fore the agreed date of
the covering, he is al-
lowed to cover the
shorts.
If the price of the secu-
rity drops, the borrower
makes a profit and re-
turns the securities back
to the broker. However, if
the price of the security
appreciates, the bor-
rower makes a loss and
must return the exact
number of the securities
borrowed.
Sometimes, borrowers
are allowed to hold
stocks for as long as they
want. However, interest
and fees are charged
on the account as long
as it is open.
Last month, we in-
formed you that short
selling is sale of a securi-
ties (shares) which do
not belong to the seller.
The securities are bor-
rowed and sold hoping
that there would be a
drop in the price of the
securities so that the in-
vestor can make profit
when he eventually sells
the securities at a pre-
agreed date.
Securities used for short
selling either come from
a brokers inventory, an-
other customers or from
another stock brokerage
firm.
Page 22
Capital Market Bulletin
Chart 9: Share Price movement of Cutix Plc Year to Date
Source: Central Securities
Clearing System Plc
Chart 10: Volume and Value of Cutix Plc’s Shares Traded In May 2013
Source: The NSE
Page 23
Volume 1, Issue 5
2008 2009 2010 2011 2012 April
2013
May
2013
GDP at 1990 basic prices (N'B) 672.2 717.0 776.3 833.4 n/a n/a n/a
GDP (at 1990 basic prices) growth rate (%) 5.98 6.96 7.98 7.36 n/a n/a n/a
GDP at current basic prices (N'B) 24,296.3 24,794.2 33,984.8 37,303.4 n/a n/a n/a
Inflation rate (%) 15.1 13.9 11.8 10.3 12.00 9.10 9.00
Exchange Rate (N = US$1.00) (Average) - Official
118.57 148.90 150.30 153.86 155.43 155.25 155.25
Average Lending Rate % Prime
Maximum
15.14
18.70
18.99
22.62
17.59
22.51
16.02
22.39
16.79
23.79
16.65
24.53
16.66
24.57
Monetary Policy Rate (%)/MRR (Average)
9.81 7.44 6.13 9.19 12.00 12.00 12.00
@New Issues: Equities (B'N)
901.06 31.24 120.34 1,069.84 80.15 37.87 50.78
Pref. Shares (B'N) 38.00 0.00 0.00 8.44 0.00 0.00 0.00
Corporate Bonds) (B'N) 5.17 13.17 77.29 87.88 3.20 12.00 12.00
Sub-national Bonds (B'N) 50.00 41.50 157.50 119.00 130.00 0.00 0.00
FGN bonds (B'N) 515.00 614.44 1,073.12 791.27 865.16 389.80 499.80
Total New Issues (B'N) 1,509.23 700.35 1,428.25 2,076.43 1,078.51 439.67 574.58
Equity listings (Ordinary & Pref. Shares)
216 218 219 201 198 199 198
Debt Securities listing 85 47 45 48 57 59 58
Exchange Traded Fund (ETF) - - - 1 1 1 1
Total Listing 301 265 264 250 256 259 257
@Volume of Equities Trans. (B' Shares)*
193.13 102.69 93.42 89.58 89.15 40.13 48.61
@Value of Equities Transactions (B'N) 2,375.61 684.04 797.58 634.90 657.77 350.40 444.64
Market Capitalisation (B'N) Main Board Securities Mkt.
6,984.79 4,991.83 7,938.35 6,532.59 8,974.44 10,691.69 12,075.23
Alternative Securities Mkt. (ASeM) 2.89 4.79 4.15 4.07 4.01 4.09 4.21
ETF Capitalization - - - 0.98 1.01 0.90 0.86
Debt Market Capitalisation (B'N) 2,575.29 2,034.22 2,382.95 3,737.70 5,821.48 4,966.89 4,658.52
Total Market Capitalisation (B'N) 9,562.97 7,030.84 10,325.45 10,275.34 14,800.94 15,663.57 16,738.82
Stock Index (1984=100) 31,450.78 20,827.17 24,770.52 20,730.63 28,078.81 33,440.57 37,794.75
% Change in Index -45.77 -33.78 18.93 -16.31 35.45 -0.29 34.60
Market Cap. As % of GDP 39.36 28.36 30.38 27.55 35.9 n/a n/a
Turnover Ratio % (Equities) 34.00 13.69
10.04 9.71 7.33 3.28 4.22
Source: NBS CBN SEC NSE Computed @Commutated
Appendix A: Major Macro Economic and Capital Market Indicators
Page 24
Capital Market Bullet in
Issuer Issue Type
Offer
Price Volume Value(N) Lead Issuing House
Offer
Opening
Date
Guinea Insurance Placement 0.50 740, 000,000 370,000,000.00 Capital Asset Ltd 29/01/13
Livestock Feeds Plc Placement 1.13 800,000,000 904,000,000.00 Cashcraft Asset Mgt 08/02/13
Rak Unity Petroleum
Plc Placement 7.90 43,051,157 340,104,140.30 Afrinvest (WA) Ltd 05/03/13
Wema Bank Plc Placement 1.50 23,333,333,334 35,000,000,001.00 Independent Securi-
ties Limited (ISL) 17/04/13
AG homes Savings
& Loans Plc Placement 0.60 2,100,000,000 1,260,000,000.00 DEAP Capital Man-
agement & Trust Plc 15/04/13
Transcorp Plc Rights 1.00 12,906,999,142 12,906,999,142.00 BGL Plc 3/05/2013
Total 39,183,383,633 50,781,103,283.3
Appendix B: Equities New Issues (January – May, 2013)
Issuer
Offer
Price
(N) Volume Value Naira
Cou-
pon Ma-
turity Rating Issuing
House (s) Date
Opened
International Finance Corp.
