All Research

13 Aug

Daily Financial Market Report for August 13, 2020

Dear Client/Reader,

Bulls Maintain Dominance on Local Bourse…ASI Posts 0.38% Gain

The Nigerian Stock Exchange (NSE) sustained its uptrend as bulls dominated proceedings in the market today. The benchmark All Share Index (ASI) appreciated by 0.38% to close at 25,236.97. Market Capitalization gained N49.88 billion to close at N13.17 trillion while the Year-to-Date (YtD) returns settled at -5.98%.

Sectors performance significantly bullish

Performance across sectors was significantly bullish as one sector closed in the red zone. Insurance and Consumer Goods indices advanced by 2.16% and 1.46% respectively, on the back of gains recorded in the shares of Mansard (9.66%) and Chiplc 8.82%); NB (5.88%) and Flourmill (2.32%). Similarly, Oil and Gas and Banking indices increased by 0.31% and 0.03% respectively, each, on the back of buy interest recorded in the shares of Oando (3.336%); Fidelitybk (3.28%) and Access (1.56%). Conversely, Industrial index declined by 0.12% on the back of losses recorded in the shares of Wapco (-0.42%) and Buacement (-0.26%).

NASD Market

The NASD market closed flat after today’s trading activities as the Unlisted Securities Index (USI) settled at 713.39. Consequently, Market Capitalization remained unchanged as it closed at N524.04 billion. Market activity measured by aggregate volume increased by 418.65% while value advanced by 100.15%. Investors traded a total of 514,675 units of shares valued at N18.62 million in 6 deals. Two securities traded on the NASD platform today and they are: CSCS Plc and VFD Group Plc.

Please find attached our Daily Financial Market update for today, August 13, 2020.

Thank you.

Click here for the daily financial market report.

By All Research, Daily Financial Market Report Comments Off
Read more...
12 Aug

Daily Financial Market Report for August 12, 2020

Dear Client/Reader,

Equity Halts Downtrend of Two Consecutive Days…ASI Posts 1.04% Gain

The Nigerian Stock Exchange (NSE) rebounds as the bulls resurfaced in the market today. The benchmark All Share Index (ASI) appreciated by 1.04% to close at 25,141.48. Market Capitalization gained N134.47 billion to close at N13.12 trillion while the Year-to-Date (YtD) returns settled at -6.34%.

Sectors performance broadly bullish

Performance across sectors was broadly bullish as two sectors closed in the red zone. Oil and Gas, Insurance and Consumer Goods indices advanced by 5.24%, 0.64% and 0.19% respectively, on the back of buy interest recorded in the shares of Seplat (10.00%) and Total (1.14%); Prestige (8.89%) and Aiico (6.67%); Cadbury (9.93%) and Guinness (6.21%). Conversely, Banking and Industrial indices declined by 0.36% and 0.26% respectively, on the back of selloffs recorded in the shares of Access (-2.29%) and Zenithbank (-0.59%); Buacement (-0.64%) and Wapco (-0.42%).

NASD Market

The NASD market closed bullish after today’s trading activities as the Unlisted Securities Index (USI) advanced by 34 basis points to close at 713.39. Consequently, Market Capitalization also increased by 0.34% to close at N524.04 billion. Market activity measured by aggregate volume increased by 65.60% while value declined by 33.54%. Investors traded a total of 88,485 units of shares valued at N9.30 million in 6 deals. Three securities traded on the NASD platform today and they are: CSCS Plc, NDEP Plc and Mixta Real Estate Plc.

Please find attached our Daily Financial Market update for today, August 12, 2020.

Thank you.

Click here for the daily financial market report.

By All Research, Daily Financial Market Report Comments Off
Read more...
11 Aug

Daily Financial Market Report for August 11, 2020

Dear Client/Reader,

Bears Sustain Hold on Local Bourse…ASI Loses 58 Basis Points

The Nigerian Stock Exchange (NSE) retracts as the bears sustained dominance in the market today. The benchmark All Share Index (ASI) waned by 0.58% to close at 24,883.70. Market Capitalization shed N75.07 billion to close at N12.98 trillion while the Year-to-Date (YtD) returns settled at -7.30%.

Sectors performance broadly bullish

Performance across sectors was broadly bullish as two sectors closed in the red zone. Consumer Goods, Banking and Oil and Gas indices advanced by 0.93%, 0.52% and 0.26% respectively, on the back of buy interest recorded in the shares of Cadbury (6.82%) and NB (6.25%); UBA (0.78%) and Zenithbank (0.30%); Ardova (4.94%). Conversely, Insurance and Industrial indices declined by 2.48% and 2.16% respectively, on the back of selloffs recorded in the shares of Prestige (-10.00%) and Chiplc (-9.76%); Dangcem (-4.09%) and Wapco (-0.42%).

NASD Market

The NASD market closed bullish after today’s trading activities as the Unlisted Securities Index (USI) advanced by 70 basis points to close at 711.00. Consequently, Market Capitalization also increased by 0.70% to close at N522.28 billion. Market activity measured by aggregate volume decreased by 63.53% while value advanced by 186.12%. Investors traded a total of 53,432 units of shares valued at N13.99 million in 5 deals. Three securities traded on the NASD platform today and they are: NDEP Plc, WAMCO Plc and Mixta Real Estate Plc.

Please find attached our Daily Financial Market update for today, August 11, 2020.

Thank you.

Click here for the daily financial market report.

By All Research, Daily Financial Market Report Comments Off
Read more...
10 Aug

Daily Financial Market Report for August 10, 2020

Dear Client/Reader,

Bears Claw Back on Local Bourse…ASI Dips Marginally by 6 Basis Points

The Nigerian Stock Exchange (NSE) retracts as the bears resurfaced in the market today. The benchmark All Share Index (ASI) waned by 0.06% to close at 25,027.61. Market Capitalization shed N7.45 billion to close at N13.06 trillion while the Year-to-Date (YtD) returns settled at -6.76%.

