MUTUAL ALLIANCE INVESTMENT AND SECURITIES LIMITED. RESEARCH REPORT FOR THE WEEK ENDED APRIL 8TH 2016. NSE SUSTAINS DOWNWARD TREND AT 0.70% FOR THE WEEK The Nigerian Equity Market sustains southward trend for the week and consequently closed in the red trajectory. Therefore, the NSE All-Share Index and Market Capitalization depreciated by 0.70% to close at 25,328.07 and N8.712 trillion respectively. In similar manner, nine indices declined, while only two appreciated for the week. However, the NSE AseM Index closed flat. The following are the percentage changes in the NSE Indices in the week as listed below:- NSE Premium Index (-0.98%) NSE All Share Index (-0.70%)
NSE –Main Board Index (-0.53%)
NSE ASeM Index 0.00%
NSE 30 Index (-0.58%)
NSE Banking Index (-0.29%)
NSE Insurance Index (-0.15%)
NSE Consumer Goods Index (-0.14%)
NSE Oil/Gas Index 0.24%
NSE-Lotus ll (-1.68%)
NSE-Industrial Goods Index (-0.15%)
NSE Pension Index 0.13%
NOTE: - The NSE Oil/Gas Index was the highest gainer with 0.24%, while NSE- Lotus II Index was the highest loser with -1.68%.The NSE All-Share Index (ASI) Year-to-Date (YtD) negative position increased from -10.95% (01/04/16) to - 11.57% for the week ended (08/04/16).
SUMMARY OF TOP TEN GAINERS AND TOP TEN LOSERS OF STOCKS FOR THE WEEK ENDED APRIL 8TH, 2016.
Twenty-seven (27) equities appreciated in price during the week, higher than twenty- four (24) equities of the previous week. Forty (40) equities depreciated in price, higher than Thirty-seven (37) equities of the previous week, while one hundred and twenty-two (122) equities remained unchanged lower than one hundred and twenty eight (128) equities recorded in the previous week. The top ten gainers are:- Open Close Gain (N) % Change
E-Tranzact International plc 2.67 3.39 0.72 26.97% Tiger Branded Consumers goods plc 2.21 2.47 0.26 11.76% FCMB Group plc. 0.89 0.98 0.09 10.11% Custodian and Allied plc 3.72 4.05 0.33 8.87% Academy Press plc. 0.59 0.64 0.05 8.47% United Capital plc. 1.30 1.41 0.11 8.46% Diamond Bank plc 1.20 1.30 0.10 8.33% Caverton Offshore Support GRP plc 1.33 1.44 0.11 8.27% A.G.Leventis (Nigeria) plc 0.74 0.88 0.06 8.11% Transcorp plc 1.00 1.08 0.08 8.00%
TOP LOSERS -: The following Stocks were the ten top losers for the week; Open Close Losers (N) %Change
Ashaka Cement plc 22.80 19.56 -3.24 -14.21% Portland Paints & Products plc 3.20 2.75 -0.45 -14.06% CCNN plc 8.17 7.03 -1.14 -13.95% Oando plc 4.58 4.05 -0.53 -11.57% Eternal plc 1.75 1.56 -0.19 10.86% Dangote Sugar Refinery plc 6.00 5.35 -0.65 -10.83% Learn Africa plc 0.80 0.72 -0.08 -10.00% AIICO Insurance plc 0.84 0.76 -0.08 -9.52% Unity Bank plc 0.72 0.66 -0.06 -8.33% Transcorp Hotels plc 5.20 4.59 -0.06 -8.20%
For the week; trading in the top three equities were; Guaranty Trust Bank, FCMB Group Plc and Equity Assurance Plc.(measured by volume) accounted for 362.484 million shares worth N2.020 billion in 1,942 deals, contributing 32.62% and 32.57% to the total equity turnover volume and value respectively
DECLINE IN THE VOLUME OF EXCHANGE TRADED PRODUCTS IN THE WEEK ENDED APRIL 8TH, 2016. For the week ended April 8th, 2016, the number of Units of ETPs traded declined as a total of 24,200 units of Exchange Traded Products (ETPs) valued at N621, 286 executed in 26 deals, compared with a total of 25,738 units valued at N522, 245 million transacted in the previous week in 39 deals.
