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Market Update for May 24, 2018 Nigeria’s equity market again tumbled on Thursday with higher losing momentum resulting in six consecutive trading sessions of pullback amidst a heightened sell off. This was despite the array of healthier company fundamentals and positive economic data that indicates the economy is still on course in its recovery drive, not minding that the Q1 GDP data released last week showing slower growth momentum represents a awake up call on the nation’s economic managers and policy makers to rethink and improve implementation strategies to give the economy more push and thereby sustain real sector expansion and drive growth. The new normal is the exit of emerging markets, Nigeria inclusive, by smart money in recent times, amidst the monetary policy balancing resulting in rising yield in the U.S, as well as factors like the unfolding political drama in South Africa, the Malaysian elections, Argentina’s emergency rate hikes and request for IMF assistance, a

The Central Bank of Nigeria (CBN), on Tuesday, May 22, 2018, resisted the temptation to cut the benchmark Monetary Policy Rate (MPR) as its Monetary Policy Committee (MPC) ended its second meeting for the year, insisting that the growth seen so far in the economy remains fragile in the midst of several compelling uncertainties. Instead, the committee urged the Federal Government to take advantage of the rising oil price at the international market as well as the stable production helped by peace in the nation’s Niger Delta region that has reduced oil infrastructure compromise and outright vandalism/still of crude, to safe for the rainy day. Specifically, members charged “the Federal Government to seize the opportunity to build fiscal buffers against future oil price shocks,” according to the communique, signed by Godwin Emefiele, CBN Governor. It would be recalled that the government during the administration of President Olusegun Obasanjo (1999 to 2017) put in place an Excess

Director of African Department at the International Monetary Fund (IMF), Abe Selassie, again reiterated the need for Nigeria and other African nations to tackle their mounting public debt. A tweet via the fund’s official handle quoted Selassie on Thursday as urging Sub-Saharan Africa’s policymakers to tackle public debt head-on, taking “full advantage of the current global economic upswing.” To achieve this, he said “policymakers must tackle public-debt vulnerabilities head-on while they can.” In a commentary a day earlier published by www.project-syndicate.org, Selassie warned that doing nothing is no option as it “will only constrain the region’s tremendous potential to achieve sustainable and inclusive growth.” The need for urgent action, is the pronounced rise in public debt, which at the end of 2017 averaged 57% of its GDP, representing a 20% increase in just five years. “While this is well below the peaks of the early 2000s, the current spike is concerning,” he added,

Market Update for May 21, 2018 Nigeria’s equity market on Monday had a mixed and weak session to remain in its volatile mood on three trading days of back-to-back losses as it heads for the recent 40,206.10 basis points strong support level. This has become the red line, because any breakdown of the at that point will confirm a full-blown bear market, irrespective of all the positive factors that ought to make the market blossom. These include good 2017 full-year and Q1 company earnings reports and economic data like inflation that continues southward. Only on Monday, the National Bureau of Statistics (NBS) released the Q1 GDP data showing that the nation’s economy recorded robust, even if less than anticipated growth (READ) all of which should have influenced the market positively and boost investor and public confidence. One factor that has been blamed for this by various analysts and which Investdata Research aligns with is the political risk surrounding Nigeria’s 2019 genera

NSEASI buy 2% sell 98% volume index 0.79 MFI 31.67 Access buy  volume index 0.98 MFI 54.14 Aiico buy  MFI 39.11 CIleasing buy 0% volume index 0.69 MFI 79.96 Dangote Cement buy  MFI 80.02 Dangote sugar buy 0% volume index 1.24 MFI 19.32 Diamond buy 0% volume index 0.85 MFI 31.00 Eterna buy 0% volume index 0.88 MFI 67.77 Fbnh buy 0% volume index 0.93 MFI 41.34 Fcmb buy  MFI 15.16 Fidelity buy 0% volume index 0.78 MFI 32.08 Fidson buy  volume index 20.32 MFI 7.44 Fmn buy 62% sell 38% MFI 16.76 Hony flour buy 0% volume index 1.47 MFI 25.08 Lasaco buy 0% MFI 83.31 Mobil buy 18% sell 82% volume index 2.39 MFI 4.59 Nestle buy  volume index 1.05 MFI 83.05 Transcorp buy 0% volume index 0.74 MFI 27.91 Uba buy 50% sell 50% MFI 45.33 Wema buy 0% volume index 1.08 MFI 19.87 Zenith buy 0% volume index 0.76 MFI 72.18

