Author - Birgit Kaur

03 Jan

Daily Financial Market Report for January 03, 2019

Dear Client/Reader,

Nigerian Bourse Continues Downtrend…as ASI Went Down By 95 Bps.

The Nigerian Equities Market (NSE) remained in the negative territory as investors maintained bearish sentiments on some bellwethers. The bench mark – All Share Index (ASI) declined by 0.95% to close at 30,771.32 points. Investors lost N111 billion to close Market Capitalization at N11.47 trillion while the Year-to-Date (YtD) returns settled at -2.10%.   

Sectors performance was significantly bearish

Performance across sectors was significantly bearish except for the Oil & gas index which appreciated by 0.64% due to gain recorded in Forte oil (9.64%). Conversely, the Industrial and Banking sectors recorded the largest losses as they declined by 2.83% and 2.15% respectively due to losses in CCNN (-4.90%) and Wapco (-4.17%); Guaranty (-4.49%) and Stanbic (-4.07%). Similarly, the Insurance and Consumer goods indices also declined by 0.12% and 0.02% respectively arising from sell offs in Sovereign insurance (-1.95%); Flourmill (-1.58%) and Dangsugar (-1.69%). 

Market activity measured by aggregate volume decreased by 21% while value declined by 28%. Investors traded a total of 169 million units of shares valued at ₦1.13 billion in 3,683 deals. 

NASD Market

The NASD market rebounded after today’s trading activities to close bullish as the Unlisted Securities Index (USI) went up by 1.26% to close at 749.47 points. Market capitalization also advanced by 126 basis points to settle at N520.90 billion. Market activity measured by aggregate volume increased by 229% while value spiked by 1,126%. Investors traded a total of 113,009 unit of shares valued at N3.46 million in 4 deals. CSCS Plc and Wamco Plc were the only securities that traded on the NASD platform today.

Please find attached our daily market report for today, January 03, 2019.

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02 Jan

Daily Financial Market Report for January 02, 2019

Dear Client/Reader,

Equities Market Begins 2019 On A Negative Note… as ASI Dips 1.15%

The Nigerian Equities Market (NSE) resumed the Year on a downward note as investors wiped most of the gains recorded on the New Year eve. The bench mark – All Share Index (ASI) declined by 1.15% to close at 31,070.06 points. Investors lost N134 billion to close Market Capitalization at N11.59 trillion while the Year-to-Date (YtD) returns began at -1.15%.   

Sectors performance was significantly bearish

Performance across sectors was significantly bearish except for the Banking index which appreciated by 0.08% due to gains recorded in Guaranty (0.15%) and UBA (1.30%). On the other hand, the Consumer goods and Insurance sectors recorded the largest losses as they depreciated by 2.30% and 1.31% respectively due to losses in NB (-8.42%) and Flourmill (-3.90%); NEM (-3.70%) and Wapic (-4.76%). Similarly, the Industrial and Oil & gas indices also declined by 1.20% and 0.66% arising from sell offs in Dangcem (-1.95%) and Wapco (-3.61%); Forte oil (-2.44%) and Oando (-4.00%). 

Market activity measured by aggregate volume decreased by 77% while value declined by 60%. Investors traded a total of 214 million units of shares valued at ₦1.56 billion in 2,856 deals. 

NASD Market

The NASD market started the year on a bearish note as the Unlisted Securities Index (USI) went down by 0.07% to close at 740.16 points. Market capitalization also declined by 7 basis points to settle at N514.43 billion. Market activity measured by aggregate volume decreased by 91% while value went down by 99%. Investors traded a total of 34,383 unit of shares valued at N281,847.75 in 3 deals.

Please find attached our daily market report for today, January 02, 2019.

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31 Dec

Daily Financial Market Report for December 31, 2018

Dear Client/Reader,

Nigerian Bourse Gains 1.27% To End The Year In Green

The Nigerian Equities Market (NSE) ended trading activities for the year in green as positive sentiments on market bellwethers dictated the direction of the market. The bench mark – All Share Index (ASI) advanced by 1.27% to close at 31,430.50 points. Market Capitalization gained N384 billion to close at N11.72 trillion while the Year-to-Date (YtD) returns closed at -17.81%.   

