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09 Jun

Daily Financial Market Report for June 9 , 2021

Equities market closes on a Positive note …ASI gains 74 Basis Point

The Nigerian Stock Exchange (NSE) closed positive as bulls dominated proceedings in the market today. The benchmark All Share Index (ASI) appreciated by 0.74% to
close at 39,170.95. Similarly, Market Capitalization increased by 150.76 billion to
close at N20.42 trillion while the Year-to-Date (YtD) returns settled at -2.73%.

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, Agriculture and Consumer goods sector. Some of today’s
market gainers include: OKOMUOIL (9.75%), UBN (9.43%), HONYFLOUR (8.62%),
NASCON (7.41%), WAPCO (4.22%), UCAP (3.33%), FLOURMILL (2.74%),
TRANSCORP (2.30%), DANGCEM (2.22%), GUARANTY (1.76%), STANBIC (1.09%),
FIDELITY (0.89%), VITAFOAM (0.87%) and ZENITH (0.22%) amongst others.

Sectors performance was Broadly Bullish

Performance across sectors was broadly bullish as 5 out of 5 sectors closed in the
green zone. Industrial, Consumer Goods, Banking, Insurance and Oil & Gas Indices
advanced by 1.33%, 0.28%, 1.25%, 0.37% and 0.03% respectively.
Market activity measured by aggregate volume decreased by 16.93% while value
increased by 148.95%. Investors traded a total of 181 million units of shares valued
atN3.96 billion in 3,217 deals.
Market breadth measured by Advancers/Decliners was positive as it closed at 4.17x
indicating a bullish mood. At the close of trading : OKOMUOIL (9.75%), UBN
(9.43%), HONYFLOUR (8.62%), NASCON (7.41%), WAPCO (4.22%), UCAP (3.33%),
FLOURMILL (2.74%), TRANSCORP (2.30%), DANGCEM (2.22%), GUARANTY (1.76%), STANBIC (1.09%), FIDELITY (0.89%), VITAFOAM (0.87%) and ZENITH (0.22%) were the amongst 25 market gainers, while SOVRENINS (-3.57%), JAIZBANK (-3.39%), FCMB (-1.59%), FBNH (-1.37%), MANSARD (-1.19) and NB (-0.08%) were the 6 market laggards. 65 stock prices remained unchanged.
The Banking sector emerged as the most active sector. Equities of Zenith, Sterling
and Guaranty were the most active in the subsector as 83 million units of shares
worth N1.08 Billion were traded in 2,240 transactions. Zenith, Sterling and Guaranty
accounted for 66% of the total volume traded in the subsector.
Other Financial Institutions came second ahead of Insurance. Equities of FBNH and
UCAP were the most active in the subsector as 29 million units of shares worth N169
million were traded in 994 transactions. Trading in the Equities of FBNH and UCAP
accounted for 63% of the total volume traded in the subsector.

NASD Market

The NASD market closed negative after today’s trading activities as the Unlisted
Securities Index (USI) decreased by 1.82% to close at 754.98. Consequently, Market
Capitalization also closed at N536.65 billion. Market activity measured by aggregate
volume decreased by 57.93% while value decreased by 55.35%. Investors traded a
total of 2,564,200 units of shares valued at N62 million in 21 deals.

Please find here our Daily Financial Market update for today, June 9, 2021

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25 May

Daily Financial Market Report for May 25, 2021

Equities market closes on a Negative note…ASI Loses 8 Basis Point

The Nigerian Stock Exchange (NSE) closed negative as bears dominated proceedings in the market today. The benchmark All Share Index (ASI) depreciated by 0.08% to close at 38,256.76. Similarly, Market Capitalization decreased by 16 billion to close at N19.99 trillion while the Year-to-Date (YtD) returns settled at -5.00%.

