daily retail report 04052015
TRANSCRIPT
Retail views
UBA Q4 results
Nigeria
Wednesday, 29 April 2015
Daily Retail Report .
Market Review
The NSE witnessed a reversal of recent upward trend as the
benchmark index lost 17bps to close at 34,649.28bps. Profit taking
activities led to the southward move of all sectorial indices with the
industial sector leading the pack as it recorded 101bps loss led by
Dangcem (-2.44%) and CCNN (-0.09%).
ASI year-to-date return currently stands at -0.02%. Among the
broad indices, Value of transactions appreciated by 71% compared
to previous session as market capitalization depreciates by
N16billion to return 11.767trillion. Top in the positive territory are
VITAFOAM (N5.32), REDSTAREX (N4.15) and UPL (N5.07) while
UNITYBK (N3.52), MANSARD (N2.85) and TRANSEXPR (N1.16) led
the negative territory.
In the trader’s opinion, investors are advised to take up buying opportunities in the face of reduced prices
Sector Report Today(%) Month-To-Date(%) Year-To-Date(%)
NSE30 0.27 11.45 66.39
NSE BNK10 0.69 9.51 113.21
NSE CNSM10 0.43 11.96 54.52
NSE OILG5 0.68 5.26 103.46
NSE INS10 -1.44 0.46 4.90
NSE IND -1.01 13.11 4.11
Market Wrap
ASI -0.17% 34,649.28
Index year-to-date -0.02%
Market Cap. N11.767Tril
Traded value 6.416Bn
Key gainers (%)
HONYFLOUR 10.14
OKOMUOIL 4.05
OANDO 3.89
FIDELITY 3.76
AIICO 2.94
Key losers (%)
UACN -4.74
STERLNBANK -4.80
DANGFLOUR -4.91
FBNH -3.06
DANGCEM -2.44
NITTY
1M 5.1463
2M 11.4935
3M 11.5652
6M 13.1870
9M 13.9646
12M 14.8799
Crude oil spot price
Brent crude US$66.33
Contact information
Phone: 01-2713923; 01-2713920
Mobile: 08068015502
Email: [email protected]
Open Account: Click here to register
Daily Retail Report
Page 2
Retail views
Top Highlight
Power
Household survey re-emphasises the need for improvement in electricity supply
NOI Polls, Nigeria’s leading opinion polls agency, recently published results from its recent survey on power supply titled: 27-month average
nationwide power supply tracking. The opinion poll was conducted between January 2013 and March 2015. 27,000 Nigerians across the six geo-
political zones were surveyed by telephone interviews. 63% of the respondents stated that they had not experienced an improvement in power
supply in the 27-month period while 37% indicated that power supply had improved.
Survey results from the last four quarters showed that self-generation (using alternative sources) is over twice as expensive as paying for electricity
from the national grid (see table above). This is consistent with recent data from McKinsey&Company which suggests that electricity provided by
diesel generators in Sub-Saharan Africa could be three to six times as costly as supply from the grid.
Nigeria’s power supply has hovered around 3,500-4,000 megawatts (MW) in recent months, just a little more than one quarter of the national average demand, estimated at 12,800 MW (see CSL Nigeria Daily, 9 March 2015). This is forcing many households and businesses to rely heavily
on petrol and diesel powered generators.
Fixing Nigeria’s erratic electricity supply has been identified as an area to prioritise for the incoming All Progressives Congress-led government.
