1. Retail views
UBA Q4 results
Nigeria Tuesday, 27 January 2015
Daily Retail Report
.
Market Review
The Nigerian Stock Market held into positive territory with gains of
about two tenths of a percentage on the benchmark index. Investors
were seen piling positions in Banking, Industrial and Consumer
sectors while selling pressure was witnessed in OilG and Insurance
sectors. Despite losses recorded in Oando(-3.76%), GTB(-1.52%),
Guinness(-0.76%) and Nestle(-0.62%), the NSEASI added 0.27% to
erase yesterday’s weak closing.
NSEASI currently stands at 29,859.06, returning -12.49% year-to-
date. At the closing bell, 25 stocks advanced relative to 39 decliners
while 48 remained unchanged. Market activity level appreciated
relative to the previous session as 468million units valued at
4.675bn represents 78% and 21% surge in volume and value traded
respectively. Top in the positive territory are OkomuOil(N27),
PZ(N26.25), IkejaHotel(N2.73) and Presco(N32.60) while
Oando(N15.88) GTB(N20.68) and Unilever(N33.50) led the decliners.
While sentiments still remain cautious, aggressive investors take
advantage of the well beaten prices of large caps.
In the trader’s opinion, investors are advised to tread cautiously.
Sector Report Today(%) Month-To-Date(%) Year-To-Date(%)
NSE30 0.32 -15.05 -14.99
NSE BNK10 0.32 -15.47 -15.28
NSE CNSM10 0.27 -13.96 -13.98
NSE OILG5 -1.38 -5.69 -6.57
NSE INS10 -1.61 -5.75 -5.66
Market Wrap
ASI +0.27 29,859.06
Index year-to-datee -12.49
Market Cap. N9.945Tril
Traded value 4.675Bn
Key gainers (%)
OKOMUOIL 5.14
PZ 5.00
DANGSUGAR 4.99
PRESCO 4.98
UBN 9.50
Key losers (%)
CONOIL -4.99
DANGFLOUR -4.93
MANSARD -4.84
OANDO -3.76
TRANSCORP -2.68
NITTY
1M 11.9666
2M 12.5455
3M 13.4356
6M 14.2108
9M 15.1943
12M 16.4880
Crude oil spot price
Brent crude US$48.25
Contact information
Phone: 01-2713923; 01-2713920
Mobile: 08068015502
Email: cslservice@fcmb.com
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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 Hold 5.35 11.00 106% 1.60 1.90 0.35 0.80 7.10% 11.5% 22883.00 Dec.
DIAMOND BANK Buy 4.00 8.10 103% 2.00 1.70 0.30 0.60 5.40% 5.4% 14475.00 Dec.
FIDELITY BANK PLC Buy 1.30 3.00 131% 0.30 0.50 0.14 0.30 7.40% 11.6% 28974.00 Dec.
FBN HOLDINGS Hold 7.47 14.70 97% 2.20 2.30 1.10 0.80 10.00% 10.0% 32632.00 Dec.
GUARANTY TRUST BANK Buy 20.68 39.80 92% 3.20 3.30 1.45 2.20 6.90% 7.3% 29431.00 Dec.
STANBIC HOLDINGS Hold 27.00 15.50 -43% 1.90 2.60 1.20 3.10 2.70% 3.5% 10000.00 Dec.
STERLING BANK Hold 2.47 2.70 9% 0.40 0.40 0.25 0.80 10.90% 8.7% 21592.00 Dec.
SKYE BANK Under review 2.10 5.00 138% 1.20 1.10 0.30 0.30 11.10% 20.7% 13219.00 Dec.
U B A Hold 3.55 7.40 108% 1.40 1.50 0.50 0.70 10.10% 10.1% 32981.00 Dec.
ZENITH BANK Buy 17.11 31.50 84% 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 5.89 Under review N/A 0.89 1.20 0.60 4.70 7.40% 7.4% 12000.00 Dec.
CADBURY NIG. Under review 39.90 Under review N/A 2.90 3.20 1.30 7.60 0.00% 4.7% 1878.00 Dec.
FLOUR MILLS Hold 39.80 54.80 38% 2.90 3.50 1.60 8.90 3.30% 4.0% 2385.00 Mar.
