Quarter results to boost market Thursday, Apr 24 2008

FSDH Securities Limited, a dealing member of the Nigerian Stock Exchange (NSE) has said it anticipate a recovery in the market after the lull seen during the week as the expect the release of companies’ results such as second quarter results of UBA Plc and the third quarter results of  Zenith Bank Plc

Other results that are being expected in the market this month which will impact on the market include the first quarter result of Dangote Sugar, full year report of UAC of Nigeria for the financial year ended December 31, 2007 and Guaranty Trust Bank Plc full year results for the financial year ended February 28, 2008

The All-Share Index (ASI) closed the week at 61,418.96 points, down from 63,736.14 points recorded in the previous week. The ASI recorded a depreciation of 3.64 per cent compared with the depreciation of 1.46 per cent recorded in the preceding week.

The further slowdown in activities in the market during the week was on account of the losses recorded in the insurance, banking and manufacturing sub-sector.

The market capitalization also depreciated to close the week at N11.8 trillion.  It depreciated by 3.64 per cent compared with the depreciation of 1.46 per cent recorded in the preceding week.

The depreciation recorded in the index was due to the gains recorded

in the share prices of Oando (Up 20.50 per cent to N241.00.00) and Mobil (Up 18.84 per cent to N283.00) despite the losses recorded in the share prices of Chevron (Down 7.94 per cent to N290.00), Total (Down 3.74 per cent  to N242.55) and African Petroleum (Down 2.33 per cent to N293.98).

Other top five gainers for the week were Premier Paints (Up 27.45 per cent to N23.26), A.G Leventis (Up 27.43 per cent to N17.47), Thomas Wyatt (Up 27.35 per cent to N11.36), Nigerian Wire (Up 27.30 per cent to N13.57) and Footwear & Accessories (Up 27.06 per cent to N7.70).

The top five losers for the week were Juli (Down 22.24 per cent to N4.86), Grommac Industries (Down 18.48 per cent to N9.97), Cadbury Nigeria Plc (Down 17.96 per cent to N36.50), BAICO (Down 17.52 per cent to N4.52), and Consolidated Hallmark (Down 16.24 per cent to N3.30).

Overall, 44 stocks recorded gains in their share prices,101 stocks recorded losses 70 stocks closed the week unchanged.

In the over the OTC bonds, a turnover of 195.84million units worth N202.85 billion in 1748 deals was recorded during the week, in contrast to a total of 223.51 million units valued at N228.83 billion exchanged in 2,021 deals during the week ended April 10, 2008. The most active bond (measured by turnover volume) was the 4th FGN Bond 2010 Series 14 with a traded volume of 60.7 million units valued at N61.7 billion in 464 deals.

In the money market, analysts at FSDH Securities anticipated that the tightness in the market during the week may ease as maturing bills worth about N83billion and the effect of the April allocation from the Federal Allocation Account Committee (FAAC) are expected to be felt more in the system. Consequently, we expect inter-bank rates to dip marginally during the week.

They maintained that the exchange rate at the official foreign exchange market should remain stable as a result of the huge foreign reserves of the country and the managed float strategy the CBN currently employs.

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PZ Cussons Q3 Saturday, Apr 19 2008

PZ Cussons Nigeria Plc witnessed appreciable growths across key performance indicators in the third quarter with strong net earnings raising optimism of better cash payouts.

Interim report for the nine months ended February 29, 2008 released yesterday showed that PZ Cussons recorded adjusted net earnings per share of more than 76 kobo by February 2008 as against 60 kobo in comparable period of 2007.

The report indicated that sales grew by 24 per cent while pre and post tax profits rose by 27 per cent each. There was however marginal improvement in the intrinsic profit-making capacity of the company with a pre-tax profit margin of 8.3 per cent in 2008 as against 8.1 per cent in 2007.

The report showed a turnover of N47.44 billion in 2008 as against N38.15 billion in 2007. Profit before tax rose from N3.09 billion in 2007 to N3.92 billion in 2008. Profit after tax and minority interest stood at N2.42 billion in 2008 compared with N1.91 billion in 2007.

Market analysts said annualised returns based on the third quarter report show possibility of increase in cash dividend for the current year ending May 31, 2008.

PZ Cussons had combined cash dividend of N1.8 billion and scrip issue of 635 million shares as returns in 2007. The conglomerate distributed a dividend per share of 71 kobo and bonus issue of one for four, which ranked within the highest fundamental returns in 2007.

PZ Cussons has maintained upwardly growth trend this year. Interim report for the six months ended November 30, 2007 indicated that adjusted earnings per share rose by 16 per cent to 44 kobo in 2007 as against 38 kobo in corresponding period of 2006.

Half-year report showed that sales rose by 24 per cent to N29.95 billion in 2007 as against N24.12 billion in comparable period of 2006. Profit after tax rose from N1.2 billion by November 2006 to N1.4 billion in 2007.

