Author - Opeyemi Kolawole

Weekly Report and Stock Recommendation – February 11, 2018

Dear Client/Reader,

Global Economy

•         Oil prices fell as drilling activity in the United States, the world’s largest oil producer, picked up and financial markets were pulled down by trade concerns.

•         Euro zone businesses expanded at their weakest rate since mid-2013 at the start of the year as demand fell for the first time in four years, with a manufacturing slowdown spreading to services, a survey showed last week.

•         The Bank of England said Britain faced its weakest economic growth in 10 years in 2019, blaming mounting Brexit uncertainty and the global slowdown, but it stuck to its message that interest rates will rise, if a Brexit deal is done.

•         Japanese services sector activity rose in January due to a pick-up in domestic demand, a business survey showed on Tuesday, but there are growing worries that economic activity will weaken due to the U.S.-Sino trade war.

 U.S. – U.S. trade deficit fell for the first time in six months in November by 11.5% to $49.3 billion as cheaper oil and higher domestic petroleum production helped to curb the country’s import bill, leading economists to boost their economic growth estimates for the fourth quarter.

Equities Market- The Nigerian equities market closed positive last week, as the ASI increased by 2.92% w/w to close at 31,529.92 points, while the year-to-date returns closed at 0.32%.    

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

SEPLAT – Seplat 9M’2018 result showed revenue increased by 104% to N173bn as against N85bn in 9M’2017. The substantial rise in revenue was due to increase of 99% and 48% in crude oil and gas sales while Cost of sales also increased from N47 bn to N80 bn. Despite the rise in cost of sales, gross profit increased by 146% from N38 bn to N93.5 bn. The company maintained the top line impressive performance as PAT stands at N27.9bn as against N1.6bn loss in 9M’2017. With the recent renewal of its operating license coupled with continuous plan of the company to boost profitability and increase operation by drilling its first well in its OML 53 asset and to redeploy rigs into it other oil fields at OMLs 4, 38 and 41, we are of the view that Seplat will maintain its impressive performance going forward. With the current price close to its 52 week low of N520.00, we thereby place a medium to long term “BUY” on the stock of Seplat Plc with an estimated intrinsic value of N744.69.

AFRIPRUD – Afriprud Plc 9M-2018 result showed that registrars fee income improved by 43% y/y from N660 million to N941 million due to improvement in fees from corporate actions.  Gross earnings grew by 13.7% y/y to N2.6 bn due to the marginal growth of 2% y/y in net investment income from N1.6 bn in 9M-17 to N1.64 billion in 9M’18. Consequently, PBT grew by 11.5% y/y to N1.62 bn from N1.45 bn in 9M-2017. EPS also grew marginally to N0.67 from N0.65 in 9M-2017. The stock has P/BV of 1.07x compared with industry average of 3.29x as well as P/E ratio of 5.93. We have a positive outlook on Afriprud earnings in 2019 as the Company continues to intensify efforts to build on the progress recorded so far in its business diversification drive and also pursuing relentless innovation in product development and process improvement. Overall, with a fair value of N4.99, we maintain our “Buy” recommendation.

Please find attached our Stock Recommendation for this week, ending 15th February, 2019.

Thank you. 


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Daily Financial Market Report for February 05, 2019

Dear Client/Reader,

Nigerian Bourse Maintains Positive Stance…ASI Inches By 0.09%

The Nigerian Equities Market (NSE) closed on a positive note as positive sentiments dominated trading activities. The All Share Index (ASI) increased by 9 basis points to close at 30,773.57 points. Market Capitalization gained N10.96 billion to close at N11.48 trillion while the Year-to-Date (YtD) returns closed at -2.09%.

Sectors performance was significantly bullish

Performance across sectors was significantly bullish except for the Consumer goods sector which closed negative by -0.14% due to negative sentiments in Dangsugar (-3.23%) and Honyflour (-2.44%). The Insurance and Oil & Gas recorded the biggest gains of 1.03% and 0.39% respectively due to positive sentiments in CHI plc (6.90%) and Aiico (3.13%); Oando (3.09%) and Eterna (1.18%). Similarly the Industrial and Banking sectors advanced by 0.22% and 0.21% respectively due to bargain hunting in Betaglass (10.00%); Access (1.61%) and Guaranty (0.74%).

Market activity measured by aggregate volume increased by 4% while value appreciated by 181%. Investors traded a total of 190 million units of shares valued at ₦2.93 billion in 3,183 deals. 

NASD Market             

The NASD market closed bearish after today’s trading activities as the Unlisted Securities Index (USI) went down by 0.27% to close at 744.61 points. Market Capitalization also declined by 27 basis points to settle at N534.96 billion. Market activity measured by aggregate volume declined by 4.15% while value increased by 189.70%. Investors traded a total of 311,600 units of shares valued at N13.21 million in 9 deals. Three securities traded on the OTC Platform today and they include CSCS Plc, WAMCO Plc and Niger Delta Exploration Plc.

Please find attached our daily market report for today, February 05, 2019.

