STOCK MARKET REPORT FOR THE WEEK ENDING FRIDAY, 3RD FEBRUARY 2012

A turnover of 1.613 billion shares worth N15.1 billion in 17,444 deals was recorded this week, in contrast to a total of 1.323 billion shares valued at N10.1 billion exchanged last week in 15,973 deals. The Financial Services sector accounted for 1.2 billion shares valued at N4.431 billion traded in 9,934 deals. The Consumer Goods sector followed with for 126.632 million shares valued at N4.54 billion traded in 3,427 deals.

The Banking subsector of the Financial Services sector was the most active during the week (measured by turnover volume); with 948.21 million shares worth N4.3 billion exchanged by investors in 9,312 deals. Volume in the Banking subsector was largely driven by activity in the shares of UBA Plc, Fidelity Bank Plc and First Bank of Nigeria Plc. Trading in the shares of the three banks accounted for 617.5 million shares, representing 65.1%, 51.5% and 38.3% of the turnover recorded by the subsector, sector and total turnover for the week, respectively.

The Insurance subsector of the Financial Services sector, boosted by activity in the shares of NEM Insurance Co. Nigeria Plc and Goldliknk Insurance Plc, followed on the week’s activity chart with a subsector turnover of 250.311 million shares valued at N148.86 million traded in 607 deals.

Last week, the Banking subsector led on the activity chart and was followed by the Insurance subsector, both from the Financial Services sector.

 Also included in the transactions for the week included 5,795 units of NewGold Exchange Traded Fund valued at N15.7 million traded in 12 deals. There were no transactions executed through the stock market in the Federal Government Development Stocks, State Government Bonds and Industrial Loans/Preference Stocks sectors.

PRICE MOVEMENT
The NSE All-Share Index depreciated by 15.02 points or 0.1% to close on Friday at 20,877.64 while the market capitalization of the 186 First -Tier equities dropped to N6.58 trillion. However, the NSE-30 Index appreciated by 6.12 points or 0.7% to close at 942.24. Last week, the NSE-ASI and NSE-30 Indices appreciated by 0.4% each.

Two of the four sectorial indices appreciated during the week, compared with one that so appreciated during the preceding week. The NSE Consumer Goods Index appreciated by 0.17 points or 0.02% to close at 1,676.71 while the NSE Banking Index appreciated by 12.46 points or 4.5% to close at 283.45. However, the NSE Insurance Index depreciated by 5.86 points or 4.7% to close at 119.78 and the NSE Oil/Gas Index depreciated by 12.29 points or 5.5% to close at 212.75. Please note that the points and percentage changes in the NSE Indices are calculated by computing the daily changes in the index values.

APPRECIATED STOCKS
Twenty-five (25) equities appreciated in price during the week, higher than the twenty (20) of the preceding week. Two equities from the Consumer Goods sector led on the gainers table. As in the preceding week, Nestle Nigeria Plc led on the gainers’ table with a gain of N10.00 or 2.3% to close at N440.00 per share while Nigerian Breweries Plc followed with a gain of N1.93 or 2.1% to close at N120.00 per share. Other price gainers’ in the Top 10 category include:

• Nigerian Aviation Handling Co. Plc
• Flour Mills of Nigeria Plc
• Guaranty Trust Bank Plc
• Berger Paints (Nig) Plc
• Lafarge Cement WAPCO Nigeria Plc
• First Bank of Nigeria Plc
• UAC of Nigeria Plc
• Access Bank Plc

DEPRECIATED STOCKS
Forty (40) stocks depreciated in price, lower than the forty-two (42) of the preceding week. Guinness Nigeria Plc led on the price losers’ table, dropping by N10.00 or (4.3%) to close at N220.00 per share while MRS Oil Nigeria Plc followed with a loss of N7.98 or (14.2%) to close at N48.07 per share. Other price losers in the Top 10 category include:

• Dangote Cement Plc
• Conoil Plc
• Oando Plc
• Julius Berger Nigeria Plc
• Cadbury Nigeria Plc
• Vitafoam Nigeria Plc
• Chemical & Allied Products Plc
• Ashaka Cement Plc

COMPANY NEWS
FLOUR MILLS OF NIGERIA PLC: Unaudited result for the third quarter ended 31st December 2011 shows Turnover of N144,162 million as against N122,707 million in the comparable period of 2010. Profit after tax stood at N7,055 million compared with N8,106 million in 2010. The Net Asset Value stood at N50,260 million compared with N42,063 million in March 2011.

NIGERIAN BAG MANUFACTURING CO. PLC: Unaudited result for the third quarter ended 31st December 2011 shows Turnover of N10,841 million as against N8,465 million in the comparable period of 2010. Profit after tax stood at N989.842 million compared with N669.213 million in 2010. The Net Asset Value stood at N10,524 million compared with N9,860 million in March 2011.

