The equity market today

NSE… In the absence of active buying activity, the Nigerian Equity market tanked further at today’s session. Heavy throbbing in large caps: FBNH(-3.73%), Guinness(-1.73%), GTB(-1.73%) and Nig.Brew.(-0.83%) pushed the benchmark index further southward. Most sectoral indices on the exchange reeled under pressure with the Insurance counters leading the pack. NSEIND and NSEOILG were the only sub-indices that closed in the green, on the backdrop of Wapco(+4.13%) and ForteOil(+1.90%) NSEASI lost 0.25% to close at 30,436.18bps. In the broad market, decliners thumped advancers 32 to 14 leaving 68 issues unchanged. Market activity level depreciated today; trades valued at N4.21bn represents 4.05% decrease from the last session. Top worst performers were Pharmadeko(N2.14), Livestock(N1.76), and Portpaint(N3.96) while Transexpr(N1.10), 7-Up(N190.00), and CCNN(N9.14) led the gainers’ list. Buying opportunities abound in highly capitalized stocks; buy into penny stocks with strong fundamentals and you may consider stocks trading below its 52yr lows NASD… The Equities market recorded a negative trend as all the stocks traded southwards thereby losing N2bn in market capitalization to close at N541bn as against N543.82bn recorded yesterday. 17deals was executed today, amongst which 14deals recorded negative price changes and 3 remaining unchanged to offer an activity level of 19,885,431units in total volumes of stocks and N78,310,932.48 in value traded.   NDEP Plc led the losers pack to record a price difference of -N4.01 to close at N149.99, Friesland Campina WAMCO Plc followed by losing -N1.10k to close at N298.90k, Partnership Plc  lost -0.15k, while Trustbond  Plc and CSCS Plc  both lost -0.07k and -0.01k. For the unchanged prices; Cappa & Dalberto Plc, Food Concepts Plc, and IGI Plc closed at N79.00, 0.85k, and 0.50k respectively. As for volumes; CSCS Plc traded 13,051,931units, Partnership Investment Plc traded 6,821,000units to record the highest volumes traded for the day. Clearly we still maintain a neutral stand even as we expect more long term bargain hunting trades from investors. For more information on the market report click here.

Equities Market Summary

Detailed below is the equities market summary:

INDEX:                                   31,091.69pts    

NET CHANGE %:               -0.40%

NET CHANGE VALUE:     -125.03

VALUE:                                  N1.788bn ($9.080mn)

Comment:

·         NSE 30  -0.47%; NSE50 -0.45%; NSE BNK -0.38%;  NSE CNSM - 1.02%

·         NSE IND -0.04%; NSE INS  0.24%; NSE LOTUS -0.22%;  NSE OILGS -1.03%

·         Key Drivers of NSE BNK: FCMB; FBNH; FIDELITYBK; ZENITHBANK & ETI

·         Key Drivers of NSE CNSM: NASCON; PZ;FLOURMILL; DANGFLOUR & NB

·         Key Drivers  of NSE IND:   CAP

·         Key Drivers of NSE INS: MANSARD & NEM

·         Key Drivers  of OILGAS: FO & OANDO

·         19 stocks advanced 30 declined and 58 remained unchanged.

·         The highest value of trades were in GUARANTY; NB; ZENITHBANK; DANGCEM & ETI

OTC offers available to be traded on the NASDOTC platform

Please find below available in the Nigerian market:

Kindly contact us if you are interested in these shares.

Please note that the offer is available in the market and it’s on first come first served basis

NASD OTC Market gains at today’s trading session.....

The Equities market opened this week on a bullish note as the market capitalization gained N97.1m to close at N540bn in 5 deals.

Activity levels today recorded an increase in total volumes of stocks and value traded; the figures recorded were 348,546units and N97,132,425.40 respectively.

5 deals were consummated in total with Friesland Campina WAMCO Plc. leading the pack to gain N18.75k(+6.49%) in 4 deals with a total of  347,834 units sold, and CSCS Plc. recording only a(1) deal leaving its share price unchanged at N6.00 trading only 712units.