(IFC) 1000 12,000,000 12,000,000,000 10.2% 2018
AAA(S&P)
Aaa
(Moody)
Standard
Chartered,
Chapel Hill
Advisory 27/02/13
Appendix C: Corporate and Sub-National Bonds (January – May, 2013)
S/N Issue Tenor
Amount
Auctioned (N’Bn)
Subscrip-
tions (N’Bn)
Level of
Subscrip-
tion
Amount
Allotted (N’Bn)
Mar-
ginal
Rate (%)
Applied
Date
Auc-
tioned
1 April 27, 2017(9th Issue) 5 35.00 96.10 274.57 35.00 15.10 23/01/13
2 June 29, 2019(8th Issue) 7 30.00 55.91 186.37 30.00 16.00 23/01/13
3 January 27, 2022(12th Issue) 10 45.00 71.04 157.87 45.00 16.39 23/01/13
4 April 27, 2017(10th Issue) 5 35.00 63.26 180.74 35.00 15.10 13/02/13
5 June 29, 2019(9th Issue) 7 35.00 53.01 151.46 35.00 16.00 13/02/13
6 January 27, 2022(13th Issue) 10 20.00 57.11 285.55 20.00 16.39 13/02/13
7 July 23, 2030 (6th Issue) 20 15.00 78.53 523.53 15.00 10.00 13/02/13
8 April 27, 2017(11th Issue) 5 35.00 70.21 200.60 35.00 15.10 13/03/13
9 January 27, 2022(14th Issue) 10 35.00 61.97 117.06 35.00 16.39 13/03/13
10 June 29, 2019(10th Issue) 7 35.00 40.90 116.86 35.00 16.00 17/04/13
11 January 27, 2022 (15th Issue) 10 34.80 51.34 147.53 34.80 16.39 17/04/13
12 July 23, 2030 (7th Issue) 20 35.00 41.10 117.43 35.00 12.60 17/04/13
13 April 23, 2015(18th Issue) 5 15.00 39.55 263.67 15.00 4.00 15/05/13
14 April 27,2017(12th Issue) 5 35.00 62.8 179.43 35.00 15.10 15/05/13
15 June 29, 2019(11th Issue) 7 25.00 60.99 243.96 25.00 16.00 15/05/13
16 July 23, 2030 (8th Issue) 20 35.00 64.17 183.34 35.00 10.00 15/05/13
Total 499.80 967.99 499.80
Appendix D: Auction Summary for FGN Bonds (January – May, 2013)
Source: Extracted from DMO reports
Source: Securities and Exchange Commission (SEC)
Page 25
Volume 1, Issue 5
Company Volume (Unit) Nominal Value
(Naira) Bonus Ratio Date Regis-
tered
Guinness Nigeria Plc 30,962,669 15,481,335.00 1 for 33 05/02/13
BOC Gases Plc 23,124,706 11,562,353.00 1 for 17 07/03/13
Poly Products Nigeria Plc 10,000,000 5,000,000.00 1 for 24 11/03/13
Mobil Oil Nigeria Plc 60,699,210 30,049,605.00 1 for 5 14/03/13
Total 124,786,585 62,093,293.00
Appendix E: Registered Bonus Issues (January – May, 2013)
Source: Securities and Exchange Commission (SEC)
No. Issuer by Offer Type Volume of
Securities
Offer
Price (N)
Value (Naira) Level of
Subs.