SECURITY DEALS VOLUME VALUE
NEWGOLD 4 210 495,265.00
VETGRIF 30 5 2,720 31,279.10
VETINDETF 4 1,615 31,749.30
VETGOODS 4 5,115 30,997.35
LOTUSHAL 15 5 25 207.60
VETBANK 4 14,515 31,787.70
TOTAL 26 24,200 621,286.05
SIGNIFICANT DECREASE IN THE VOLUME OF FGN RETAIL BONDS IN THE WEEK ENDED APRIL 8TH, 2016.
In a similar manner, in the week ended April 8th, 2016, a total of 6,908 units of Federal Government retail Bonds valued at N7.739 million were traded in 7 deals on the platform of the Nigerian Stock Exchange, compared with a total of 22,030 units valued at N25.368 transacted in the previous week in 8 deals.
CORPORATE ACTIONS IN THE WEEK.
For the week ended April 8th, 2016, the following companies declared dividends for their year ended December 31, 2015; The details are stated below:-
Regency Insurer Plc Aiico Insurance Plc Infinity Trust Mortgage Bank Plc Nascon Allied Industries Plc Aluminium Extrusion Industries Plc Continental Re Insurance Plc
REGENCY INSURER PLC (YEAR ENDED 31ST DECEMBER, 2015) Proposed Dividend (Final) : - 3kobo per share Proposed Bonus : - Nil Qualification Date : - 21st April, 2016 Closure Date of Register : - 22nd to 28th April, 2016 (both days inclusive). Payment Date : - 27th May, 2016. AGM Date : 26th May, 2016 AGM Venue : - Sheraton Hotel, Abuja. Share Price as at 08/04/16 :- N0.50K Dividend Yield : 6%
AIICO INSURANCE PLC (YEAR ENDED 31ST DECEMBER, 2015) Proposed Dividend (Final) : - 5kobo per share Proposed Bonus : - Nil Qualification Date : - 24th April, 2016 Closure Date of Register : - 25th to 29th April, 2016(both days inclusive). Payment Date : - 6th May, 2016. AGM Date : 5th May, 2016 AGM Venue : - TBA. Share Price as at 08/04/16 :- N0.76K Dividend Yield : 6.58%
INFINITY TRUST MORTGAGE BANK PLC (YEAR ENDED 31ST DECEMBER, 2015) Proposed Dividend (Final) : - 3kobo per share Proposed Bonus : - Nil Closure Date of Register : - 22nd April, 2016. Payment Date : - 16th May, 2016. AGM Date : 10th May, 2016 AGM Venue : - Barcelona Hotel, Abuja. Share Price as at 08/04/16 :- N1.42K Dividend Yield : 2.11 %
NASCON ALLIED INDUSTRIES PLC (YEAR ENDED 31ST DECEMBER, 2015) Proposed Dividend (Final) : - 55kobo per share Proposed Bonus : - Nil Closure Date of Register : - 12th May, 2016. Payment Date : - 23rd May, 2016. AGM Date : 19th May, 2016 AGM Venue : - Muson Centre,Onikan ,Lagos. Share Price as at 08/04/16 :- N7.30K Dividend Yield : 7.53 %
ALUMINIUM EXTRUSION INDUSTRIES PLC (YEAR ENDED 31ST DECEMBER, 2015) Proposed Dividend (Final) : - 8.5kobo per share Proposed Bonus : - Nil Closure Date of Register : - 30th May, 2016. Payment Date : - 18th July, 2016. AGM Date : 15th July, 2016 AGM Venue : - Nike Lake Hotel, Enugu. Share Price as at 08/04/16 :- N9.84K Dividend Yield : 0.86 %
CONTINENTAL RE INSURANCE PLC (YEAR ENDED 31ST DECEMBER, 2015)
Proposed Dividend (Final) : - 12kobo per share Proposed Bonus : - Nil Closure Date of Register : - 18th to 22nd July, 2016. Payment Date : - 29th July, 2016. AGM Date : 28th July, 2016 AGM Venue : - TBA. Share Price as at 08/04/16 :- N0.95K Dividend Yield : 12.63%
CLOSURE DATE OF COMPANYS’ REGISTER FOR NEXT WEEK (APRIL 11TH- APRIL 15TH, 2016).
