Invest Data Consulting Ltd

Reuters on Tuesday reported that the Central Bank of Nigeria (CBN) has begun implementation of its ban on the sale of foreign exchange to importers of milk through its official window, apparently brushing aside protests from a section of the organized private sector opposed to the decision which was announced last month. According to the report, CBN directed banks to stop processing milk imports on a credit basis, quoting bank sources, in its bid to spur local production and save the country’s scarce foreign exchange. The CBN Governor, Godwin Emefiele, had while briefing reporters after the last meeting of the Monetary Policy Committee (MPC), announced plans to add milk import to its list of items that cannot be imported using forex access through the official window. He had lamented that Nigeria spends between $1.2bn and $1.5bn annually to import milk. In a circular to banks in the country, the apex bank said milk imports will no longer be eligible under payment terms known as...

Market Update for August 26 The last full trading week of the month of August on the Nigerian Stock Exchange (NSE) which started Monday was yet another mixed session on a negative note, signaling a failed bear rally. This was, however, earlier foreshadowed on Friday, when the market’s gaining momentum witnessed a slowdown, with a Monday’s volume traded declining sharply on mixed sentiments. A confirmation of this failed rebound will, however, depend on today’s market forces, because the intraday low is yet to be undercut. Rebound or recovery is said to sustain when the composite index follows through on four or more days after a rally attempt. The first two or three days of the rally are normally disregarded, given that its success has not yet been proven to follow through with power and conviction. A follow-through day occurs when at least one of the major indexes makes a large percentage gain on higher volume traded which should generally be in the region of 2% or more. All...

NSEASI buy 15% sell 85% volume index 0.73 MFI 36.15 Access buy 67% sell 33% MFI 47.22 Chams buy 💯 volume index 1.35 MFI 42.86 Continsure buy 0% volume index 1.81 MFI 40.10 Dangcem buy 💯 volume index 1.00 MFI 33.06 Dangsugar buy 0% volume index 1.63 MFI 28.22 Eti buy 💯 volume index 0.97 MFI 65.43 Fbnh buy 67% sell 33% MFI 41.53 Fcmb buy 0% MFI 64.27 Fidelity buy 💯 volume index 0.92 MFI 34.62 Fo buy 0% volume index 5.48 MFI 35.57 GT buy 45% sell 55% MFI 45.25 Jaiz buy 💯 volume index 2.29 MFI 26.19 Nestle buy 💯 volume index 2.89 MFI 92.00 Oando buy 0% MFI 39.35 Sovereins buy 💯 volume index 5.02 MFI 99.96 Transcorp buy 0% volume index 1.88 MFI 69.87 Uacn buy 75% sell 25% volume index 0.74 MFI 67.42 Uba buy 33% sell 67% volume index 1.10 MFI 70.34 Wema buy 💯 volume index 0.71 MFI 48.24 Zenith buy 💯 volume index 0.80 MFI 55.53

https://investdataltd.blogspot.com/2019/08/corporate-actions-as-at-friday-august_25.html

https://investdata.com.ng/2019/08/corporate-actions-as-at-friday-august-23-2019/#more

Market Update for the Week ended August 23 and Outlook For 26-30 Mixed and yet volatile trading is becoming the norm, rather than the exception on the Nigerian Stock Exchange (NSE) in recent times. This was, once again, the dominant theme on the bourse last week as the NSE’s composite index closed for the week higher as a result of the dominant low price attraction after recording a huge decline which now ranks it among the worst-performing markets across the world. The index, however, turned positive last week, on the back of last week’s inauguration of the new cabinet and assignment of portfolios to the ministers by President Muhammadu Buhari for his second four-year term. Buying interests among market players were triggered across all classes of stocks that suffered huge losses, reflecting on all market indexes as they closed positive, except for the NSE Insurance that was in red owing to profit-taking in major insurance companies. Added to this was the fact that investors wer...