Amount capital-
ized (Naira)
Approval
Date
Rights
1 Fan Milk Plc 449,917,132 3.00 1,349,751,396 100.00 1,349,751,396 09/01/13
2 Oando Plc 4,548,236,27
6 12.00 54,578,835,312.00 100 54,578,835,312.00 17/05/13
Placement
1 Guinea Insurance Plc 740,000,000 0.50 370,000,000.00 100.00 370,000,000.00 20/02/13
2 Livestock Feeds Plc 800,000,000 1.13 904,000,000.00 100.00 904,000,000.00 15/03/13
3 Rak Unity Petroleum Plc 43,051,157 7.90 340,104,156.10 100.00 340,104,156.10 15/03/13
Bonds
1 Gombe State Government 20,000,000 1000 20,000,000,000.00 100.00 20,000,000,000.00 15/01/13
2 Lagos State Government 80,000,000 1000 80,000,000,000.00 100.00 80,000,000,000.00 14/01/13
3 Osun State Government 30,000,000 1000 30,000,000,000.00 100.00 30,000,000,000.00 21/02/13
4 International Finance Corpo-
ration (IFC) 12,000,000 1000 12,000,000,000.00 100.00 12,000,000,000.00 28/02/13
Total 142,000,000,000.00 142,000,000,000.00
Appendix F: Allotments Approved (January – May, 2013)
Source: Securities and Exchange Commission (SEC)
S/N Issuer
Shares Listed
Bn
Price Listed
N Sector/Subsector Date Listed
1 UBA Capital Plc 4.0 1.16 Financial Services/Others 01/02/13
2 Africa Prudential Registrars Plc 1.0 1.59 Financial Services/Others 11/02/13
Appendix G: Listed Equities (January – May, 2013)
Source: Compiled from NSE reports
Page 26
Capital Market Bullet in
S/N Issuer Amount N’bn
Date Listed
1 14.50% Lagos State Government bond (2019) 80.00 01/02/13
2 15.50% Gombe State Government bond (2019) 20.00 11/02/13
3 10.2% International Finance Corporation Bond (2018) 12.00
4 18.00% C&I Leasing NOV 2017 0.94 15/04/13
5 14.75% Osun State Fixed Rate Bond Series 1(2019) 30.00 23/04/13
Appendix H: Listed Debt Securities (January – May, 2013)
S/N Issuer/Security Resultant Date
De-Listed
1 Nigerian Bags Manufacturing Com-
pany Plc Merger with Flour Mills of Nigeria 11/04/13
2 Crusader Nigeria Plc Merger with Custodian and Allied Insurance Plc 13/05/13
Appendix I: De-Listed Equities (January – May, 2013)
S/
N Issuer/Security Resultant Date
De-Listed
1 Crusader (Nigeria) Plc A Zero-Coupon Unsecured Subordinated Irredeemable bond
worth N1,838,811,700 was de-listed and converted to equities.
2 FGN bond, 5.5% FGN FEB 2013
(S1) De-listed upon maturity
3 15.00% FGN MAY 2013 De-listed upon maturity 30/05/13
Appendix J: De-Listed Debt Securities (January – May, 2013)
S/
N Issuer
Additional
Shares Listed Outstanding
Shares Resultant
Date
Listed
1 Linkage Assurance Plc 2,897,207,843 7,999,999,995 Placing 18/01/13
2 Guinness Nigeria Plc 30,962,669 1,505,888,188 Bonus issue 08/02/13
3 Crusader (Nigeria) Plc 3,064,686,154 7,585,295,644 Conversion of Debt of N1,838,811,700 to equities 15/02/13
4 Guinea Insurance Plc 740,000,000 6,140,000,000 Placing 28/03/13
5 FCMB Plc 329,197,001 19,041,068,033 Shares resulting from acquisition of Fin Bank Plc 28/03/13
6. Flour Mills of Nigeria Plc 50,893,281 2,385,668,170 Merger with Nigerian Bags Manufacturing Company 11/04/13
7. Rak Unity Petroleum Plc 43,051,159 56,624,893 Placing 17/04/13
8. Livestock Feeds Plc 800,000,000 1,999,999,418 Placing 25/04/13
9. Custodian and Allied
Insurance Plc 781,017,387 5,881,864,195 Merger with Crusader(Nigeria) Plc 13/05/13
10. BOC Gases 23,124,706 416,244,706 Bonus shares of 2012 14/05/13
11. Okomu Oil Plc 479,955,000 953,910,000 Bonus issue 14/05/13
12. CAP Plc 140,000,000 700,000,000 Scrip issue 27/05/13
13. UACN Plc 320,144,064 1,920,864,387 Bonus issue 27/05/13
14. Custodian and Allied
Insurance Plc 781,017,387 5,881,864,195 Merger with Crusader(Nigeria) Plc 13/05/13
Total 10,481,256,651
Appendix K: Supplementary Listings (January – May 2013)
Source: Compiled from NSE reports
Page 27
Volume 1, Issue 5
S/N Equity Name Market Capitalization
