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13 Dec

Weekly Market Review & Stock Recommendations – December 13, 2021

Dear Client/Reader,

Global Economic Roundup

Oil Rises After Saudi Price Hike Signals Confidence in Demand

Oil prices rose after Saudi Arabia boosted the prices of its crude, signalling confidence in the demand outlook despite the spread of the omicron variant of the coronavirus. Futures in New York advanced 2.9% to trade near $68 a barrel. The kingdom increased its oil prices for customers in Asia and the U.S. for January, just days after the OPEC+ alliance agreed to boost output for the same month. Prices for its high-sulphur barrels in Asia were the highest since at least 2000.

U.S. Consumer Prices Climb at Fastest Annual Rate Since 1982

U.S. consumer prices rose last month at the fastest annual pace in nearly 40 years, magnifying how rapid and persistent inflation is eroding paychecks and increasing pressure on the Federal Reserve to tighten monetary policy. The consumer price index climbed 6.8% from November 2020, according to Labour Department data released Friday. The widely followed inflation gauge rose 0.8% from October 2021, exceeding forecasts and extending a trend of sizable increases that began earlier this year. The S&P 500 gained 0.5% and Nasdaq 100 added 0.4% as the headline CPI rate came in at 6.8%, as expected.

Access Bank Announces Restructure into Non-Operating Financial Holding Company

The Chairman of Access Bank Plc has issued a letter to all shareholders of Access Bank informing them about the restructuring of the Bank’s Group into a non-operating financial holding company structure. The holding structure is expected to hold the banking group that is, Access Bank and its banking subsidiaries. According to the Chairman, the Board expects that the restructured group will have greater flexibility to adapt to future business opportunities, market and regulatory changes than is currently the case. Also confirming receipt of the requisite Approval-In-Principle from the CBN and SEC in respect of the Scheme, the chairman added that the Scheme will be presented to shareholders for consideration and approval at a Court-Ordered Meeting to be held at Access Bank Plc Head Office on December 16, 2021.

Some of our recommended stocks are mentioned below;

UBA PLC:

UBA Plc is projected to have a FY 2021 interest income of N450.96bn, up by 5.40% from N427.86bn in FY 2020. PAT is estimated to increase from N113.77bn in FY 2020 to N119.19bn in FY 2021, bringing the EPS up to N3.51. UBA Plc Q3 2021 result showed that Interest income advanced by 8.38% from N317 bn in Q3 2020 to N343bn in the current period. Net interest income increased by 23.25% to N229bn in Q3 2021 from N186bn in Q3 2020. Likewise, profit after tax advanced by 36.35% from N77bn in Q3 2020 to N104bn in Q3 2021 despite a 41.67% increase in tax expense. Consequently, earnings per share went up by 36.11% from N2.16 in Q3 2020 to N2.94 in Q3 2021. UBA has a BVPS of N23.34, P/BV of 0.34x and P/E ratio of 2.05x.

FIDELITY PLC:

Fidelity Plc is projected to have a FY 2021 interest income of N223.24bn, up by 8.80% from N205.18bn in FY 2020. PAT is estimated to increase from N28.03bn in FY 2020 to N30.5bn in FY 2021, bringing the EPS up to N1.05.

Fidelity Bank Q3 2021 results showed that interest income advanced by 3.73% from N132.47 bn in Q3 2020 to N137.41 bn in the current period. Net interest income decreased by 13.39% to N64.96bn in Q3 2021 from N75bn in Q3 2020. Profit before tax increased by 31.40% from N21.35bn recorded in Q3 2020 to N28.05bn in the current period. Profit after tax increased by 29.93% from N20.41bn in Q3 2020 to N26.51bn in Q3 2021, despite a 63% surge in income tax expense. Earnings per share increased by 31.43% from N0.70 in Q3 2020 to N0.92 in the current period. Fidelity Bank has a BVPS of N9.76, P/BV of 0.26x and P/E ratio of 2.07x. 

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

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10 Dec

Daily Financial Markets Report for December 10, 2021

NGX All Share Index closes on a Positive note… ASI gains 47 Basis Point

The Nigerian Exchange Limited Bourse closed Positive. The benchmark All Share
Index (ASI) appreciated by 0.47% to close at 41,882.97. Market Capitalization
increased by 103.18 billion to close at N21.85 trillion while the Year-to-Date (YtD)
returns settled at 4.00%.
What shaped today’s market direction?
Today’s market direction can be largely attributed to gains recorded in large and
mid-cap stocks in Banking, Industrial and Consumer Goods. Some of today’s market
gainers include: GUINNESS (6.85%), CHAMPION (6.27%), FIDELITYBK (4.53%), ETI
(4.02%), GTCO (3.92%), ZENITHBANK (3.87%), NGXGROUP (3.66%), FCMB (3.45%),
SEPLAT (3.45%), FBNH (2.59%), UACN (2.22%), TRANSCORP (2.08%), UCAP (2.06%),
UBA (1.90%) and WAPCO (1.84%) amongst others.

