Daily Equities Market update

Transcription

1 Daily Equities Market update The bulls peep! NASDUSI makes a turn in the green 2.51% March 28, 2019

2 Headline GLAXOSMITH, PREMIERPAINTS and CHAMS release 2018 Audited financial statements today GLAXOSMITH proposes 50kobo dividend per ordinary share UAC appoints Mr Folasope Babasola as GMD/CEO of the company. Market Summary/e The Nigerian capital market closed slightly in the bullish territory as listed companies begin to awash the market with their FY 18 Audited Financial statements so as to prepared to release Q results in April On the qualitative(lead) indicator, Purchasing Managers index report from the CBN for March 2019 revealed that manufacturing and nonmanufacturing PMI remained on the expansion path (above 50-threeshold) at 57.4 and 58.5 relative to 57.1 and 58.4 it printed last month. Away from that to the second question of our analysis which began yesterday, the figure below depicts that Monetary Policy Rate(MPR) is positively correlated with the maximum lending rate. Thus, it implies that cost of credits(loans) should follow the cut in MPR thereby incentivizing investment and productivity in the real sector, as such spurring the equities market uptrends while the debt market becomes less attractive. However, the perennial risks and tailbacks of Nigeria business environment remain major downsides to the effectiveness of expansionary monetary policy to stimulating economic growth. Money Market Rates Rate(%) %Δ Overnight rate Open Buy Daily Commodity Price Watch Previous Current Daily (%) Brent($/PB) Gold Silver Platinum Copper NASD OTC Indicators PARAMETER Previous Current Daily (%) USI Capitalization ( 'Bn) Volume Traded Value Traded ( '000) Deals Executed Source: MorganCapital Research

3 As earlier noted, index ended marginally uptrends by 0.01% to 30,833.5 upon renewed buying interest in NASCON, PRESCO, GUARANTY, WEMABANK, WAPIC, UACN and FBNH while profits were taken in UBN, CADBURY, FIDELITYBK, ZENITHBANK and TRANSCORP depressed its prices from previous gains. Meaniwhile, sell pressure has continued to weigh on PZ, DANGFLOUR, CUSTODIAN and ACCESS. That said, equities market cap. gained N1.5billion to close the session at N11.59trillion. Consequent upon which the Relative Strength Index (RSI) inched up slightly to from while the Year-to-Date(YTD) return finished at -1.90%. The total volume of stocks traded today recorded an outlier as it advanced % to 1.9billion, following surge in the total activities on WEMABANK(1.7billion). Similarly, the value traded also rose 99.79% to finish at N2.8billion which were exchanged in 2,807 deals. Review of Sectoral Performance Save for the 0.36% appreciation in the Banking sector index due to positive sentiment around WEMABANK 9.59%, GUARANTY 2.5%, ETI 1.15%, UBA 0.65% and FBNH 0.62%, other sectors ended in the red territory. Industrial goods index bled the most as it shed -1.35% to finish upon selloffs in CCNN -5.0%. oil and gas, and insurance indexes also dipped -0.13% and -0.12% respectively on the back of price depreciation in OANDO -0.88%, SOVRENINS -9.09% and AIICO -5.33%. Furthermore, consumer goods index ended fractionally down as a result of losses recorded in PZ -5.0%, DANGFLOUR -4.55%, CADBURY -2.68% and NB -0.37%. Movement of NSEASI(Year-to-Date) Relative Strength Index(RSI) Source: MorganCapital Research

4 NSE Market Indices Return Open(points) Close(points) Daily(%) WtD(%) MtD(%) YTD(%) NSE All Share Index 30, , NSE Banking Sector Index NSE Industrial Goods Index 1, , NSE Consumer Goods Index NSE Oil & Gas Index NSE Insurance Index Source: NSE, MorganCapital Research Investors Sentiment: The Market breadth closed negative at 0.82x Investors sentiment continued in the deep as 14 counters finished in the bullish market while 17 ended in the red territory. We expect investors to focus more on the financial performances of counters of choice going forward. Source: MorganCapitalitrade

5 MorganCapital Securities Limited ("MorganCapital"), formerly known as International Capital Securities Limited, was incorporated on 28th January, 1997; and was issued a license as a Dealing Member of the NSE on 3rd October, 1997, after obtaining license of the Securities & Exchange Commission (SEC) as a Broker/Dealer. The Company has remained a dealing member firm of the NSE since then (over 17years ago). In 2009, MorganCapital got licensed by the SEC to perform an additional role as an Issuing House/Financial Adviser. MorganCapital was recently accredited by the Nigerian Stock Exchange as a Designated Adviser to the Alternative Securities Market (ASeM) Board, after a very rigorous and competitive process. MorganCapital is a full fledge Investment Banking, Securities Trading and Principal Investments Firm, with licenses from the Nigerian Securities & Exchange Commission and the Nigerian Stock Exchange. MorganCapital provides a comprehensive range of investment banking and financial advisory services to private, public sector, corporate, and institutional clients. Our firm has very strong contacts with many African-focused & emerging markets investors/fund managers. MorganCapital has advised on a number of transactions in the Nigerian Capital Markets, including provision of Financial Advisory Service to the Federal Government of Nigeria, through the Bureau of Public Enterprises ("BPE") for the concessioning of the National Arts Theater, the Tafawa Balewa Square, the Lagos Trade fair complex and the 6 National Stadia. MorganCapital also advised the BPE on the proposed sale of the Ijora Power Plant, the Calabar Power Plant and the Oji River coal-fired power plant. Our group is focused on providing unbiased financial advisory and investment banking services to individuals and institutions that are seeking to invest in Africa or already involved in investing in Africa. One of our goals is to be the BEST link to the Nigerian Capital Market. CONTACT US Research Omosuyi Temitope temitopeo@morgancapitalgroup.com Investment Banking Dipo Olomofe dipoo@morgancapitalgroup.com Adewale Adetiba adewalea@morgancapitalgroup.com Securities Dealing Esther Adelaja esthera@morgancapitalgroup.com Michael Joel michaelj@morgancapitalgroup.com For further information, please contact: MorganCapital Securities Limited The Pent House 3 Biaduo Street, Off Keffi Street S/West Ikoyi Lagos, Nigeria Tel: 234-(1) , 234-(1) info@morgancapitalgroup.com This report by MorganCapital Securities Ltd is for information purposes only. The company and its employees do not warrant the accuracy or completeness of the information provided as such information was gathered from primary and secondary reliable sources. Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of market trends, which are based on current market sentiment. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The views and strategies described may not be suitable for a ll investors. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, accounting, legal or tax advice. References to future returns are not promises or even estimates of actual returns a client portfolio may achieve. Any forecasts contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation. The price of equity securities may rise or fall because of changes in the broad market or changes in a company's financial condition, sometimes rapidly or unpredictably. We, therefore, do not take responsibility for any loss arising from the use of the information.