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10 Dec

Daily Financial Market Report for December 10, 2018

Dear Client/Reader,

Nigerian Stock Market Opens The Week Bearish; ASI Down By 0.82%

The Nigerian equities market (NSE) opened the week on a negative note to continue downtrend. The bench mark – All Share Index (ASI) declined by 0.82% and close at 30,614.73 points. Market Capitalization shed N92 billion to close at N11.18 trillion while the Year-to-Date (YtD) returns weakened to -19.95%.   

Sectors performance was significantly bearish

Performance across sectors was significantly bearish as all sectors closed in red. The Consumer goods and Oil & gas indices recorded the largest losses as they depreciated by 2.32% and 1.19% respectively due to losses in Nestle (-4.13%) and NB (-2.50%); 11 Plc (-8.47%) and Oando (-2.91%). In the same vein, the Insurance, Banking and Industrial indices also declined by 0.74%, 0.39% and 0.25% respectively arising from sell offs in Aiico (-4.29%) and Prestige (-4.08%) Zenith (-2.12%) and Guaranty (-0.43%); Wapco (-1.60%).

Market activity measured by aggregate volume declined by 8% while value advanced by 7%. Investors traded a total of 165 million units of shares valued at ₦1.67 billion in 3,193 deals. 

NASD Market

The NASD market closed flat after today’s trading activities as the Unlisted Securities Index (USI) remained unchanged at 703.90 points. Market capitalization also remained at N489.22 billion. Market activity measured by aggregate volume declined by 99% while value decreased by 87%. Investors traded a total of 2,836 unit of shares valued at N460,240 in 3 deals. Wamco Plc is the only security that traded today. 

Please find attached our daily market report for today, December 10, 2018.

 

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10 Dec

Weekly Report and Stock Recommendation – December 10, 2018

Dear Client/Reader,

Global Economy

  • OPEC finally broke an impasse over production curbs, agreeing on a larger-than-expected cut with allies after two days of fractious negotiations in Vienna. The cartel and its partners agreed to remove 1.2 million barrels a day from the market, with OPEC itself shouldering 800,000 barrels of the burden
  • Euro zone manufacturing activity expanded at its weakest rate in over two years in November as new orders contracted for a second month, further evidence the bloc’s economic growth is past its peak while Policymakers at the European Central Bank are due to draw a line under their 2.6 trillion euro asset purchase programme at the end of the year.
  • Uncertainty about the terms of Brexit next March clobbered British services firms last month, leaving the economy at risk of contracting as the IHS Markit/CIPS UK Services Purchasing Managers’ Index (PMI) fell to 50.4 from 52.2 in October, the weakest reading since just after the 2016 Brexit vote and below all forecasts
  • Japanese manufacturing activity expanded at the slowest pace in two years in November and new orders contracted for the first time since September 2016, a preliminary survey showed, raising doubt about growth prospects for the current quarter.

U.S. – The U.S. trade deficit jumped to a 10-year high in October as soybean exports dropped further and imports of consumer goods rose to a record high, suggesting the Trump administration’s tariff-related measures to shrink the trade gap likely have been ineffective.

Equities Market- The Nigerian equities market again depreciated slightly at the end of the week, as the ASI decreased by 0.02% w/w to close at 30,866.82 points, while the year-to-date returns settled at -19.29%.     

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

TOTAL – The topline result of Total Plc. 9M’18 showed a slight movement of 2.58% in revenue that increased to N226.9bn from N221.2bn that was recorded in 9M’2017. The cost of sales for the period also reduced by 1.34% (YoY) from N198.6bn to N196bn. The marginal increase of 2.58% in Revenue and decline of 1.34% recorded in cost of sales pushed gross profit up by 37% from N22.6bn to N31bn.The firm reported a decline of 69% in other income resulting from foreign exchange loss of about N902 mn as against N2.6bn recorded in 9M’17. However, Profit before tax increased by 18.2% from N9.7bn in 9M’17 to N11.4bn while Profit after tax for the period also grew by 29% to N7.7bn as against N6bn recorded a year ago. Eps currently stands at N22.58 up by 29% from N17.54 while the company declared a dividend of N3 per share. We expect performance to be stable for the remaining part of the year especially with the stability in crude oil prices. With an estimated fair value of N240.84 , we place a “BUY” recommendation on the shares of Total Nig Plc.

