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      The company was incorporated on 24 November, 1997 with an authorised share capital of N15, 000,000 in shares of N1.00 each and increased to the statutory requirement of N20 million in 1998.. read more

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RESEARCH REPORT FOR THE WEEK ENDED APRIL 8TH 2016

MUTUAL ALLIANCE INVESTMENT AND SECURITIES LIMITED.  RESEARCH REPORT FOR THE WEEK ENDED APRIL 8TH 2016.       NSE SUSTAINS DOWNWARD TREND AT 0.70% FOR THE WEEK          The Nigerian Equity Market sustains southward trend for the week and consequently closed in the red trajectory. Therefore, the NSE All-Share Index and Market Capitalization depreciated by 0.70% to close at 25,328.07 and N8.712 trillion respectively.  In similar manner, nine indices declined, while only two appreciated for the week. However, the NSE AseM Index closed flat.  The following are the percentage changes in the NSE Indices in the week as listed below:- NSE Premium Index                                         (-0.98%) NSE All Share Index                                          (-0.70%)  
NSE –Main Board Index                                   (-0.53%)  
NSE ASeM Index                                                  0.00%   
NSE 30 Index                                                      (-0.58%)  
NSE Banking Index                                            (-0.29%)  
NSE Insurance Index                                         (-0.15%)  
NSE Consumer Goods Index                            (-0.14%)  
NSE Oil/Gas Index                                                 0.24%  
NSE-Lotus ll                                                         (-1.68%)  
NSE-Industrial Goods Index                             (-0.15%)  
NSE Pension Index                                                 0.13%    
NOTE: - The NSE Oil/Gas Index was the highest gainer with 0.24%, while NSE- Lotus II Index was the highest loser with -1.68%.The NSE All-Share Index (ASI) Year-to-Date (YtD) negative position increased from -10.95% (01/04/16) to - 11.57% for the week ended (08/04/16).     
SUMMARY OF TOP TEN GAINERS AND TOP TEN LOSERS OF STOCKS FOR THE WEEK ENDED APRIL 8TH, 2016.     
Twenty-seven (27) equities appreciated in price during the week, higher than twenty- four (24) equities of the previous week. Forty (40) equities depreciated in price, higher than Thirty-seven (37) equities of the previous week, while one hundred and twenty-two (122) equities remained unchanged lower than one hundred and twenty eight (128) equities recorded in the previous week.  The top ten gainers are:-                                                       Open     Close         Gain (N)     % Change           
E-Tranzact International plc                    2.67         3.39              0.72             26.97%  Tiger Branded Consumers goods plc     2.21         2.47              0.26              11.76%  FCMB Group plc.                                    0.89         0.98              0.09              10.11%  Custodian and Allied plc                         3.72         4.05               0.33               8.87%            Academy Press plc.                                0.59         0.64               0.05               8.47%  United Capital plc.                                   1.30         1.41               0.11               8.46%  Diamond Bank plc                                   1.20         1.30               0.10               8.33%  Caverton Offshore Support GRP plc       1.33         1.44               0.11               8.27%  A.G.Leventis (Nigeria) plc                        0.74         0.88               0.06               8.11%  Transcorp  plc                                          1.00         1.08               0.08               8.00%  
                                            
TOP LOSERS -:  The following Stocks were the ten top losers for the week;                                                       Open             Close      Losers (N)              %Change     
Ashaka Cement plc                  22.80              19.56         -3.24                       -14.21%  Portland Paints & Products plc   3.20                2.75         -0.45                       -14.06%  CCNN plc                                   8.17                7.03          -1.14                      -13.95%  Oando plc                                   4.58                 4.05         -0.53                      -11.57%  Eternal plc                                   1.75                 1.56        -0.19                       10.86%  Dangote Sugar Refinery plc        6.00                 5.35        -0.65                      -10.83%  Learn Africa plc                           0.80                  0.72        -0.08                     -10.00%   AIICO Insurance plc                    0.84                  0.76        -0.08                       -9.52%  Unity Bank plc                              0.72                  0.66        -0.06                      -8.33%  Transcorp Hotels plc                   5.20                  4.59         -0.06                      -8.20%    
For the week; trading in the top three equities were; Guaranty Trust Bank, FCMB Group Plc and Equity Assurance Plc.(measured by volume) accounted for 362.484 million  shares worth N2.020 billion in 1,942 deals, contributing 32.62% and 32.57% to the total equity turnover volume and value respectively      
DECLINE IN THE VOLUME OF EXCHANGE TRADED PRODUCTS IN THE WEEK ENDED APRIL 8TH, 2016.   For the week ended April 8th, 2016, the number of Units of ETPs traded declined as a total of 24,200 units of Exchange Traded Products (ETPs) valued at N621, 286 executed in 26 deals, compared with a total of 25,738 units valued at N522, 245 million transacted in the previous week in 39 deals.   