The following companies are scheduled to close their shareholders’ Registers for next week (April 11th, 2016 to April 15th, 2016).
DANGOTE CEMENT PLC (YEAR ENDED 31ST DECEMBER, 2015) Proposed Dividend (Final) : - 800 kobo per share Proposed Bonus : - Nil Closure Date of Register : -Monday, April 11th, 2016 to Friday, April 15th, 2016. Payment Date : -Thursday April 21, 2016. AGM Date : - Tuesday, April 19th, 2016
AGM Venue : - The Civic Centre, Ozumba Mbadiwe V/I.Lagos.
UNILEVER NIGERIA PLC (YEAR ENDED 31ST DECEMBER, 2015) Proposed Dividend (Final) : - 5kobo per share Proposed Bonus : - Nil Closure Date of Register : - April 11th, 2016 to April 15th, 2016 Payment Date : - May 13th, 2016. AGM Date : - N/A AGM Venue : - N/A. Share Price as at 24/03/16 :- N30.92k Dividend Yield : 0.16%
ACCESS BANK PLC (YEAR ENDED 31ST DECEMBER, 2015) Proposed Dividend (Final) : - 30kobo per share Interim Dividend : - 25 kobo per share Total Dividend :- 55 kobo per share Proposed Bonus : - Nil Closure Date of Register : -April 13th, 2016. Payment Date : - April 27th, 2016. AGM Date : - April 27th, 2016 AGM Venue : - TBA. Share Price as at 18/03/16 :- N3.95 Dividend Yield : 13.92%
FCMB GROUP PLC (YEAR ENDED 31ST DECEMBER, 2015) Proposed Dividend (Final) : - 10kobo per share Proposed Bonus : - Nil Closure Date of Register : - 13th to 19th April, 2016. Payment Date : - 2nd May, 2016. AGM Date : 29th April, 2016
TRANSNATIONAL CORPORATION PLC (YEAR ENDED 31ST DECEMBER, 2015) Proposed Dividend (Final) : - Nil Proposed Bonus : - 1 for 20 Closure Date of Register : - 14th to 19th April, 2016. Payment Date : - Nil. AGM Date : 29th April, 2016
CUSTODIAN AND ALLIED PLC (YEAR ENDED 31ST DECEMBER, 2015) Proposed Dividend (Final) : - 14kobo per share Proposed Bonus : - Nil Closure Date of Register : - 14th to 20th April, 2016. Payment Date : - 3rd May, 2016.
AGM Date : 3rd May, 2016
ECONOMIC AND CORPORATE NEWS FOR THE WEEK ENDED APRIL 8TH, 2016.
MSCI PLANS TO EXCLUDE NIGERIA FROM ITS FRONTIER MARKET INDEX Following the removal of Nigerian bonds from the emerging markets Government bond Indices of J.P.Morgan and Barclays Bank; MSCI Incorporated(NYSC: MSCI) is reviewing Nigeria's continued inclusion in its Frontier Market Index due to tight foreign exchange liquidity in Nigeria. This comes after the Central Bank of Nigeria imposed measures that have limited liquidity in the spot FX market due to the slump in global oil prices as the nation relies on the commodity for forex inflows.
