D

1. Retail views
UBA Q4 results
Nigeria Wednesday, 8 January 2015
Daily Retail Report
.
Market Review
The Nigerian Equity Markets extends its losing spree at today’s
session as the benchmark index shed 2.40% to return
30,420.54bpts. All sub-sector indices closed in negative terrain led
by NSEBNK which lost a whopping 3.54% before the closing bell on
the back of heavy lost recorded by Access(-9.58%), Guaranty(-
5.69%) and Fidelity(-5.00%).
ASI year-to-date return currently stand at -10.76%. Among the
broad indices, value of transactions depreciated by 19% relative to
previous session. Top worst performers were Access(N5.19),
Guinness(N128.52), Oando(N15.01), Seplat(N300.00) and Honey
Flour(N3.22) while Total(N152.13), FBNH(N8.00), Nigerian
Brew.(N140.70), International Brew.(N21.25) and Wapco(N80.50)
topped the key gainers’ list.
Cautious trading is advised as investors with long term outlook are
advised to take position.
Sector Report Today(%) Month-To-Date(%) Year-To-Date(%)
NSE30 -2.56 -14.07 -31.30
NSE BNK10 -3.54 -19.79 -37.30
NSE CNSM10 -2.36 -12.06 -30.38
NSE OILG5 -2.78 -14.71 5.95
NSE INS10 -0.25 -0.91 -4.33
Market Wrap
ASI -2.40 30,420.54
Index year-to-datee -10.76
Market Cap. N10.071Tril
Traded value 4.416Bn
Key gainers (%)
TOTAL 3.84
FBNH 2.43
NB 0.63
INTBREW 1.19
WAPCO 0.60
Key losers (%)
ACCESS -9.58
GUINNESS -9.33
OANDO 7.06
SEPLAT -5.43
HONEYFLOUR -6.94
NITTY
1M 11.7287
2M 12.6803
3M 13.2873
6M 13.3575
9M 14.2150
12M 14.6761
Crude oil spot price
Brent crude US$51.45
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
2012
1 Yr
forward
EPS
1-yr PAT
Latest
(Nbillion)
1 yr forward
PAT(Nbillion)
Last year's
Dividend(N)
Dividend
Yield (%)
Last
year's
RoAE %
Shares
Outstanding
(millions)
Year
End
Access Bank Plc Hold 5.19 11.00 111.9% 1.68 1.61 42.862 36.860 0.85 8.80 19.2% 22,883 Dec.
Diamond Bank Plc Buy 4.66 8.10 73.8% 1.53 1.64 22.075 23.801 0.00 0.00 22.7% 14,475 Dec.
Fidelity Bank Buy 1.52 3.00 97.4% 0.63 0.50 18.201 20.116 0.21 13.82 12.0% 28,974 Dec.
First Bank Holding Company Hold 8.00 14.70 83.8% 2.30 2.30 75.400 74.900 1.00 12.50 18.8% 32,632 Dec.
Guaranty Trust Bank Plc Buy 20.71 39.80 92.2% 3.06 3.30 90.000 97.400 1.70 8.21 29.0% 29,431 Dec.
Stanbic Hold 27.00 15.50 -42.6% 1.02 1.82 11.446 20.300 0.10 0.37 12.4% 10,000 Dec.
Sterling Bank Hold 2.49 2.70 8.4% 0.44 0.40 6.954 8.000 0.20 8.03 16.0% 21,592 Dec.
Skye Bank under review 2.29 under review N/A 0.96 1.20 12.646 15.182 0.50 21.83 12.0% 13,219 Dec.
United Bank for Africa Plc Hold 3.75 7.40 97.3% 1.70 1.50 54.800 49.800 0.50 13.33 32.3% 32,981 Dec.
Zenith Bank Plc Buy 15.00 31.50 110.0% 3.19 2.96 95.300 101.800 1.75 11.67 19.5% 31,396 Dec.
Food & Beverage
Dangote Sugar Refinery under review 5.52 under review N/A 0.89 1.10 10.700 12.800 0.50 9.06 26.0% 12,000 Dec.
Cadbury Plc under review 42.00 under review N/A 1.10 3.20 5.500 6.000 0.50 1.19 19.0% 1,878 Dec.
Flour Mills Plc Hold 35.38 54.80 54.9% 2.90 3.50 8.400 10.618 1.60 4.52 10.0% 2,385 Mar.
Honey Flour Mills Buy 3.22 5.20 61.5% 0.34 0.40 2.702 3.208 0.15 4.66 16.0% 7,930 Dec.
Nestle Nig. Plc Hold 898.53 821.80 -8.5% 26.70 27.20 22.258 21.768 25.50 2.84 75.0% 792 Dec.
