The All Share Index recovered some of the previous week’s loss, adding 0.9% to close at 20,934.5, amid moderate activity. The NGN however strengthened against the USD dollar (+0.2%) bringing the index’s dollar return up 1.1%.
Afribiz reports indicate a domination of activity by banking stocks as it picked up four spots on the top five traded in the week. GT Bank assumed vantage position with trading of NGN 1.58bn, representing 19.7% of the market total turnover. GT Bank was followed by Zenith Bank (15.9%), Diamond Bank (7.0%) and First Bank of Nigeria (6.5%). Nigeria Breweries accounted for 9.0% of the market turnover.
The banking industry recorded mostly gains this week, led by Sterling (+10.5%) in light trading, and Zenith (+6.5%). Diamond bank (+5.8%) recovered following news of a possible merger and USD 200m bond issue for which it will be seeking shareholders’ approval at its 30 April AGM. The equity had a shaky start this week after announcing a pre-tax of NGN 16.26bn for the FY11 (ended 31-Dec) compared to a NGN 4.72bn profit in the prior year, as provisioning doubled to NGN 44.15bn. Okomu Oil Palm (+21.5%) recorded the highest gain in heavy trading, while Cadbury Nigeria (-18.5%) was down the most in relatively thin trading.
In other news, the World Bank may increase its aggregate guarantee on gas purchases and supply by USD 200 to total USD 600 its current portfolio on Nigeria’s gas supply project. The news comes on the back of concerns over the ability of independent power producers to meet their obligations to gas companies, which may affect gas supply to the plants.
Dangote Cement (+1.9%) announced plans to list a 20% of the company on the London Stock Exchange in 2013, by which time it expects the business’ upside to be greater. The capital raised will be used to finance the company’s expansion; Dangote is more than doubling capacity to 21mt in 2012 and plans to reach a capacity of 43mt in 2015. Chairman and founder, Aliko Dangote also stated that he would give up his current role (as chairman) to create a more diverse board.
Charges against Erastus Akingbola, former CEO of Intercontinental Bank, have been dropped, with the judge accusing the lawyers of the Economic and Financial Crimes Commission of unnecessarily dragging proceedings. Mr Akingbola was accused money laundering and falsifying records at the peak of the banking crisis
Source: African Alliance