The third quarter report showed an improvement in the sale-to-profit performance of the conglomerate, which had in recent years recorded marginal growth in pre and post tax earnings.

Audited report and accounts for the year ended May 31, 2006 showed that initial improvement in profitability thinned out with jumpy growth in expenses, leading to decrease in returns.

Group turnover rose by 27 per cent in 2006 to N43.5 billion compared with an increase of 22 per cent to N34.14 billion in 2005. Cost of sales rose by 26 per cent to N32.3 billion in 2006 compared with N25.6 billion in 2005. The relative low growth rate of cost of sales nudged the gross profit to N11.22 billion in 2006 as against N8.52 billion in 2005, representing an increase of 32 per cent.

However, operating expenses grew by 38 per cent from N4.91 billion in 2005 to N6.79 billion in 2006 while interest expenses also grew by 70 per cent from N128 million in 2005 to N217 million in 2006. These impacted on the bottom-line. Pre-tax profit rose by 10 per cent to N4.80 billion in 2006 as against N4.38 billion in 2005 while profit after tax inched up by 5.8 per cent from N3.38 in 2005 billion to N3.57 billion in 2006.

Underlying ratios of the conglomerate further reflected the top-heavy nature of performance in 2006. Gross profit margin rose from 25 per cent in 2005 to 26 per cent in 2006 but pre-tax profit margin dropped from 13 per cent in 2005 to 11 per cent in 2006. Returns on assets and equity altogether dropped from 10 per cent and 17 per cent respectively in 2005 to 8.5 per cent and 13.2 per cent in 2006.

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CAP, Flour Mills, Goldlink Insurance post N80.9 billion Tuesday, Apr 8 2008

Three quoted companies have presented about N80.9bn to the NSE as turnover in their respective accounting years with cumulative profit that stood at about 5.073bn.

Flour Mills topped the list followed by CAP and Goldlink insurance. Flour Mills unaudited Q3 report showed a turnover of N74.54bn as against N59bn in the comparable period of 2006. its PAT stands at N3.65bn as against N3.9bn in 2006.

On the same hand, CAP posted an impressive record in the year under review. The companie’s audited results for the year ended 31st Dec 2007 shows turnover of N2.1bn as against N2bn in 2006. Its PAT stood at N829.8m a far notch higher from last year’s N312.75m.

On the profitability chart is Goldlink Insurance with a net premium of N2.32bn as against N2.02bn in 2006. its PAT stands at N594m as against N516.5m in the previous year.

The board of Goldlink Insurance have recommended a dividend of 50 kobo per share with date of closure of register to be announced on a later date.

The board of CAP will be paying out an all time high dividend of N3.75 if the approval of the shareholders is gotten to the effect.
The directors recommends a final dividend pay out of N3, a cumulative of interim dividends. If one recalls, the stock price had on the 27th of August 2007 been adjusted for an interim dividend of 0.75kobo. This will bring the total dividend payout to N3.75 per share of the company.
Date of closure is fixed for april and payment will take effect as from May.

Flour Mills has remained silent on dividend.

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Central bank rate decisions to move European stocks Tuesday, Apr 8 2008

Interest rate decisions from the European Central Bank and the Bank of England may move European stock markets next week. Investors will also be watching earnings from Signet Group Plc, the world’s largest jewelry store owner.
The Dow Jones Stoxx 600 Index climbed 3.7 per cent this week as of 2:50 p.m. in London. The Stoxx 50 added 4.5 per cent this week, while the Euro Stoxx 50, a benchmark for nations sharing the euro, gained 3.8 per cent.
The ECB will announce its rate decision on April 10. The ECB left its key rate at a six-year high of four per cent last meeting to curb inflation, which accelerated to 3.5 per cent in March, the fastest pace in almost 16 years. The BOE will announce on April 10 any change to interest rates in the U.K.
“Economic decisions and data will be significant next week,” said Keith Bowman, an analyst at Hargreaves Lansdown Plc in Bristol, England. “A growing number of economists believe that the ECB will eventually be forced to cut rates in order to head off a slowdown in economic activity.”
The ECB will keep interest rates unchanged, according to a group of economists surveyed by Bloomberg. In the U.K. interest rates will be cut by 25 basis points to five per cent, according to a Bloomberg survey of economists.
Signet will announce net income of $212.2 million on April 9, according a Bloomberg survey of six analysts.
“Key issues going forward are the success of repricing initiatives in the U.S.,” London-based UBS AG analyst Andrew Hughes wrote in a note to clients last Friday.
Banco Espanol de Credito SA, a retail unit Banco Santander SA, also known as Banesto, will announce earnings on April 9. Full-year net income will be 858 million euros ($1.35 billion), according to a Bloomberg survey of 22 analysts.
Updates of traffic figures from the airline industry will also be expected next week. Deutsche Lufthansa AG, Europe’s second-largest airline, will announce its March traffic volumes on April 9 and EasyJet Plc, Europe’s second-biggest discount airline, will provide this information on April 7.
European markets will also focus on the minutes from the U.S. Federal Open Market Committee’s March meeting when it cut the benchmark interest rate to 2.25 per cent and said the “outlook for economic activity has weakened further.”

