Investors Gain N26.86bn as NSEASI Inches up by 0.12% to Open the Week Positive
Equities market closed today on a positive note, as NGXASI appreciated by +0.12% to close at 41,814.74 basis points as against +0.14% appreciation recorded previously. Its Year-to-Date (YTD) returns currently stands at +3.83%.
Market breadth closed positive as PZ led 28 Gainers as against 20 Losers topped by ABBEYBDS at the end of today’s session – an improved performance when compared with previous outlook.
Market turnover closes positive as volume moved up by +32.21% as against +135.98% uptick recorded in the previous session. FBNH, ETI and UNIVINSURE were the most active to boost market turnover. FBNH and GUARANTY topped market value list.
ALEX leads the list of active stocks that recorded impressive volume spike at the end of today’s session.
Lekki Port reaches 66% construction as Lagos commends pace of work
Construction of Lekki Deep Sea Port has reached 66 percent completion, according to Du Ruogang, the managing director, during a recent inspection visit by a delegation from Lagos State government led by Lola Akande, commissioner for commerce, industry and cooperatives.
Nigeria must target investment in rural areas, agriculture to fight poverty – Hailemariam
Hailemariam Desalegn, former Ethiopian Prime Minister, has said that Nigeria must target investments in rural areas and agriculture to fight its alarming poverty rate.
Elon Musk set to become a trillionaire with SpaceX- Morgan Stanley Analyst
SpaceX currently makes up less than 17 percent of Elon Musk’s more than $222 billion net worth and not Tesla, making it more likely he would hit trillionaire status very soon, according to a report compiled by Adam Jones, a business…
IHS Towers: How a bad bet on GSM became a $7bn company
Issam Darwish, the founder/CEO of IHS Towers, was all smiles following the successful listing of his company on the New York Stock Exchange on Thursday, October 14, but it was not always that way.
As 5G beckons, can IHS meet Nigeria’s growing cell tower needs?
In the coming months, Africa’s largest economy would be finalizing plans to launch a 5G network on a commercial level, and it would require thousands of additional cell sites to make the technology function efficiently
FG’s N104bn budget for generators enough for 250mw power plant
Nigeria plans to spend N104 billion ($252 million) on the purchasing and maintaining of power generating sets for its ministries, departments and agencies next year, an amount that has been deemed a wasteful use of resources for a country struggling to
Nigerian states face low infrastructure spend on weak revenues
Nigerian states risk spending less on critical infrastructure as they attempt to balance low revenue generation with prioritising capital and recurrent expenditure, experts believe.
Nigeria’s investment rate of return still negative but shrinking
The real rate of return on Nigerian assets has been negative for years, and even though it is now narrowing, it is not happening fast enough for some investors.
FBN Holdings Notifies of a New Investor With Over 5% Stake
The management of FBN Holdings Plc has written officially to the Nigerian Exchange notifying of the acquisition of substantial shareholdings in the Holding Company by a new investor.
According to the released dated October 23, 2021 and published on the Exchange website, FBN Holdings Plc stated that it received a notification from APT Securities and Funds Limited, that their Client, Mr. Otedola Olufemi Peter and his nominee, Calvados Global Services Limited have acquired a total of 1,818,551,625 units of shares from the Company’s issued share capital of 35,895,292,791.
Furthermore, it stated that the equity stake of Mr. Otedola Olufemi Peter and his nominee in the Company is now 5.07%.
Abuja-Kaduna Rail Line; The Safest Travelling Option Now Under Siege
The Nigerian Railway Corporation (NRC) announced the suspension of its services on the Abuja-Kaduna rail line following a deadly attack on one of its trains by bandits. Fortunately, no lives were lost. The level of insecurity in the country has risen to alarming levels in recent years.
Is $85 the New Normal for Oil Markets? – OIR 221021
Energy stocks are bouncing back into the limelight, significantly outperforming the broader S&P 500 index. Oil prices have remained largely stagnant over the week, with Brent trending around the $85 per barrel mark.
CBN Increases Health Intervention Fund to N200bn
There is an increased call for private sector investment in the healthcare sector in order to reverse the trend of foreign exchange spent on medical tourism as well as human capital flight as The Central Bank of Nigeria (CBN) has increased its healthcare intervention in the health sector from N100 billion to N200 billion.
Electricity: FG Seeks Fresh Interventions to Harness 13,000MW Capacity
The federal government has called for fresh interventions in the country’s electricity value chain in order to harness the over 13,000 megawatts (MWs) capacity which Remains largely underused.
Nigeria Gets $70m Grant for Renewable Energy Development
To bridge the nation’s power needs and reduce environmental pollution, the Agence Francaise de Developpement (AFD) has staked about $70m to fund renewable energy and efficient energy projects in the country.
Tripple Gee and Company Plc Reports N9m PAT in Q2 2022 Unaudited Results,(SP:N0.96k)
Tripple Gee & Company Plc released its Q2 2022 Unaudited results for the period ended September 30th, 2021.