According to MSCI, ease of capital inflows and outflows is one of the key criteria in the MSCI Classification Framework therefore, capital restrictions as such can lead to material deterioration of the equity market accessibility and may result in the exclusion of Nigeria from the MSCI frontier market indexes and a reclassification to "Standalone Market Status".
Therefore, about $500 million of stock Investment in Nigeria is under threat in the Nigeria Stock Exchange.
In view of the above, MSCI Incorporated will announce its decision on the treatment of MSCI Nigeria indexes on or before April 29, 2016.
NIGERIA GOVERNMENT PLANS TO RAISE BETWEEN N274 BILLION AND N365 BILLION IN THE SECOND QUARTER OF THE YEAR 2016. The Nigerian Debt Management Office (DMO) announced on Monday (4/04/16), that the Federal Government of Nigeria plans to raise between N274 billion and N365 billion in local currency-denominated bonds with maturities ranging between five and twenty years in the second quarter of this year (2016). It’s would auction between N15billion and N25billion in five-year paper in April 2016, along with N35billion to N45billion worth in 10-year debt and N45billion to N55billion in 20-year bonds. In addition, in the month of May this year, the debt office plans to issue between N10billion and N20billion worth of five-year paper, N35 billion to N45billion of 10-year bonds and N45billion to N55billion of 20-year debt. Furthermore, the debt office plans to raise between N10billion and N20billion in five-year, N35billion to N45billion in 10-year and N45billion to N55billion worth of 20-year paper in the month of June, 2016.
NIGERIAN PRESIDENT TO SIGN LOAN DEAL WITH CHINA NEXT WEEK. In order to finance the Nigerian budget deficit of over N2 trillion, the Nigerian President (Muhammadu Buhari) will sign a loan deals with Chine Government in his scheduled visit to China next week. The loan is expected to help Nigeria Government to finance badly-needed infrastructure projects and both countries would sign some bilateral agreements to strengthen their relationship. Moreover, it is expected that the loan would fund Chinese firms’ infrastructure projects in Nigeria.
ECONOMIC OUTLOOK FOR NEXT WEEK (11TH APRIL, 2016).
MARKET OUTLOOK FOR THE STOCK MARKET NEXT WEEK APRIL 11TH, 2016).
We still maintain our advice that Investors should be cautious in their trading, as the potential exit of funds from Nigeria’s Stock Market should MSCI eventually exclude Nigeria from the frontier market Index, will adversely affect the Nigeria’s current market capitalization in the index.
However, Investors can still take strategy positions in the Agriculture and Industrial goods sectors.
ECONOMIC OUTLOOK FOR THE BOND MARKET NEXT- WEEK (APRIL 11TH, 2016). As anticipated in our last week report, there was increase level of activities in the fixed Income space as bargain hunters took hold of the market in the week ended April 8th, 2016. However, for next week (11/04/16), we expect Investors to be cautious, as they (Investors) may hold off in anticipation of higher yield levels.
Mutual Alliance Investment and Securities Limited (Research Department).
