Daily retail market report 240215

1. Retail views
UBA Q4 results
Nigeria Tuesday, 24 February 2015
Daily Retail Report
.
Market Review
The Nigerian Stock Exchange witnessed another rally at today’s
session; the benchmark index crossed the 30,000bps
psychologically crucial mark on the backdrop of sustained
investors’ patronage. Sentiments remained optimistic across
sectoral board as all sectoral indices closed in positive terrain.
NSEBNK garnered the most points as investors showed preference
for Access (+8.75%), UBA (+5.57%) and Zenith (+4.95%). Access and
UBA are now within the range of their Rights Offer prices.
All-Share-Index year-to-date stands at -8.96%, far from the double
digit figures that have prevailed in the last seven weeks. In the
broad market, advancers thumped decliners 35 to 22 leaving 47
issues unchanged. Market activity level in terms of value traded
appreciated relative to the last session as 277million units of shares
valued at 3.785bn exchanged hands. The key stocks on the gainers’
chart are CAP (N39.78), ACCESS (N6.57) and MAYBAKER (N1.73)
while OKOMUOIL (N33.81), ETERNA (N2.51) and NASCON (N6.46)
topped the key losers’ list
Our mantra remains that investors with long-term perspective
should take position in valued stocks.
Sector Report Today(%) Month-To-Date(%) Year-To-Date(%)
NSE30 1.46 -12.21 -8.62
NSE BNK10 2.84 -6.36 -2.95
NSE CNSM10 0.56 -14.81 -12.26
NSE OILG5 0.79 4.85 7.84
NSE INS10 0.38 -7.32 -4.71
Market Wrap
ASI +1.18% 30,145.60
Index year-to-date -8.96%
Market Cap. N10.058Tril
Traded value 3.785Bn
Key gainers (%)
JBERGER 4.99
SEPLAT 3.25
GUARANTY 3.18
FLOURMILL 2.94
FBNH 2.01
Key losers (%)
TOTAL -2.74
OKOMUOIL -4.97
UAC-PROP -3.10
OANDO -0.71
INTBREW -2.25
NITTY
1M 13.1353
2M 14.9396
3M 14.9908
6M 15.6137
9M 15.8744
12M 15.9327
Crude oil spot price
Brent crude US$59.84
Contact information
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2. Daily Retail Report
Page 2
Retail views
Stock Recommendations
Banking Comment
Current
Price
Target
Price
Potential
Upside %
EPS
FY
2013
1 Yr
forward
EPS
Last
Dividend
(N)
P/BV
2013
Yield FY
2013
Yield FY
2014e
Shares
Outstanding
(millions)
Year
End
ACCESS BANK Buy 6.57 7.73 18% 1.60 1.90 0.35 0.80 7.10% 11.5% 22883.00 Dec.
DIAMOND BANK Buy 4.10 5.27 29% 2.00 1.70 0.30 0.60 5.40% 5.4% 14475.00 Dec.
FIDELITY BANK PLC Buy 1.22 1.86 52% 0.30 0.50 0.14 0.30 7.40% 11.6% 28974.00 Dec.
FBN HOLDINGS Buy 7.61 12.86 69% 2.20 2.30 1.10 0.80 10.00% 10.0% 32632.00 Dec.
GUARANTY TRUST BANK Buy 22.70 28.42 25% 3.20 3.30 1.45 2.20 6.90% 7.3% 29431.00 Dec.
STANBIC HOLDINGS Hold 25.75 32.37 26% 1.90 2.60 1.20 3.10 2.70% 3.5% 10000.00 Dec.
STERLING BANK Hold 2.25 1.57 -30% 0.40 0.40 0.25 0.80 10.90% 8.7% 21592.00 Dec.
SKYE BANK Under review 2.14 -100% 1.20 1.10 0.30 0.30 11.10% 20.7% 13219.00 Dec.
U B A Buy 3.75 5.70 52% 1.40 1.50 0.50 0.70 10.10% 10.1% 32981.00 Dec.
ZENITH BANK Buy 18.75 24.60 31% 3.00 3.00 1.75 1.30 8.10% 8.3% 31396.00 Dec.
Food & Beverage
EV/EBITDA (x)
2013
Yield FY
2013e
DANGOTE SUGAR REFINERY Under review 6.17 Under review N/A 0.89 1.20 0.60 4.70 7.40% 7.4% 12000.00 Dec.
CADBURY NIG. Under review 38.80 Under review N/A 2.90 3.20 1.30 7.60 0.00% 4.7% 1878.00 Dec.
FLOUR MILLS Hold 35.00 54.80 57% 2.90 3.50 1.60 8.90 3.30% 4.0% 2385.00 Mar.
HONEYWELL FLOURMILLS Buy 2.90 5.20 79% 0.40 0.30 0.17 12.00 5.70% 4.7% 7930.00 Mar.
NESTLE FOODS NIG. Hold 824.01 821.80 0% 28.10 31.30 24.00 24.90 2.60% 3.0% 792.00 Dec.
P Z INDUSTRIES Hold 28.49 34.60 21% 1.20 1.30 0.19 7.80 2.70% 3.0% 3970.00 May
U A C N Buy 37.00 72.60 96% 2.90 3.60 1.75 5.40 4.00% 4.7% 1920.00 Dec.
UNILEVER NIGERIA PLC Sell 34.18 31.80 -7% 1.30 1.60 1.25 13.70 3.80% 3.8% 3783.00 Dec.
Building Materials EPS 2013e
EV/EBITDA(x)
2013e
Yield FY
2013e
LAFARGE WAPCO PLC Under review 86.00 Under review N/A 9.40 9.40 3.30 8.20 3.30% 3.3% 3001.00 Mar.
DANGOTE CEMENT Buy 154.00 258.50 N/A 11.80 11.90 7.00 16.10 3.40% 3.5% 17040.00 Dec.
Breweries EPS 2013e
EV/EBITDA(x)
2013e
Yield FY
2013e
GUINNESS NIG. Sell 125.49 111.00 -12% 7.90 5.90 7.00 14.50 4.30% 3.0% 1506.00 June
INTERNATIONAL BREWERIES Hold 17.10 24.50 43% 0.90 1.30 0.30 16.20 1.00% 1.5% 3263.00 Mar.
NIGERIAN BREWERIES Sell 139.00 121.20 -13% 5.70 5.60 4.50 13.30 2.90% 2.1% 7562.00 June
Agriculture EPS 2013e
EV/EBITDA (x)
2013e
Yield FY
2013e
OKOMU OIL Buy 33.81 41.50 23% 2.20 3.00 1.00 9.00 3.20% 6.7% 953.00 Dec.
PRESCO PLC Buy 32.38 42.70 32% 1.29 1.60 0.10 9.20 0.40% 1.7% 1000.00 Dec.
Pharmaceuticals EV/EBITDA (x)
2013
Yield FY 2013
GLAXOSMITHKLINE BEECHAM NIG. Buy 42.00 78.60 0.87 3.10 4.30 1.30 8.90 2.50% 3.8% 957.00 Dec.
Note – for full report on the recommended stocks kindly send an email to cslcsu@firstcitygroup.com