(Naira) Price Status Transaction Year-to-Date
Turnover* Apr %∆YTD High low Deals Volume (unit) Value (Naira) 1 Dangote Cement Plc 3,254,736,914,355.00 191.00 49.10 191.00 125.00 4,322 86,661,292 13,750,906,888.76 0.46% 2 Nigerian Brew. Plc. 1,345,405,118,452.80 177.90 21.02 179.00 145.65 17,679 219,815,742 35,770,048,288.17 2.76%
3 Guaranty Trust Bank
Plc. 838,788,607,884.00 28.50 23.91 29.99 23.30 42,607 1,857,383,429 47,043,666,211.04 5.89% 4 Nestle Nigeria Plc. 793,456,834,814.52 1,001.01 43.00 1,088.00 700.00 8,756 21,253,191 18,937,735,960.78 2.53% 5 Zenith Bank Plc 697,002,162,049.20 22.20 13.90 22.80 19.04 37,300 2,473,236,988 52,071,798,177.08 7.83% 6 Fbn Holdings Plc 590,640,726,843.60 18.10 15.14 21.50 16.38 60,534 2,404,117,016 46,182,983,245.73 7.70% 7 Guinness Nig Plc 415,625,139,888.00 276.00 0.36 297.41 253.04 7,861 45,995,614 12,558,122,071.58 3.08% 8 Lafarge Wapco Plc. 294,276,864,392.16 98.04 67.50 98.04 54.00 5,276 88,004,868 6,469,121,674.24 2.46% 9 U B A Plc 280,671,608,186.66 8.51 86.62 9.00 4.56 38,416 3,490,481,824 25,765,265,724.95 10.15%
10 Unilever Nigeria Plc. 257,264,145,000.00 68.00 46.24 76.00 42.90 6,892 118,902,874 6,186,841,063.21 2.66% 11 Access Bank Plc. 256,348,416,553.60 11.20 23.76 12.39 8.61 28,383 2,578,079,992 27,354,264,875.96 11.40% 12 Flour Mills Nig. Plc. 210,893,066,228.00 88.40 36.00 89.90 65.00 5,865 60,515,700 4,733,046,770.74 2.41% 13 P Z Cussons Nigeria Plc. 202,494,329,295.00 51.00 82.14 55.00 27.56 6,103 108,664,967 4,299,663,375.64 2.37%
14 Ecobank Transnational
Incorporated Plc 196,007,321,153.92 15.28 35.34 16.01 11.14 9,997 1,402,839,580 18,838,454,077.23 9.55% 15 Union Bank Nig.Plc. 191,882,687,316.43 11.33 54.15 11.33 7.37 8,852 173,302,068 1,654,674,138.79 0.98% 16 Cadbury Nigeria Plc. 173,638,650,998.40 55.49 91.34 64.53 29.00 8,200 136,531,563 5,136,605,006.89 3.74%
17 Stanbic Ibtc Holdings
Plc 160,100,000,000.00 16.01 45.55 16.01 11.00 3,623 257,364,372 3,419,281,501.95 2.28%
18 Dangote Sugar Refin-
ery Plc 114,000,000,000.00 9.50 58.33 10.50 6.43 12,775 798,460,093 6,489,477,074.13 6.37% 19 U A C N Plc. 111,410,134,446.00 58.00 38.10 71.10 42.00 6,590 87,629,611 5,037,565,711.87 4.97% 20 Diamond Bank Plc 99,879,177,424.50 6.90 39.68 7.66 5.10 15,860 1,761,846,029 11,792,815,384.38 12.93%
21 First City Monument
Bank Plc. 95,205,340,165.00 5.00 33.33 5.20 4.10 11,580 1,487,294,109 7,322,366,752.35 8.10% 22 Fidelity Bank Plc 89,242,374,830.84 3.08 34.50 3.47 2.35 18,277 1,926,547,919 6,013,156,623.87 6.94%
23 International Breweries
Plc. 85,739,194,580.40 26.28 62.22 28.67 16.20 4,601 92,381,125 2,073,041,093.10 2.71% 24 Julius Berger Nig. Plc. 67,500,000,000.00 56.25 62.34 67.00 33.48 2,638 36,723,052 1,989,370,727.78 3.03% 25 Skye Bank Plc 62,791,839,711.00 4.75 10.47 7.05 4.73 20,707 1,613,261,056 9,362,131,119.94 13.82% 26 Ashaka Cem Plc 60,465,234,375.00 27.00 50.42 27.85 18.39 5,751 109,641,036 2,553,266,108.74 4.52% 27 Total Nigeria Plc. 55,681,581,268.00 164.00 36.02 180.00 120.57 2,568 19,598,553 2,885,895,945.40 5.56%
28 Glaxo Smithkline Con-
sumer Nig. Plc. 55,488,669,020.00 58.00 28.60 58.00 45.10 1,877 15,419,410 753,237,244.73 1.47% 29 Dangote Flour Mills Plc 46,000,000,000.00 9.20 12.20 9.59 8.16 6,581 164,319,005 1,488,770,890.83 3.25% 30 Okomu Oil Palm Plc. 43,879,860,000.00 46.00 8.24 107.81 42.50 6,890 83,424,541 6,873,519,166.23 15.01% 31 Sterling Bank Plc. 43,656,743,123.74 2.78 60.69 3.05 1.85 11,944 1,480,009,914 3,957,496,936.11 9.44% 32 Mobil Oil Nig Plc. 42,550,240,916.00 118.00 8.01 130.00 109.25 2,049 11,379,998 1,383,258,870.13 3.31% 33 Oando Plc 37,864,066,997.70 16.65 34.82 19.80 12.41 19,271 436,079,047 6,630,773,539.80 18.51%
34 7-Up Bottling Comp.
