News Highlights

[Stockbear]

Good news for Afribank, but what has brought about this change?

Any takers?

The Punch
Investors stake N4.3bn on Afribank’s shares
By Goddy Egene
Published: Thursday, 19 Apr 2007

The shares of Afribank Nigeria Plc closed as the most active at the stock market on Wednesday as investors staked N4.287bn on 372.475million units in 90 deals. The shares accounted for about 7.2 per cent of Afribank’s paid up share capital of 5.10billion shares.

However, our correspondent could not obtain an official explanation for the high transactions in the bank’s shares.

Boosted by the high patronage witnessed by Afribank, total equity turnover for the day was 1.051billion shares worth N15.614bn. This translated into an increase of 53 per cent in volume terms and 83 per cent in value terms respectively above the 699million shares worth N8.553bn traded in 10,165 deals on Tuesday.

The banking sub-sector accounted for 876.062million shares valued at N12.278bn traded in 7,207 deals. Intercontinental Bank Plc followed Afribank on the activity chart, recording 117.810million shares valued at N2.971bn traded in 453 deals.

http://www.punchontheweb.com/Articl....00704191283931

[Stockbear]

Can we look forward to some measure of progress?

Independent
19th April
Transcorp, Vodacom Seal $1.2b Deal On NITEL, Mtel
By Aaron Ukodie, Deputy Business Editor, Lagos

Transcorp is about sealing a $1.2 billion deal with South African leading mobile operator, Vodacom.

It will entrust the management of Mtel into the hands of Vodacom and cede a percentage of its ownership to it.

Besides, part of the $1.2 billion sourced from the Vodacom buy-in will finance the revival of the fixed line network of Nigerian Telecommunications Limited (NITEL), the parent company of Mtel.

Industry sources said the agreement would have been announced but for the elections.

Vodacom has asked that a peaceful transition to a duly elected government will determine the final seal on the deal whose terms are been fine-tuned.

Transcorp is seeking the approval of the Bureau of Public Enterprises (BPE), but going by the position of the BPE, it will not have any obstacle in getting a clearance.

BPE spokesman, Joe Anichebe, confirmed that Transcorp has been advised to shop for competent network operators, at a time British Telecom (BT), its consultants, ended what Transcorp officials described as the first stage of its management agreement with the Nigerian company.

Transcorp Group Managing Director, Bernard Longe, who was placed on forced leave last Wednesday, initiated the talks with Vodacom.

http://independentngonline.com/?c=44&a=25046

[Stockbear]

Good news for users and work for Nigerians

The Sun
Panasonic to build factory in Nigeria
From DENNIS MERNYI, Abuja
Thursday, April 19, 2007


In response to the high demand of its products in the Nigerian markets and for the purpose of dominating the Nigerian market with its high technology electrical appliances, Panasonic, one of the leading household electronic companies has announced plans to open a manufacturing factory in the country.

Aside, the company has promised to henceforth offer free after sales services to all its customers for a period of twelve months provided they still use them.

Panasonic manager in Nigerian, Mr. Harish Ram explained that the move is part of the company’s strategy to take over Nigeria’s electronic market.

Harish Ram stated this in Abuja recently at the commissioning of the Abuja showroom of Panasonic located along Ahmadu Bello Way in Abuja.

“The company is currently undergoing series of repositioning to be able to meet the international demands of its millions of customers. We are now focusing on after sales services and provision of spare parts into the markets for easy accessibility,” he stated.

http://www.sunnewsonline.com/webpage...4-2007-001.htm

[Stockbear]

Good news for investors!

BusinessDay
April 19th, 2007
Flour Mills sustains growth in revenue and profit

Efforts by Flour Mills to carve a niche for itself in the marketplace and attract more investors have been boosted by a sustained growth in revenue and improved profit margin.
Ezenwa Onyeka

Un-audited results for the third quarter ended December 31 2006 indicate that the flour maker increased turnover to N59-billion from N48.54-billion in the comparable period of 2005. Profit after tax (PAT) also grew from N2.03-billion to N39-billion in same period.

Shares of the company traded at N64.80 per share on January 5. By January 11 2007, it had appreciated to N68.00 per share. On January 24, the equity exchanged at N70.00 per share; N80.00 on February 7 2007, but fell the next day to N77.00 per share.

It rebounded on February 19 2007, to trade at N81.95 per share. It fell to N70.00 on February 23 2007. The share price on March 1 2007 was N79.25 and N77.45 on March 30.

Flour Mills paid a uniform dividend of 0 .70k to shareholders in 2004, 2005, and 2006. As at March 5 2007, a dividend of 0.85k has been disbursed to holders of the stock.

http://www.businessdayonline.com/?c=56&a=12770

[Stockbear]

Isn't this activity seen by Wema attributable to the recently off-loaded Government stake in it?