Market Update for May 22, 2018 The Nigerian stock market extended its string of losses into the fourth consecutive session on Tuesday, failing still to react positively to the nation’s 2018 Q1 GDP data which came in lower than expected with 1.95% growth, below previous quarter’s level, despite the rising oil price and stable output that continues to boost government revenue. Also, on Tuesday, the Central Bank of Nigeria’s Monetary Policy Committee (MPC) concluded its second two-day meeting for the year with absolute majority of members voting against the expectation of many analysts when they opted for rate retention. In doing so, the committee noted the fragility in growth, even as they specifically noted the need to manage capital flight risk and inflation concerns even when it had dropped for 15 straight months, warning that liquidity inflow ahead of the elections and likely implementation of 2018 budget in second half of the year could be harmful to its target of single dig

For the ninth consecutive time since July 2016, the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) on Tuesday rose from its second meeting of the year with a majority eight-to-one vote to keep Monetary Policy Rate (MPR) unchanged at 14%. Also, they voted to keep Cash Reserve Ratio (CRR) at 22.5%; Liquidity Ratio at 30%; and Asymmetric corridor at +200 and -500 basis points around the MPR. This was contrary to expectations among some analysts that the benchmark Monetary Policy Rate (MPR) would be cut to 12 or 13%, after the latest data by the National Bureau of Statistics (NBS), last week showed that inflation for the month of April fell to 12.48%, among others. In a communique at the end of the two-day MPC meeting, members while acknowledging arguments for a rate cut argued that economic growth recorded so far remains largely fragile and in need of further reforms and stimulus. Members noted, for example, the late passage of the budget by the National Assembly,

A corporate action is an event initiated by a public company that will bring an actual change to the securities issued by the company. Corporate actions are typically agreed upon by a company’s board of directors and authorized by the shareholders. It ranges from pressing financial matters, such as bankruptcy to a firm changing its name or trading symbol. Dividends, stock splits, mergers, acquisitions and spinoffs are all common examples of corporate actions. Corporate actions can be either mandatory or voluntary. Mandatory corporate actions are automatically applied to the investments involved such as stock splits, acquisitions and company name changes. Voluntary corporate actions require an investor’s response to be applied such as in tender offers, optional dividends and rights issues. Investdata Daily Sentiment Reports CRO| Investdata Consulting Ltd info@investdataonline.com info@investdata.com.ng ambrose.o@investdataonline.com ambrose.o@investdata.com.ng ambroseconsu

Market Update for May 21, 2018 Nigeria’s equity market on Monday had a mixed and weak session to remain in its volatile mood on three trading days of back-to-back losses as it heads for the recent 40,206.10 basis points strong support level. This has become the red line, because any breakdown of the at that point will confirm a full-blown bear market, irrespective of all the positive factors that ought to make the market blossom. These include good 2017 full-year and Q1 company earnings reports and economic data like inflation that continues southward. Only on Monday, the National Bureau of Statistics (NBS) released the Q1 GDP data showing that the nation’s economy recorded robust, even if less than anticipated growth (READ) all of which should have influenced the market positively and boost investor and public confidence. One factor that has been blamed for this by various analysts and which Investdata Research aligns with is the political risk surrounding Nigeria’s 2019 genera

NSEASI buy 45% sell 55% volume index 0.76 MFI 38.29 Access buy 0% volume index 0.68 MFI 51.77 Dangote flour buy 💯 MFI 23.31 Dangote sugar buy 💯 MFI 18.85 Diamond buy 💯 volume index 2.21 MFI 31.34 Fbnh buy 0% MFI 42.85 Fidelity buy 0% volume index 1.51 MFI 25.28 FO buy 💯 MFI 19.41 Lasaco buy 💯 MFI 85.96 Lvstk buy 💯 volume index 1.47 MFI 64.63 Transcorp buy 0% volume index 1.03 MFI 27.17 Uacn buy 💯 MFI 31.04 Uba buy 75% sell 25% MFI 56.52 Ubn buy 💯 MFI 81.18 Unilever buy 💯 volume index 1.47 MFI 60.13 Wema buy 50% sell 50% volume index 2.15 MFI 24.49 Zenith buy 💯 MFI 78.19