Plc. 33,630,994,057.50 52.50 25.00 52.50 42.00 1,248 6,640,929 317,423,627.51 0.97%
35 Pinnacle Point Group
Plc 33,340,818,885.92 7.28 0.00 7.28 7.28 0 0 0.00 0.00%
36 Transnational Corpora-
tion Of Nigeria Plc 32,267,497,853.75 1.25 19.05 1.96 1.03 15,726 3,222,893,995 4,728,715,177.92 14.95% 37 Cap Plc 31,500,000,000.00 45.00 60.71 67.50 28.00 2,702 22,643,234 986,941,780.37 3.57% 38 Presco Plc 30,000,000,000.00 30.00 76.47 30.02 18.50 4,598 97,110,701 2,421,881,394.82 8.97%
39 National Salt Co. Nig.
Plc 29,461,754,763.36 11.12 39.00 13.32 8.00 7,068 201,693,994 2,095,677,055.92 7.86% 40 Honeywell Flour Mill Plc 25,059,424,599.28 3.16 51.20 3.44 2.09 6,126 445,159,008 1,325,478,551.30 5.52% 41 Unity Bank Plc 24,605,881,414.40 0.64 28.00 1.16 0.50 12,586 4,457,574,261 3,326,553,575.81 13.11% 42 Mansard Insurance Plc 24,000,000,000.00 2.40 29.73 2.87 1.87 1,482 427,888,933 1,078,637,043.54 4.49%
43 Uacn Property Devel-
opment Co. Limited 20,624,999,940.00 15.00 27.12 17.49 11.80 2,481 59,288,838 914,344,527.11 4.43% 44 Cappa & D'alberto Plc. 18,799,593,750.00 95.49 0.00 95.49 95.49 0 0 0.00 0.00% 45 Conoil Plc 16,654,850,808.00 24.00 17.07 26.33 20.50 1,664 6,145,075 144,360,685.18 0.89% 46 Wema Bank Plc. 15,257,287,357.20 1.19 128.85 1.88 0.50 7,653 1,333,861,211 1,722,724,923.59 11.34% 47 Forte Oil Plc. 15,123,928,792.00 14.00 81.11 17.54 7.73 2,471 39,297,642 544,733,901.73 3.57%
48 E-Tranzact International
Plc 14,574,000,000.00 3.47 -9.64 3.84 3.47 31 20,522,770 71,296,932.61 0.49%
49 Investment And Allied
Assurance 14,000,000,000.00 0.50 0.00 0.50 0.50 0 0 0.00 0.00%
50 Cement Co. Of
North.Nig. Plc 13,509,285,984.50 10.75 102.83 12.99 5.35 3,271 87,816,990 886,576,984.85 7.29% TOP 50 Total 11,662,997,368,475.40 519,732 36,075,703,159 427,343,968,404.39 3.89%
TOTAL EQUITIES 12,079,439,412,727.80 628,192 48,612,174,246 444,643,692,785.77 3.68%
Top 50% Of Total Equi-
ties 96.55% 82.73% 74.21% 96.11%
Appendix L: Market Statistics of May 2013 Top 50 Equities By Market Capitalisation (Year-to-Date)
Source: Compiled from NSE reports *Turnover=Trading Value/Av. Mkt Cap
Page 28
S/
No
Financial Adviser/
Solicitor
Applicants Consideration Resultant
Company
Date Ap-
proved
Date Applica-
tion was re-
ceived
1. BGL Plc WAPIC Insurance Plc
and Intercontinental
Properties Ltd
All shareholders of Intercontinental Properties Ltd
to receive 2 ordinary shares of WAPIC insurance
in exchange of 1 ordinary share. The entire share
capital of Intercontinental Properties were can-
celed and dissolved without winding up.
WAPIC Insur-
ance Plc
18/1/2013 11/10/2012
2. North Bridge Invest-
ment and Trust Ltd.
Tiddo Securities Ltd
and Tiddo Investment
Management Ltd
Transfer of all assets, liabilities and undertakings,
including real property rights of Tiddo Investment
Ltd to Tiddo Securities Ltd. The former company
would be dissolved without winding up.
