Invest Data Consulting Ltd

Directors of Dangote Cement Plc, on Friday, has scheduled an extraordinary general meeting for January 12, 2020, where shareholders are to consider a proposal that the company buys back up to 10% of its total shares in issue. Before the vote, the shareholders are expected to approve an amendment of the company’s Articles of Association by inserting three new clauses that would reduce its share capital and authorise the proposed buy-back. The board, according to Edward Imoedemhe, Dangote Cement’s deputy company secretary, is also proposing that subject to applicable law or the directive of the appropriate regulatory authority, the company may cancel such repurchased issued shares or otherwise acquired under the Proposed Transaction as confirmed by the company’s registrars. In the accompanying explanatory note, Dangote Cement said the share buy-back is part of its corporate strategy of improving Returns on Equity and shareholder value while facilitating future long-term growt

Market Update for December 24 Tuesday trading activities on the Nigerian Stock Exchange was highly volatile, closing marginally lower in extension of the previous sessions bear-run on the back of changing trade pattern of day traders and continued selloffs as the downgrade of the nation’s economic outlook deflated investor confidence, ahead of Christmas, even as the global markets closed ahead of the holidays. The oscillating trend of the composite NSE All-Share index (NSEASI) signals strong recovery ahead, as the market’s average dividend yield at 6.54% and price to earnings ratio of 6.74x led its global counterparts looking attractive as an investment destination, judging by the Dividend Yields of 22 largest economies in the world. It may come as a surprise to hear that the United States currently has the second-lowest yield at just 1.83%, better than India’s 1.19%, a market currently trading at 29.63x earnings, while Russia currently has the highest dividend yield of 6.23%

NSEASI buy 68% sell 32% volume index 1.22 MFI 31.07 Access buy 80% sell 20% volume index 1.10 MFI 51.48 Afrprud buy 0% volume index 7.10 MFI 81.18 Caverton buy 💯 volume index 0.81 MFI 63.22 Dangsugar buy 0% MFI 91.32 Eti buy 💯 volume index 1.44 MFI 33.98 Fbnh buy 0% volume index 1.40 MFI 24.76 Fcmb buy 0% MFI 51.79 Fidelity buy 💯 volume index 1.32 MFI 64.52 GT buy 💯 MFI 47.95 Jaiz buy 0% MFI 52.48 Stanbic buy 💯 MFI 87.41 Sterling buy 💯 MFI 67.35 Transcorp buy 67% sell 33% volume index 2.43 MFI 26.21 Uba buy 💯 MFI 43.80 Ucap buy 💯 volume index 0.85 MFI 45.31 Unilever buy 💯 MFI 28.97 Uniondac buy 0% volume index 13.48 MFI 0.37 Wema buy 0% MFI 28.27 Zenith buy 0% volume index 0.81 MFI 19.82

The Nigerian Stock Exchange (NSE), on Tuesday, 24 December 2019, announced the full suspension of trading in the shares of Cement Company of Northern Nigeria Plc placed on full suspension. In statement, the exchange said “the suspension becomes imperative to prevent trading in the shares of the Company beyond the Effective Date (the date the Certified True Copy (CTC)) of the Court Sanction will be registered with the Corporate Affairs Commission) of the Scheme of merger between the Company and Obu Cement Company. Recall that shareholders of CCNN and BUA Group-owned Obu Cement Company, early this month in Abuja held separate court-ordered and Extra-Ordinary General meetings, where they approved the merger of both firms, pending final regulatory approval. The merger will result in a business combination of both entities, thereby making BUA Cement, their parent company, Nigeria’s second-largest producer of cement by volume by 2020. At the meeting of CCNN, shareholders voted 99

Market Update for December 24 Tuesday trading activities on the Nigerian Stock Exchange was highly volatile, closing marginally lower in extension of the previous sessions bear-run on the back of changing trade pattern of day traders and continued selloffs as the downgrade of the nation’s economic outlook deflated investor confidence, ahead of Christmas, even as the global markets closed ahead of the holidays. The oscillating trend of the composite NSE All-Share index (NSEASI) signals strong recovery ahead, as the market’s average dividend yield at 6.54% and price to earnings ratio of 6.74x led its global counterparts looking attractive as an investment destination, judging by the Dividend Yields of 22 largest economies in the world. It may come as a surprise to hear that the United States currently has the second-lowest yield at just 1.83%, better than India’s 1.19%, a market currently trading at 29.63x earnings, while Russia currently has the highest dividend yield of 6.23% an

Like a dream come true, Nigeria achieved the National Assembly’s plan for a January-December budget cycle, with President Muhammadu Buhari signing the 2020 Appropriation Bill passed into law for the first time since the return of the country to democracy in 1999. Senate President Ahmed Lawan first mooted the idea of returning the nation to the January-December cycle soon after he was elected on July 31, 2019. Although a budget of N10.33tr was laid before a joint session of the National Assembly on October, N10.59tr was signed into law on Tuesday by President Buhari. This was however lower than the N10.729tr recommended by the Senate during the October 3, 2019 passage of Nigeria’s 2020-2022 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP). The budget, however, seems to have ignored criticisms that the spending plan represents an attempt by the federal government to build castles in the air, in the words of analysts at the investment banking group- Afrinv

