Author - Yahya Abdulrahman

Daily Financial Market Report for September 01, 2020

Dear Client/Reader,

Equity Market Sustains Bullish Momentum…ASI Gains 34 Basis Points

The Nigerian Stock Exchange (NSE) saw mixed sentiment with the bulls marginally edging the bears today. The benchmark All Share Index (ASI) appreciated by 0.34% to close at 25,413.95. Market Capitalization gained N9.26 billion to close at N13.21 trillion while the Year-to-Date (YtD) returns settled at -5.64%.

Sectors performance broadly bullish

Performance across sectors was broadly bullish as one sector closed in the red zone. Banking, Consumer Goods and Insurance indices advanced by 1.07%, 0.88% and 0.65% respectively, on the back of buy interest recorded in the shares of UBA (4.40%) and Access (3.23%); NB (5.41%); Cornerst (7.14%) and Aiico (5.56%). Conversely, Industrial index declined by 0.12% on the back of selloffs recorded in the shares of Dangcem (-0.67%). However, Oil and Gas index closed flat.

NASD Market

The NASD market closed bearish after today’s trading activities as the Unlisted Securities Index (USI) declined by 24 basis points to close at 709.45. Consequently, Market Capitalization also decreased by 0.24% to close at N521.14 billion. Market activity measured by aggregate volume increased by 558.11% while value advanced by 159.95%. Investors traded a total of 49,753 units of shares valued at N2.38 million in 7 deals. Three securities traded on the NASD platform today and they are: WAMCO Plc, Afriland Properties Plc and CSCS Plc.

Please find attached our Daily Financial Market update for today, September 01, 2020.

Thank you.

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Daily Financial Market Report for August 31, 2020

Dear Client/Reader,

Equity Market Closes Positive…ASI Gains Marginally by 7 Basis Points

The Nigerian Stock Exchange (NSE) saw mixed sentiment with the bulls marginally edging the bears today. The benchmark All Share Index (ASI) appreciated by 0.07% to close at 25,327.13. Market Capitalization gained N9.26 billion to close at N13.21 trillion while the Year-to-Date (YtD) returns settled at -5.64%.

Sectors performance broadly bearish

Performance across sectors was broadly bearish as two sectors closed in the green zone. Banking, Insurance and Consumer Goods indices declined by 0.74%, 0.61% and 0.01% respectively, on the back of selloffs recorded in the shares of Access (-3.13%) and UBA (-1.57%); Mbenefit (-4.76%) and NEM (-3.72%); NB (-2.78%). Conversely, Oil and Gas and Industrial indices advanced by 1.99% and 0.55% respectively, on the back of buy interest recorded in the shares of Mobil (10.00%); Wapco (3.46%) and Buacement (0.25%).

NASD Market

The NASD market closed flat after today’s trading activities as the Unlisted Securities settled at 711.15. Consequently, Market Capitalization remained unchanged as it closed at N522.39 billion. Market activity measured by aggregate volume decreased by 45.28% while value advanced by 41.74%. Investors traded a total of 7,560 units of shares valued at N916,689.20 in 7 deals. Three securities traded on the NASD platform today and they are: WAMCO Plc, NDEP Plc and CSCS Plc.

Please find attached our Daily Financial Market update for today, August 31, 2020.

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Weekly Market Review & Stock Recommendations – August 31, 2020

Dear Client/Reader,

Global Economic Roundup

Bullish EIA Inventory Report Pushes Oil Prices Higher   

·         Crude oil price rallied further last week after the EIA reported a crude oil inventory draw of 4.7 million barrels for the week to August 21.

U.S. Jobless Rate Set to Return to Single Digits

·         America’s labor market probably extended its rebound in August to push the unemployment rate below 10% for the first time since the pandemic struck.

Domestic Economic Roundup

Foreign capital flows into Nigeria tumble by $4.56bn

·         Foreign capital inflows into Nigeria fell by $4.46bn to $1.29bn in the second quarter of this year from $5.85bn in Q1, the National Bureau of Statistics said on Friday.