Today’s news headlines
Shareholders call for reduction in 75% CRR on Public Sector funds: Some shareholders of banks last week called on the Central Bank of
Nigeria (CBN) to review the 75% Cash Reserve Requirement (CRR) imposed on public sector funds in banks, saying it is negatively affecting the
bottom line of banks. The CBN had raised the CRR on public sector funds from 50% to 75% at the beginning of 2014. Source: thisdaylive.com
Dangote Cement spends N217bn (US$1.1bn) in Pan-African expansion: Dangote Cement Plc has invested N217 bn on its expansion programme
across African countries during the 2014 financial year. The countries are Nigeria, Senegal, Cameroun, Congo, Ghana, Cote d'Iviore, Sierra Leone,
South Africa, Ethiopia, Tanzania and Zambia. In his report to the shareholders at the sixth annual general meeting in Lagos on Wednesday,
Chairman of Dangote Cement, Alhaji Aliko Dangote said 2014 was the year in which the company achieved significant progress in it's goal to
become a truly pan-African manufacture and distributor of cement. Source: thisdaylive.com
APC governors meet Buhari on ministerial nominees Tuesday: Governors of the All Progressives Congress are meeting with the President-elect,
Muhammadu Buhari, in Abuja on Tuesday. The meeting would be the first to be attended by the governors jointly since the conduct of the March
28 presidential election which Buhari won. One of the governors, who spoke on the condition of anonymity with our correspondent in Abuja on
Sunday, said that the meeting would also be attended by all the APC governors-elect. Source: punchng.com
PwC reputation at risk after NNPC audit controversy: PricewaterhouseCoopers (PwC), one of the leading global networks of ‘big four’ audit and
assurance firms faces grave reputational risk as Nigerians clinically scrutinise the report it submitted in the middle of the 2015 presidential
election campaigns. Reliable sources told BusinessDay that one or two other firms rejected the audit job, given the very delicate balancing act they
faced between pleasing the Federal Government and looking out for public interest. Source: businessdayonline.com
Daily Retail Report
Page 3
Retail views
Important Risk Warnings and Disclaimers CSL STOCKBROKERS LIMITED (CSLS) is regulated and authorized by the Securities and Exchange Commission (SEC) of Nigeria and the Nigerian Stock Exchange (NSE). The details of the authorization can be viewed at the SEC Website at http://www.sec.gov.ng/consolidated-list-of-capital-market-operators.html and at the NSE Website at http://www.nse.com.ng/Regulation/ForBrokers/Pages/Dealing-Members.asp. RELIANCE ON THIS NOTE FOR THE PURPOSE OF ENGAGING IN ANY INVESTMENT ACTIVITY MAY EXPOSE YOU TO A SIGNIFICANT RISK OF LOSS. By receiving this document, you will not be deemed a client or provided with the protections afforded to clients of CSLS. When distributing this document, CSLS or any member of the First City Group is not acting for any recipient of this document and will not be responsible for providing advice to any recipient in relation to this document. Accordingly, CSLS will not be responsible to any recipient for providing the protections afforded to its clients. If you are in the UK, the protections of the Financial Services and Markets Act 2000 (FSMA) or Financial Conduct Authority (FCA) do not apply to any investment activity engaged in as a result of this communication; and any resulting transaction would not fall within the jurisdiction of any FSMA or FCA dispute resolution or compensation scheme. By accepting this document you confirm that you are so aware of the above stated. If you do not accept the above stated and/or if the distribution of this document is otherwise unlawful where you are, you are required to return the document immediately to CSLS. This document is not an offer to buy or sell or to solicit an offer to buy or sell any security. This document does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The appropriateness of a particular investment will depend on an investor’s individual circumstances and objectives. The investments and shares referred to in this document may not be suitable for all investors. CSLS is a member of the FCMB Group Plc (“the Group”), a group of companies which includes First City Monument Bank Ltd., FCMB Capital Markets Ltd, First City Asset Management and FCMB UK. Either CSLS or any other member of the Group may effect transactions in shares mentioned herein, may take proprietary trading positions in those shares, and may receive remuneration for the publication of its research and for other services. Accordingly, this document may not be considered as objective or impartial. Additionally, information may be available to CSLS or the Group, which is not reflected in this material. Further information on CSLS’ policy regarding potential conflicts of interest in the context of investment research and CSLS’ policy on disclosure and conflicts in general are available on request. This document is based on information obtained from sources it believes are reliable but which it has not independently verified. Neither CSLS nor its advisors, directors or employees make any guarantee, representation or warranty as to its accuracy, reasonableness or completeness and neither CSLS nor its advisors, directors or employees accepts any responsibility or liability whatsoever (in negligence or otherwise) for any loss howsoever arising from any use of this document or its contents or otherwise arising in connection with this document. The opinions contained in this document are subject to change without notice and not to be relied upon and should not be used in substitution for the exercise of independent judgment. Past performance is not a guarantee of future performance. Investments may go down in value as well as up and you may not get back the full amount invested. Where an investment is denominated in a currency other than the local currency of the recipient of the research report, changes in the exchange rates may have an adverse effect on the value, price or income of that investment. In case of investments for which there is no recognized market it may be difficult for investors to sell their investments or to obtain reliable information about its value or the extent of the risk to which it is exposed.
The information contained in this document is confidential and is solely for use of those persons to whom it is addressed and may not be reproduced, further distributed to any other person or published, in whole or in part, for any purpose.
© CSLS 2013. All rights reserved CSL STOCKBROKERS LIMITED Member of the Nigerian Stock Exchange First City Plaza, 44 Marina, PO Box 9117, Lagos State, NIGERIA