A proxy form is a form that shareholders receive with their invitations to attend an AGM and that they fill in,if they want to appoint a proxy to vote for them on a resolution. Shareholders who buy shares through broker-dealers do not vote directly with the corporations and thus do not always need to sign physical proxy forms. Broker-dealers act as a proxies and cast votes on the shareholder’s behalf. Interested shareholders may vote at the meeting by either becoming a registered owner or by requesting that the broker tender the proxy to the shareholder. Shareholders become registered owner by requesting the physical stock certificates for a fee. Shareholders may cast direct votes by physically appearing at the annual general meeting. Investdata Academy

Recently, I went to the library to conduct a research although it is was on finance but not on stock. Concisely, a publication which requires me to make reference to books. After I finished with the research, I decided to walk around if I could see something to add to my knowledge that is completely non-finance related. So, I went the arts section and I found a big book called G.W.F Hegel Dialectical Idealism. In this book, he said that everything is made of an idea and this idea is always constantly changing from Thesis, antithesis and synthesis where (1) thesis beginning of an event (2) a negation of that thesis called the antithesis, and (3) a synthesis whereby the two conflicting ideas are reconciled to form a new outcome. This is no different in January and February bull market which is the thesis, the current bearish market is the antithesis while the recovery by the market is the synthesis which now become the new thesis. The question I want to ask is that is this

The National Bureau of Statistics (NBS), on Monday morning published the 2018Q1 report, showing that real GDP rose year-on-year by a less than expected 1.95%, as t was slower than the 2.11% reported in 2017Q4, which was revised from 1.93%. It was however far better than the -0.91% reported in 2017Q1, indicating an increase of 2.87% points, which according to the NBS was a decline of -0.16% points, when compared to the preceding quarter. While Non-oil GDP contribution dropped to 90.39% from 92.65% in the prior quarter; oil GDP stood at 9.61%, up from 7.35%. The services sector contributed 54.3% to real GDP in 2018Q1; followed from afar by industries with 24%, while agriculture accounted for 21.65%. “Quarter on quarter, real GDP growth was -13.40%,” it added Real GDP for the period stood at N16.106tr, while nominal GDP was N28.464tr, with Agric sector GDP came slower at 3.0% growth, as against 4.23% in Q4 2017 and 3.39% in Q1 2017. Industry GDP was however better at 6.86% tha

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Market Update for Week Ended May 18 and Outlook for May 21-25 Trading on the Nigerian Stock Exchange in the past week continued its third consecutive week of decline this month amidst an interplay of profit booking in highly capitalized stocks, political risk, better investment window with less risk than what obtains in the U.S. Yields on 10-year instruments hit 3.1% with stronger Dollar that had put emerging markets such as Nigeria under pressure, resulting in capital fight out of economies with low interest rates regimes. Other factors include the rising oil prices; price adjustment for dividend recommended by directors of Seplat Petroleum, Okomu Oil, UACN and Fidelity Bank. The sustained market correction in the face of positive economic news, low equities’ valuations, healthier company fundamentals and stronger positive macro-economic indices that confirms the health of Nigeria’s economy and which has remained resilient and on the path of recovery and growth. Players on t

Capital Adequacy Ratio (CAR) is a measure of a bank’s capital. It is expressed as a percentage of bank’s risk weighted credit exposures. It is used to protect depositors and promote the stability and efficiency of financial systems around the world. It is calculated as: CAR = Tier one capital + Tier two capital divided by Risk Weighted Assets. This is also known as Capital to Risk Weighted Assets Ratio (CRAR) Tier one capital absorbs losses without a bank being required to cease trading while tier two capital absorbs losses in the event of a winding-up and so provides a lesser degree of protection to depositors. Capital Adequacy Ratios ensure the efficiency and stability of a nation’s financial system by lowering the risk of banks becoming insolvent for if a bank is declared insolvent, it shakes the confidence in the financial system thereby making the entire financial system unsettled. Investdata Academy