Food Concept Plc, Cappa and D'Alberto and NDEP maintained their previous trading price of 0.85k, N80.00 and N190.00 respectively.

We anticipate further that the market will be more attractive for investors even as the bargain hunting still remains with investors.

For enquiries, please contact:

E – cslservice@fcmb.com; cslrmt@fcmb.com

T - 01-2641295 

M- 08055250071

CSL PZ Cussons Nigeria Full Report 16 July 2015

PZ Cussons (PZ) is dealing with the consumer slowdown better than its peers, we believe. The reasons are its broad range of Home and Personal Care (HPC) products, which are both branded and in the value range, its exposure to the still-growing electrical appliances market, and its careful balance sheet management.

·         PZ has high market share in dishwashing liquids (c.62% market share according to Euromonitor) and in soap (c.30% market share).

·         In contrast with some listed peers, PZ has avoided financial leverage, and has generally avoided high dividend pay-outs. We forecast net cash at 9% of equity in 2015e.

·         Naira devaluation negatively impacts the consumer and we reduce our sales forecasts for PZ by 9-10% for the forecast period 2015e-2019e, though we note that our 2018e-2019e forecasts remain well ahead of consensus estimates.

·         We lower our EBIT and PBT forecasts for the period 2015e-2019e, and lower our Net Profits forecasts by 44%-59% in the period 2015e -2019e.

·         However, we believe that PZ is unusual among Nigerian HPC companies in being able to grow its sales, albeit slowly, despite consumer weakness. We forecast sales growth in every year 2015e-2019e.

·         While mass-market HPC sales are soft, we observe that sales of electrical appliances (Haier Thermocool) to upper middle class customers remain strong.

·         We reduce our valuation of PZ from N34.6/s and set a new price target of N29.7/s. We value PZ by combining a discounted cash flow model with a relative valuation of spot multiples in a ratio of 60:40. We retain our Hold recommendation on the stock.

NASD REPORT

NASD OTC Market Cap changes direction Up North.....

The Equities market traded bullish today as most of the stocks gave in to buy-pressure from investors. Consequently, the Market Cap gained N14bn to close at N536bn in 9 deals.

While today's activity levels logged a significant fall in the total volume of stocks and value traded; the figures recorded were 9,800 units and N1,150,434.00 respectively.

Out of the 9 deals consummated, ARM Properties led the losers table loosing (-3.87%) 0.12k to close at N2.98 while Resourcery Plc. lost (-1.89%) N0.01k to close at N0.52k.

Friesland Campina WAMCO which traded in a single deal also led the gainers table gaining (+4.91%) N14.00 to close at N285.00.

CSCS Plc, Food Concept Plc, Cappa and D'Alberto maintained their previous trading price of N6.00, 0.85k and N80.00 respectively.

Clearly, momentum remains even as we reiterate that much of this impact will likely be transient, as long term fundamentals for Nigerian equities remain strong -- a scenario we believe favors long term equity play.  

For enquiries, please contact:

E – cslservice@fcmb.com; cslrmt@fcmb.com

T - 01-2641295 

M- 08055250071

Golden Capital PLC Rights Issues

Dear Valued Client,

Golden Capital Plc. has announced its intention to raise N374.5 million through Rights issues of ordinary shares under the following terms:

Issue Price:                            N0.50k per share

Offer Ratio:                           Sixteen (16) new Ordinary Share for every twenty five (25) ordinary shares held by its existing shareholders as at March 31^st, 2015.

  

Closure Date:                        August 05, 2015

While the offer lasts, CSLS Customer Service is pleased to assist by:

·         Subscribing for and/or sell all or part of your rights.

·         The retrieval  of your Rights form(s) from the Registrars

  

Kindly send a mail of interest (or) further information to;

C/O Osamuede Fadaka

CSL Stockbrokers Ltd,

3^rd floor Primrose Towers,

17a Tinubu Street, Lagos.

  

Or

cslservice@fcmb.com or osamuede.fadaka@fcmb.com

Telephone: 01-2641295 

Thank you.