Sectors performance was significantly bullish

Performance across sectors was significantly bullish as all sectors closed in green. The Oil & gas and Consumer goods indices recorded the largest gains as they advanced by 3.73% and 1.42% respectively arising from positive sentiments in Total (3.57%) and Oando (2.04%); NB (4.27%) and Flourmill (5.24%). Similarly, the Industrial, Insurance and Banking indices advanced by 0.62%, 0.41% and 0.30% respectively due to gains in Dangcem (1.09%); NEM (5.47%) and Wapic (2.44%); Guaranty (0.44%) and Diamond (9.55%). 

Market activity measured by aggregate volume declined by 53% while value reduced by 40%. Investors traded a total of 929 million units of shares valued at ₦3.95 billion in 4,144 deals. 

NASD Market

The NASD market also closed the year bullish after today’s trading activities as positive sentiments prevailed in the OTC market. The Unlisted Securities Index (USI) appreciated by 1.00% to close at 740.66 points. Market capitalization also gained 100 basis points to settle at N514.77 billion. Market activity measured by aggregate volume declined by 99% while value increased by 206%. Investors traded a total of 404,178 units of shares valued at N124.2 million in 3 deals.

Please find attached our daily market report for today, December 31, 2018.

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31 Dec

Weekly Report and Stock Recommendation – December 31, 2018

Dear Client/Reader,

Global Economy

  • Oil prices fell to their lowest since the third quarter of 2017 on Friday closing at $52.20 per barrel, as global oversupply kept buyers away from the market.
  • Euro zone headline inflation was at the European Central Bank target in November and the inflation measure crucial for monetary policy decisions eased again after rising the previous month
  • Britain’s housing market has slowed since the country voted to leave the European Union in June 2016, and other surveys this month have shown anxiety among consumers and businesses ahead of the planned departure on March 29
  • The seasonally adjusted unemployment rate in Japan rose to 2.5 percent, from 2.4 percent in October, while jobs-to-applicants ratio rose to 1.63 from 1.62 in October figures from the Ministry of Internal Affairs and Communications showed last week.

U.S. – A measure of U.S. consumer confidence posted its sharpest decline in more than three years in December, rattling investors already nervous about the prospect that a global economic slowdown was spilling over into the United States.

Equities Market- The Nigerian equities market closed positive last week, as the ASI increased by 0.86% w/w to close at 31,037.72  points, while the year-to-date returns settled at -18.84%.     

The current low prices of stocks still provide good buying opportunities in the market. Some of our recommended stocks are mentioned below;

ZENITH – Zenith bank has the best dividend pay-out ratio among banking stocks with expectation of about 10% in FY’18 also supported by its low current share price at N23.00 which is lower than our estimated intrinsic value of N32.68, we consider this point to be a good point for investors to take a medium to long term investment position on the stock of Zenith bank Nig Plc.  Zenith Plc. 9M’2018 result showed a marginal increase in profit before tax and profit after tax as they both increased by 3.3% and 3.4% respectively. PAT increased to N121bn from N117bn recorded in 9M’2017. Although, gross earnings declined by 15% y/y from N479bn in 9M’2017 to N408bn due to reduction in interest income (-12%) and trading income (-35%). Growth seen in PBT can be attributed to drop in interest expenses (-36%) y/y from N149bn in 9M’2017 to N95bn and a 68% decline in impairment loss on financial asset, that dropped to N12.8bn from N39.8bn (YoY). EPS for the period however grew by 3% to N3.86 as against N3.74 in 9M’2017. Conclusively, we still maintain our medium to long term “BUY” recommendation on the stock of Zenith. Zenith has CAR of 27% higher than tier 1 minimum of 15%.