Market Update for December 17 Tuesday’s trading session on the Nigerian Stock Exchange stayed mixed and volatile, halting the previous day’s bull-run as the All-Share index and closing lower on high selling pressure, after an intraday rally, giving up some of the gains on a high traded volume. The NSE’s benchmark index tasted the 27,000 mark before pulling back on selloffs in high cap stocks which signaled that recovery is underway, given that factors that support an equity market rally are on the increase. Another factor was Tuesday’s release of the Consumer Price Index by Nigeria’s National Bureau of Statistics (NBS), showing that the inflation rate rose further, thereby pushing returns from the fixed income market farther into negative territories.  November inflation, according to the data, rose to 11.85% in November of 2019 from 11.61% in October, the highest level in 21 months. Food prices surged amid the continued border closure, low-interest rate in the money market,

Nigeria’s National Bureau of Statistics (NBS), on Tuesday, published the Consumer Price Index for the month of November, showing that inflation for the period soared by 11.85% (year-on-year), representing a 0.24% growth over the 11.61% recorded in the preceding month. A major growth driver for the period was the composite food index, which increased by 14.48%, compared to 14.09% in October a situation that was “caused by increases in prices of bread, cereals, oils and fats, meat, potatoes, yam and other tubers, and fish.” On a month-on-month basis, the food sub-index however increased by 1.25% in November 2019, down by 0.08% points from 1.33% recorded in October 2019. The average annual rate of change of the Food sub-index for the 12-month period ending November over the previous 12-month average was 13.65%, 0.11% points from the 13.54% average annual rate of change recorded in October. Urban inflation rate climbed by 12.47%, compared to 12.2% reported in October 2019, and

Market Update for December 12 Trading activities on the Nigerian Stock Exchange on Thursday sustained its second day of an upward swing as the benchmark All Share index closed higher on increasing demand for high and medium cap stocks, especially in the financial and manufacturing sectors as reflected in the volume of transactions for the day. This resulted from the continued capital wave in the financial markets as a result of funds inflows from maturing OMO bills and other fixed-income instruments find its way into the equities or bonds segment after the profit-taking and selloffs that were triggered by Moody’s downgrade of some Nigerian banks. The nation’s economy has maintained slow growth so far, but ongoing efforts by the monetary authorities are expected to sustain the recovery momentum into the New Year. This will, however, depend on whether the fiscal authorities do the needful to complement the unconventional monetary stance of the Central Bank of Nigeria. The posi

Market Update for December 11 The nation’s equity market had yet another mixed and volatile session at the midweek. But this time, it short-lived its seventh sessions of decline after equities inched up, closing higher with buying interests among investors, especially in high cap stocks, that pushed the All Share index higher, though, on a low traded volume and positive sentiment. Going forward, funds inflow of over N1tr from OMO bills that matured recently, among other fixed-income instruments is expected to find its way into the equities or bond segments of the financial market. This will, expectedly, enable these investors to hedge against inflation at 11.61%, at a time fixed income market yields are declining due to rising prices, therefore, making the equity market attractive, given its average dividend yield of over 4.5%. The banking sector’s average yield is above 7.89%, while that of first-tier banks have dividend yields above October inflation figure.  Already, returns

Nigeria can attract more investments in the capital market if only the Federal Government can consistently work towards creating a sound investment environment devoid of political, social risk as well as maintaining transparency. This was the view of capital market stakeholders at the Capital market Correspondents Asociation of Nigeria (CAMCAN) 2019 annual workshop themed “Bridging Nigeria’s Infrastructure gap: The Capital Market Option” which held in Lagos at the weekend. Speaking during a panel session, Managing Director, Central Securities Clearing System (CSCS) Plc, Haruna Jalo-Waziri, who was represented by Head, Internal Control, CSCS, Mrs. Isioma Lawal, noted that for the capital market to attract more investment, transparency, as well as accountability, is needed. “The Federal Government needs to focus on things that re-assure investors that before they take investment decisions, key determinants such as security of investment, corporate governance, risks amongst oth

The Senate on Wednesday lamented the high rate of unemployment in the country, suggesting solutions, including urging the three-tiers of government to declare an emergency on the provision of jobs across the country. The lawmakers challenged the Federal, States and Local Governments to revitalize existing industries, while the executive arm should initiate an employment fund that will pay stipends to unemployed Nigerians until such persons secure jobs. The resolutions, which also included urging the Ministry of National Planning to put a mechanism and programme in place for this purpose, were reached after consideration of a motion on the “Escalating Rate of Employment in the Country,” sponsored by Senator Ike Ekweremadu. Ekweremadu, who brought the motion, relying on orders 42 and 52 of the Senate standing rules, lamented that a large number of graduates from high institutions of learning in the country yearly without jobs is a “time bomb waiting to explode”. Citing a report