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Market Rebounds-Chevron takes the lead Tuesday, Apr 8 2008

Trading activities on the floor of Nigerian Stock Exchange rebounded on Monday as market capitalization appreciated by N89 billion to close at N12.1 trillion as some highly capitalized stocks recorded price appreciation. This could be attributed to fund managers taking positions for the new quarter.
This was reflected on the All-share index which rose by 0.74 per cent to close at 62,688.07 compared to its opening of 62,224.86 points.
Investors exchanged a turnover of 615.6 million ordinary shares valued at N8.866 billion in 17,972 deals.
Three petroleum marketing products, Chevron Oil Nigeria, Total Nigeria and Mobil Nigeria led the gainers’ chart with N13.70, N10.00 and N9.00 to close at N287.70, N230 and N209 per share. Julius Berger Nigeria followed with a gain of N5.65 to close at 118.65, Enamelware added N3.83 to close at N81.00, Benue Cement Company (BCC) appreciated by N2.25, to close at N47.25 Ecobank Transnational Incorporated (ETI) grew by N1.97 to close at N259.97, Dangote Sugar Refinery gained N1.70 to close at N38.70 while Northern Nigeria Flour Mills (NNFM) added N1.62 to close at N34.17.
Also, Oceanic Bank International appreciated by N1.30 to close at N27.30, Beta Glass rose by N1.24 to close at N26.16, Nigerian Aviation Handling Company (Nahco) grew by N1.15 to close at N30.60, Arbico gained N1.08 to close at N22.87, Seven-Up and Nigeria Bottling Company (NBC) rose by N1.00 apiece to close at N56.00 and N61.00 respectively.
Other price gainers include IBTC Chartered Bank ( Stanbic IBTC Bank) with an increase of 99 kobo to close at N20.94, Berger Paints added 95 kobo to close at N19.96, Nigerian Sport Lottery rose by 86 kobo to close at N18.21, Cutix gained84 kobo to close at N17.67, Tripple GEE appreciated by 78 kobo to close at N16.45 while Afribank and GlaxoSmithKline Consumer gained by 76 kobo apiece to close at N25.78 and N22.51 respectively.
However, Cappa & D’ Alberto topped the losers’ chart with N6.25 to close at N118.94. It was followed by Nestle Nigeria with a loss of N5.19 to close at N257, Conoil lost N3.50 to close at N140.50, Costain dropped by N2.72 to close at N51.77, Guinness Nigeria fell by N1.90 to close at N129.15, Okomu Oil Palm depreciated by N1.67 to close at N31.77 Alumaco shed N1.61 to close at N31.30, Eterna Oil & Gas lost N1.55 to close at N29.62, Unilever Nigeria dropped by N1.16 to close at N22.19while  Morison and West African Portland Cement (Wapco) depreciated by 1.10  apiece to close at N21.02 and N63.00 respectively.
Other price losers include May & Baker with a loss of 85 kobo to close at N16.15, John Holt lost 84 to close at N16.14, Grommac Industry depreciated by 71 kobo to close at 13.54, Nigeria-German Chemicals fell by 70 kobo to close at N25.80, Japaul Oil dropped by 69 kobo to close at N13.11, Longman Nigeria shed 65 kobo to close at N24.10 while A.G Leventis and Evans Medical depreciated by 59 kobo apiece to close at N14.50 and N11.31 respectively.
Analysis of transactions on the exchange showed the insurance sub-sector as the most active with a turnover of 236.4 million shares worth N1.177 billion in 4,237 deals. The banking sub-sector followed with a turnover of 229.9 million shares valued at N5.314 billion in 7,123 deals, conglomerates sub-sector came third with a turnover of 27.214 million shar4es worth N154.9 million in 710 deals while commercial/services sub-sector had a turnover of 23.988 million valued at N403.2 million in 180 deals.
Road transportation sub-sector ranked fifth with a turnover of 14.1 million shares worth N99 million in 536 deals, food/beverages & tobacco sub-sector recorded a turnover of 10.3 million shares valued at N310.3 million i8n 952 deals while agriculture/agro-allied sub-sector came behind with a turnover of 8.378 million shares worth N66.554 million in 227 deals.
A total of 126 stocks were traded on exchange yesterday out which 73 appreciated while 53 depreciated in value.

The club sees this trend sustaining till the early birds are done with re-aligning their portfolio for greater profitability.

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