FCMB – We still maintain our medium to long term “BUY” recommendation on the stock of FCMB Plc.  as its  9M 2018 result showed an impressive PBT growth of 121% y/y from N6.7 bn in 9M’17 to N14.8 bn. The key driver behind the PBT growth was the growth of 165% y/y in trading income and 152% improvement in other income on the back of massive gains in foreign exchange transactions that increased from N428 mn in 9M’17 to N9 bn in the current period, which were strong enough to offset the increase recorded in operating expense by 15% y/y. Non-interest income (NIR) also increased by 66% y/y to N37.5 bn (9M’17; N22.5 bn) while also noting a decline of 9% in interest expenses which reduced to N42.2 bn (9M’17; N46.4 bn). Consequently, Earnings per share spiked massively by 104% y/y from N0.28 in 9M’17 to N0.57 in the current period. FCMB has CAR of 17.4% higher than tier 2 minimum of 12.5%, BVPS of 9.04, P/BV of 0.14X, P/E of 2.54X against banking average of 1.01x and 3.04x. FCMB still has an upside potential of about 27% from our estimated intrinsic value of N2.47.

Please find attached our Stock Recommendation for this week, ending 4th January, 2019.

Thank you.

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19 Dec

Daily Financial Market Report for December 19, 2018

Dear Client/Reader,

Equities Market Pares Previous Day Gains… as ASI Sheds 35 Bps.

The Nigerian Equities Market (NSE) returned to losing position as negative sentiments prevailed in market bellwethers. The bench mark – All Share Index (ASI) declined by 0.35% to close at 30,704.98 points. Investors lost N40 billion to close Market Capitalization at N11.22 trillion while the Year-to-Date (YtD) returns weakened to-19.71%.   

Sectors performance was significantly bearish

Performance across sectors was significantly bearish except for the Consumer goods and Insurance indices which appreciated by 1.18% and 0.23% respectively due to gains recorded in NB (2.35%) and Nestle (1.38%); Lasaco (6.90%) and Wapic (2.50%). On the other hand, the Oil & gas and Industrial indices recorded the largest losses as they depreciated by 2.99% and 1.14% respectively due to losses in Seplat (-6.53%) and Total (-1.52%); Dangcem (-1.59%) and Wapco (-0.84%). Similarly, the Banking index also declined by 0.21% arising from sell offs in Guaranty (-1.14%) and Zenith (-1.31%).

Market activity measured by aggregate volume decreased by 37% while value declined by 23%.Investors traded a total of 215 million units of shares valued at ₦1.73 billion in 2,975 deals. 

NASD Market

The NASD market closed bearish after today’s trading activities as the Unlisted Securities Index (USI) went down by 0.73% to close at 709.47 points.Market capitalization also declined by 73 basis points to settle at N493.10 billion. Market activity measured by aggregate volume increased by 35% while value also advanced by 41%. Investors traded a total of 50.3 million unit of shares valued at N640 million in 17 deals. 8 securities traded on the OTC platform today.

Please find attached our daily market report for today, December 19, 2018.

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18 Dec

Daily Financial Market Report for December 18, 2018

Dear Client/Reader,

Bargain Hunting Activities Lift NSEASI By 0.70% Amid Strong Breadth

The Nigerian equities market (NSE) rebounded to close trading activities in green as market players hunted for bargain. The bench mark – All Share Index (ASI) advanced by 70 basis points to close at 30,822.33 points. Market Capitalization gained N75 billion to close at N11.26 trillion while the Year-to-Date (YtD) returns settled at -19.40%.   

Sectors performance was broadly bullish

Performance across sectors was broadly bullish save for the Consumer goods and Insurance indices which depreciated by 0.91% and 0.07% as a result of losses in NB (-3.40%) and Guinness (-1.37%); Continsure (-1.12%) and Mbenefit (-4.76%). Conversely, the Industrial and Oil & gas indices recorded the largest gains as they advanced by 1.63% and 1.50% respectively arising from positive sentiments in CCNN (9.91%) and Dangcem (2.16%); 11 Plc (8.56%) and Forte oil (9.91%). Similarly, gains in Guaranty (2.79%) and Diamondbk (9.62%) advanced the Banking (0.05%) sector.