Tiddo Securi-
ties Ltd
18/1/2013 23/5/2011
3. Chapel Hill Advisory
Services
Custodian and Allied
Insurance Plc and
Crusader Nigeria Plc
Transfer of all assets, liabilities and undertakings,
including real property rights of Crusader Nigeria
Plc to Custodian & Allied Insurance. The Majority
shareholders shall receive 8 ordinary shares of
Custodian & Allied Insurance Plc Shares in ex-
change for 34 ordinary shares of Crusader Nige-
ria Plc.
Custodian &
Allied Insur-
ance Plc
8/2/2013 14/9/2012
4. Stanbic IBTC Bank
Plc
Consolidated Brewer-
ies Plc, DIL/Maltex Ltd
and Benue Brewery
Ltd
All assets, liabilities and undertakings of Dill/
Maltex Ltd and Benue Brewery Ltd were trans-
ferred to Consolidated Breweries Plc and the two
(2) companies were dissolved without winding
up.
Consolidated
Breweries Plc
12/2/2013 23/8/2012
5. FCMB Capital Mar-
ket Ltd, Zenith Bank
Plc and Stanbic IBTC
Bank Plc
Flour Mills of Nigeria
Plc, Nigeria Bags
Manufacturing Com-
pany Plc, Northern
Bag Manufacturing
Ltd and BAGCO Mor-
pack Nigeria Ltd.
All assets, liabilities and undertaking of Nigeria
Bags Manufacturing Company Plc, Northern Bag
Manufacturing Ltd and BAGCO Morpack Nigeria
Ltd including their intellectual property rights will
be transferred to Four Mills of Nigeria Plc. Each
shareholder of the wound up company would
receive N2.75 for each scheme share or 1 ordi-
nary share of Flour Mills of Nigeria Plc for every 25
ordinary shares held.
Flour Mills of
Nigeria Plc
7/3/2013 6/8/2012
6. Chapel Hill Advisory
Partners Ltd
Flour Mills of Nigeria
Plc and Niger Mills
Company Ltd
The entire issued capital of Niger Mills Company
Ltd will be cancelled and the company would
be dissolved without winding up. The minority
shareholders shall also receive 2 ordinary shares
of Flour Mills of Nigeria Plc in exchange of 11
shares.
Flour Mills of
Nigeria Plc
12/3/2013 6/8/2012
7. Stanbic IBTC Bank
Plc
Cadbury Nigeria Plc
and Stanmark Cocoa
Processing Company
The entire 1,005 million ordinary shares of Stan-
mark Cocoa Processing Company will be can-
celled and transferred to Cadbury Nigeria Plc.
The minority shareholders of Stanmark to receive
N4 for every share held as at terminal date.
Cadbury
Nigeria Plc
15/3/2013 26/06/2012
Appendix M: Approved Mergers
S/
No
Date Re-
ceived
Financial Adviser/
Solicitor
Applicants Mode of Settlement Resultant Company
1. 28/11/2012 Finmal Finance Services
Ltd, PanAfrican Capital
Plc and Globanc Man-
agement Associates
Ltd.
Planet Capital Ltd,
Emerging Capital Ltd
and Strategy & Arbi-
trage Ltd.
Holders of Strategy & Arbitrage Ltd shall re-
ceive 155 shares of N1 each in Planet Capital
Ltd for every 100 shares previously held.
Holders of emerging Capital Ltd shall receive
6 ordinary shares of N1 in Planet Capital Ltd
for every 100 ordinary shares previously held
Planet Capital Lim-
ited
2. 19/3/2013 BGL Plc Universal Insurance Plc
and African Alliance
Insurance Plc
Shares of African Alliance Plc would be
issued to shareholders of Universal Insur-
ance Plc as consideration for assets and
liabilities transferred.
African Alliance
Insurance Plc
3. 19/4/2013 BGL Plc & UBA Capital
Ltd
Afriland Properties Plc
and Heirs Real Estate
Limited
Transfer of assets, liability and undertaking
to Afriland Properties Plc. Heirs Real Estate
ltd will be dissolved without being wound
up.
4. 20/4/2013 Lead Capital Limited Santrust Savings and
Loans Limited and Dala
Building Society Plc
Yet to provide Yet to provide
Appendix O: Pending Mergers
Source: SEC
Page 29
S/
No Financial Adviser/
Solicitor Applicants Mode of Settlement Resultant Company Date
Ap-
proved
Date Ap-
plication
was re-
ceived 1. FBN Capital Ltd Honeywell Flour
Mills Plc and Hon-
eywell Superfine
Foods Ltd
Honeywell Superfine Foods Ltd will be
converted to a division of Honeywell
Flour Mills Plc.
Internal restructur-
ing. No new com-
pany formed
21/3/2013 19/2/2013
2. Cardinal Stone
Partners Emerging Markets
Telecommunica-
tion Services (EMTS)
Ltd and Alheri Mo-
bile Services Ltd
(AMSL).
AMSL is a subsidiary of EMTS Ltd. Both
companies are seeking to merge to
form one entity.