UBA – UBA 9M-18 result indicated a 13% growth in Interest income that increased from N238 billion to N269 billion. Net impairment loss reduced by 13% from N13bn in 9M-17 to N10.7 billion for the current period while Fees and commission for the period appreciated by 20% from N58 billion to N69 billion in 9M’2018. Profit for the period however increased slightly by 1.28% from the N60.9billion previously recorded to N61.7 billion in the current period. The slight increase in net profit can be attributed to the 20% rise in fees and commission expenses as well as the 17% decline in impairment charges. EPS however declined faintly by 1% as it currently stands at N1.72 as against 9M’2017 of N1.74. We still anticipate a modest performance from the firm for the remaining part of the year as reduction in impairment loss is expected to boost net profit. UBA has CAR of 23% which is well above the 15% level for tier 1 banks and it also has a good dividend payment history with a projected DPS of about N0.87 per share in FY 2018. The stock’s current price which is close to its 52 week low and also lower than our estimated intrinsic value of N10.64, we maintain our “BUY”.

Please find attached our Stock Recommendation for this week, ending 14th December, 2018.

Thank you.

Weekly Report and Stock Recommendation 10122018Download
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07 Dec

Daily Financial Market Report for December 07, 2018

Dear Client/Reader,

NSE Loses Marginally Week-on-Week Despite Closing Positive Today

The Nigerian equities market (NSE) rebounded to close the week in green as positive sentiments prevailed. The bench mark – All Share Index (ASI) appreciated by 0.15% to close at 30,866.82 points. Market Capitalization also improved by N17.4 billion to close at N11.27 trillion while the Year-to-Date (YtD) returns settled at -19.29%.   

Sectors performance was mixed

Performance across sectors was mixed as the Consumer goods and Insurance indices appreciated by 1.95% and 0.02% respectively due to gains in Dangsugar (2.70%) and Nestle (4.66%); Lasaco (7.41%). Conversely, the Banking and Industrial indices recorded losses as they declined by 0.47% and 0.35% respectively arising from sell offs in Guaranty (-0.29%) and UBA (-3.85%); Dangcem (-0.54%). The Oil & gas sector however closed flat.

Market activity measured by aggregate volume declined by 36% while value also decreased by 38%. Investors traded a total of 179 million units of shares valued at ₦1.56 billion in 2,631 deals. 

Market Synopsis for the week

Nigeria’s stock market recorded its fourth consecutive weekly loss though on a slight margin as negative sentiments controlled market activities. The nation’s bourse had a broadly bullish performance as it closed positive in three of the five trading sessions. However, losses recorded on the first and fourth trading day (-0.24% and -1.07% respectively) on the back of profit taking in some high cap stocks in the Industrial and banking sectors marginally outweighed the gains recorded in other trading days. Overall, the All Share Index (ASI) depreciated by 0.02% week-on-week, while the year-to-date returns dipped slightly to -19.29%.   


Please find attached our daily market report for today, December 07, 2018. 

 

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07 Dec

FGN SOVEREIGN SUKUK BOND OFFER

Dear Esteemed Client,

The Federal Government of Nigeria has begun the sale of its second tranche of the 7 year NGN100 billion Ijara (lease) sukuk bond due 2025 at an annual rental rate of 15.743%. Rentals will be paid in two equal instalments annually, while purchase price representing principal investment will be paid to investors at the end of the 7th year of the sukuk.

Sukuk is an investment certificate that represents ownership interest of the holder in an asset or pool of assets.

The Offer for Subscription opened on Thursday, December 06, 2018 and closes on Monday December 17, 2018. We highlight below the details of the FGN Sovereign Ijarah Sukuk that the DMO released to the public:

IssuerFGN Roads Sukuk Company on behalf of the Federal Government of Nigeria.
TrancheII
Programme SizeUp to NGN100 billion
Tenor7 Years
Rental rate15.743%
Use of proceedsConstruction and rehabilitation of key roads across the six geopolitical zones of the country.
Status1. Qualifies as securities in which trustees can investunder the Trustee Investment Act.2. Qualifies as Government securities within themeaning of Company Income Tax Act (“CITA”)and Personal Income Tax Act (“PITA”) for TaxExemption for Pension Funds, amongst otherinvestors.3. To be listed on The Nigerian Stock Exchange andFMDQ OTC Securities Exchange.4. Classified as Liquid Asset by the Central Bank ofNigeria.5. Certified by the Financial Regulatory AdvisoryCouncil of Experts (FRACE) of the Central Bank ofNigeria.
FormRegistered

To participate, kindly send an email instruction authorizing us to bid on your behalf by indicating the tenor and the amount, then credit our account with the required amount as the case may be.