Market activity measured by aggregate volume improved by 47% while value also spiked significantly by 194%. Investors traded a total of 316 million units of shares valued at ₦5.1 billion in 3,445 deals. 

NASD Market

The NASD market closed bullish after today’s trading activities as positive sentiments resume in the OTC market. The Unlisted Securities Index (USI) appreciated by 1.39% to close at 714.70 points. Market capitalization also gained 1.13% to settle at N496.73 billion. Market activity measured by aggregate volume advanced by 13,774% while value also spiked by 781%. Investors traded a total of 37.2 million units of shares valued at N453 million in 14 deals.


Please find attached our daily market report for today, December 18, 2018.

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18 Dec

CCNN Plc. 9M’18- Positive Momentum Sustained, PAT Up By 97% Y/Y

Dear Client/Reader,

CCNN continued its superb performance in 9M’2018 as revenue grew by 44% to N19.6bn in contrast to the N13.6bn that was recorded in the same period last year. The substantial rise in revenue resulted from 47% increase in sale of cement by the company. Gross profit also increased significantly by 65% from N5.2bn to N8.6bn undeterred by a 30% rise in cost of sales. The impressive topline led to the growth in bottom-line as PBT and PAT grew by 100% and 97% respectively while EPS also increased from N1.62 in 9M’2017 to N3.19 in 9M’2018. With the merger of CCNN and BUA cement which is expected to continuously provide a compelling opportunity to capture significant synergies and create value for shareholders of the company in terms of stronger competitive advantage and improvement in both topline and bottom-line going forward, we maintain our medium to long term “BUY” recommendation on the stock of CCNN with a fair value of N35.26.

Key Multiples/Ratios

  Book Value Per Share- 13.41

 Gross Profit Margin- 44.10%

  Net Profit Margin-  20.50%

  Return on Equity – 23.80%

  OPEX/Sales ratio- 14.76%

  Return on Asset-    13.13%

  Cost of Sales Margin- 55.91%

  Price to Book Value- 1.28x

  Year-to-Date Change- 80.53%

Please find attached CCNN 9M’18 result analysis.

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11 Dec

Daily Financial Market Report for December 11, 2018

Dear Client/Reader,

Nigerian Bourse Pares Previous Day Loss; ASI Inches Up By 0.34%

The Nigerian equities market (NSE) closed positive after today’s trading activities to pare previous loss. The bench mark – All Share Index (ASI) appreciated by 34 basis points to close at 30,718.72 points. Market Capitalization also improved by N43.8 billion to close at N11.22 trillion while the Year-to-Date (YtD) returns settled at -19.68%.   

Sectors performance was broadly bullish

Performance across sectors was broadly bullish as the Industrial and Consumer goods indices appreciated most by 0.66% and 0.58% respectively due to gains in Dangcem (0.71%) and Wapco (1.63%); Flourmill (5.00%) and NB (0.64%). In the same vein, the Oil & gas sector also inched up by 0.10% due to gain in Forte oil (4.44%). On the other hand, the Banking and Insurance indices recorded losses as they declined by 0.09% and 0.35% respectively arising from sell offs in Guaranty (-1.01%) and Diamond (-7.77%); NEM (-4.26%) and Aiico (-2.99%).

Market activity measured by aggregate volume improved by 31% while value also advanced by 104%. Investors traded a total of 215 million units of shares valued at ₦3.4 billion in 2,933 deals. 

NASD Market

The NASD market closed bullish after today’s trading activities as the Unlisted Securities Index (USI) appreciated by 2.88% to close at 724.18 points. Market capitalization also advanced by 2.88% to settle at N503.32 billion. Market activity measured by aggregate volume increased by 695% while value advanced by 831%. Investors traded a total of 22,553 unit of shares valued at N4.28 million in 9 deals. Five securities traded on NASD platform which includes CSCS Plc, Wamco Plc, Mixta Real Estate, Niger Delta Exploration and Trustbond mortgage bank. 

Please find attached our daily market report for today, December 11, 2018.

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