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Please find here our Stock Price list for today,  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

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

Dear Client/Reader,

Please find here our Stock Price list for today,  May 21, 2021.

Dear Client/Reader,

The National Bureau of Statistics just reported that the consumer price index, (CPI) which measures inflation decreased to 18.12% (year-on-year) in April 2021. This is 5 basis points lower than the rate recorded in March 2021 (18.17%).

The percentage change in the average composite CPI for the twelve months period ending April 2021 over the average of the CPI for the previous twelve months period was 15.04%, representing a 0.49 percentage point increase over 14.55% recorded in March 2021.

Food Index Declines to 22.72%

Food index declined to 22.72% in April 2021. The average annual rate of change of the Food sub-index for the twelve-month period ending April 2021 over the previous twelve-month average was 18.58 percent, 0.65 percent points from the average annual rate of change recorded in March 2021 (17.93%). 

This decline in the food index was caused by the decrease in prices of Coffee, tea and cocoa, Bread and cereals, Soft drinks, Milk, Cheese and eggs, Potatoes, Yam and other tubers, Meat, Vegetable, Fish and Oils and Fats. On a month-on-month basis, the food sub-index decreased to 0.99% in April 2021, down by 0.91 percent points from 1.90% recorded in March 2021.

Core Index stood at 12.74%

Price movements recorded by the Core index stood at 12.74% (year -on-year) in April 2021, up by 7 basis points as against 12.67% recorded in March 2021. The highest increases were recorded in prices of Furniture and Finishing, Garments, Shoes and Other footwears, Hospital services,  Pharmaceutical products, Vehicle spare parts, Dental Services, Motor cars, Non-durable household goods, Major household appliances whether electric or not,  Fuel and lubricants for personal transport equipment and Hairdressing saloons and personal grooming establishment.

Urban Index decreased to 18.68%

The Urban index decreased to 18.68% (year-on-year) in April 2021 compared to 18.76% recorded in March 2021, while the Rural index decreased to 17.57% (year -on-year) in April 2021 as against 17.60% in March 2021. On a month-on-month basis, the urban index declined to 0.99% in April 2021, down by 0.61 percent compared to the rate recorded in March 2021, while the rural index also declined to 0.95% in April 2021, down by 0.57 percent below the rate that was recorded in March 2021 (1.52%).