Sub-Saharan Africa Stock Markets 2010 Review & 2011 ... - Imara

Market Review for 2010
In the midst of all changes, the NSE All Share Index
gained 18.93% to close at 24,770.52 in 2010, (2009: -
38.40%). The increase in USD terms was approximately
18.16%. According to the NSE, the year opened with a
reasonably bullish Q1 (+22.40%) following a reduction in
deposit rates. Q2 (-1.89%) and Q3 (-9.48%) were more
bearish, as counter allegations between the council and
NSE executives became public and disruptive, forcing the
SEC to intervene. Q4 (+7.66%) then witnessed an
improvement, as the Amcon came nearer to reality and
the interim executive of the NSE pursued restructuring
exercises to bring back investor confidence in how the
exchange was being run. Trading hours were also
extended by 2 hours towards the end of Q4. Three of the
four sector indices closed the year in the black, namely
the Food & Beverage (+41.2%), Banking (+18.9%) and Oil &
Gas (+17.8%), while the insurance sector lost 36.9%. The
average market PER at the end of 2010 was 14.24x vs.
11.46x at end 2009.
Equity market capitalisation closed at NGN 7.92tn (USD
51.6bn) compared with NGN 5.0tn (USD 32.8bn) in 2009.
Overall equity market cap was boosted by the listing of
Dangote Cement in Q4 10. The banking sector, however,
remained the most capitalised, with 34.2% of equity
market capitalisation, followed by the building materials
sector (26.0%) and the breweries sector (11.1%).
Looking at market activity, aggregate stock market
turnover by volumes between January and December
2010 was 93.3bn shares, a 2.06% reduction, while value
traded at NGN 797.6bn rose by 24.99%. In USD terms,
value traded in 2010 equated to approximately USD 5.2bn
compared with USD 4.2bn in 2009. Q2 was the most
active quarter by volume and value, contributing 29.95%
and 30.74% respectively to the annual totals. The most
active equity sub-sectors by volume during the year were
the banking, insurance, food/beverages & tobacco, ICT
and mortgage companies, in that order. By value the
order was banking, food/beverages & tobacco, insurance,
ICT then mortgage companies. The banking sector
remained the most traded, with 53.1% and 54.2% of
volume and value, respectively.
Foreign portfolio investment amounted to a net inflow of
NGN 171.0bn (circa USD 1.1bn), with purchases
amounting to NGN 350bn and sales of NGN 178.81bn. Net
inflows in 2009 were recorded at NGN 33.4bn (circa USD
219.2bn). Average volumes per day were 377.9m shares,
while average value traded was approximately USD
21.1m. Average volumes and value traded per day in 2009
were 414.7m shares and USD 18.1m respectively. The
liquidity ratio fell to 10.07% in 2010 compared with
13.71% in 2009, although this will have been diluted
somewhat by the increase in market cap late in the year
by the Dangote Cement listing.
10 Most Active Stocks by Volume
Company Vol. (bn) % of Total
Zenith Bank Plc 6.30 6.8
First Bank of Nigeria Plc 5.44 5.8
Guaranty Trust bank Plc 4.29 4.6
United Bank for Africa Plc 4.25 4.6
Access bank Plc 3.46 3.7
FinBank Plc 3.20 3.4
Skye Bank Plc 2.98 3.2
Fidelity Bank Plc 2.95 3.2
Diamond Bank Plc 2.78 3.0
Oceanic Bank International Plc 2.05 2.2
10 Most Active Stocks by Value
Company
Val. (USD) % of Total
Zenith Bank Plc 543 741 225 10.28
Guaranty Trust Bank Plc 495 522 520 9.37
First Bank of Nigeria Plc 494 537 469 9.35
United Bank for Africa Plc 306 851 618 5.80
Oando Plc 244 641 796 4.63
Nigerian Breweries Plc 233 851 559 4.42
Access Bank Plc 196 641 904 3.72
Diamond Bank Plc 147 648 242 2.79
Skye Bank Plc 135 809 825 2.57
Flour Mills Plc 124 669 174 2.36
Source: NSE, Afrinvest, IAS
Market Cap Composition
1.20% 0.70%
1.90%
Banking
3.70%
3.70% 2.40%
Building Materials
4.00%
Breweries
34.20%
Food/Bev. & Tobacco
11.10%
Petroleum
11.10%
Conglomerates
Foreign Listings
26.00%
Insurance
Construction
ICT
Other
Source: NSE
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