Naira gains, exchanges for N470/$

·         The naira gained slightly on Friday, exchanging for N470/$ in the parallel market in the evening, after selling at N476/$ in the morning.

Equities Market

The Nigerian Stock Exchange closed bullish last week as the ASI advanced by 0.35% week-on-week to close at 25,309.37 points.

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

MTNN – MTNN’s HY’2020 results showed an increase in revenue by 12.54% from N566.99 bn in HY’2019 to N638.08 bn in HY’2020. Operating profit advanced from N189.40 bn in HY’2019 to N204.54 bn in HY’2020, reflecting an increase of 7.99%. The growth in operating profit was buoyed by a 20.28% and 20.67% decline in roaming costs and advertisement, sponsorship and sales promotion, respectively. However, there were increments in numerous expenditure line items which subdued operating profit growth, notably; direct network and technology operating costs and cost of handset and other accessories, both increased by 23.67% and 68.65%, respectively. PBT fell by 1.99% from N142.40 bn in HY’2019 to N139.57 bn in the current period, due to a 27.66% decrease in finance income and a 26.22% rise in finance cost. PAT fell by 4.68% from N99.54 bn in HY’2019 to N94.88 bn in HY’2020, due to a 4.26% surge in taxes. EPS dipped by 4.70% to N4.66 in HY’2020 from N4.89 in HY’2019. Following the 15.09% growth seen in the ICT sector in Q2, we maintain our 12 percent growth forecast for 2020, as the services provided have received increased traction due to the lockdown orders effected to tackle the pandemic. MTNN is the largest firm in the ICT sector and will be the major sponsor of the growth. The lockdown imposed to curb the spread of the COVID-19 pandemic continues to give support to the company’s top-line, as the revenue from data and voice calls is expected to increase by over 50 percent this year. Accordingly, we expect to witness growth in the bottom-line of the company, as the profit after tax is expected to climb past N220 billion, while the earnings per share should move past N11.00 by year’s end.     

UNILEVER – Unilever Nigeria Plc. HY’2020 results showed that revenue declined by 35.91% from N42.66 bn in HY’2019 to N27.34 bn in the current period. This decline was due to the slowdown witnessed in both their food products and home/personal care revenue sources, as their performance was hampered by the weakened purchasing power of consumers in the economy. Similarly, gross profit fell by 45.74% to N6.16 bn in HY’2020 from N11.35 bn in HY’2019, despite a 32.35% decline in cost of sales. The firm recorded a decline of 136.62% in operating profit from N3.85 bn in HY’2019 to -N1.41 bn in the current period, and this was majorly driven by a 196.80% increase in impairment loss. Profit before tax declined by 112.07% to -N566.80 mn in the current period from N4.70 bn in HY’2019, due a 29.33% decline in finance income. Consequently, profit after tax fell by 114.77% from N3.52 bn in HY’2019 to -N519.11 mn in the current period. The firm recorded an 114.75% decline in earnings per share from N0.61 in HY’2019 to -N0.09 in the current period. Unilever Nigeria is currently experiencing the negative effects of the lull in business activities in February and March due to movement restrictions across the country. The fall in the purchasing power of individuals also contributed to the company’s falling topline, as their Food Products and Home & Personal Care revenue segments declined by 29% and 43%, respectively. Following the 8.78% Q2 contraction seen in the manufacturing industry, the outlook for the entire sector remains grim, with a full year growth forecast of 5.10%. Unilever remains unshielded from the slowdown in the sector and the entire economy; hence, we maintain a negative outlook for the firm.

Please find attached our Weekly Market Review & Stock Recommendations for this week.

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Daily Financial Market Report for August 28, 2020

Dear Client/Reader,

Equity Market Closes Flat…ASI Gains Marginally by 2 Basis Points

The Nigerian Stock Exchange (NSE) saw mixed sentiment with the bulls marginally edging the bears today. The benchmark All Share Index (ASI) appreciated by 0.02% to close at 25,309.37. Market Capitalization gained N3.75 billion to close at N13.20 trillion while the Year-to-Date (YtD) returns settled at -5.71%.