SECURITY                    DEALS             VOLUME                    VALUE  
NEWGOLD                          4                    210                    495,265.00  
VETGRIF 30                         5                 2,720                      31,279.10  
VETINDETF                          4                1,615                       31,749.30  
VETGOODS                          4                5,115                       30,997.35  
LOTUSHAL 15                      5                      25                            207.60     
VETBANK                              4               14,515                      31,787.70  
TOTAL                                 26                24,200                  621,286.05       
SIGNIFICANT DECREASE IN THE VOLUME OF FGN RETAIL BONDS IN THE WEEK ENDED APRIL 8TH, 2016.  
In a similar manner, in the week ended April 8th, 2016, a total of 6,908 units of Federal Government retail Bonds valued at N7.739 million were traded in 7 deals on the platform of the Nigerian Stock Exchange, compared with a total of 22,030 units valued at N25.368 transacted in the previous week in 8 deals.  
CORPORATE ACTIONS IN THE WEEK.  
For the week ended April 8th, 2016, the following companies declared dividends for their year ended December 31, 2015;  The details are stated below:-    
Regency Insurer Plc Aiico Insurance Plc Infinity Trust Mortgage Bank Plc Nascon Allied Industries Plc Aluminium Extrusion Industries Plc Continental Re Insurance Plc    
REGENCY INSURER PLC (YEAR ENDED 31ST DECEMBER, 2015)  Proposed Dividend (Final)      : - 3kobo per share  Proposed Bonus                      : - Nil Qualification Date                   : - 21st April, 2016 Closure Date of Register         : - 22nd to 28th April, 2016 (both days inclusive). Payment Date                          : - 27th May, 2016. AGM Date                               :   26th May, 2016 AGM Venue                            : - Sheraton Hotel, Abuja.  Share Price as at 08/04/16       :- N0.50K Dividend Yield                        :  6%
 AIICO INSURANCE PLC (YEAR ENDED 31ST DECEMBER, 2015)  Proposed Dividend (Final)      : - 5kobo per share  Proposed Bonus                      : - Nil Qualification Date                   : - 24th April, 2016 Closure Date of Register         : - 25th to 29th April, 2016(both days inclusive). Payment Date                          : - 6th May, 2016. AGM Date                               :   5th May, 2016 AGM Venue                            : - TBA.  Share Price as at 08/04/16       :- N0.76K Dividend Yield                        :    6.58%  
INFINITY TRUST MORTGAGE BANK PLC (YEAR ENDED 31ST DECEMBER, 2015)  Proposed Dividend (Final)      : - 3kobo per share  Proposed Bonus                      : - Nil Closure Date of Register         : - 22nd April, 2016. Payment Date                          : - 16th May, 2016. AGM Date                               :   10th May, 2016 AGM Venue                            : - Barcelona Hotel, Abuja. Share Price as at 08/04/16       :- N1.42K Dividend Yield                        :  2.11 %   
NASCON ALLIED INDUSTRIES PLC (YEAR ENDED 31ST DECEMBER, 2015)  Proposed Dividend (Final)      : - 55kobo per share  Proposed Bonus                      : - Nil Closure Date of Register         : - 12th May, 2016. Payment Date                          : - 23rd May, 2016. AGM Date                               :   19th May, 2016 AGM Venue                            : - Muson Centre,Onikan ,Lagos.  Share Price as at 08/04/16       :- N7.30K Dividend Yield                        :   7.53 %  