The management of Prestige Assurance Plc, on Friday said its rescheduled share reconstruction exercise will now hold between May 23 and June 6, 2018. During the two-week period, the company’s shares will be on full suspension and would not be traded on the floor of the Nigerian Stock Exchange (NSE). The share reconstruction exercise which was initialed slated for Friday, March 23, and 27, 2018, “was inconclusive as the registrars were unable to update the register of members of the company during the suspension period.” From May 23, according to its company secretary, Abayomi Odulana, the shareholding of shareholders of Prestige Assurance will be adjusted “to reflect the terms of the share reduction exercise and subsequently advise the Central Securities Clearing System (CSCS) to credit shareholders with their new share positions.” However, in what may be not ruling out the possibility of an extension of the exercise, Odulana hinted that “normal trading in the company’s shar

Market Update for May 17, 2018 The Nigerian equity market continued wavering amidst sustained volatility on Thursday indicating that the rebound in the previous day’s trading session was a fake market move as profit booking persisted on a high traded volume to close the day lower. The day’s trading session opened slightly higher in the morning before sell-off ensued among the highly capitalized stocks that sharply pulled back the benchmark index from intraday highs of 41,003.76 basis points to lows of 40,675.89bps by the afternoon, before finally closing lower at 40,651.41 to remain under the downtrend line into the weekend. The sharp change in investors sentiment as revealed by investdata daily sentiment reports shows a selling pressure of 93% from the previous day buying position of 100%, despite the positive influx of economic indices and news that complemented the earlier corporate earnings that beat market expectation. As we have said before now, it is the interpretation

NSEASI buy 5% sell 95% MFI 39.37 Access buy 11% sell 89% MFI 19.34 Afrprud buy 0% MFI 44.71 Aiico buy 33% sell 67% volume index 0.78 MFI 27.92 Caverton buy 14% sell 86% volume index 0.96 MFI 42.05 Ccnn buy 0% MFI 88.06 CIleasing buy 46% sell 54% volume index 0.99 MFI 52.94 Dangote Cement buy 23% sell 77% MFI 46.17 Dangote flour buy 31% sell 69% volume index 0.77 MFI 26.54 Dangote sugar buy 67% sell 33% MFI 32.24 Diamond buy 28% sell 72% volume index 0.71 MFI 18.10 Eterna buy 0% MFI 67.38 Fbnh buy 0% MFI 34.67 Fcmb buy 43% sell 57% MFI 77.59 Fidelity buy 0% MFI 21.33 Fmn buy 97% sell 3% volume index 2.06 MFI 49.98 FO buy 4% sell 96% MFI 47.29 Jaiz buy 75% sell 25% MFI 11.29 Lasaco buy 33% sell 67% volume index 0.82 MFI 54.86 Nascon buy  MFI 34.86 Nestle buy  volume index 1.90 MFI 72.65 Oando buy  volume index 1.44 MFI 78.71 Okomu buy 0% volume index 1.12 MFI 75.60 Seplat buy 0% MFI 71.99 Transcorp buy 0% MFI 13.97 Uacn buy 12% sell 88% MFI 54.74 Uba buy 71

A leverage ratio is a financial measurement that looks at how much capital comes in the form of debt (loans), or assesses the ability of a company to meet its financial obligations. It is commonly referred to as debt to equity ratio, and it is expressed as: D/E Ratio = Total Debt/ Total Equity Leverage ratio represents the extent to which a business is utilizing borrowed money. It also evaluates company solvency and capital structure. Having high leverage in a company’s capital structure can be risky, if not well-utilized . The use of leverage is beneficial during times when the company is earning profits, as they become amplified. On the other hand, a highly levered company will have trouble if it experiences a decline in profitability and may be at a higher risk of default than an unlevered or less levered company in the same situation. Therefore, analysing the existing level of debt is an important factor that creditors consider when a company wishes to apply for further

Market Update for May 16, 2018 After two days in the red, Nigeria’s stock market had green, even if very volatile session on Wednesday on a low traded volume with improved buying pressure. Traders took advantage of low valuations in the midst of impressive economic data as the fiscal authority seems to be waking up to complement the monetary policy stimulus that had supported the economy so far. It is may be too early to link the positive close to Wednesday passage of the 2018 Appropriation Bill, six months after it was sent to the National Assembly, preparatory to been transmitted to President Muhammadu Buhari for assent. The budget passed by both legislative arms is coming with an additional N508bn spending capacity at N9.1tr, just as the crude oil benchmark was raised to $50.5 per barrel, up from $45 originally set. The Nigerian Stock Exchange’s All-Share Index opened lower early and then rallied back at the mid-morning to usher in five waves which touched intraday highs of