3. Daily Retail Report
Page 3
Retail views
Top Highlight
Islamic banking – Islamic banking starts from a low base
The Central Bank of Nigeria’s (CBN) new guidelines for the regulation and supervision of non-interest (Islamic) financial institutions in Nigeria
provide for the establishment of an advisory body at the CBN on Islamic banking and finance. The body is to be called the Financial Regulation
Advisory Council of Experts (FRACE) and will advise the CBN on matters relating to Islamic commercial jurisprudence for regulation and
supervision of Non-Interest Financial Institutions (NIFIs) in Nigeria. The CBN over the weekend released guidelines that would guide the operations
and activities of the FRACE.
Jaiz Bank Plc was the first licensed Islamic bank in Nigeria and it began operations in 2012. Conventional banks like Stanbic IBTC and Sterling
Bank also have licenses to offer or sell products and services in line with the principles under this model through appropriate subsidiaries and
branches.
Under Islamic banking, interest is prohibited and thus, the providers of funds share the business risk and profits based on mutual agreements.
When disbursing loans, the banks function as quasi-investment banks, whereby both the investor and the bank not only share the benefits of high
returns on investments, but also share any losses. Islamic banks also refrain from funding transactions that are prohibited by Shari’ah principles
like brewing, gambling, etc.
In our view, the successful and wide spread take-off of Islamic Banking in Nigeria depends to a large extent on the ability of its promoters to create
better awareness of Islamic banking products and to help to address any misconceptions’ surrounding Islamic banking in a country where religion
can be a sensitive issue.
Today’s news headlines
Rice: FG targets extra 2.9 million metric tonnes: The Minister of Agriculture and Rural Development, Dr. Akinwumi Adesina, has said about
2.9 million metric tonnes of high quality milled rice will be added to the existing stock in the country. This was contained in a statement issued by
the Federal Ministry of Agriculture and Rural Development after the minister inspected a 420-hectare rice farm and mill belonging to OLAM Nigeria
in Rukubi, near Doma, Nasarawa State. Adesina noted that the addition would ‘‘bring Nigeria closer to being self-sufficient in rice production and a
potential exporter of milled rice.” According to him, 1.9 million metric tonnes of rice were produced in the country in the 2013 dry and wet
seasons, contributing N320bn to the Gross Domestic Product and creating 670,000 jobs in the process. Source: punchng.com
Alison-Madueke meets marketers in Lagos to avert fuel crisis: In a move to avert a looming scarcity of petroleum products in the country, the
Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke, on Monday met with the Chief Executive Officers of Oil Marketing and Trading
companies in Lagos. During the protracted meeting at the Eko Hotel, solutions to the threats by the banks and marketers to stop financing and
importing products, were sought. Source: thisdaylive.com
Aliko Dangote, Africa’s richest man, loses $7.8 billion as Naira, stocks plunge: Aliko Dangote, Africa’s richest man, is the biggest loser among
Nigeria’s richest people as the Naira’s slump, coupled with falling stock prices, have erased more than $7.8 billion of his fortune since February,
when FORBES locked in the values for its annual ranking of the world’s billionaires. Dangote was worth $25 billion at the time; but at the close of
market last Tuesday, his net-worth had dropped to US$17.2 billion. More than half of the drop in his fortune has happened since early November.
As of November 7, Dangote was worth $21.6 billion, $4.4 billion more than now. Source: thisdaylive.com

4. Daily Retail Report
Page 4
Retail views
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