NSEASI buy 95% sell 5% volume index 0.91 MFI 21.18 Access buy 💯 volume index 1.07 MFI 49.27 Afrprud buy 89% sell 11% MFI 37.45 Aiico buy 57% sell 43% MFI 48.06 Cadbury buy 💯 volume index 0.86 MFI 55.41 Cap buy 💯 volume index 1.30 MFI 0.00 Caverton buy 0% volume index 1.78 MFI 21.76 Ccnn buy 💯 MFI 66.73 Chams buy 💯 MFI 36.08 Chiplc buy 0% MFI 44.85 CIleasing buy 💯 MFI 8.99 Conoil buy 0% volume index 1.16 MFI 34.50 Continsure buy 0% volume index 1.65 MFI 50.20 Custodian buy 91% sell 9% MFI 27.58 Cutix buy 93% sell 7% volume index 0.75 MFI 31.70 Dangcem buy 44% sell 56% volume index 0.94 MFI 45.43 Dangflour buy 56% sell 44% volume index 0.83 MFI 83.12 Dangsugar buy 80% sell 20% volume index 1.13 MFI 11.71 Eterna buy 💯 volume index 4.79 MFI 68.90 Eti buy 95% sell 5% volume index 4.64 MFI 31.75 Fbnh buy 47% sell 53% volume index 1.74 MFI 21.03 Fcmb buy 72% sell 28% MFI 58.15 Fidelity buy 92% sell 8% volume index 0.74 MFI 47.30 Fmn buy 70% sell 30% volume ind...

Market Update for August 21 The nation’s equity market remained mixed and volatile on Wednesday, even as it managed to close on a positive note, which was insufficient to entirely wipe off previous day’s loss on improved traded volume and buying pressure driven by the prevailing low price attraction. This was in addition to the long-awaited inauguration of a new cabinet and assignment of portfolios to the ministers which took place also at the midweek, signaling the beginning of real governance, exactly six months after President Muhammadu Buhari was re-elected for his second and final term in February. The prevailing high yield on the Nigerian Stock Exchange (NSE) as a result of the low prices could serve as an attraction for smart money at this point, considering the market’s Price to Earnings Ratio (PER) which is below 6x. This is considering the fact that yields in the fixed income market and other instruments are declining, due to interest rate cuts across the world that co...

Market Update for August 20 The Nigerian Stock Exchange (NSE) All-Share index failed to confirm previous day’s rebound, amidst volatility and mixed trading that dominated Tuesday’s session with the composite All-Share index closing lower on a low traded volume. This followed price depreciation by telecommunications giant MTN Nigeria, which has become the most capitalized equity on the bourse. Despite the day’s mixed performance, there was increased buying interest in some stocks that had suffered huge losses in recent times as bargain hunters cashed in on the low prices to accumulate ahead of the inauguration of the new federal cabinet and the expected policies from fiscal and monetary authorities that could stimulate the much needed economic growth and development. With real governance about to kickoff with the ministers being assigned portfolios, it expected that the management of economic information and pronouncements thereby addressing investors concerns about the safety o...

https://investdata.com.ng/2019/08/corporate-actions-as-at-friday-august-16-2019/

Guaranty Trust Bank Plc, on Friday became the first of the dividend-paying stock to present its audited score-card for the half-year ended June 30, 2019, highlights of which included a marginal drop in interest, rise in fee, commission and other incomes, just as the management successfully kept expenses in check, while growth in loan impairment was constrained. Profit after tax for the period stood at N99.133bn, up from N95.581bn in the corresponding period of 2018, despite the N2.5bn rise in income tax expense, which left Earnings Per Share at N3.50, as against the previous N3.38 each. Of this amount, the board has recommended a dividend per share of 30 kobo, just like prior year payable to holders of the bank’s ordinary shares whose names appear in the register as at close of business on Monday, September 2, 2019. The dividend will, however, be payable to holders of the bank’s Global Depository Receipts (GDR) listed on the London Stock Exchange as of August 26, 2019. This mean...