Sectors performance was Broadly Bearish

Performance across sectors was broadlybearish as 2 out of 5 sectors closed in the red zone. Banking and Insurance indices declined by 0.47% and 1.61% respectively, on the back of sell pressures recorded in the shares of AIICO (-4.96%), CHAMS (-4.76%), MANSARD (-4.44%), JAIZBANK (-1.72%), LIVESTOCK (-1.64%), FBNH (-1.38%), UAC-PROP (-1.32%), GUARANTY (-1.21%),  STERLING (-0.59%) and GUINNESS (-0.17%) amongst others. While Consumer goods and Industrial Indices advanced by 0.02% and 0.01% respectively, on the back of buy interests in the shares of VITAFOAM (2.78%), HONYFLOUR (2.63%), UACN (2.31%) and UNILEVER (1.23%). Oil and gas index remained unchanged.

NASD Market

The NASD market closed negative after today’s trading activities as the Unlisted Securities Index (USI) decreased by 0.07% to close at 765.20. Consequently, Market Capitalization also closed negative at N543.91 billion. Market activity measured by aggregate volume decreased by 63.09% while value decreased by 31.86%. Investors traded a total of  2,839,639 units of shares valued at N127.499 million in 39 deals.

Please find here our Daily Financial Market update for today, May 25th, 2021

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24 May

Daily Financial Market Report for May 24, 2021

Equities market closes on a Positive note…ASI Gains 5 Basis Point

The Nigerian Stock Exchange (NSE) closed positive as bears dominated proceedings in the market today. The benchmark All Share Index (ASI) appreciated by 0.05% to close at 38,341.66. Similarly, Market Capitalization increased by 10 billion to close at N19.99 trillion while the Year-to-Date (YtD) returns settled at -4.79%..

Sectors performance was Broadly Bearish

Performance across sectors was broadlybearish as 3 out of 5 sectors closed in the red zone. Banking, Consumer goods and Insurance indices declined by 0.68%, 0.10% and 0.75% respectively, on the back of sell pressures recorded in the shares of ENAMELWA (-9.75%), UAC-PROP (-8.43%), JAIZBANK (-6.45%), MBENEFIT (-4.55%), WEMA (-3.33%), ETERNA (-2.50%), ETI (-1.89%), ACCESS (-1.82%), UBA (-1.38%) and GUARANTY (-0.85%) amongst others. While Oil and gas and Industrial Indices advanced by 0.21% and 0.09% respectively, on the back of buy interests in the shares of OANDO (3.45%), WAPCO (1.49%) and MTNN (0.31%).

NASD Market

The NASD market closed negative after today’s trading activities as the Unlisted Securities Index (USI) decreased by 0.99% to close at 765.76. Consequently, Market Capitalization also closed negative at N544.31 billion. Market activity measured by aggregate volume increased by 154.63% while value decreased by 157.41%. Investors traded a total of  7,693,337 units of shares valued at N187.09 million in 37 deals.

Please find here our Daily Financial Market update for today, May 24th, 2021

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24 May

Weekly Market Review & Stock Recommendations – May 24, 2021

Dear Client/Reader,

Global Economic Roundup

Crude oil jumps on weather concerns in Gulf of Mexico•Oil prices jumped 2% on Friday after three days of losses, driven higher as a storm formed in the Gulf of Mexico, but were on track for a weekly fall as investors braced for the return of Iranian crude supplies after officials said Iran and world powers made progress a nuclear deal.

US open: Stocks trade higher as tech stocks attempt rebound

• Wall Street stocks traded higher amid a rebound in tech shares.

The Dow Jones Industrial Average was up 0.27% at 33,986.80, while the S&P 500 was 0.62% firmer at 4,141.30 and the Nasdaq Composite came out the gate 1.20% stronger at 13,458.99.

GDP: Agriculture sector grows by 2.28% in Q1 2021

•Nigeria’s agricultural sector grew by 2.28% in real terms in Q1 2021 compared to a growth of 3.42% in Q4 2020 and 2.20% in Q1 2020.

This was disclosed in the Q1 2021 GDP report, released by the National Bureau of Statistics (NBS) on Sunday. Real GDP grew 0.51% in Q1 2021 compared to 0.11% in Q4 2020.

Equities Market

The Nigerian Bourse closed bearish last week as the ASI declined by 2.93% week-on-week to close at 38,324.07 points. Year-to-date returns closed at -4.83% at the end of the week.