Key Highlights
- Revenue declined by -34% to N628m from N956m in the previous quarter.
- Profit before tax grew by 282% to N12.8m.
- Profit after tax stood at N9m.
- Net Assets grew by 6% from N1.06bn to N1.12bn.
- Share Price Currently Stands at N0:96k
Q2 UNAUDITED REPORT FOR THE PERIOD ENDED 30 SEPT
| 2021 N’m | 2020 N’m | % Change | |
| SEPT | SEPT | ||
| Turnover | 628.335 | 956.369 | -34.3% |
| PBT | 12.837 | 3.362 | 281.8% |
| Taxation | 3.851 | 4.785 | -19.5% |
| PAT | 9.00 | (1.423)` | -731.5% |
| Basic EPS | 1.82 | (0.29) | -727.6% |
| Balance Sheet Information | |||
| Net Asset | 1,121 | 1,056 | 6.2% |
NPF Microfinance Bank Plc Reports N766m PAT in Q3 2021 Result,(SP:N1.75k)
NPF Microfinance Bank Plc released its Q3 2021 Unaudited results for the period ended September 30th, 2021.
Key Highlights
- Gross Earnings grew by 33.7% to N4.3bn from N3.2bn in the previous quarter.
- Profit before tax grew by 40% to N1bn.
- Profit after tax grew by 40% to N766m.
- Net Assets grew by 7.2% from N5.4bn to N5.8bn.
- Share Price Currently Stands at N1:75k
Q2 REPORT FOR THE PERIOD ENDED 30 SEPT
| 2021 N’m | 2020 N’m | % Change | |
| SEPT | SEPT | ||
| Gross Earnings | 4,334 | 3,241 | 33.7% |
| PBT | 1,022 | 728.897 | 40.2% |
| Taxation | (255.391) | (182.224) | 0.01% |
| PAT | 766.173 | 546.673 | 40.2% |
| Basic EPS | 34 | 24 | 41.7% |
| Balance Sheet Information | |||
| Net Asset | 5,811 | 5,420 | 7.2% |
NESTLE Reports N33.6bn PAT in Q3 2021 Result; Proposes N25.00k Interim Dividend,(SP:N1405.0k)
Nestle Nigeria Plc released its Q3 2021 Unaudited results for the period ended September 30th, 2021.
Key Highlights
- Revenue grew by 23% to N262bn from N213bn in the previous quarter.
- Profit before tax grew by 5% to N52bn.
- Profit after tax grew by 5% to N33.6bn.
- Net Assets grew by 19% from N29bn to N35bn.
- Share Price Currently Stands at N1405:00k
Q3 REPORT FOR PERIOD ENDED 30 SEPT
| 2021 N’m | 2020 N’m | % Change | |
| SEPT | SEPT | ||
| Revenue | 261,591 | 212,733 | 22.97% |
| PBT | 51,584 | 49,262 | 4.71% |
| Taxation | (18,000) | (17,324) | 12.11% |
| PAT | 33,584 | 31,938 | 5.15% |
| Basic EPS | 42.37 | 40.29 | 5.16% |
| Balance Sheet Information | |||
| Net Asset | 34,720 | 29,297 | 18.51% |
| Corporate Declaration | |||
| Proposed Dividend N25.00 | |||
| Qualification Date 19-11-21 | |||
| Payment Date 06-12-21 | |||
| Closure Date 22-26- Nov ‘21 |
Price of Grains Remain Unchanged Amid Early Harvest – AFEX Commodities Weekly Report 221021
It was a rather quiet on the Exchange last week. Prices of all commodities remained the same except Sorghum and cocoa. As a result of the price movement in the open market, there was also a reflective decline in the price of Paddy Rice.
Also, the demand for Sesame pressured the price of Sesame in the open market. However, supply is limited amid inadequate production. Farmers are optimistic compared to last year and are positioned to take advantage of the market.
The AEI and ACI remain flat to reset upon 2021/2022 trading season.
PMA Holds on Wednesday; Yields Advanced 18bps WoW to Settle at 5.38% as Market Turns Bearish
The Nigerian Treasury Bills (“NT-Bills”) secondary market reversed its bullish run last week, as investors took advantage of price appreciations in the proceeding weeks. Consequently, yields in the market gained 18bps W-o-W on average to close at 5.38% (from 5.20% the previous week).
In more detail, mid-tenor bills saw the most sell-offs, as average yield gained 32bps W-o-W, with the 28-Apr-22 (+106bps) and 12-May22 (+83bps) bills advancing the most W-o-W respectively. However, the average yield at the long end of the curve shed 6bps to close at 6.50% (from 6.56% the proceeding week).
This week, the Apex bank is scheduled to roll over maturing bills worth N150.0bn at the NT-Bills Primary Market Auction (“PMA”) on Wednesday (27-Oct-21) across the 91-, 182-, and 364-Day tenors.