Sterling Bank Plc, on Tuesday presented its unaudited financials for the nine-month ended September 30, 2018, indicating double-digit rise in earnings and other measurement parameters. Gross earnings rose for example by 21.09% from N94.65bn in the corresponding period of 2017 to N114.61bn; helped mainly by the N93.6bn interest income, which rose N78.63bn, representing a 19.03% notch; just as interest expense climbed 28.94% from N41.69bn to N53.76bn. Net interest income rose 7.84% from N36.94bn to N39.83bn; even as loan impairment charges fell by 52.63% to N3.62bn from N7.63bn; just as fee and commission income rose 19.4%from N9.04bn in 2017 to N10.79bn. Other income stood at N4.5bn, as against the previous N4.56bn; general and administration expenses increased 60.97% from N11.09bn to N17.85bn; personnel expenses increased by 13.19% from N8.66bn to N9.8bn. Depreciation and amortization recorded 15.47% increase from N3.63bn to N4.19bn; other operating expense stood at N11.51bn ...

Implications for our coverage banks: The CBN dividend policy assesses banks on their eligibility to pay dividends based on the capital adequacy ratio (CAR) and their non-performing loans (NPL). Below, we have analysed our coverage banks based on these metrics and highlighted how this policy will impact dividend payment for FY’17. From the graph above, DIAMONDBNK as at 9M’17 is currently below the minimum capital adequacy ratio required for systemically important banks. If the trend persists into full year, DIAMONDBNK will not be eligible to pay any dividend. We highlight that ETI and FBNH are also close to the regulatory minimum but it is highly unlikely that these banks will breach this by FY’17 given that they are expected to capitalize their earnings after the full year audit – this is expected to strengthen CAR. As at 9M’17, STANBIC, FIDELITYBK, DIAMONDBNK, ETI and FBNH are all above the minimum 5% threshold hence, if they are eligible to pay dividend it will be cappe...

Apparently worried by the mounting pile of non-performing loans in the books of the nation’s banks, even as the system is still struggling under the weight of the 2009/2011 debacle, the Central Bank of Nigeria (CBN) has set certain yardsticks for banks planning to pay dividend from their profit after tax. According to the letter to all banks, referenced: REF: BSD/DIR/GEN/LAB/11/002, titled “Re: Internal Capital Generation and Dividend Payout Ratio,” the banks are to facilitate sufficient and adequate capital build up in line with their risk appetite. The CBN, in the letter signed by Ahmad Abdullahi, director, Banking Supervision Department, barred with immediate effect, deposit money banks and discount houses from paying dividend from their reserves. Banks and Discount Houses that do not meet the minimum capital adequacy ratio from paying dividend; just as those with “a Composite Risk Rating (CRR) of “High” or a Non-Performing-Loan (NPL) ratio of above 10% shall not be allowed...

NSE INDICATORS CLIMB HIGHER, AS INVESTORS REVALUE STOCKS ON Q2 NUMBERS NSEASI DAILY TIME FRAME MOVEMENT Nigeria's stock market indices had an interesting midweek trading session to continue its volatility after opening to the downside, coming up strongly by the afternoon to an intraday high of 36,905.06bp From that point they had a nice and long serve back, taking back the majority of the pullback, following which the session ended positive to consolidate gains recorded beginning from the first trading day of the month, as value investing on the strength of the Q2 numbers remains one of the factors to drive market in August. The manufacturing sector's Purchasing Managers' Index (PMI) for the past four months has been stable in its expansion trend to close July at 56.3, from 55.9 in previous month, indicating improvements in the nation's production capacity. Nigeria was not alone, as global manufacturing activities grew for a 17 th consecutive mo...

INVESTORS BEGIN COUNTDOWN AHEAD OF JULY 31 DEADLINE FOR Q2 EARNINGS REPORTS Nigeria’s equity market last week closed strong and positive to continue its bullish run that was driven by positive economic data and impressive numbers emanating from the manufacturing sector, especially Unilever’s local arm, Lafarge Africa, Honeywell and Flour Mills,while stocks in the financial services sector that have so far published their results revealed mixed performance. In particular, insurance companies have so far remained dominant among those making their numbers available to the Nigerian Stock Exchange (NSE) earlier this season than before. Those stocks that have so far presented their half-year score-cards include: NEM, Guinea Insurance, Lasaco and United Capital, Wema Bank. In the past week, Africa Prudential has presented an impressive half year report which beat market expectations. Another booster of the NSE’s bull-run is news of plans by the Federal Government to listits a...