Some of our recommended stocks are mentioned below;

GUARANTY BANK PLC :

GTB holds a well structured and appropriately positioned balance sheet which has assisted in delivering reasonable and sustainable returns, despite the macroeconomic uncertainties that persist in the business environment. Guaranty is expected to benefit from the move to holdco structure by tier 1 banks to improve their revenue sources. The Bank has clearly distinguished itself in the Nigerian financial services industry through superior service quality, unique customer experience and sound financial indices.

The Q1’2021 result of GTB Plc showed that;

  • Interest income declined by 26.85% from N75.36 bn in Q1’2020 to N55.13bn in the current period. 
  • Net interest income went down by 18.43% from N64.28bn in Q1’2020 to N52.44 bn in Q1’2021
  • Profit before tax declined by 7.77% from N58.21bn in Q1’2020 to N53.68bn in the current period.         
  • Profit after tax went down by 9.03% from N50.07 bn in Q1’2020 to N45.55bn in the current period.
  • Earnings per share from N1.77 in Q1’2020 to N1.60 in Q1’2021.               
  • GTB has a BVPS of N24.50, a P/BV of 1.18x and a P/E ratio of 18.13x.

DANGOTE SUGAR PLC :

Dangote Sugar’s revenue drew strength from the performance of its flagship brand, the 50kg sugar, which accounted for N206.444 billion or at least 96 per cent of its share of the sugar market. We see their revenue from the retail and industrial sale of sugar increase significantly through out the year, hence supporting a bottom-line growth. 

The Q1′ 2021 result of Dangote Sugar Plc result showed that:

  • Revenue grew by 41.46% from N47.63 bn in Q1’2020 to N67.39 bn in Q1’2021.        
  • Gross profit increased by 41.82% to N18.04 bn in Q1’2021 from N12.72 bn in Q1’2020. 
  • Profit from operations advanced by 47.72% from N10.75 bn in Q1’2020 to N15.88 bn in Q1’2021. 
  • Profit before tax grew by 25.66% to N9.51bn in Q1’2021 from N11.95 bn in Q1’2020. 
  • Profit after tax grew by 30.30% from N6.37 bn in Q1’2020 to N8.30 bn in Q1’2021, despite a 16.24% increase in income tax expenses.          
  • Earnings per share rose by 28.30%, from N0.53 in Q1’2020 to N0.68 in Q1’2021. 
  • Dangote Sugar has a BVPS of N10.95, P/BV of 1.55x and P/E ratio of 25.00x.

Please find here our Weekly Market Review & Recommendations update for today, May 24th, 2021

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22 May

Daily Financial Market Report for May 21, 2021

Equities market closes on a Flat note…ASI Loses 1 Basis Point

The Nigerian Stock Exchange (NSE) closed flat as bears dominated proceedings in the market today. The benchmark All Share Index (ASI) depreciated by 0.01% to close at 38,324.07. Similarly, Market Capitalization decreased by 2 billion to close at N19.95 trillion while the Year-to-Date (YtD) returns settled at -4.83%.

Sectors performance was Broadly Bearish

Performance across sectors was broadlybearish as 3 out of 5 sectors closed in the red zone. Banking, Oil and gas and Industrial indices declined by 0.25%, 0.26% and 0.09% respectively, on the back of sell pressures recorded in the shares of CHAMS (-9.09%), JBERGER (-9.05%), OANDO (-3.33%), PZ (-1.85%), FIDELITY (-1.72%), AIICO (-1.55%), GUARANTY (-0.85%), ACCESS (-0.60%), UCAP (-0.33%) and BUACEMENT (-0.20%) amongst others. While Consumer goods and Insurance Indices advanced by 0.04% and 1.19% respectively, on the back of buy interests in the shares of WAPIC (8.00%), MBENEFIT (4.76%), TRANSCORP (2.66%), MANSARD (1.12%) and DANGSUGAR (0.58%).

NASD Market

The NASD market closed positive after today’s trading activities as the Unlisted Securities Index (USI) increased by 1.25% to close at 773.99. Consequently, Market Capitalization also closed positive at N549.74 billion. Market activity measured by aggregate volume decreased by 19.46% while value decreased by 10.83%. Investors traded a total of  3,021,423 units of shares valued at N72.68 million in 38 deals. 

Please find here our Daily Financial Market update for today, May 21st, 2021

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