PZ Plc Hold 25.30 34.60 36.8% 0.60 1.20 2.400 3.800 0.43 1.00 6.0% 3,970 May
UACN Plc Buy 29.05 72.60 149.9% 2.57 2.70 7.100 9.400 1.60 5.51 12.1% 1,920 Dec.
Unilever Plc Sell 33.80 31.80 -5.9% 1.51 1.26 5.600 4.800 1.40 4.14 58.0% 3,783 Dec.
Building Materials
WAPCO under review 80.50 under review N/A 4.90 10.00 14.700 30.009 1.20 1.49 23.0% 3,001 Mar.
Dangote Cement Plc Buy 167.00 258.50 54.8% 8.90 11.40 151.900 194.000 3.00 1.50 37.0% 17,040 Dec.
Breweries
Guinness Sell 128.52 111.00 -13.6% 7.93 8.70 11.863 13.400 7.00 5.45 36.0% 1,506 June
International Breweries Hold 21.25 24.50 15.3% 0.71 0.90 2.327 2.800 0.25 1.00 25.0% 3,263 Mar.
Nigerian Breweries Plc sell 140.70 121.20 -13.9% 5.00 5.50 38.100 41.012 3.00 2.13 41.0% 7,562 June
Agriculture
OkomuOil Buy 25.46 41.50 63.0% 7.50 3.50 3.591 3.300 7.00 15.20 16.0% 953 Dec.
Presco Buy 27.47 42.70 55.4% 3.55 1.56 3.550 1.556 1.00 2.80 21.0% 1,000 Dec.
Pharmaceuticals
GlaxoSmithkline Buy 42.79 78.60 83.7% 2.95 3.31 2.824 3.170 1.30 3.04 29.0% 957 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
Banks
MDAs directed to close revenue accounts with banks
Yesterday, the Punch Newspaper reported that the Federal Government (FG) has directed all its ministries, departments and agencies (MDAs) to close their
revenue accounts with deposit money banks (DMBs). It also directed the MDAs to transfer the balances from the closed revenue accounts to a consolidated
revenue fund of the FG. MDAs have been given a deadline of February 28 to transfer these funds. This move, according to the FG, is targeted at installing a new
regime of centralised, transparent and accountable internally generated revenue management system.
The FG has been making attempts since 2012 to operate a Treasury Single Account (TSA). We view the introduction of a deadline as a prudent measure by the
FG to monitor all cash flows, considering that government revenues are fast declining due to oil prices.
The modalities of operation still remain unclear. In our view however, we believe the banks may still act as collectors of these funds under a new account operated
and run by the CBN. Depending on the frequency of remittance however, banks may lose the float which they previously earned on these funds. We are also of
the view that this may result in an increase in cost of funds, as banks begin to scamper for private sector deposits to make up for the lost funds. Some DMBs have
already been making concerted efforts to reduce dependence on public sector funds after the Central Bank of Nigeria hiked the public sector cash reserve ratio
(CRR) to 75% in January 2014.
As of October 2014, government deposits represented 19% (N2.4trn, US$12.3bn) of total banks' deposits.
News Headlines
AMCON to sell Keystone bank in Q2: The Asset Management Corporation of Nigeria (AMCON) yesterday said it would commence the sale of
Keystone Bank in the second quarter of this year. This comes barely four months after the AMCON completed the sale of Enterprise Bank and
Mainstreet Bank, two of the three nationalised banks. The Chief Executive Officer, AMCON, Mustafa Chike-Obi said the February general elections
had made the corporation to delay the sale of Keystone Bank till the second quarter of the year. Source: punchng.com
http://www.punchng.com/business/business-economy/amcon-to-sell-keystone-bank-in-q2/
CBN to review banks’ dollar position: The Governor, Central Bank of Nigeria, Mr. Godwin Emefiele, on Wednesday said the central bank would
review the amount banks could hold in dollars as their trading positions in the foreign exchange market. Emefiele stated this in a telephone interview
with Bloomberg. He said the CBN had in December stopped banks from holding any amount of their shareholders’ funds in dollars to curb
speculative attack on the naira. The CBN governor, however, said the measure was only a stop-gap action to stabilise the naira. Source: punchng.com
http://www.punchng.com/business/money/cbn-to-review-banks-dollar-position/
External reserves rise marginally to US$34.5bn: The Federal Government on Wednesday described as untrue claims by former President
Olusegun Obasanjo that the administration of President Goodluck Jonathan had squandered the nation’s foreign reserves. The Federal Ministry of
Finance, in a statement in Abuja, said there was never a time the reserves rose to US$67bn as alleged by Obasanjo. It said that the reserves were,
among others, used to settle foreign currency obligations, including the importation of equipment for the power sector. Source: thisdaylive.com
http://www.thisdaylive.com/articles/external-reserves-rise-marginally-to-34-513bn/198657/

4. Daily Retail Report
Page 4
Retail views
Important Risk Warnings and Disclaimers
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