Outlook and Analysis
Money Market
The release of about N248billion statutory allocations from the Federation Account for the month of November caused the market to experience liquidity last week. Consequently, the inter-bank rate, closed the week lower than the preceding weeks. The 7-day NIBOR closed the week at 2.5833% from 13.3333% in the preceding week while the 90-day NIBOR closed the week at 12.6667% from 14.1250% over the same period. At the Primary segment of the market a total of N10billion worth of 91-day Treasury Bill was offered and sold, N14.427billion was subscribed resulting to a subscription level of 144.27%, while N8.898billion was repaid. A total of N10billion worth of N182-day TB was offered and sold, N22.764billion was subscribed resulting to a subscription level of 227.64%, while a total of N5.775billion was repaid.
Equities Market
The bulls returned back to the market last week after about three consecutive weeks of bearish trend in the market. The NSE All Share Index gained 0.88% to close the week at 31,632.46 points up from 31,356.69 points in the preceding week. Similarly the market capitalization closed the week higher at N4,029.66billion from N3,941.64billion in the preceding week. The year-to-date in the NSE All Share Index was 31.33% while the year-to-date in the market capitalisation was 59.69%. On a month-on-month change, the NSE Allshare Index lost 3.10% of its value to close at 31,632.54 points while the market capitalization lost 2.21% of its value. To close at N3,937.84billion.
CTSL therefore recommend the following stocks which have potentials for growth in the medium and long term:
|
|
Securities |
Target Price
N |
Current
PE Ratio |
Target
PE Ratio |
|
1 |
Okomu Oil |
34.00 |
17.95 |
46.00 |
|
2 |
R.T. Briscoe |
11.99 |
10.92 |
15.30 |
|
3 |
Diamond Bank |
5.97 |
10.48 |
11.50 |
|
4 |
First Bank |
31.48 |
17.88 |
40.00 |
|
5 |
FCMB |
4.00 |
10.96 |
6.75 |
|
6 |
GTB |
16.38 |
12.52 |
24.50 |
|
7 |
Oceanic |
14.20 |
13.82 |
18.00 |
|
8 |
UBA |
23.10 |
22.02 |
30.50 |
|
9 |
Zenith |
23.50 |
16.39 |
29.00 |
|
10 |
Guinness |
96.51 |
17.96 |
120.00 |
The weekly Nigerian Money & Stock Market Report is prepared by Counters Trust Securities Ltd (CTSL). CTSL is a Dealing Member of The Nigerian Stock Exchange and is registered with the Securities & Exchange Commission as a Broker / Dealer, Issuing House, Portfolio Manager, and Investment Adviser.
CTSL is one of the highest capitalized securities firms in Nigeria and maintains a strategic alliance with First Securities Discount House Limited (FSDH), the largest and most profitable Discount House in Nigeria.
(Please choose from Related Documents below for full the report and archives) |
Market report for the week ended 4th Dec ‘06
