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APT Stock Market Scan-HIGHLIGHT FOR THE WEEK ENDED JUNE 19, 2009

The Banking sub-sector was the most active during the week (measured by turnover volume) with 1.66 billion shares valued N17.1 billion exchanged by investors in…

The Banking sub-sector was the most active during the week (measured by turnover volume) with 1.66 billion shares valued N17.1 billion exchanged by investors in 30,684 transactions. Activities in this sector was driven by transactions in the shares of Diamond Bank Plc, First Bank of Nigeria Plc, United Bank for Africa Plc and Access Bank Plc. These Banks’ transaction was 537.82 million shares representing 34.2% of the sub-sectors’ turnover. The Insurance sub-sector boosted by activity in the shares of Goldlink Insurance and Lasaco Assurance Plc followed on the weeks’ activity chart with a turnover of 438.32 million shares valued at N541.4 million in 5,441 deals. The All Share Index rose by 0.68% to close at 28,910.19 basis points while the market capitalisation closed higher at N6.6 trillion.

TREND

Activities for the week started on a bullish note with all the market indicators recording gains. This trend peaked on Tuesday with the All Share Index closing at 30,013.26 while the market capitalization closed at N6.8 trillion, the highest in recent time. The volume and value of transactions has continued to increase on a weekly basis. For the week under review, the average daily volume done is over 500 million units. The results of Access Bank boosted the volume done for the week as investors who felt disappointed by the result sold off which incidentally exerted pressure on the price but most units offered where duly absorbed by those who felt otherwise. Investors’ confidence continues to build and relative stability appears to have been achieved hence the continuous increase in volume and value of transactions. Statistics shows that fifty-six (56) stocks appreciated in price during the week higher than the fifty(50) in the preceding week while sixty-seven(67) stocks depreciated in price during the week lower than the seventy-four(74) in the preceding week.

Sector by sector analysis reveals that the banking sector suffered the highest loss for the week dropping by 2.7%. The Petroleum Marketing sector recorded the highest growth gaining 6.4% while Insurance and Food/Beverage sector recorded marginal increases.

Top 5 performers for the week- June 19

S/No.    STOCK    OPENED    CLOSED        %

1    AP    N89.99    N102.90    14.34

2    GUINNESS    N118.02    N128.20    8.62

3    OANDO    N82.17    N89.00    8.31

4    BCC    N34.66    N40.16    15.86

5    NB    N49.80    N54.50    9.43

Top 5 underperformers for the week- June 19

S/No.    STOCK    OPENED    CLOSED        %

1    JBERGER    N37.51    N34.00    -9.35

2    NBC    N25.73    N23.76    -7.65

3    7UP    N38.00    N36.10    -5.00

4    OKOMUOIL    N27.90    N26.51    -4.98

5    RTBRISCOE    N7.70    N6.33    -17.79

Likely TREND FOR WEEK – June 15,2009

As we gradually move towards the end of the second quarter of the year we expect activities for the week ahead to be on the upbeat. The market recovery and stability has continued to gain momentum especially against the backdrop of good results and dividend payout declared by quoted companies. Speculators who have found their way in the market are always in haste to take panic decision that turns out not to be in their interest like we have witnessed in the case of Dangote Sugar and Access Bank. As the banks continue to turn in their results, we expect an improvement in the activities considering the fact that CBN’s directive as to what should be done to their margin loans is still being awaited and considering also that some have already taken the initiative to write off such asset. The price of crude has continued on the increase and relative stability has been achieved for our exchange rate coupled with a near resolve of the Niger delta hostilities which has hampered our ability to meet our quota, these we believe will continue to improve the lot in the capital market.

EQUITY WATCH LIST

S/No.    STOCK    MKT PRICE     EPS

1    ACCESS    N9.05    1.27

2    AP    N102.90    10.06

3    FIDELITYBK    N4.12    0.59

4    FIDSON    N2.80    0.19

5    GUARANTY    N13.15    1.71

6    INTENEGINS    N1.81    0.32

7    OCEANIC    N8.59    1.86

.8    STDINSURE    N1.59    0.09

9    UBA    N13.80    1.96

10    WAPCO    N24.33    3.90

EQUITY FOCUS

ACCESS BANK PLC

SECTOR:      Banking           

YEAR END:    March 31

YEAR OF LISTING:      1998

DATE OF INCORPORATION:     February 8, 1989

BACKGROUND

The bank was incorporated on February 8, 1989 and was listed on the Nigerian Stock Exchange in 1998. It had a successful consolidation and an equally successfully public offer that lifted its shareholders fund from N28.4 billion in 2007 to N171.0 billion in 2008. The Bank has moved from being a tier three to tier two with the potential to becoming a tier one bank.

Its gross income for the year ended March 2009 is N109.3 billion against N57.0 billion for the preceding year showing an increase of N51.3 billion or 88% while profit after tax increased by N5.2 billion or 25%. The Banks’ ability to release its audited results within three months after its year end puts it in the same stead as Guaranty Trust Bank and way ahead of other banks.

The current earnings of N1.30 and Dividend of 70 kobo per 50 kobo ordinary shares confirmed its readiness to meet its’ shareholders expectation. Also, with earnings yield of 14.4% and dividend yield of 7.7%, it confirms analyst evaluation that the stock is under priced.

FINANACIAL SUMMARY

    DEC    DEC    DEC    MARCH    MARCH

    2009    2008    2007    2006    2005

    N’ m    N’ m    N’ m     N’ m     N’ m

Gross Earnings    109,341    57,999    27,881    13,360    7,495

PBT    26,185    18,846    8,043    1,119    751

PAT    20,814    15,853     6,083     737     502

EPS (kobo)    130    171    87    7    12

DPS (kobo)    70    65     40     –     –

Shareholders Fund    185,188     171,860     28,385      28,894    14,072

RECOMMENDATION

Short Term           HOLD

Medium Term      BUY

Long Term            BUY