Emerging Markets
Telecommunica-
tion Services Ltd
25/3/2013 9/3/2012
3. Dunn Loren Merri-
field Ltd Food Concept Plc
and Free Range
Farms Ltd
The application is for a backward inte-
gration to separate the entities by the
divestment of Free Range Farms via the
issuance of the entire shares of the com-
pany to the shareholders of Food Con-
cept Plc based on their existing share-
holdings.
Food Concept Plc 20/5/2013 21/3/2013
4. Chapel Hill Advisory
Partners Ltd
GlaxoSmithKline
Consumer Nigeria
Plc and Holders of
the company's
shares
Reorganization of share capital of
GlaxoSmithKline Consumer Nigeria Plc
and holders of its fully paid ordinary
shares and a reduction in the Com-
pany’s share capital in Nigeria. 2 out of
3 shares held by existing shareholders of
GSk Nigeria shall be cancelled pursuant
to section 106 of CAMA.
Not Applicable 31/5/2013 7/3/2013
Appendix P: Approved Restructuring
S/No Date Re-
ceived
Financial Adviser/
Solicitor
Applicants Mode of Settlement Resultant Company
1. 12/12/2012 Joint Heir Chambers Ringadas Nigeria Ltd, ASCA Bitumen
Company Ltd, Moraga Mortain Nigeria
Ltd and GNB Logistics Nigeria Ltd.
Consolidation of all four (4) compa-
nies
Ringadas Nigeria Ltd
Appendix Q: Pending Restructuring
S/No Financial Adviser/
Solicitor
Applicants Mode of Settlement Resultant Company Date Ap-
proved
Date Appli-
cation was
received
1. Vetiva Capital Man-
agement Ltd
Savannah Sugar Company Ltd
and Dangote Sugar Refinery
Dangote Sugar Refinery acquired 95% share-
holding of Savannah Sugar Company
Majority Equities
Stake, no new com-
pany formed.
16/1/2013 4/12/2012
2. Pivot Trust & Invest-
ment Company Ltd
Pivot Trust and Investment
Company Ltd and Crystal
Global Assets Ltd.
Injection of fresh cash as a core investor in
Pivot trust and Investment Company Ltd by
Crystal Global Assets Ltd.
Crystal Global Assets
Ltd
16/4/2013 27/2/2013
3. Udo Udoma & Bello
Osagie
Femi Johnson Ltd and MMC
Group
Acquisition of 60% shareholding of Femi John-
son Ltd by MMC for N304.81 million
Not Applicable 14/4/2013 07/12/2012
4. Primera Africa Fund
Managers
THAI Farms International Ltd
and Flour Mills of Nigeria Plc
The shareholders of THAI Farms International
Ltd transferred 100% of their shareholding (i.e.
349.65 million ordinary shares) to Flour Mills of
Nigeria Plc for N874.13 million at N2.50 per
share.
Flour Mills of Nigeria
Plc (Ratification of
acquisition done).
6/5/2013 29/10/2012
5. Oceanic Capital Ltd
and Gold Bank Man-
agement Associate
Oceanic Health Management
Company and Alpha Partners
Ltd (as special purpose vehicle
held by Cressida Nigeria Ltd for
Ecobank Transnational Ltd.
Acquisition of 95% equities stake in Oceanic
Health Management Company by Cressida
Nigeria Ltd.
Majority Equities
Stake, no new com-
pany formed.
8/5/2013 30/11/2012
6. Stanbic IBTC Bank Plc
and Chapel Hill Advi-
sory Partners Ltd
Portland Paints and Products
Nigeria (Portland Paints) Plc
and UAC of Nigeria Plc
UAC of Nigeria Plc wants to acquire 204 million
ordinary shares of Portland Paints Plc repre-
senting 51% equities stake. The acquisition will
be executed at N6 per share but subject to
final adjustments in the Sales and Purchase
Agreement.
Majority Equities
Stake, no new com-
pany formed.
8/5/2013 31/1/2013
Appendix R: Approved Acquisition/Takeover
Source: SEC
Page 30
Capital Market Bullet in
Appendix S: Pending Acquisition/Takeover
Source: SEC
S/No Date Re-
ceived Financial Adviser/
Solicitor Applicants Mode of Settlement Resultant Company
1. 15/5/2012 Unity Kapital Assurance
Plc FUG Pension and
Unity Kapital Assur-
ance Plc
Unity Kapital Assurance intends to acquire
550 million shares of FUG from Unity Bank Plc
at N660 million (at N1.10 per share)
Not Applicable
2. 12/11/2012 Financial Derivatives
Company Ltd Diamond Capital &
Financial Market Ltd,
Diamond Securities
Ltd and Kaizen Part-
ners Nigeria Ltd
Kaizen to acquire Diamond Capital & Finan-
cial Market Ltd for purchase consideration of
N115 million and Diamond Securities Ltd for
N100 million
Not Stated
3. 25/2/2013 Not Provided First Registrars Ltd
and SRM Partners
Ltd
The entire shareholdings of First Registrars Ltd
would be acquired by the Management
Team of the Company using SRM Partners
Ltd as the Special Purpose Vehicle.