Also submit the completed form to MBC Securities before the close of business on Monday December 17, 2018. 

Please see below our bank details.

GTBMBC SECURITIES LIMITED0012200376
FIRST BANK PLCMBC SECURITIES LIMITED2005543742
ECOBANK PLCMBC SECURITIES LIMITED2562036993
ZENITH BANKMBC SECURITIES LIMITED1011736779

 For further enquiries, kindly reach:

Obianuju Egwuatu- oegwuatu@mbcgroup.com.ng/08137475868

Yussuf Apena- yapena@mbcgroup.com.ng/08062070332  

Vivian Onije- vonije@mbcgroup.com.ng/08022307996  

Thank you. 

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06 Dec

Daily Financial Market Report for December 06, 2018

Dear Client/Reader, 

Nigerian Stock Market Wipes Previous Gains; Investors Lose N121 Bn.

The Nigerian equities market (NSE) reversed previous day’s gains as negative sentiments resumed to dominate trading activities. The bench mark – All Share Index (ASI) declined by 1.07% and close at 30,819.10 points. Market Capitalization lost N121 billion to close at N11.25 trillion while the Year-to-Date (YtD) returns weakened to -19.41%.

Sectors performance was broadly bearish

Performance across sectors was broadly bearish save for the Oil & gas and Insurance indices which appreciated by 0.52% and 0.25% respectively due to gains in Oando (4.04%); Custodian (3.03%) and Aiico (6.06%). On the flip side, the Industrial and Banking indices recorded the largest losses as they declined by 1.61% and 0.81% respectively arising from sell offs in Dangcem (-10.00%); Zenith (-1.47%) and Guaranty (-0.85%). Similarly, losses in Guinness (-1.02%) and Nestle (-0.34%) contracted the Consumer goods (-0.27%) sector.

Market activity measured by aggregate volume improved by 41% while value also advanced by 8%. Investors traded a total of 281 million units of shares valued at ₦2.49 billion in 3,030 deals.

NASD Market

The NASD market closed bearish after today’s trading activities as the Unlisted Securities Index (USI) depreciated by 0.72% to close at 708.05 points. Market capitalization also lost 72 basis points to settle at N492.11 billion. Market activity measured by aggregate volume declined by 99% while value decreased by 96%. Investors traded a total of 122,053 unit of shares valued at N17.46 million in 7 deals.

Please find attached our daily market report for today, December 06, 2018.

Daily Report for 06122018

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05 Dec

Daily Financial Market Report for December 05, 2018

Dear Client/Reader, 

Positive Sentiment On Dangcem Lifts The ASI By 47 Bps

The Nigerian equities market (NSE) again closed positive as the bulls maintained dominance. The bench mark – All Share Index (ASI) appreciated by 0.47% to close at 31,151.68 points. Market Capitalization also improved by N52.7 billion to close at N11.37 trillion while the Year-to-Date (YtD) returns settled at -18.54%.

Sectors performance was broadly bearish

Performance across sectors was broadly bearish except for the Industrial and Insurance indices which appreciated by 0.85% and 0.58% respectively due to gains in Dangcem (2.70%); Linkassure (8.93%) and Lasaco (7.41%). Conversely, the Banking and Oil & gas indices recorded the largest losses as they declined by 1.02% and 0.61% respectively arising from sell offs in Guaranty (-1.81%) and Zenith (-0.62%); Seplat (-2.46%). In the same vein, the Consumer goods sector also closed in red due to losses in Intbrew (-4.23%)  and Honyflour (-3.64%).

Market activity measured by aggregate volume improved faintly by 0.05% while value also increased by 9%. Investors traded a total of 199 million units of shares valued at ₦2.31 billion in 2,845 deals.

NASD Market

The NASD market rebounded to close bullish after today’s trading activities as positive sentiments prevailed. The Unlisted Securities Index (USI) appreciated by 2.70% to close at 713.17 points. Market capitalization also gained 2.70% to settle at N495.67 billion. Market activity measured by aggregate volume increased significantly by 20,807% while value also improved massively by 5,893%. Investors traded a total of 25.6 million units of shares valued at N489 million in 12 deals. Six securities traded which include; CSCS Plc, Wamco Plc, Food concepts, Afriland Properties , Niger Delta Exploration Plc and Trustbond mortgage bank.

Please find attached our daily market report for today, December 05, 2018.

Daily Report for 05122018

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