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10 Sep

Daily Financial Market Report for September 10, 2020

Dear Client/Reader,

Bulls Regain Dominance on Local Bourse…ASI Gains 38 Basis Points

The Nigerian Stock Exchange (NSE) closed positive as bulls dominated proceedings in the market today. The benchmark All Share Index (ASI) appreciated by 0.38% to close at 25,520.97. Market Capitalization gained N50.12 billion to close at N13.31 trillion while the Year-to-Date (YtD) returns settled at -4.92%.

Sectors performance broadly bullish

Performance across sectors was broadly bullish as two sectors closed in the red zone. Banking, Consumer Goods and Industrial indices advanced by 2.28%, 0.08% and 0.02% respectively, on the back of buy interest recorded in the shares of Access (3.85%) and Zenithbank (3.35%); NB (0.12%); Wapco (0.41%). Conversely, Insurance and Oil and Gas indices declined by 1.66% and 1.28% respectively, on the back of selloffs recorded in the shares of Custodian (-3.03%) and Mansard (-1.64%); Seplat (-2.50%).

NASD Market

The NASD market closed bearish after today’s trading activities as the Unlisted Securities Index (USI) declined by 104 basis points to close at 714.44. Consequently, Market Capitalization also decreased by 1.04% to close at N524.81 billion. Market activity measured by aggregate volume increased by 8.87% while value declined by 48.42%. Investors traded a total of 132,000 units of shares valued at N1.83 million in 3 deals. One security traded on the NASD platform today and it was: CSCS Plc.

Please find attached our Daily Financial Market update for today, September 10, 2020.

Thank you.

Click here for the daily financial market report.

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09 Sep

Daily Financial Market Report for September 09, 2020

Dear Client/Reader,

Equity Market Closes Negative…ASI Loses 28 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 0.28% to close at 25,424.91. Market Capitalization shed N37.77 billion to close at N13.26 trillion while the Year-to-Date (YtD) returns settled at -5.28%.

Sectors performance significantly bearish

Performance across sectors was significantly bearish as one sector closed in the green zone. Banking and Insurance declined by 1.54% and 0.39% respectively, on the back of sell pressure recorded in the shares of UBA (-3.17%) and Access (-2.99%); Mbenefit (-4.76%) and Wapic (-2.94%). Similarly, Consumer Goods and Oil and Gas declined by 0.19% and 0.11% respectively, on the back of selloffs recorded in the shares of Honyflour (-4.26%); Oando (-1.30%). Conversely, Industrial index advanced by 0.05% on the back of gains recorded in the shares of Wapco (0.83%).

NASD Market

The NASD market closed bullish after today’s trading activities as the Unlisted Securities Index (USI) advanced by 19 basis points to close at 721.93. Consequently, Market Capitalization also increased by 0.19% to close at N530.31 billion. Market activity measured by aggregate volume decreased by 49.41% while value declined by 9.45%. Investors traded a total of 121,250 units of shares valued at N3.55 million in 10 deals. Seven securities traded on the NASD platform today and they are: CSCS Plc, WAMCO Plc, Food Concept Plc, Firsttrust Mortgage Bank Plc, Mixta Real Estate Plc, UBN Properties Plc and Resourcery Plc.

Please find attached our Daily Financial Market update for today, September 09, 2020.

Thank you.

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08 Sep

Daily Financial Market Report for September 08, 2020

Dear Client/Reader,

Bears Gain Momentum on Local Bourse…ASI Loses 33 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 0.33% to close at 25,497.32. Market Capitalization shed N44.30 billion to close at N13.30 trillion while the Year-to-Date (YtD) returns settled at -5.01%.

Sectors performance significantly bullish

Performance across sectors was significantly bullish as one sector closed in the red zone. Consumer Goods and Insurance indices advanced by 0.43% and 0.26% respectively, on the back of gains recorded in the shares of Honyflour (4.44%) and NB (2.50%); Wapic (3.03%). Similarly, Oil and Gas and Industrial indices advanced by 0.19% and 0.01% respectively, on the back of buy interest recorded in the shares of CAP (2.65%). Conversely, Banking index declined by 3.42% on the back of losses recorded in the shares of Guaranty (-6.18%) and Zenithbank (-2.31%).

NASD Market

The NASD market closed bearish after today’s trading activities as the Unlisted Securities Index (USI) declined by 69 basis points to close at 720.54. Consequently, Market Capitalization also declined by 0.68% to close at N529.29 billion. Market activity measured by aggregate volume increased by 478.97% while value declined by 65.69%. Investors traded a total of 239,660 units of shares valued at N3.91 million in 18 deals. Four securities traded on the NASD platform today and they are: CSCS Plc, NDEP Plc, WAMCO Plc and NIPCO Plc.

Please find attached our Daily Financial Market update for today, September 08, 2020.

Thank you.

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07 Sep

Daily Financial Market Report for September 07, 2020

Dear Client/Reader,

Bears Claw Back on Local Bourse…ASI Loses 9 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 0.09% to close at 25,582.23. Market Capitalization shed N12.22 billion to close at N13.35 trillion while the Year-to-Date (YtD) returns settled at -4.69%.