BusinessDay
April 19th, 2007
Wema Bank maintains growth in volume of transaction

The transactions of Wema Bank lately have shown that the bank is poised at making the difference in terms of returns on shareholders’ investments.
MADUKA NWEKE

The share price of the bank, which is rising has given reasons why the investors should smile with huge returns on investment.

As at April 11, 2007, the share price rose to N13.89, while pulling a total of 83,713,768-million shares worth N522.196-million exchanged in 703 deals.

The bank was recently appointed by Lagos State as one of the participating banks for its proposed scheme of payment of staff salary on-line.

David Adeagbo, head, corporate communications, said the appointment further attested to the operational efficiency of the bank in handling public sector accounts.

"Wema Bank, which is one of the five leading banks in the industry that set up Inter-switch Limited, has taken necessary steps to ensure a hitch free take off of the scheme scheduled for the end of this month."

http://www.businessdayonline.com/?c=56&a=12769

[Stockbear]

Something to make investors smile!

BusinessDay
April 19th, 2007
BETA Glass increases profit, maintains growth

Beta Glass Nigeria Plc continues to record improvements in every aspect of its business as it closed its 2006 full year with a 74.2 per cent increase in profit after tax to N381.1-million up from N218.65-million in 2005.
KUNLE MAYADENU

The company, which is quoted in the packaging sub sector of the Nigerian Stock Exchange (NSE), has maintained a leadership position in the stock market as its share price closed at N13.20 kobo to emerge as the highest priced stock in this sub-sector.

Beta Glass, founded in 1977 manufactures glass bottles and tableware. It was formally known as Delta Glass Nigeria when it was owned by the Delta State government. Nigeria.

Its audited results for the year ended December 31 2006 shows the glass maker recorded a turnover of N5.3-billion, up 9.95 percent from N4.82-billion in 2005. Dividends for shareholders also increased from 10 kobo to 15 kobo per share in same period.

The company stock which opened the year at N4.23 kobo per share, has gradually risen to the top; with earnings per share peaking at 71 kobo, the highest ever recorded in the sub sector. The profit increase resulted largely from a 99 per cent rise in turnover.

http://www.businessdayonline.com/?c=56&a=12772

[Stockbear]

Investors laughing all the way to the bank!

BusinessDay
April 19th, 2007
Nestle marks up share price, increases capital gain

Investors who staked their funds in Nestle plc have made a profitable investment. Reason: Company performance has been very good in recent times.
Ezenwa Onyeka

A BUSINESSDAY stock analysis show that the food and beverage company consistently nurtured its share price from N168.00 in November 15, 2004 to N329.80 in March 1, 2007.

It also achieved a 70.88 percent price appreciation in eight months from N193.00, July 14 2006, to N329.80, March 1, 2007; and a share price appreciation of 40.34 per cent between January 5 2007, and March 1 2007.

It recorded a price increase of 35.13 percent from N244 February 1 2007, to N329.80 in March 1 2007. Earnings per share rose from N7.50 in 2004 to N8.21 in 2005, N10.55 in 2006 and N10.86 as at March 5 2007.

Nestle paid a dividend of N5.00 per share in 2004 and 2005 and N8.00 in 2006 to shareholders. As at March 5 2007, a dividend of N2.00 per share was paid.

http://www.businessdayonline.com/?c=56&a=12771

[Stockbear]

UACN going up!

BusinessDay
April 19th, 2007
Stock price UACN price appreciates 72.09% in 8 months

The share price of UACN plc moved up 72.09 percent from N14.17 on November 15 2004 to N37.00 per share by March 1, 2007.
Ezenwa OnyekA

Studies by BUSINESSDAY show that the price rally continued till July 14 2006, when the stock traded at N21.50 per share, rising to N26.98 on January 5 2007. On January 9 2007, it traded at N28.90 per share and appreciated to N33.91 per share by February 1 2007.

By February 7, increased investors interest jerked up the price to N38.00 per share. The next day, the share price dropped to N36.10 per share. The drop persisted till February 9 2007, as it fell further to N34.30 per share.

On February 14 2007, investors transacted the equity at N33.18 per share. The price went down on February 19 to N34.74 per share, and rallied to N37.01 on February 21.

By February 28, the share price had stabilised at N37.43 per share. The current share price of UACN plc as at March 30 2007 was N37.78 per share.

http://www.businessdayonline.com/?c=56&a=12774

[Stockbear]

Now we have an explanation for the growth in market capitalization

BusinessDay
April 19
Investor demand is driving the stock market

The price volatility currently stirring the stock market is the direct result of demand pressure by investors who want to reap short time gains through aggressive trading, rather than price being driven by the fundamentals of quoted companies.
Chinedu Dike

Idowu Ogedengbe, Head of Research Unit, UBA Global Markets, made this observation recently just as he urged investors to reap more gains by trading in the bond market or the fixed income securities market. He submitted that though some of the companies are doing very well, there is a seeming trend that corporate stocks are being over valued by reporting firms. The big picture is that the market is very rosy which may not be so.