NASD Market
The NASD market closed Negative after today’s trading activities as the Unlisted
Securities Index (USI) decreased by 0.58% to close at 732.15. Consequently, Market
Capitalization closed at 604.88 billion. Market activity measured by aggregate
volume decreased by 88.51% while value decreased by 67.71%. Investors traded a
total of 396,727 units of shares valued at N23.13 million in 8 deals.

please find here our Daily Financial Market update for today, December 10, 2021

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09 Dec

Daily Financial Markets Report for December 09, 2021

NGX All Share Index closes on a Negative note… ASI loses 177 Basis Point

The Nigerian Exchange Limited Bourse closed Negative. The benchmark All Share
Index (ASI) depreciated by 1.77% to close at 41,685.22. Market Capitalization
decreased by 391.32 billion to close at N21.75 trillion while the Year-to-Date (YtD)
returns settled at 3.51%.
What shaped today’s market direction?
Today’s market direction can be largely attributed to losses recorded in large and
mid-cap stocks in Banking, Industrial and Consumer Goods. Some of today’s market
losers include: UACN (-10.00%), DANGCEM (-10.00%), MAYBAKER (-6.46%),
SOVRENINS (-4.35%), UNITYBNK (-4.17%), NAHCO (-2.86%), CADBURY (-2.70%),
NGXGROUP (-2.67%), UBA (-0.63%), UCAP (-0.51%) and DANGSUGAR (-0.31%)
amongst others.

NASD Market
The NASD market closed Positive after today’s trading activities as the Unlisted
Securities Index (USI) increased by 0.90% to close at 736.41. Consequently, Market
Capitalization closed at 608.41 billion. Market activity measured by aggregate
volume increased by 84.81% while value increased by 88.55%. Investors traded a
total of 3,452,748 units of shares valued at N71.62 million in 9 deals

please find here our Daily Financial Market update for today, December 9, 2021

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08 Dec

Daily Financial Markets Report for December 08, 2021

NGX All Share Index closes on a Positive note… ASI gains 99 Basis Point

The Nigerian Exchange Limited Bourse closed Positive. The benchmark All Share
Index (ASI) appreciated by 0.99% to close at 42,435.16. Market Capitalization
increased by 217.19 billion to close at N22.14 trillion while the Year-to-Date (YtD)
returns settled at 5.37%.
What shaped today’s market direction?
Today’s market direction can be largely attributed to gains recorded in large and
mid-cap stocks in Banking, Industrial and Consumer Goods. Some of today’s market
gainers include: MEYER (7.69%), DANGSUGAR (6.67%), HONYFLOUR (6.51%), UBA
(5.30%), JAIZBANK (4.69%), MTNN (4.49%), ETI (4.29%), ACCESS (3.45%), SEPLAT
(2.46%), WAPCO (2.14%), STERLNBANK (2.05%), OANDO (0.67%) and GTCO (0.62%)
amongst others.

NASD Market
The NASD market closed Negative after today’s trading activities as the Unlisted
Securities Index (USI) decreased by 0.25% to close at 729.82. Consequently, Market
Capitalization closed at 602.96 billion. Market activity measured by aggregate
volume increased by 168.87% while value increased by 72.45%. Investors traded a
total of 1,868,246 units of shares valued at N37.99 million in 14 deals.

please find here our Daily Financial Market update for today,December 8, 2021

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07 Dec

Daily Financial Markets Report for December 07, 2021

NGX All Share Index closes on a Flat note… ASI gains 2 Basis Point

The Nigerian Exchange Limited Bourse closed Flat. The benchmark All Share Index
(ASI) appreciated by 0.02% to close at 42,018.92. Market Capitalization increased by
5.38 billion to close at N21.93 trillion while the Year-to-Date (YtD) returns settled at
4.34%.
What shaped today’s market direction?
Today’s market direction can be largely attributed to gains recorded in large and
mid-cap stocks in Banking, Industrial and Consumer Goods. Some of today’s market
gainers include: ABBEYDS (9.47%), MEYER (8.33%), NEM (7.56%), ROYALEX
(6.90%), WAPCO (5.41%), ZENITHBANK (2.13%), ETI (1.88%), FIDELITYBK (1.69%),
GTCO (0.84%), UBA (0.67%), GUINNESS (0.55%) and VITAFOAM (0.25%) amongst
others.

NASD Market
The NASD market closed Negative after today’s trading activities as the Unlisted
Securities Index (USI) decreased by 1.85% to close at 731.62. Consequently, Market
Capitalization closed at 604.45 billion. Market activity measured by aggregate
volume increased by 337.65% while value increased by 2,085.15%. Investors traded
a total of 694,849 units of shares valued at N22.03 million in 16 deals

please find here our Daily Financial Market update for today,December 7, 2021

By All Research, Daily Financial Market Report Comments Off
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