Please see a detailed summary in the table below:
| Auction Date | 27-Oct-21 | 27-Oct-21 | 27-Oct-21 |
| Allotment Date | 28-Oct-21 | 28-Oct-21 | 28-Oct-21 |
| Tenor | 91-DAY | 182-DAY | 364-DAY |
| Offer Amount | 3,174,989 | 6,000,000 | 140,870,200 |
| Last Stop Rate – 13-Oct-21 (%) | 2.50% | 3.50% | 7.25% |
| Expected Stop Rate Range (%) | 2.00% – 3.00% | 3.00% – 3.75% | 6.80% – 7.50% |
Going into the week, we expect quiet trading sessions before the PMA (as investors position for the auction) despite the N91.0bn and N150.1bn worth of maturing OMO bills and NT-Bills respectively scheduled to hit the system and improve system liquidity (approx. N261.0bn short as at Friday). Therefore, we advise retail investors to remain cautious, while taking positions in attractive instruments during the week, as well as primary market offerings.
Please see NT-Bills indicative rates below:
| Maturity | Tenor (Days) | Rate (%) p.a. | Yield (%) p.a. |
| 10-Feb-22 | 108 | 2.90 | 2.93 |
| 31-Mar-22 | 157 | 4.23 | 4.31 |
| 26-May-22 | 213 | 5.05 | 5.20 |
| 14-Jul-22 | 262 | 5.90 | 6.16 |
| 25-Aug-22 | 304 | 6.76 | 7.16 |
| 9-Sep-22 | 319 | 7.06 | 7.52 |
FGN Bond Update: Mixed Sentiments as Average Yield Gains 6bps Marginally to Settle at 11.38%
Last week, the bonds secondary market resumed on a quiet note as investors were on the sidelines ahead of the auction that took place on Wednesday. As the week progressed, activity levels improved as average yield in the market inched higher by 6bps W-o-W to close at 11.38% (from 11.33% the week before) driven by sell-offs.
Specifically, the average yield on short- and medium-tenor instruments rose 13bps and 10bps W-o-W to close at 8.64% and 8.51% respectively, while the average yield at the long-end of the curve lost 4bps with the highest buying interest recorded on the 26-Apr-49 (-34bps) and 24-Jul-45 (-23bps) maturities.
At the bond PMA, the Debt Management Office (“DMO”) offered a total of N150.0bn which was met with mixed demand as the JAN-26 bond was undersubscribed while the APR-37 and MAR-50 instruments were oversubscribed.
Please see a detailed summary of the FGN bonds PMA below:
| 12.50% FGN JAN 2026 | 16.2499% FGN APR 2037 | 12.98% FGN MAR 2050 | |
| Auction Date | 20-Oct-21 | 20-Oct-21 | 20-Oct-21 |
| Settlement Date | 22-Oct-21 | 22-Oct-21 | 22-Oct-21 |
| Maturity Date | 22-Jan-26 | 18-Apr-37 | 27-Mar-50 |
| Tenors | 10-Years | 20-Years | 30-Years |
| Term-to-Maturity | 4 Years, 3 Months | 15 Years, 6 Months | 28 Years, 5 Months |
| Amount Offered (N’bn) | 50.00 | 50.00 | 50.00 |
| Total Bids | 44 | 96 | 79 |
| Successful Bids | 36 | 61 | 54 |
| Subscription (N’bn) | 49.05 | 80.92 | 120.74 |
| Amount Allotted (N’bn) | 44.80 | 52.72 | 92.24 |
| Rang of Bids (%) | 10.50 -13.00 | 12.00 – 14.00 | 12.70 – 13.99 |
| Marginal Rates (%) | 11.65 | 12.95 | 13.20 |
| Bid-to-Cover Ratio | 1.1x | 1.5x | 1.3x |
| Allotment Ratio | 0.9x | 1.1x | 1.8x |
This week we expect more traction in the secondary market as investors adjust their portfolios with increasing yields in the market. In that light, we advise investors to position in attractive maturities across all tenors in the market.
Please see below FGN Bonds secondary market indicative rates:
| Bond | Tenor (Years) | Yield (%) | Coupon (%) | Implied Price (N) |
| Apr-23 | 2 | 7.80 | 12.75 | 106.90 |
| Mar-24 | 3 | 8.60 | 14.20 | 111.83 |
| Mar-25 | 4 | 9.55 | 13.53 | 111.34 |
| Jan-26 | 5 | 10.55 | 12.50 | 106.49 |
| Mar-27 | 6 | 10.90 | 16.29 | 121.52 |
| Feb-28 | 7 | 11.35 | 13.98 | 111.60 |
| Jul-34 | 13 | 11.50 | 12.15 | 104.24 |
| Mar-36 | 15 | 12.00 | 12.40 | 102.68 |
| Apr-37 | 16 | 12.10 | 16.25 | 128.72 |
| Apr-49 | 28 | 12.05 | 14.80 | 121.91 |
