The Nigerian stock market continued to decline, with the all-share index dropping 0.08%. Most sectors closed negatively except for banking, oil and gas, and industrial goods. Nigeria Ropes reported an 8% decline in profit after tax for FY2014 despite a 2% rise in revenue. The report recommends taking positions in defensive stocks as their prices currently look attractive. It also provides analysis and recommendations for various companies in the banking, food and beverage, building materials, breweries, agriculture, pharmaceutical, and oil and gas sectors.

1. Retail views
UBA Q4 results
Nigeria Thursday, 07 May 2015
Daily Retail Report
.
Market Review
The Nigerian Stock Exchange continues its losing spree against the
backdrop of weak investor sentiments. All-Share-index dropped by
8bps to return 34,400.48bps. NSE sectorial indices showed mixed
performance, as NSEINS and NSECNSM closed negative while
NSEBNK, NSEOILGS, and NSEIND closed in positive terrain on the
back of ETI(+10.17%), FIDELITYBK (+2.66%), CAP (+4.99%) and
ASHAKACEM (+2.66%)
The decliners beat advancers in a ratio of 5:4 while 66 issues
remained unchanged. Among broad indices 330million units of
shares valued at N3.750bn exchanged hands representing a 30%
decrease in volume traded but a 9% increase in value traded
relative to the previous session. The key stocks in the gainers’ chart
are ETI (N24.55), CILEASING (N0.60), and FIDSON (N3.15) while
UNITYBNK (N2.75), ABCTRANS (N0.57) and GUINNESS (N160.56)
led the losers’ chart.
Nigeria Ropes Plc released their FY 2014 result for the year ended
31st Dec. 2014. Revenue (N374.1bn) appreciated by 2% while PAT
(N204.9mil) depreciated by 8% from prior period.
We expect value investors to take position in defensive stocks, as
their prices currently look attractive in the face of recent weak price
movements.
Sector Report Today(%) Month-To-Date(%) Year-To-Date(%)
NSE30 0.05 -0.46 66.39
NSE BNK10 1.39 3.01 113.21
NSE CNSM10 -1.02 -2.42 54.52
NSE OILG5 0.44 0.54 103.46
NSE INS10 -0.36 -0.51 4.90
NSE IND 0.55 -0.24 4.11
Market Wrap
ASI -0.08 34,400.48
Index year-to-datee -0.74
Market Cap. N11.682Tril
Traded value 3.750Bn
Key gainers (%)
ETI 10.19
CILEASING 7.14
FIDSON 5.00
CAP 4.99
HONEYFLOUR 4.99
Key losers (%)
UNITYBNK -9.54
ABCTRAMS -5.00
GUINNESS -4.99
CCNN -4.55
NASCON -4.36
NITTY
1M 10.7087
2M 10.7419
3M 11.2088
6M 12.3412
9M 14.4658
12M 14.8309
Crude oil spot price
Brent crude US$66.89
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
2014
1 Yr
forward
EPS
Last
Dividend
(N)
P/BV
2014
Yield FY
2014
Yield FY
2015e
Shares
Outstanding
(millions)
Year
End
ACCESS BANK Buy 5.99 7.33 22% 1.90 0.40 0.60 0.70 9.19% 0.8% 22883.00 Dec.
DIAMOND BANK Buy 4.65 5.27 13% 1.54* 0.30 0.10 0.43* 7.5*% 1.8% 14475.00 Dec.
FIDELITY BANK PLC Under review 1.93 1.86 -4% 0.45* 0.33 0.18 0.22* 10.8*% 6.9% 28974.00 Dec.
FBN HOLDINGS Buy 8.93 12.86 44% 2.54 0.04 0.10 0.58 1.10% 0.0% 32632.00 Dec.
GUARANTY TRUST BANK Buy 28.83 28.42 -1% 3.40 2.10 1.75 1.90 7.20% 7.3% 29431.00 Dec.
STANBIC HOLDINGS Hold 29.90 32.37 8% 2.98* 3.60 1.25 2.3* 3.7*% 4.3% 10000.00 Dec.