RED STAR EXPRESS PLC: Unaudited result for the third quarter ended 31st December 2011 shows Turnover of N3,632.2 million as against N3,186.7 million in the comparable period of 2010. Profit after tax stood at N250.34 million compared with N210.23 million in 2010. The Net Asset Value stood at N1,469.01 million compared with N1,440.43 million in March 2011.

OTHER COMPANY NEWS

ACCESS BANK PLC: Press Statement: Access Bank's business combination with Intercontinental Bank produces an African Financial Powerhouse with Diversified Offerings -Access Bank Plc. notified The Exchange that January 31, 2012 marks the completion of its acquisition of Intercontinental Bank as the two financial institutions merged into a single entity. This comes after all the relevant regulatory, judicial and shareholder approvals have been granted. Consequently, upon gazetting, Intercontinental Bank stands dissolved without being wound up and all its assets and liabilities are now vested in Access Bank Plc. This transaction creates a formidable Nigerian financial institution comfortably positioned in the top 4 ranking of the country's financial institutions by most metrics.

Similarly, the merger has repositioned the Nigerian banking sector on the African continent as the combined entity has the potential of ranking amongst Africa's top 10 banks according to The Bankers' Magazine's review of top African banks in its current edition. Some salient facts about the combined entity are presented below:

Customer Base: 5.7 million
Branch network: 309
Asset Base: =N=2, 018,018,714,000
Capital Adequacy ratio: 18.55%
Liquidity Ratio: 76%

The 5.7 million customers of the combined bank will benefit from a product range which blends the very best of both Access and Intercontinental Banks products. Customers will also benefit from an expanded network of 309 branches along with a network of 1600 ATMs across Nigeria. To ensure that the 5.7million customers of the Bank enjoy superior banking services, Access Bank is committing significant human and financial resources to customer and other stakeholder engagement via its world-class Contact Centre, SMS, and online banking to ensure seamless transaction and impressive experience at any contact with the Bank.

The Bank further stated that, some analysts have opined that the integration has the potential of increasing the Bank's operational costs and depleting earnings in the near term; they will be pleased to learn that Access Bank management has swiftly implemented the integration imperatives, particularly cost management measures and eliminating duplicities in systems, infrastructure and resources.

The Bank worked closely with Accenture to determine optimal level of resources to support a Bank of its size that serves customers efficiently, is financially sound and delivers acceptable returns to investors. Part of this process included a benchmarking against local and foreign financial institutions.

While the merger was able to rescue Intercontinental Bank, its legacy of poorly conceived investments, cost inefficiency and sub-optimal returns were inherited by Access Bank Plc. (In 2008, 2000 members of staff suffered job losses, in 2009, 1298 staff were affected and in 2010, 1235 staff lost their employment). To ensure the long term sustainability and growth of the merged entity, it is important that the bank's cost structures are brought in line with Nigerian and global best practice. Consequently some rationalization of resources and staff was necessary. We have taken care to ensure all aspects of the rationalization process are fair, objective, transparent and generous. The terms for employees restructuring were reached in consultation with relevant labour bodies. All departing staff will receive prompt payment of their entitlements along with other benefits. Access Bank is also funding an outplacement service to assist staff who will be seeking employment either within the financial services sector or other sectors of the economy.

ARM FUNDS: Closure of Unit holders’ Register - ARM Investment Managers notified The Exchange that the Registers of the Unit holders of ARM Discovery Fund and ARM Aggressive Growth Fund would be closed on Thursday, February 2nd 2012.

NIGERIAN AVIATION HANDLING COMPANY PLC: Change of Name - The Company notified The Exchange of the change of Name of the Managing Director/CEO who was formerly known and addressed as MR. KAYODE TOLULOPE OJO and has with immediate effect changed to
MR. KAYODE TOLULOPE OLUWASEGUN-OJO. All former documents remain valid.

GUARANTY TRUST ASSURANCE PLC: Board Meeting - The Company notified The Exchange that its Board meeting is scheduled to hold on Wednesday, February 15, 2012 to consider the company’s Audited Financial Statements for the year ended December 31, 2011. The Directors may discuss issues relating to dividend at the meeting.

LAW UNION & ROCK INSURANCE PLC: Resignation - The Company notified The Exchange that Mrs. Salaudeen Rukayat Oziama, its Company Secretary/Legal Adviser has resigned her appointment from the company, effective February 1, 2012.

The company has appointed Mr. Akinyosade Afolabi in acting capacity pending the appointment of a substantive Company Secretary/Legal Adviser.