Sectors performance broadly bullish

Performance across sectors was broadly bullish as two sectors closed in the red zone. Insurance, Oil and Gas and Industrial indices advanced by 0.69%, 0.19% and 0.03% respectively, on the back of buy interest recorded in the shares of NEM (8.70%) and Custodian (2.11%); Eterna (9.13%) and Oando (2.22%); Wapco (0.42%). Conversely, Banking and Consumer Goods indices declined by 0.70% and 0.36% respectively, on the back of selloffs recorded in the shares of Guaranty (-2.45%) and UBA (-2.33%); Dangsugar (-3.60%) and Guinness (-0.35%).

NASD Market

The NASD market closed bullish after today’s trading activities as the Unlisted Securities Index (USI) advanced by 158 basis points to close at 725.51. Consequently, Market Capitalization also increased by 1.58% to close at N532.94 billion. Market activity measured by aggregate volume increased by 830.20% while value advanced by 872.29%. Investors traded a total of 41,394 units of shares valued at N11.41 million in 6 deals. Three securities traded on the NASD platform today and they are: WAMCO Plc, Afriland Properties Plc and NDEP Plc.

Please find attached our Daily Financial Market update for today, September 07, 2020.

Thank you.

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07 Sep

Weekly Market Review & Stock Recommendations – September 07, 2020

Dear Client/Reader,

Global Economic Roundup

Oil Under Pressure as Bearish News Mounts   

·         Crude oil futures are trading lower on Friday, with prices headed for their biggest weekly decline since June, amid weak demand and ample fuel supplies.

Payrolls rises by nearly 1.4 mn as unemployment rate tumbles

·         Nonfarm payrolls increased by 1.37 million in August and the unemployment rate tumbled to 8.4% as the U.S. economy continued to climb its way out of the pandemic downturn.

Domestic Economic Roundup

Nigeria records N1.8tn trade balance deficit – NBS

·         Nigeria recorded a trade balance deficit of N1.8tn at the end of the second quarter.

Economic activities rebounded in August, says report

·         The recovery in the Nigerian private sector gathered momentum in August as demand improved following the easing of restrictions related to the coronavirus disease.

Equities Market

The Nigerian Stock Exchange closed bullish last week as the ASI advanced by 1.17% week-on-week to close at 25,605.64 points.

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

STANBIC – Stanbic Plc HY’2020 showed an increase in bottom-line result as profit for the period grew by 24.72%. Interest income declined by 9.30% from N60.78 bn in HY’2019 to N55.13 bn in the current period. Net interest income went down by 4.48% from N39.31 bn in HY’2019 to N37.55 bn in HY’2020. Profit before tax advanced by 17.37% from N44.65 bn in HY’2019 to N52.41 bn in the current period. The increase in profit before tax is attributable to a 94.63% increase in trading income, and supported by declines in key expenditure line items, such as; the fees and commission expense and operating expense, which both went down by 5.41% and 3.06%, respectively. Profit after tax went up by 24.72% from N36.25 bn in HY’2019 to N45.20 bn in the current period, due to a 14.31% decline in income tax expense. Consequently, Stanbic recorded a 22.51% increase in earnings per share from N3.42 in HY’2019 to N4.19 in HY’2020. The company proposed an interim dividend of N0.40. Stanbic has BVPS of N32.03, P/BV of 1.19x and P/E ratio of 4.53x. Stanbic is expected to contribute to a forecasted financial industry growth of 20.50%, by leveraging their diversified business structure to hedge against losses specific to a certain business area. Just like other banks that maintain a hold-co. structure, the company would compensate for any decline recorded in their interest income from their other revenue streams, just as we witnessed in their half year results. Accordingly, we expect their PAT by year’s end to reach N82 billion, taking the EPS above N7.      

DANGCEM – Dangote Cement Plc. results for HY’2020 showed that revenue increased by 1.95% from N467.73 billion in HY’2019 to N476.85 billion in HY’2020. Gross profit dipped marginally by 0.05% from N274.56 billion in HY’2019 to N274.43 billion in HY’2020, due to a 4.79% increase in cost of sales. Operating profit advanced from N170.50 billion in HY’2019 to N173.48 billion in HY’2020, reflecting a growth of 1.75%. The growth recorded in operating profit can be attributed to a 123.13% increase and 3.32% decline, recorded in other income and selling and distribution expenses, respectively. Profit before tax also rose by 4.74% from N155.49 billion in HY’2019 to N162.85 billion in HY’2020, due to a 121.77% increase in finance income. Profit after tax advanced by 5.79% from N119.24 billion in HY’2019 to N126.14 billion in HY’2020. Consequently, EPS grew by 6.28% to N7.45 in HY’2020 from N7.01 in HY’2019. Dangcem has a BVPS of N43.39, P/BV of 3.09x and P/E ratio of 8.99x. While Dangote operates in the construction sector for which we maintain a negative growth outlook, the company however is well insulated from the existing recessionary drivers that are expected to blight the industry. During the lockdown Dangote was able to continue operations in their single largest cement production plant in Obajana, Kogi, and was also able to sustain their distribution channels. Furthermore, to compensate for an expected decline in demand, cement producers have implemented an organized increase in their cement prices. Hence, we expect the 2020 PAT to increase marginally to N206 billion, while the EPS should move to N12.

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

Thank you.

Click here for the full report.

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