HONEYWELL FLOURMILLS Buy 2.96 5.20 76% 0.40 0.30 0.17 12.00 5.70% 4.7% 7930.00 Mar.
NESTLE FOODS NIG. Hold 825.00 821.80 0% 28.10 31.30 24.00 24.90 2.60% 3.0% 792.00 Dec.
P Z INDUSTRIES Hold 26.25 34.60 32% 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 33.50 31.80 -5% 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 82.00 Under review N/A 9.40 9.40 3.30 8.20 3.30% 3.3% 3001.00 Mar.
DANGOTE CEMENT Buy 156.00 258.50 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 129.00 111.00 -14% 7.90 5.90 7.00 14.50 4.30% 3.0% 1506.00 June
INTERNATIONAL BREWERIES Hold 20.80 24.50 18% 0.90 1.30 0.30 16.20 1.00% 1.5% 3263.00 Mar.
NIGERIAN BREWERIES Sell 144.89 121.20 -16% 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 27.00 41.50 54% 2.20 3.00 1.00 9.00 3.20% 6.7% 953.00 Dec.
PRESCO PLC Buy 32.66 42.70 31% 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 40.00 78.60 0.97 3.10 4.30 1.30 8.90 2.50% 3.8% 957.00 Dec.40
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
Petrol Price- The petrol price and the international price of crude oil
On 18 January, the government announced a 10.3% cut in the official price of petrol (locally known as Premium Motor Spirit) to N87.0 (US$0.4)
per-litre, from N97.0 previously. Nigerians had anticipated a steeper cut, considering that the international price of crude oil had fallen over the
preceding three months 44.6% (and has fallen 4.8% since then).
The government fixes the price of petrol and refunds petrol marketers with subsidies when the estimated open market price, which is computed
and published weekly by the Petroleum Products Pricing Regulatory Pricing Agency (PPPRA), is higher than the official price, which the PPPRA sets.
The latest reading from the PPPRA, dated 23 January 2015, suggests that even if subsidies on petrol were completely withdrawn and marketers
maintained their existing margins, petrol should retail for N90.64 per-litre, 4.18% higher than the official price.
Nigeria produces around 1.9m barrels of crude oil per-day (bpd) and consumes some 350,000 bpd, 80% of which is imported due to the lack of
local refining output. We believe that the domestic price of petrol will only begin to properly capture movements in the international price of crude
oil when domestic refining capacity is sufficiently developed.
News Headlines
Petrol subsidy rises to N3.64 per litre: A week after the Federal Government announced the reduction of the pump price of petrol, subsidy on
the product has increased to N3.64 from the N2.84 stated on January 16, 2015, statistics obtained from the Petroleum Products Pricing
Regulatory Agency have shown. The PPPRA, whose website is now wearing a new look after going off for four days, has changed the format of the
pricing template, with little details given when our correspondent checked on Monday. Before the change, the agency used a template that gave
more details, including the cost and freight component of the product, and distribution margins, among others. According to the latest petrol
pricing template, the Expected Open Market Price of Premium Motor Spirit, otherwise called petrol, is N90.64 per litre as of January 23, up from
N89.8 on January 16. Source: punchng.com
FG accuses distribution companies of rejecting power allocations: As Nigerians grapple with the challenges of inadequate electricity supply,
the Federal Government has accused some electricity distribution companies of rejecting power allocated to them for distribution to customers.
Speaking during a recent visit to the Corporate Head Office of THISDAY in Lagos, Minister of Power, Prof. Chinedu Nebo, who made the accusation,
wondered why distribution companies would reject power when Nigerians did not have enough supply. Source: thisdaylive.com
Nigeria naira closes at record low, despite intervention: Nigeria's naira ended at a record closing low on Monday, despite central bank
intervention, as the currency continued to weaken on strong demand for the greenback, dealers said. The unit closed at 191.10, a new record low
against the U.S. dollar, compared with Friday's record low close of 190.60 naira. Source: Reuters.com

4. Daily Retail Report
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Retail views
Important Risk Warnings and Disclaimers
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5. Daily Retail Report
Page 5
Retail views
Lagos State, NIGERIA