ALUMINIUM EXTRUSION INDUSTRIES PLC (YEAR ENDED 31ST DECEMBER, 2015)  Proposed Dividend (Final)      : - 8.5kobo per share  Proposed Bonus                      : - Nil Closure Date of Register         : - 30th May, 2016. Payment Date                          : - 18th July, 2016. AGM Date                               :   15th July, 2016 AGM Venue                            : - Nike Lake Hotel, Enugu.  Share Price as at 08/04/16       :- N9.84K Dividend Yield                        :   0.86 %   
CONTINENTAL RE INSURANCE PLC (YEAR ENDED 31ST DECEMBER, 2015)  
Proposed Dividend (Final)      : - 12kobo per share  Proposed Bonus                      : - Nil Closure Date of Register         : - 18th to 22nd July, 2016. Payment Date                          : - 29th July, 2016. AGM Date                               :   28th July, 2016 AGM Venue                            : - TBA.  Share Price as at 08/04/16       :- N0.95K Dividend Yield                        :   12.63%     
CLOSURE DATE OF COMPANYS’ REGISTER FOR NEXT WEEK (APRIL  11TH- APRIL 15TH, 2016).
The following companies are scheduled to close their shareholders’ Registers for next week (April 11th, 2016 to April 15th, 2016).   
DANGOTE CEMENT PLC (YEAR ENDED 31ST DECEMBER, 2015)  Proposed Dividend (Final)     : - 800 kobo per share  Proposed Bonus                      : - Nil Closure Date of Register         : -Monday, April 11th, 2016 to Friday, April 15th, 2016. Payment Date                          : -Thursday April 21, 2016. AGM Date                               : - Tuesday, April 19th, 2016
AGM Venue                            : - The Civic Centre, Ozumba Mbadiwe V/I.Lagos.   
UNILEVER NIGERIA PLC (YEAR ENDED 31ST DECEMBER, 2015)  Proposed Dividend (Final)      : - 5kobo per share  Proposed Bonus                      : - Nil Closure Date of Register         : - April 11th, 2016 to April 15th, 2016 Payment Date                          : - May 13th, 2016. AGM Date                               : - N/A AGM Venue                            : - N/A.  Share Price as at 24/03/16       :- N30.92k  Dividend Yield                        :   0.16%  
ACCESS BANK PLC (YEAR ENDED 31ST DECEMBER, 2015)  Proposed Dividend (Final)      : - 30kobo per share  Interim Dividend                     : - 25 kobo per share Total Dividend                        :-   55 kobo per share Proposed Bonus                      : - Nil Closure Date of Register         : -April 13th, 2016. Payment Date                          : - April 27th, 2016. AGM Date                               : - April 27th, 2016 AGM Venue                            : - TBA. Share Price as at 18/03/16       :- N3.95 Dividend Yield                        : 13.92%  
FCMB GROUP PLC (YEAR ENDED 31ST DECEMBER, 2015)  Proposed Dividend (Final)      : - 10kobo per share  Proposed Bonus                      : - Nil Closure Date of Register         : - 13th to 19th April, 2016. Payment Date                          : - 2nd May, 2016. AGM Date                               :   29th April, 2016    
TRANSNATIONAL CORPORATION PLC (YEAR ENDED 31ST DECEMBER, 2015)  Proposed Dividend (Final)      : - Nil Proposed Bonus                      : - 1 for 20 Closure Date of Register         : - 14th to 19th April, 2016. Payment Date                          : - Nil. AGM Date                               :   29th April, 2016    
CUSTODIAN AND ALLIED PLC (YEAR ENDED 31ST DECEMBER, 2015)  Proposed Dividend (Final)      : - 14kobo per share  Proposed Bonus                      : - Nil Closure Date of Register         : - 14th to 20th April, 2016. Payment Date                          : - 3rd May, 2016.