Market Update for December 9 The Nigerian stock market continued its correction for the sixth trading session, after closing positive for the month of November, forming a bearish divergent index action, just as volume traded signals that the ongoing pullback is short-term, even as players book profits. The benchmark Nigerian Stock Exchange All Share Index (NSEASI), therefore, recorded the highest loss since October 10, closing below its 20-Day Moving Average on a low traded volume. The low supply in the market indicates an imminent reversal, with smart money likely to markup prices soon. However, let us await confirmation of the next direction. The regulatory induced capital wave and sentiments are expected to drive economic growth and ‘buy’ interests in stocks, given the prevailing low-interest rates in the money market, which will enhance system liquidity needed to boost productivity and consumption, while supporting economic recovery in 2020. These will be given the necessa

Tony Elumelu, Founder of the Tony Elumelu Foundation and Chairman, Heirs Holdings and United Bank for Africa Group, on Sunday urged African, Caribbean and Pacific (ACP) Heads of State to drive industrialization and wealth creation in their countries. In a keynote speech on the theme “Industrialization and Private Sector Engagement for Economic Transformation of ACP States” at the Presidential Dialogue of the 9th ACP Business Summit in Nairobi, Kenya, Elumelu said in this way they would improve their operating environments. Industrialisation, he noted, will not be achieved without support for small and medium scale enterprises (SMEs) and improved access to electricity. “We cannot hope to industrialize if we do not fix the issue of power if our entrepreneurs spend so much of their resources to power their businesses, how then are they expected to make the investments necessary to upgrade and industrialize? If we do not tackle these pertinent issues, we will be unable to achiev

Update for The Week ended December 6 and Outlook for Dec 9-13 Although the month of December has a reputation of being bullish, it is often an irregular ride. This has been proven again, with trading for the first week, which ended Friday, closed lower on profit-taking and the growing spate indecision among players as the remaining OMO bills and other fixed-income instruments near maturity, with no option of reinvestment. This is due to the recent directive of the Central Bank of Nigeria (CBN) to luck out non-bank domestic investors from the window. Investdata notes that for as long as the Nigerian Stock Exchange (NSE) stays above the last support level, recovery is likely to continue, due to the relatively low rates in the money market segment with liquidity level expected to improve as the CBN implements its directive on the 65% loan to deposits ratio for banks in the country by December 31. Another factor that may work in the favour of the equity market is the planned early

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NSEASI buy 41% sell 59% MFI 47.96 Access buy 0% volume index 0.76 MFI 43.75 Afrprud buy 💯 volume index 1.04 MFI 60.05 Corner buy 0% volume index 1.39 MFI 22.99 Cutix buy 💯 volume index 2.78 MFI 75.52 Dangsugar buy 💯 volume index 1.10 MFI 80.66 Fbnh buy 0% volume index 1.57 MFI 56.41 Fcmb buy 0% MFI 16.70 Fidelity buy 0% MFI 47.02 GT buy 40% sell 60% volume index 1.58 MFI 68.22 Honyflour buy 0% volume index 0.78 MFI 63.37 Jaiz buy 0% MFI 43.10 Oando buy 0% volume index 1.03 MFI 53.29 Sterling buy 0% volume index 0.96 MFI 37.55 Transcorp buy 0% MFI 27.20 Uacn buy 75% sell 25% volume index 3.22 MFI 68.85 Uba buy 33% sell 67% MFI 40.31 Ucap buy 💯 MFI 52.75 Wapic buy 0% volume index 0.98 MFI 82.39 Wema buy 0% MFI 38.82 Zenith buy 33% sell 67% MFI 41.14

Market Update for December 4 The nation’s stock market at midweek continued its decline but at a slower pace, while mixed sentiments continued to prevail as market players traded cautiously, despite the rates and yields’ crash across other investment windows, as well as the expected seasonal market moves this December. The declining transaction volume signals the wait-and-see attitude of smart traders using this opportunity to accumulate some stocks ahead of the seasonal rally associated with year-end. Indeed, the market is still out of its bearish zone despite the three sessions of profit booking and the trading volume pattern displayed so far. The NSE Index’s movement pattern since the introduction of the new pricing methodology by the management of the Nigerian Stock Exchange differs from some sectorial indexes and individual stocks. The price movement of some stocks that are creating wealth for traders may not, as such, reflect on the index due to the insignificant impac

The nation’s stock market and, indeed, the economy, has over the past 22 months has mostly been bearish, besides favouring high yield-sensitive sectors over the real sectors that drive economic growth. Evidence of this is the national productivity that has for almost 13 quarters struggled with a slower-than-expected GDP growth rate, with undulating movement resulting from geopolitical uncertainties and inconsistent economic policies. The situation has been made worse by the high cost of funds which has limited private sector access to liquidity needed to boost economic activities for driving national growth and oil macroeconomic progress and prosperity. Every in the world today, stock markets are a leading indicator of what is happening, just as at the same time they foretell what is about to happen. The case of the Nigerian stock market is not different. As early as almost six years ago in earlier in 2014 and 2015, the benchmark All-Share index of the Nigerian Stock Exchange (