Market Report

Market Review- NSE

Witnessing further downtrend, the benchmark index lost 0.32% to return 31,628.85bps. Sub-sectors monitored by the exchange showed mixed performance; NSEIND and NSEINS added gains on the back of heavyweight Dangcem(+1.01%) and Mansard (1.82%) while NSEBNK, NSEOILGS and NSECNSM closed in negative territory on the backdrop of UBN(-4.94%), Nascon(-1.97%) and Oando(-4.90%)

Market capitalization closed at N10.801Tril as ASI year-to-date stands at -8.74%. Among the broader indices volume depreciated by 44% while value appreciated by 39% relative to previous figures as 264million units of shares valued at N5.466bn exchanged hands. Top in the gainers territory are UNITYBNK (N2.46), LIVESTOCK (N2.11) and CAVERTON (N3.55) while TRANSEXPR (N1.28) AGLEVENT (N1.33) FLOURMILL (N30.69) led the losers’ territory.

UBA Capital Plc. has released its H2 2015 financial report for the period ended 30th June 2015. Revenue (N2.750Bn) and PAT (1.408bn) appreciated by 22% and 13% respectively from prior period

Market prices remain very attractive for investors with long term outlook.

Market Review- NASD

NASD - OTC Market reacts negatively today.....

Recent negative sentiments seen in equities market generally rubbed off on the NASD OTC as its market capitalization lost N27bn to close at approximately N544bn with feeble gains only seen in speculative counters.

However; from today's activity levels, there were a total of 4 deals which indicated significant drop to the number of deals achieved on the previous trading day.

The total volume of stocks and value traded was 163,750 units and N157,750 respectively. On the 4 deals consummated, 3 was on CSCS Plc while the remaining one was on IGI Plc. CSCS Plc which opened at N6.00  lost 0.50kobo to close at N5.50k serving as the only loser in the losers table while IGI maintained its previous trade price of 16k.

From all market indications, we anticipate a wait and see scenario from many investors, with meaningful clarity likely to hinge on a firm direction as per FX and the macro landscape. For long term play however, we believe the market is near ripe for bargain hunting, with the Q2 earnings season.

For more information on the market report, and price list, send an email to cslservice@fcmb.com

NIGERIA | OIL&GAS | SEPLAT - Eyes on Afren

·         Seplat has announced the release of US$368m in escrow cash. This is part of a total amount due of US$453m, which was allocated for an underlying acquisitions earmarked in Q1 2015.

·         Investors may have thought that given the escrow nature attached to these funds, there was never any doubt that they would be repaid. We were aware of a timing issue related to exactly when the funds would be remitted.

·         We have therefore added back N134/share (43p/share) in value from the US$368m remitted, which increases our target price from N457/share to N749/share, and maintain our Buy recommendation.

·         We know that Seplat previously unsuccessfully bid for Afren (Sell, TP 0, price 1.9p), and so, given the timing of the proposed recapitalisation vote due on 24 July, a full takeover could still be possible if a ‘No’ vote is successful.

·         In our previous note dated 9 January ‘Bargain Hunting in the Delta’ we examined the logic of any merger/acquisition between the two companies. We concluded that it could create the largest indigenous E&P in Nigeria, doubling Seplat’s 2P reserves, and trebling 2P and 2C reserves/resources, with the potential to achieve 200kboepd in production by 2018/19. Any acquisition of Afren would be a transformation in our view for Seplat, and could provide a significant catalyst to its shares given the discounted price which they could achieve now.

NASD market report

The NASD- OTC market had a bullish run today even though weak sentiments trailing the most active stock intensified.

The market capitalization gained N11bn to settle at N559bn. A total of 8 deals was done with Friesland Campina WAMCO having 5 of the total deals consummated for the day. Transactions on Friesland Campina WAMCO went as low as N285 relative to the previous opening at N305 to N450 as the high for the day.

There were two negotiated cross deals of the 8 deals done by CSL stockbrokers at N420 and N450 respectively.

CSCS Plc was traded in one(1) deal today but it maintained its price at N5.50, while other deals were on Trustbond Mortgage Bank and Resourcery Plc.