He said if the trend continues, there may be a burst which will make price of stocks to find their right values. To hedge against a burst, he advised that the bond market is the most viable option for investors’ intent on reaping big gains.

According to the market analyst, the restructured short term bond instruments offer more convenient investment windows with higher returns instead of the highly volatile equities market with its attendant risks. He explained: "The short term bond market at the current rate of return should be a better pick for investors. In the last few years we have witnessed some radical price movements that threw most investors into nightmare in the market."

http://www.businessdayonline.com/?c=56&a=12766

[Stockbear]

Shareholders react to Glaxo SmithKline results: with good reason too!

BusinessDay
April 19th, 2007
Shareholders react to Glaxo SmithKline results

The stock price of Glaxo SmithKline Consumers plc slid to a 14-day low of 21.9 percent to close at N21.85 per share on Monday April 16, 2007, down from N28 on April 5.
KUNLE MAYADENU

The price fall is an indication of the negative reaction of investors to the low dividend payout of the pharmaceutical company contrary to their expectation of higher rewards for the period.

A stock broker, who pleaded anonymity, confirmed this saying that the company’s share price might have dropped as a result of the dividend paid to shareholders.

He said the company’s strong earnings and stock price, which is the highest in the healthcare sub sector of the Nigerian Stock Exchange, increased shareholders expectation of bonus issue and higher dividends. When it dawned on them that none was forthcoming, they opted to dump their shares.

http://www.businessdayonline.com/?c=56&a=12767

[Stockbear]

Investors need to be vigilant

BusinessDay
April 19th, 2007
Jos International Breweries battles for life

Activities at Jos International Breweries Plc are gradually grinding to a halt, indicating that all is certainly not going well with the brewing company.
Chinedu Dike

The slide to a shutdown is making shareholders to be deeply concerned and is making them to seek the intervention of the regulatory authorities to help salvage their investments in the company.

The company accessed the capital market in 2004 for fresh funds to strengthen its operations. But the results of the offer are yet to be published and there are no clues of the level of subscription.

Though subscribers to the offer have received their share certificates, they are not yet verifiable as the shares are yet to be listed for trading on the floor of the Nigerian Stock Exchange (NSE).

Worried by this development, Boniface Okezie, President, Progressive Shareholders Association of Nigeria (PSAN), said he went to the company’s factory in Jos to appraise the state at the company. What he saw there was near zero operations. He did not see any truck moving in or out of the factory an indication that no production activity was going on.

http://www.businessdayonline.com/?c=56&a=12768

[Stockbear]

UBA is truly serious about being top dog in the banking world!

Tribune
UBA gets N39bn Russian, British banks’ facility
Juwon Obajemu, Lagos - 19.04.2007

THE United Bank for Africa (UBA) Plc has raised $300 million about (N39 billion) from a Russian bank, Renaissance Capital, and a British financial institution, JP Morgan following an arrangement which allows the two foreign banks to sell UBA’s shares to international investors.

According to a statement issued by Renaissance Capital, which is part of the Renaissance Group, the bank said it had successfully teamed up with JP Morgan to raise the money for Nigeria’s largest bank in terms of assets, deposits, clients and divisions.

Renaissance Group Chairman, Steven Jennings, said the group planned to implement in Africa its unique business model that proved a success on the capital markets of Russia and the former Soviet republics.

UBA is currently in the capital market to raise N54 billion through a hybrid offer consisting of rights issue and public offer to strengthen its operations and boost its working capital to enable it to realise its vision of being a pan-African banking institution.

http://www.tribune.com.ng/19042007/news/news10.html

[Stockbear]

Grapevine news!! - Firstbank PO is set for 5 May, according to worker at the bank.

We wait to see if this date can be validated!

[c kenneths]

I was hoping it should come a little later, especially after the recent offers by UBA and Oceanic.

[Stockbear]

Something is very wrong here!!! A whole management team resigns!!!

Guardian
20 April
MTS accepts management team's resignation, appoints Mbonu new head
By Sonny Aragba-Akpore, Deputy Communications Editor

THE board of MTS First Wireless Limited, a private telecommunications service provider, yesterday said it had accepted the resignation of its entire management team.

A statement by the board chairman, Lt.-Gen. Mohammed Wushishi (rtd) said it was accepting the resignation of the senior management team led by Mr. Demola Elesho "in a bid to enhance network performance, grow subscriber numbers, and improve other operating and financial targets." Former Assurance Bank's managing director, Mr. Chika Mbonu was named to head the new management team.

But industry players described yesterday as curious why an entire srnior management team should resign in droves and for the board to accept such resignation may have been "a clear vote of no confidence on the senior team."

http://www.guardiannewsngr.com/business/article02