AGM Date                               :   3rd May, 2016     
ECONOMIC AND CORPORATE NEWS FOR THE WEEK ENDED APRIL 8TH, 2016.  
MSCI PLANS TO EXCLUDE NIGERIA FROM ITS FRONTIER MARKET INDEX Following the removal  of Nigerian bonds from the emerging markets Government bond Indices of J.P.Morgan and Barclays Bank; MSCI Incorporated(NYSC: MSCI) is reviewing Nigeria's continued inclusion in its Frontier Market Index due to tight foreign exchange liquidity in Nigeria.   This comes after the Central Bank of Nigeria imposed measures that have limited liquidity in the spot FX market due to the slump in global oil prices as the nation relies on the commodity for forex inflows.
According to MSCI, ease of capital inflows and outflows is one of the key criteria in the MSCI Classification Framework therefore, capital restrictions as such can lead to material deterioration of the equity market accessibility and may result in the exclusion of Nigeria from the MSCI frontier market indexes and a reclassification to "Standalone Market Status".   
Therefore, about $500 million of stock Investment in Nigeria is under threat in the Nigeria Stock Exchange.
In view of the above, MSCI Incorporated will announce its decision on the treatment of MSCI Nigeria indexes on or before April 29, 2016.    
NIGERIA GOVERNMENT PLANS TO RAISE BETWEEN N274 BILLION AND N365 BILLION IN THE SECOND QUARTER OF THE YEAR 2016.  The Nigerian Debt Management Office (DMO) announced on Monday (4/04/16), that the  Federal Government of Nigeria plans to raise between N274 billion and N365 billion in local currency-denominated bonds with maturities ranging between five and twenty years in the second quarter of this year (2016). It’s would auction between N15billion and N25billion in five-year paper in April 2016, along with N35billion to N45billion worth in 10-year debt and N45billion to N55billion in 20-year bonds. In addition, in the month of  May this year, the debt office plans to issue between N10billion and N20billion worth of five-year paper, N35 billion to N45billion of 10-year bonds and N45billion to N55billion of 20-year debt. Furthermore, the debt office plans to raise between N10billion and N20billion in five-year, N35billion to N45billion in 10-year and N45billion to N55billion worth of 20-year paper in the month of June, 2016.  
NIGERIAN PRESIDENT TO SIGN LOAN DEAL WITH CHINA NEXT WEEK. In order to finance the Nigerian budget deficit of over N2 trillion, the Nigerian President (Muhammadu Buhari) will sign a loan deals with Chine Government in his scheduled visit to China next week.  The loan is expected to help Nigeria Government to finance badly-needed infrastructure projects and both countries would sign some bilateral agreements to strengthen their relationship. Moreover, it is expected that the loan would fund Chinese firms’ infrastructure projects in Nigeria.   
ECONOMIC OUTLOOK FOR NEXT WEEK (11TH APRIL, 2016).  
MARKET OUTLOOK FOR THE STOCK MARKET NEXT WEEK APRIL 11TH, 2016).
We still maintain our advice that Investors should be cautious in their trading, as the potential exit of funds from Nigeria’s Stock Market should MSCI eventually exclude Nigeria from the frontier market Index, will adversely affect the Nigeria’s current market capitalization in the index.  
However, Investors can still take strategy positions in the Agriculture and Industrial goods sectors.    
ECONOMIC OUTLOOK FOR THE BOND MARKET NEXT- WEEK (APRIL 11TH, 2016). As anticipated in our last week report, there was increase level of activities in the fixed Income space as bargain hunters took hold of the market in the week ended April 8th, 2016. However, for next week (11/04/16), we expect Investors to be cautious, as they (Investors) may hold off in anticipation of higher yield levels.   
Mutual Alliance Investment and Securities Limited (Research Department).