Sectors performance broadly bullish

Performance across sectors was broadly bullish as one sector closed in the red zone. Insurance, Banking and Industrial indices advanced by 0.62%, 0.37% and 0.01% respectively, on the back of buy interest recorded in the shares of Wapic (6.06%) and Prestige (1.96%); Access (2.40%) and Guaranty (0.79%). Conversely, Consumer Goods index declined by 0.20% on the back of selloffs recorded in the shares of Guinness (-9.29%). However, Oil and Gas index closed flat.

Market synopsis for the week

The stock market closed positive this week. The nation’s bourse had bullish performance as it closed positive in four of the five trading sessions. The market recorded losses on the fourth trading day of the week (-0.10%) and recorded gains on the first, second, third and last trading days of the week (0.03% 0.25%, 0.15% and 0.02% respectively), due to buy interest in large and mid-cap stocks across Insurance, Banking and Industrial sectors. Overall, ASI advanced by 0.35% week-on-week, while the year-to-date returns settled at -5.71%.

Please find attached our Daily Financial Market update for today, August 28, 2020.

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Daily Financial Market Report for August 27, 2020

Dear Client/Reader,

Bears Regain Dominance on Local Bourse…ASI Loses 10 Basis Points

The Nigerian Stock Exchange (NSE) retracts as the bears dominated proceedings in the market today. The benchmark All Share Index (ASI) waned by 0.10% to close at 25,304.25. Market Capitalization shed N13.48 billion to close at N13.20 trillion while the Year-to-Date (YtD) returns settled at -5.73%.

Sectors performance mixed

Performance across sectors was mixed as two sectors closed in the red and green zones. Industrial and Banking indices declined by 0.37% and 0.33% respectively, on the back of selloffs recorded in the shares of Wapco (-1.28%) and Dangcem (-0.59%); Access (-2.34%) and UBA (-0.78%). Conversely, Insurance and Consumer Goods indices advanced by 0.64% and 0.52% respectively, on the back of buy interest recorded in the shares of Mansard (6.36%); NB (-2.78%) and Guinness (-0.65%). However, Oil and Gas Index closed flat.

NASD Market

The NASD market closed flat after today’s trading activities as the Unlisted Securities settled at 711.96. Consequently, Market Capitalization remained unchanged as it closed at N522.99 billion. Market activity measured by aggregate volume increased by 740% while value advanced by 1,062%. Investors traded a total of 21,000 units of shares valued at N407,000 in 2 deals. Two securities traded on the NASD platform today and they are: CSCS Plc and WAMCO Plc.

Please find attached our Daily Financial Market update for today, August 27, 2020.

Thank you.

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Daily Financial Market Report for August 26, 2020

Dear Client/Reader,

Bulls Dominate Local Bourse…ASI Gains 15 Basis Points

The Nigerian Stock Exchange (NSE) sustained its uptrend as bulls dominated proceedings in the market today. The benchmark All Share Index (ASI) appreciated by 0.15% to close at 25,330.10. Market Capitalization gained N20.02 billion to close at N13.22 trillion while the Year-to-Date (YtD) returns settled at -5.63%.

Sectors performance mixed

Performance across sectors was mixed as two sectors closed in the red and green zones. Insurance and Banking indices declined by 0.92% and 0.03% respectively, on the back of selloffs recorded in the shares of Cornerst (-9.68%) and Custodian (-2.04%); UBA (-1.53%). Conversely, Consumer Goods and Industrial indices advanced by 0.16% and 0.02% respectively, on the back of buy interest recorded in the shares of Guinness (1.31%) and Flourmill (0.53%); Vitafoam (-5.63%). However, Oil and Gas Index closed flat.

NASD Market

The NASD market closed flat after today’s trading activities as the Unlisted Securities settled at 711.96. Consequently, Market Capitalization remained unchanged as it closed at N522.99 billion. Market activity measured by aggregate volume decreased by 98.78% while value declined by 98.99%. Investors traded a total of 2,500 units of shares valued at N35,000.00 in 1 deal. One security traded on the NASD platform today and it was: CSCS Plc.

Please find attached our Daily Financial Market update for today, August 26, 2020.

Thank you.

Click here for the daily financial market report.

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