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Daily Financial Market Report for January 29, 2019

Dear Client/Reader,

Negative Sentiments Persist In The Nigerian Bourse; ASI Down 0.53%

The Nigerian Equities Market (NSE) closed bearish after today’s trading activities as political uncertainties continued. The bench mark- All Share Index (ASI) declined by 0.53% to close at 31,178.71 points. Investors lost N61.73 billion to close market capitalization at N11.63 trillion while the Year-to-Date (YtD) returns closed at -0.80%.   

Sectors performance was significantly bearish

Performance across sectors was significantly bearish except for the Industrial sector which closed flat. The Banking and Consumer goods indices depreciated the most by 1.45% and 0.56% due to losses in the shares of Access (-3.94%) and Zenith (-2.13%); Mcnichols (-8.33%) and NB (-2.38%). Similarly, the Insurance and Oil & Gas sectors also declined by 0.23% and 0.13% due to negative sentiments in Linkassure (-9.68%) and Cornerstone (-4.76%); Eterna (-3.37%) and Oando (-0.98%).

NASD Market             

The NASD market rebounded to close positive after today’s trading activities as the Unlisted Securities Index (USI) advanced by 0.73% to close at 750.34 points. Market Capitalization also increased by 73 basis points to settle at N539.08 billion. Market activity measured by aggregate volume decreased by 97.25% while value also declined by 97.79%. Investors traded a total of 10,220 units of shares valued at N253,180 in 4 deals. Two securities traded on the NASD platform today and they include CSCS Plc and Wamco Plc.

Please find attached our daily market report for today, January 29, 2019.

Thank you.

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Daily Financial Market Report for January 28, 2019

Dear Client/Reader,

NSE Resumes Downtrend…as Investors Loses N30.7 billion

The Nigerian Equities Market (NSE) opened the week on a negative note as investors took profit on some high and mid cap stocks. The bench mark- All Share Index (ASI) declined by 0.26% to close at 31,344.24 points. Investors lost N30.72 billion to close market capitalization at N11.68 trillion while the Year-to-Date (YtD) returns stood at -0.27%.   

Sectors performance was significantly bearish

Performance across sectors was significantly bearish except for the Industrial sector which closed flat. The Insurance and Banking indices depreciated the most by 1.14% and 0.50% due to losses in the shares of Aiico (-5.63%) and Sovrenins (-4.76%); Fidelity (-5.60%) and Access (-2.31%). Similarly, the Oil & Gas and Consumer goods sectors also declined by 0.40% and 0.17% due to negative sentiments in Seplat (-3.70%); Mcnichols (-7.69%) and Cadbury (-2.00%).

Market activity measured by aggregate volume decreased by 47% while value also declined by 41%. Investors traded a total of 223 million units of shares valued at ₦1.84 billion in 4,150 deals.

NASD Market             

The NASD market closed negative after today’s trading activities as the Unlisted Securities Index (USI) went down by 0.10% to close at 744.38 points. Market Capitalization also declined by 10 basis points to settle at N534.79 billion. Market activity measured by aggregate volume increased by 154.37% while value also advanced by 167.52%. Investors traded a total of 181,473 units of shares valued at N3.05 million in 6 deals. Three securities traded on the NASD platform today and they include SDCSCSPLC, SDFCWAMCO and SDNDEP.


Please find attached our daily market report for today, January 28, 2019.

Thank you.

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Daily Financial Market Report for January 25, 2019

Dear Client/Reader,

NSE Closes the week on a Positive Note…ASI Increased by 1.41%

The Nigerian Equities Market (NSE) continued positive momentum as investors maintained positive sentiments on major bellwethers. The bench mark- All Share Index (ASI) advanced by 1.41% to close at 31,426.63 points. Investors gained N161.06 billion to close market capitalization at N11.72 trillion while the Year-to-Date (YtD) returns stood at -0.01%.

Sectors performance was broadly bullish

Performance across sectors was broadly bullish as the banking, Oil & Gas and  Industrial indices appreciated by 4.10%, 1.68% and 0.49% due to gains in the shares of Diamond (10.00%) and Fidelity (9.17%); Total (10.00%) and Oando (2.11%); Dangcem (1.04%). On the flip side, Consumer goods index recorded loss as it depreciated by 0.14% due to losses recorded in the shares of Flourmill (-0.51%). The insurance index closed on a flat note.

Market activity measured by aggregate volume increased by 56% while value decreased by 0.05%. Investors traded a total of 417 million units of shares valued at ₦3.14 billion in 3,970 deals.

Market synopsis for the week          

Nigeria’s stock market continued its rally to close bullish this week on the back of bargain hunting activities on under priced stocks amid calmness in political uncertainties. The market had a significantly bullish performance as it closed positive in four of the five trading days of the week. The market recorded large gains on the third and last trading days due to positive sentiments on major bellwethers. Overall, the All Share Index (ASI) appreciated by 1.36% week-on-week, while the year-to-date returns closed flat at –0.01%.

Please find attached our daily market report for today, January 25, 2019.

