NSE Market Review [12-16, Sept]

There isn’t a stronger signal of this markets search for direction than its sharp reversal on September 14, 2011 after it tiptoed towards 21,000. 
With the dividend yield above 8% and the 10 year bond yield below 10%, this market is clearly ripe for accumulation. The spread between these two product types is less than 1.7%, its narrowest since the last visit to 21,000. In the early days of the correction, this metric was as wide as 7% at the markets lowest point. 

NSE Market Review[5-9, Sept]

With the NSE-ASI closing 0.50% shy of 21,000 last week, a dip below this key resistance point appears imminent. In this sort of scenaro, heavy volumes would signal mass exits, however this does not appear to be the case pointing to cautious accumulation. 

At times like this it is always useful to get a little historical encouragement, volumes today are 15x what they were in 2001. In 2006 they were 5x what they were in 2001.

AFRICA INVESTOR

BroadStreetLagos.Com will be one of the media partners for Africa Investor's (AIs) Index Series awards at the New York Stock Exchange on September 26, 2011. If you are coming look out for our publications.

Africa Investor (Ai) supplies a broad range of investment data, research, broadcast and published content to a growing number of investors with interests in Africa. Africa investor Group provides strategic research, indices, communications and investment publishing services to support its clients investment and communication programmes. 

Through its sister organization, African Investment Advisory the group also provides project advisory services. Operating at the intersect of business, government, international organizations and the media, Africa investor group has a growing network of clients across Africa serviced from regional hub offices in Nairobi, Lagos  and Johannesburg, affiliate offices across the continent and a coordinating office in London.

NSE Market Review[29 Aug-2 Sept]

The market continued its slide this week with a slight uptick on only Friday. Trading may have been limited by the 2 day sala holiday. However, with the confluence of negative events: bombing of the UN by Boko Haram, nationalization of banks, etc its is difficult to identify the common cause for the markets current mood. 
Clearly, it represents a great buying opportunity, fundamentalists, value investors and contrarians will say. The PE Ratio as computed by BSL hovers around 25 for the first time in 3 years, the dividend yield appears to prefer an +8% bias. 

NSE Market Review[22-26 Aug]

This week the NSE-ASI breached 22,000 for the first time since January 14, 2010 (20 months ago). The next resistance point is 21,000 (which was last breached on January 5, 2010). Both occurred within 9 days of each other with the market scaling 25,000 3 months later. 

It will be interesting if recent history repeats itself. While we seek evidence of a stronger reversal it is important to focus on the benefits of the markets move to lower lows.

Focus Indicator:NSE-ASI

The NSE-ASI stands for the Nigeria Stock Exchange All Share Index. It is the most widely followed barometer on the Nigeria Stock Market. Although other indexes have been created, the NSE-ASI is the most closely followed for investors seeking to guage the markets mood or temperature.

Company Focus: Guinness

The Company's principal activities continue to be brewing, packaging and marketing of Guiness Foreign Extra Stout, Guinness Extra Smooth, Malta Guinness, Harp Lager Beer, Gordons Spark, Smirnoff Ice, Satzenbrau and Top Malt. To view its 1 year price chart visit http://69.64.64.114/~broad2/compDetail.php?s=GUI&p=cbc&dd=1Y 

A premium profile on www.broadstreetlagos.com gives you access to the data you need. Over the next few weeks we will discuss more phrases.

What is Capitalization?

A company's capitalization refers to the total Naira market value of all of a company's outstanding shares. Capitalization is calculated by multiplying a company's shares outstanding by the current market price of one share. The investment community uses this figure to determining a company's size, as opposed to sales or total asset figures.

Capitalization Explained
If a company has 35 million shares outstanding,