Sectors performance broadly bullish

Performance across sectors was broadly bullish as two sectors closed in the red zone. Insurance, Consumer Goods and Oil and Gas indices advanced by 0.96%, 0.33% and 0.08% respectively, on the back of buy interest recorded in the shares of Cornerst (9.09%) and Sunuassur (5.00%); Guinness (6.38%); Oando (0.85%). Conversely, Industrial and Banking indices declined by 0.41% and 0.04% respectively, on the back of selloffs recorded in the shares of Buacement (-1.39%); UBA (-1.53%) and Zenithbank (-0.59%).

NASD Market

The NASD market closed flat after today’s trading activities as the Unlisted Securities Index (USI) settled at 706.07. Consequently, Market Capitalization remained unchanged as it closed at N518.65 billion. Market activity measured by aggregate volume increased by 16.09% while value advanced by 100.19%. Investors traded a total of 146,490 units of shares valued at N4.89 million in 16 deals. Five securities traded on the NASD platform today and they include: Firsttrust Mortgage Bank Plc, CSCS Plc, NDEP Plc, WAMCO Plc and Afriland Properties.

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

Thank you.

Click here for the daily financial market report.

By All Research, Daily Financial Market Report Comments Off
Read more...
10 Aug

Weekly Market Review & Stock Recommendations – August 10, 2020

Dear Client/Reader,

Global Economic Roundup

IMF: Global Oil Demand Will Shrink By 8% In 2020  

·         The coronavirus crisis will lead to global oil demand dropping by around 8 percent this year compared to last year, the International Monetary Fund (IMF) said in a new report.

July U.S. employment growth slows sharply

·         U.S. employment growth slowed considerably in July amid a resurgence in new COVID-19 infections, offering the clearest evidence yet that the economy’s recovery from the recession caused by the pandemic was faltering.

Domestic Economic Roundup

Petrol: Ex-depot price rises by N6, consumers to pay more

·         The Petroleum Products Pricing Regulatory Agency on Tuesday increased the ex-depot price of petrol by N6 to N138.62/litre for the month of August 2020.

CBN to unify exchange rates, pegs naira at 379/$

·         The Central Bank of Nigeria on Saturday officially changed the exchange rate of the naira to the dollar from N361 to N379 on its website.

Equities Market

The Nigerian Stock Exchange closed bullish last week as the ASI advanced by 1.41% week-on-week to close at 25,041.89 points.

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

DANGSUGAR– Dangote Sugar Plc. HY’2020 results showed that revenue grew by 28.46% from N80.36 bn in HY’2019 to N103.23 bn in HY’2020. However, gross profit went down by 1.38% to N20.82 bn in HY’2020 from N21.12 bn in HY’2019. The decline in gross profit was driven by a 39.09% hike in cost of sales. Profit from operations advanced by 0.68% from N17.28 bn in HY’2019 to N17.40 bn in HY’2020, due to a 434.33% increase in other income and a 15.93% decline in selling and distribution expenses. Profit before tax inched up marginally by 0.07% to N17.05 bn in HY’2020 from N17.03 bn in HY’2019. Profit after tax grew by 5.51% from N10.98 bn in HY’2019 to N11.58 bn in HY’2020, on the back of a 9.79% decline in income tax expenses. Consequently, earnings per share rose by 5.43%, from N0.92 in HY’2019 to N0.97 in HY’2020. Dangote Sugar has a BVPS of N9.98, P/BV of 1.19x and P/E ratio of 6.13x. Dangote Sugar has managed to shield itself from the slowdown witnessed in the consumer goods industry, owing to the increased sale of sugar and related products before and even during the lockdown. We saw their revenue from the retail and industrial sale of sugar increase by 30 percent and 69 percent, respectively in the first half of the year, hence supporting a bottom-line growth. While the manufacturing industry in general is projected to contract by 5.10 percent, it has been observed that the demand for sugar has remained high, hence, allowing Dangote Sugar grow their revenue by maneuvering around the distribution limitations during the lockdown. Hence, we expect their 2020 PAT to move past N23.00 billion, taking the EPS above N2.00.

UCAP – United Capital’s result for HY’2020 showed that gross earnings increased by 37.26% from N3.24 bn in HY’2019 to N4.45 bn in HY’2020. Net operating income rose by 45.40% from N2.82 bn in HY’2019 to N4.10 bn in HY’2020, due to a 347.65%, 85.03% and 77.15% increase in net interest margin, net trading income and fees and commission income, respectively. Profit before tax rose by 14.10% from N1.99 bn in HY’2019 to N2.27 bn in the current period, despite the surge in key expenditure line items, such as the personnel expenses which rose by 7.86%, and the other operating expense which increased by 87.73%.  Profit after tax increased by 15.98% to N1.91 bn in the current period from N1.65 bn in HY’2019. Consequently, Earnings per share went up by 14.29% from N0.28 in HY’2019 to N0.32 in the current period. UCAP has a BVPS of N3.02, P/BV of 1.00x and P/E ratio of 4.73x. The financial services sector is projected to grow by 8.50 percent this year, supported by the performance of highly digitized firms such as United Capital. The company has been able to digitize their products, with various online and mobile platforms for service delivery. This in turn serves them, as the Covid induced restrictions on movement has minimally disrupted some aspects of their business. Hence, we should see the PAT climb above N5.4 billion, while the EPS is projected above N0.90.

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

Thank you.

Click here for the full report.

By All Research, Weekly Report and Stock Recommendation Comments Off
Read more...
Scroll Up