|CORPORATE ACTIONS AS AT APRIL 08, 2016|
|Company||Dividend/share||Bonus||Closure of Register||AGM Date||Payment Date|
|Vitafoam Plc||25 kobo||Nil||15th – 19th February 2016||2nd March 2016||14th March 2016|
|Forte Oil Plc||345 kobo||Nil||18th – 21st April 2016||22nd April 2016||29th April 2016|
|Nigerian Breweries Plc||360 kobo||Nil||3rd – 9th March 2016||11th May 2016||12th May 2016|
|Greif Nigeria Plc||60 Kobo||Nil||22nd – 24th March 2016||28th April 2016||6th May 2016|
|Dangote Cement Plc||800 Kobo||Nil||11th – 15th April 2016||19th April 2016||21st April 2016|
|Africa Prudential Registrars Plc||43 Kobo||Nil||23rd – 29th March 2016||12th April 2016||13th April 2016|
|Wapic Insurance Plc||3 Kobo||Nil||23rd March 2016||5th April 2016||5th April 2016|
|Guaranty Trust Bank Plc||152 Kobo||Nil||29th March 2016||5th April 2016||5th April 2016|
|United Bank for Africa Plc||40 Kobo||Nil||30th March – 5th April 2016||8th April 2016||12th April 2016|
|Zenith Bank Plc||155 Kobo||Nil||29th March 2016||6th April 2016||6th April 2016|
|Nestle Nigeria Plc||1900 Kobo||Nil||9th – 13th May 2016||23rd May 2016||24th May 2016|
|GlaxoSmithKline Consumer Nigeria Plc||30 Kobo||Nil||25th May 2016||23rd June 2016||24th June 2016|
|AXA Mansard Insurance Plc||2 Kobo||Nil||29th April 2016||13th May 2016||13th May 2016|
|Access Bank Plc||30 Kobo||Nil||13th April 2016||27th April 2016||27th April 2016|
|Dangote Sugar Refinery Plc||50 Kobo||Nil||4th – 8th April 2016||20th April 2016||20th April 2016|
|United Capital Plc||35 Kobo||Nil||31st March 2016||14th April 2016||18th April 2016|
|Ashaka Cement Plc||15 Kobo||Nil||26th April 2016||10th May 2016||11th May 2016|
|Lafarge Africa Plc||300 Kobo||1 for 10||25th April 2016||12th May 2016||12th May 2016|
|Sterling Bank Plc||9 Kobo||Nil||4th April 2016||19th April 2016||19th April 2016|
|Paints and Coatings Man. Plc||5 Kobo||Nil||6th April 2016||20th April 2016||29th April 2016|
|Transnationwide Express Plc||10 Kobo||Nil||11th – 15th July 2016||21st July 2016||5th August 2016|
|Transcorp Hotels Plc||40.85 Kobo||Nil||5th April 2016||15th April 2016||18th April 2016|
|Unilever Nigeria Plc||5 Kobo||Nil||11th - 15th April 2016||12th May 2016||13th May 2016|
|Julius Berger Nigeria Plc||150 Kobo||Nil||31st May – 3rd June 2016||16th June 2016||17th June 2016|
|Mobil Oil Nigeria Plc||720 Kobo||Nil||28th – 30th April 2016||25th May 2016||1st June 2016|
|FCMB Group Plc||10 Kobo||Nil||13th – 19th April 2016||29th April 2016||2nd May 2016|
|Nigerian Aviation Handling Co. Plc||20 Kobo||Nil||6th - 10th June, 2016||26th July, 2016||26th July, 2016|
|Transnational Corp. of Nig||Nil||1 for 20||14th – 19th April 2016||29th April 2016||N/A|
|Fidelity Bank Plc||16 Kobo||Nil||18th – 22nd April 2016||5th May, 2016||5th May, 2016|
|Berger Paints Nigeria Plc||75 Kobo||Nil||4th May 2016||9th June, 2016||13th June, 2016|
|UACN||100 kobo||Nil||16th – 20th May 2016||8th June 2016||9th June 2016|
|MRS Oil Nigeria Plc||110 Kobo||Nil||11th – 15th July 2016||4th August 2016||5th August 2016|
|Custodian & Allied Plc||14 Kobo||Nil||14th – 20th April 2016||3rd May 2016||3rd May 2016|
|Total Oil Nigeria Plc||1200 Kobo||Nil||18th – 22nd April 2016||10th June 2016||13th June 2016|
|AIICO Insurance Plc||5 Kobo||Nil||25th - 29th April 2016||5th May 2016||6th May 2016|
|Aluminium Extrusion Ind. Plc||8.5 Kobo||Nil||30th May – 3rd June 2016||15th July 2016||18th July 2016|
|NASCON Allied Industries Plc||55 Kobo||Nil||12th - 13th May 2016||19th May 2016||23rd May 2016|
|Regency Alliance Ins. Plc||3 Kobo||Nil||22nd – 28th April 2016||26th May 2016||27th May 2016|