Capital Market Bulletinsec.gov.ng/files/SEC May Bulletin 2013.pdf · 2013-09-19 · capital market bulletin overview of 1 the nigerian economy foreword 2 overview of 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


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

[email protected]

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


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%


Table 1: Equities Transaction Statistics (Daily Average)

Chart 2: Market Participation Domestic and Foreign


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


(4.01%) and Indonesia


(0.69%).

Page 4


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


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


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


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


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


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


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


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


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


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


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


Chart 5: Sector Indices performance vs All-Share Index (May 2013)


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


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


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


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


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


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


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


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


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


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


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)


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)


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)


Page 26


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)


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


Partners Ltd


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


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.


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


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

Onitsha Business Village

No.4 Ridge Road G.R.A

PMB 1855

Onitsha

Anambra State

email: [email protected]

phone: 08033423513

Port Harcourt

No. 10 Woji Road

GRA II

Port Harcourt

Rivers State


phone: 234-084-575940

Kano

African Alliance House (4th

Floor),

F1, Sani Abacha Way/

Airport Road,

Opposite KLM Airlines

Maiduguri

11 Baga Road

P.M.B 1495

Maiduguri

Borno State


phone: 08034943619

Kaduna

Wema Bank Building,

(4th Floor) 22 Bida Road,

Off Yakubu Gowon Way

Kaduna

Kaduna State


phone: 08023337276

Kano

Kano State


phone: 064891036 ,

08056421318

Lagos

3, Idejo Street,

Opposite ICON House,

Off Adeola Odeku Street,

Victoria Island

P.M.B:12638

Marina

Lagos State


phone: 017358159

Ibadan

4b, Rotimi Williams Old

Bodija

Ibadan

Oyo State


Our Zonal Offices

SEC TOWERS, Plot 272, Samuel Adesujo Ademulegun Street Central Business District


phone: 234-9-6330000, 234-

9-6330399

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www.sec.gov.ng

The Securities and Exchange Commission was established in 1979 by a

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-

ties Act (ISA) of 1999. The Commission has undergone continuous re-

forms to meet up with the dynamics of the market and the economy. The

Commission derives its current power to regulate and develop the Nigerian

capital market from the provisions of ISA No. 29 of 2007. Tools used in

carrying out the dual functions of regulation and development are registra-

tion, surveillance, inspection, rulemaking, investigation, monitoring and

enforcement.

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Documents

Capital Market Bulletinsec.gov.ng/files/SEC May Bulletin 2013.pdf · 2013-09-19 · capital market bulletin overview of 1 the nigerian economy foreword 2 overview of capital market