First Registrars Ltd
4. 18/2/2013 Tokumbo Orimobi & Co Independent Securi-
ties Ltd and Buffer-
pot Capital Ltd
Bufferpot Capital Ltd wants to acquire 94.7%
of the issued ordinary shares of Independent
Securities Ltd for N50.19 million at 16Kobo per
share.
Bufferpot Capital Ltd
5. 14/3/2013 Vetura Capital Man-
agement Limited Dangote Flour Mill
Plc and Tiger Brand
Ltd
Takeover of 332.5 million ordinary shares of
50Kobo each representing 6.6% stake in
Dangote Flour Mills by Tiger Brand Limited
No new company
formed
6. 15/4/2013 FCMB Capital Markets
Ltd City Securities
(Registrars) Ltd and
Cardinal Stone Part-
ners Ltd
Acquisition of 100% ordinary shares of City
Securities Registrars Limited for a purchase
consideration of N1.12 billion through lever-
age buyout (LBO) with funds on its balance
sheet secured by the assets of the company
Cardinal Stone Part-
ners Limited
7. 19/4/2013
(re-filed) Greenwich Trust Limited
and Morgan Capital
Group
Acen Insurance
Company Ltd and
Sovereign Trust Insur-
ance Plc
Acquisition of the entire issued ordinary
shares as well as assets and liabilities of Acen
Insurance Plc exchanged at 7 ordinary
shares of Sovereign Trust Insurance Plc for
every 85 ordinary shares of Acen Insurance
Company Plc held
Sovereign Trust Insur-
ance Plc
8. 22/4/2013 Stanbic IBTC Capital Ltd Ikoyi Hotels Limited
and Southern Sun
Africa
Acquisition of 65,551,785 ordinary shares of
Ikoyi Hotels from Beta Consortium Ltd and
some major shareholders for US$43.9 million.
This would result in Southern Sun owning
72.84% of the total issued share capital of
Ikoyi Hotels Ltd. Sourthern Sun Africa would
also subscribe for 10 million shares of Ikoyi
Hotels ltd to increase its shareholding to
75.5%
Majority Equities
Stake, no new com-
pany formed.
9. 22/4/2013 Chapel Hill Advisory
Partners Ltd Finbank Homes Ltd
and Minority Share-
holders of Finbank
Homes Ltd
Acquisition of 1.24 billion ordinary shares (i.e.
about 60%) of Finbank Homes at purchase
consideration of N1 only
No new company
formed
10. 29/04/2013 Chapel Hill Advisory
Partners Ltd Oceanic Insurance
Company Ltd and
Old Mutual Africa
Holdings (Propriety)
(OMAH) Ltd
Acquisition of 70% equity stake in Oceanic
Insurance Company Ltd by OMAH Ltd from
Cressida Nigeria Ltd for N3.1 billion
No new company
formed
11. 6/5/2013 Vetiva Capital Manage-
ment Limited
Oando Energy Re-
sources Limited and
Philips Oil Company
Nigeria Ltd, Conoco
Exploration & Pro-
duction Nigeria Ltd,
Philips Deepwater
Exploration Nigeria
Ltd
Acquisition of 100% equity stake in Conoco
Philips International Business in Nigeria for a
consideration of $1,650,000,000 by Oando
Plc through its upstream subsidiary (Oando
Energy Resources Ltd). Upon consumma-
tion, all assets and liabilities of Philips Oil Nige-
ria Ltd, Conoco Exploration and Production
Nigeria Ltd and Philips Deepwater Explora-
tion Nigeria Ltd would be transferred to
Oando Energy Group.
Oando Energy
Group
Onitsha
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Rivers State
email: [email protected]
phone: 234-084-575940
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Floor),
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Opposite KLM Airlines
Maiduguri
11 Baga Road
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Maiduguri
Borno State
email: [email protected]
phone: 08034943619
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Wema Bank Building,
(4th Floor) 22 Bida Road,
Off Yakubu Gowon Way
Kaduna
Kaduna State
email: [email protected]
phone: 08023337276
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Kano State
email: [email protected]
phone: 064891036 ,
08056421318
Lagos
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Opposite ICON House,
Off Adeola Odeku Street,
Victoria Island
P.M.B:12638
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Lagos State
email: [email protected]
phone: 017358159
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Oyo State
email: [email protected]
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decree following an earlier recommendation of the Financial System Re-
view Committee headed by Dr. Pius Okigbo in 1976. This decree was re-
viewed in 1998. Continuous review resulted in the Investments and Securi-
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