FIRST ALUMINIUM NIGERIA PLC: Appointment - The Company notified The Exchange of the appointment of MS Eniye Ambakederemo as a non-Executive Director of First Aluminium Nigeria Plc. with effect from 24th January, 2012.

Ambakederemo attended the University of Port Harcourt where she graduated with a B.Sc. Degree and an MBA in Management in 1990 and 1994 respectively. Between 1991 to 1995 she worked as Planning Officer with the Rivers State Ministry of Works & Transport and as an Accountant/Admin Officer in the Treasury Tech. Resource Department from 1995 – 1996.

She had varied working experience in the private sector from 1996 – 2009 before being appointed Director General Bayelsa State Investment Promotion Office in 2009. She currently serves on the Board of Asset Management Corporation of Nigeria and she is a member of Bayelsa State Economic Management Team.

FORTE OIL PLC: Appointments - The Company notified The Exchange of the appointment of Messrs. Akin Akinfemiwa as the Chief Executive Officer and Owotuga Julius Babatunde as Chief Financial Officer.
Akinfemiwa attended University of Ibadan where he graduated with a B.Sc. Degree in Mechanical Engineering in 1995; and MBA Degree in Information Technology at Hull Business School, University of Lincolnshire and Humberside, Kingston upon Hull, United Kingdom in 2000.

He was Executive Assistant to the Deputy Managing Director/Chief Operating Officer, Oando Plc between 2002 and 2003. And from 2003 to 2006, he became Products and Derivatives Trader, Oando Supply and Trading Limited. He moved to Fineshade Energy Limited as Head, Trading and Business Development between 2006 and 2009. In short, he is an experienced and seasoned International Petroleum Trader focusing on oil and petroleum products, futures swaps and derivatives trading. And until this appointment he was the Group Chief Operating Officer, Zenon Petroleum and Gas Limited.

Owotuga is a KPMG trained Chartered Accountant and a graduate of University of Lagos with B.Sc. degree in Accounting in 2002. He is member of Chartered Institute of Management Accountant as well as member of The Certified Institute of Treasury and Financial Management.
He started as a Banking Officer with MBC International Bank in 2003. He moved to KPMG Professional Services and between 2003 and 2005 he was an Audit Assistant. Between 2005 and 2006 he was promoted to Semi Senior. From 2006 and 2007 he became Senior Financial Advisor. In 2007 he moved to Standard Chartered Bank (Nigeria) Ltd as Manage, Projects Management Office (Finance). Mr. Owotuga moved to Africa Finance Corporation in 2009 and was Head, Assets and Liabilities Management and Treasury Risk analysis until his appointment as Chief Financial Officer.

Both appointments are with effect from December 28th, 2011.

NESTLE NIGERIA PLC: Board Meeting - The Company notified The Exchange that its Board of Directors will meet on Monday, February 20, 2012 to consider the company’s Audited Financial Statements for the year ended December 31, 2011. The Directors may consider and recommend the payment of final dividend to shareholders at the meeting.

TRUSTHOUSE INVESTMENTS LIMITED: Change in Directorate - The Company, a Dealing Member Firm, notified The Exchange of the following change on its Board and is seeking approval.

Appointment: Alhaji Muktari Auwalu (rep. Royal Exchange Plc.): Non-Executive Director

Profile:
Alhaji Muktari Auwalu holds Master’s Degrees in Banking and Finance from Bayero University, Kano. He worked with Kapital Insurance Coy. Limited, Royal Exchange Assurance Nig. Plc and Yankari Insurance Co. Ltd. Alh. Muktari Auwalu is currently the Group Executive Director (Marketing and Sales) Royal Exchange Plc.

Any objection to the appointment of Alhaji. Muktari Auwalu as a Non-Executive Director in Trusthouse Investments Limited should be forwarded to The Exchange within 7 days of this publication.

REPORT ON THE OTC MARKET FOR FGN BONDS
A turnover of 151.3 million units worth N128,139.63 million in 1,030 deals was recorded this week, in contrast to a total of 134.8 million units valued at N120,502.8 million exchanged in 870 deals during the week ended Thursday, January 26, 2012. The most active bond (measured by turnover volume) was the 10.7% FGN May 2018 (5th FGN Bond 2018 Series 2) with a traded volume of 36.74 million units valued at N29,300.5 million in 292 deals. This was followed by the 5.5% FGN February 2013 (7th FGN Bond 2013 Series 1) with a traded volume of 25.3 million units valued at N23,247.3 million in 170 deals. Fifteen (15) of the available twenty-eight (28) FGN Bonds were traded during the week, compared with fourteen (14) during the preceding week.