Stock Market Brief for the Week Ended Friday August 17, 2007

STOCK MARKET BRIEF FOR THE WEEK ENDED FRIDAY AUGUST 17, 2007.

An aggregate turnover of 2.947 billion shares worth N70.30 billion was recorded this week in 62,662 deals well below the previous week’s trading statistics of 3.236 billion shares valued at N58.58 billion traded in 61,441 deals.

However, the total market returns for the week dropped by 2.66% as the NSE ALL-SHARE INDEX (ASI) closed lower at 52,388.19 points while total market capitalization of 208 listed equities declined by same margin (0.66%) to stand at N8.213 trillion. The NSE ALL-SHARE INDEX had on Tuesday, August 14, 2007 recorded an historic value of 54,081.52.

SUPPLEMENTARY LISTING:

A total of 48,581,640 and 291,666,667 shares were added to the shares outstanding of DN MEYER PLC and AIICO INSURANCE PLC following the bonus issues of 1 for 5 and 1 for 6 respectively.

TECHNICAL SUSPENSION:

GREAT NIGERIA INSURANCE PLC (GNI) and AFRIBANK NIGERIA PLC was placed on technical suspension during the week following the receipt of their applications to the Exchange for Public Offer. GNI proposes an Offer for Subscription 0f 2,327,485,380 shares at N1.71 and N25.00 per share respectively.

PRICE ADJUSTMENT:

The prices of DN MEYER Plc and of AIICO INSURANCE Plc were adjusted for bonus issue of 1 for 5 and 1 for 6 respectively. Their ex-div prices were N6.88 and N3.72k in that order. Similarly FLOURMILL Plc was also marked for dividend payment of 90k per share.

COMPANY RESULTS and BENEFITS:

ACADEMY PRESS PLC, and LASACO ASSURANCE PLC and INCAR NIGERIA PLC released their audited accounts for the year ended March 31, 2007 and December 31, 2006. Likewise, ACADEMY, AIRLINE SERVICES & LOGISTICS PLC, LONGMAN NIGERIA PLC, NESTLE NIGERIA PLC, CRUSADER INSURANCE PLC, EQUITY ASSURANCE PLC, GREAT NIGERIA INSURANCE PLC, LASACO ASSURANCE PLC and MOBIL NIGERIA PLC released their un-audited Q2 results for the period ended June 30, 2007 respectively.

CRUSADER INSURANCE PLC released its un-audited Q1 results for the period ended March 31, 2007. AIRLINE SERVICES & LOGISTICS PLC proposed an interim dividend of 5k per share. (See our Market Update on the link below for a comprehensive price list).

TERM OF THE WEEK

Overtrading

1. This relates to excessive buying and selling of stocks by a broker on an investor's behalf in order to increase the commission the broker collects.
This situation has been known to arise when brokers are pressured to place a newly issued security underwritten by a firm's investment banking arm.
Also known as "churning".
2. It can also refer to a situation in which a company is growing its sales faster than it can finance them. This usually leads to enormous accounts payable or accounts receivable and a lack of working capital to finance operations.

Many businesses become insolvent because they try to accommodate everyone who wishes to purchase their products. This ultimately leads to not being able to pay for the financing costs used to produce the goods.

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