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Daily Financial Market Report for January 24, 2019

Dear Client/Reader,

The Bulls Maintain Dominance NSEASI Advances by 36 Basis Points

The Nigerian Equities Market (NSE) continued positive momentum as investors maintained positive sentiments on major bellwethers. The bench mark- All Share Index (ASI) advanced by 0.36% to close at 30,989.60 points. Investors gained N43.2 billion to close market capitalization at N11.56 trillion while the Year-to-Date (YtD) returns stood at -1.40%.   

Sectors performance was significantly bullish

Performance across sectors was significantly bullish as only the Industrial index depreciated by 1.64% due to losses in the shares of CCNN (-4.00%) and Wapco (-0.40%). On the flip side, the Insurance and Banking indices recorded the largest gains as they appreciated by 1.10% and 0.65% respectively due to bargain hunting recorded in the shares of Mansard (7.53%) and Corner stone (5.00%); Guaranty (1.82%) and Zenith (0.68%). The Consumer goods also gained marginally due to gains in Flourmill (0.77%) and Champion (2.58%).

Market activity measured by aggregate volume decreased by 29% while value advanced by 6%. Investors traded a total of 268 million units of shares valued at ₦3.15 billion in 3,756 deals.

NASD Market

NASD Market

The NASD market closed negative after today’s trading activities as the Unlisted Securities Index (USI) went down by 0.56% to close at 745.14 points. Market Capitalization also declined by 56 basis points to settle at N535.34 billion. Market activity measured by aggregate volume decreased by 96% while value also declined by 67%. Investors traded a total of 71,341 units of shares valued at N1.14 million in 10 deals. Five securities traded on the NASD platform today and they include Accorn Petroleum, CSCS Plc, Food concepts plc, Mixta Real estate Plc and Wamco Plc.

Please find attached our daily market report for today, January 24, 2019.

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Daily Financial Market Report for January 23, 2019

Dear Client/Reader,

Nigerian Stock Market Closes on a Positive Note; ASI Inches by 0.46%

The Nigerian Equities Market (NSE) closed on a positive note after today’s trading activities as the bulls regained dominance. The bench mark- All Share Index (ASI) increased by 46 basis points to close at 30,878.56 points. Market Capitalization gained N52.83 billion to close at N11.51 trillion while the Year-to-Date (YtD) returns stood at -1.76%.   

Sectors performance was significantly bearish

Performance across sectors was significantly bearish as only the banking index appreciated by 1.64% due to bargain hunting in the shares of Guaranty (2.80%) and Zenith (0.69%). On the flip side, the Insurance, Oil & Gas and Industrial indices recorded losses as they depreciated by 0.24%, 0.14% and 0.04% respectively due to losses recorded in the shares of Sovrenins (-4.55%) and NEM (-4.40%); Forte Oil (-1.67%); Wapco (-0.40%). The Consumer goods closed on a flat note.

Market activity measured by aggregate volume increased by 53% while value increased by 21.5%. Investors traded a total of 376 million units of shares valued at ₦2.97 billion in 3,405 deals.

NASD Market

The NASD market closed flat after today’s trading activities as the Unlisted Securities Index (USI) remained at 749.31 points. Market Capitalization also remained at N538.33 billion. Market activity measured by aggregate volume increased by 357.11% while value declined by 70.17%. Investors traded a total of 2,001,500 units of shares valued at N3.43 million in 2 deals. Two securities traded on the NASD platform today and they include UBN Properties and Wamco Plc.

Please find attached our daily market report for today, January 23, 2019.

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Daily Financial Market Report for January 21, 2019

Dear Client/Reader,

Nigerian Bourse Breaks Seven Consecutive Gains; ASI drops by 88 Bps

The Nigerian Equities Market (NSE) halted its seven consecutive gains on the back of profit taking actions by investors. The bench mark- All Share Index (ASI) decreased by 0.88% to close at 30,732.72 points. Market Capitalization lost N101.60 billion to close at N11.46 trillion while the Year-to-Date (YtD) returns stood at -2.22%.   

Sectors performance was mixed

Performance across sectors was mixed following two sectoral gains and losses apiece. The Insurance and Industrial sectors recorded gains as they appreciated by 1.51% and 0.97% respectively due to positive sentiments in the shares of NEM (4.84%) and Linkassure (8.93%); CCNN (7.17%). Conversely, Oil & Gas and banking sectors declined by 4.55% and 0.14% respectively due to losses in Seplat (-7.99%) and 11 Plc (-4.26%); Diamond (-0.95%) and Guaranty (-0.78%). The Consumer goods sector however closed flat.

Market activity measured by aggregate volume increased by 66% while value increased by 47%. Investors traded a total of 499 million units of shares valued at ₦5.53 billion in 3,874 deals. 

NASD Market

The NASD market closed negative after today’s trading activities as the Unlisted Securities Index (USI) declined by 0.54% to close at 750.30 points. Market Capitalization also decreased by 54 basis points to settle at N539.04 billion. Market activity measured by aggregate volume decreased by 41.78% while value increased by 285.53%. Investors traded a total of 7.08 million units of shares valued at N103.68 million in 15 deals. Six securities traded on the NASD platform today and they include CSCS Plc, Wamco, Afriland, Cappa D’alberto, UBN Properties etc.

Please find attached our daily market report for today, January 21, 2019.

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