Daily Equities Market update. Is sandbagging over?

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1 Daily Equities Market update Is sandbagging over? April 11, 2019

2 Headline FBNH announces it closed period, and Board meeting to consider Q results NEWREST reiterates it notification on voluntary delisting from the Exchange JBERGER to hold its Board Audit Committee meeting on April 25th, 2019 Union Bank to hold its 50 th AGM on 7 th of May, 2019 CONOIL notifies the Exchange on late filing its FY 2018 financial statements. Market Summary/e The Nigerian Capital market extended further in the bullish territory today as investors took to bargain-hunting in most depressed counters with sound fundamentals. Money Market Rates Rate(%) %Δ Overnight rate Open Buy Daily Commodity Price Watch Previous Current Daily (%) Brent($/PB) Gold Silver Platinum Copper Meanwhile, we have earlier noted that the market is trading against a number of positive drivers such as monetary policy pro-growth signal and the adjustment to federal government domestic and foreign debt structure so as not to crowd out the private sector and wane their ability to access funds for investment which might have also increased the NPLs of the DMBs. In addition, expected tepid global growth on the back of elevated risk of trade frictions and geopolitical tension among EMs and some advanced economies portend upside for the Nigeria economy coupled with accretion in oil prices and foreign reserves. As such, we expect portfolio investors to begin to take opportunity of low prices in the equities market thereby sustaining the bourse in the bullish territory going forward. Having said that, the quest to take position in counters trading below their potentials was evident in substantial uptick in the prices of GLAXOSMITH, NEM, CHIPLC, CAVERTON, GUARANTY, FIDELITYBK and STANBIC from the previous losses recorded.

3 In the same manner, ACCESS, UBA, FCMB, FBNH and UCAP remained in the bullish market upon intensified buying interest in these stocks. On the contrary, CUTIX and IKEJAHOTEL were depressed as investors continued to reneged their position while negative sentiments weighed on ETERNA and ZENITHBANK, thereby ending in the red territory from previous capital gains recorded. We observed that NSE index volatility has not dissipated, but it upside fluctuation is uptrend-supportive. Meanwhile, the index went up by 0.50% to end the trading session at 29, while the equities market cap. added N57.92billion to the gain recorded yesterday to end at N11.02trillion. Today s activities were less than the previous performance, evident upon % and % decline in the total volume and value of stocks traded to million and N2.01billion respectively, just as the deals executed also shed % to finish at 3,127. Review of Sectoral Performance Most sectors ended in the bullish market save for -0.06% decline in Consumer goods sector to end at , owing to capital loss recorded in FLOURMILL -2.35%. On the advanced sectors, Insurance sector topped the chart as it rose 1.92% upon gains in NIGERINS 10.0%, NEM 10.0% and VERITASKAP 5.0%. Banking sector also went up 1.05% as a result of positive interest in FIDELITYBK 8.70%, FBNH 6.12%, FCMB 3.19%, ACCESS 2.56% and UBA 2.38%. Industrial goods index finished 0.82% higher to 1,142.58, following price appreciation in WAPCO 3.9% while ETERNA ended as lone loser in oil and gas sector by -8.05%. 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 29, 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 positive at 2.14x Investors sentiment surged today as 15 counters recorded appreciation while 7 counters finished in the red territory. We believe the market will continue to enjoy more upsides in near term going forward with declines as outliers. 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.