STERLING BANK Hold 2.14 1.57 -27% 0.34* 0.26 0.06 0.8* 6.5*% 5.2% 21592.00 Dec.
SKYE BANK Under review 2.50 Under review Under review 0.30 Under review 20.7% 13219.00 Dec.
U B A Buy 5.15 7.87 53% 1.29* 0.44 0.10 0.44* 11.3*% 4.0% 32981.00 Dec.
ZENITH BANK Buy 21.40 24.60 15% 3.17 2.16 1.75 1.20 8.20% 4.3% 31396.00 Dec.
Food & Beverage
EV/EBITDA (x)
2014
Yield FY 2014
DANGOTE SUGAR REFINERY Under review 6.40 Under review 0.60 7.4% 12000.00 Dec.
CADBURY NIG. Under review 39.90 Under review 0.65 4.7% 1878.00 Dec.
FLOUR MILLS Hold 34.06 54.80 61% 1.93 3.50 1.60 7.10 3.60% 1.8% 2385.00 Mar.
HONEYWELL FLOURMILLS Buy 3.79 5.20 44% 0.30 0.17 4.7% 7930.00 Mar.
NESTLE FOODS NIG. Under review 900.00 Under review 38.00 17.50 34.5* 2.10% 4.6% 792.00 Dec.
P Z INDUSTRIES Hold 28.00 34.60 24% 0.81 3.0% 3970.00 May
U A C N Buy 40.00 72.60 82% 1.75 4.7% 1920.00 Dec.
UNILEVER NIGERIA PLC Sell 43.04 24.30 -44% 0.64 2.11 0.10 0.30% 5.0% 3783.00 Dec.
Building Materials EPS 2014e
EV/EBITDA(x)
2014e
Yield FY
2014e
LAFARGE WAPCO PLC Under review 96.00 Under review 3.50 3.30% 3.3% 3001.00 Mar.
DANGOTE CEMENT Buy 178.00 198.40 9.07 9.87 6.00 13.00 3.60% 3.5% 17040.00 Dec.
Breweries EPS 2014
EV/EBITDA(x)
2014
Yield FY 2014
GUINNESS NIG. Sell 160.56 111.00 -31% 6.30 2.70 7.00 9.30 5.40% 2.5% 1506.00 June
INTERNATIONAL BREWERIES Hold 21.49 24.50 14% 0.30 1.5% 3263.00 Mar.
NIGERIAN BREWERIES Sell 154.00 121.20 -21% 5.62 6.40 3.50 10.80 4.50% 3.5% 7562.00 June
Agriculture EPS 2013e
EV/EBITDA(x)
2014e
Yield FY
2014e
OKOMU OIL Buy 28.52 41.50 46% 2.20 3.00 0.25 9.00 3.20% 6.7% 953.00 Dec.
PRESCO PLC Buy 29.48 42.70 45% 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 54.00 78.60 46% 3.10 4.30 0.75 8.90 2.50% 3.8% 957.00 Dec.
Oil & Gas
EV/DACF(x)
2014
Yield FY 2014
SEPLAT Buy 387.00 598.00 55% 0.58 0.87 3.10 4.70% 4.9% Dec.
Note – for full report on the recommended stocks kindly send an email to cslcsu@firstcitygroup.com
Top Highlight

3. Daily Retail Report
Page 3
Retail views
Housing - Lagos builds 10,000 houses in eight years
Lagos State Government (LASG) stated last week that it has built more than 10,000 housing units in the past eight years. The units were
targeted at residents of various income levels.
LASG estimates a deficit of 1 million housing units, with an estimated labour force of 8 million. Middle income earners often find it difficult
to own houses, primarily because of insufficient wages and high mortgage rates. To bridge the housing supply gap, LASG launched the
Lagos State Home Ownership Mortgage Scheme (HOMS) in March 2014. HOMS was designed to encourage and support home ownership for
first time buyers through the provision of affordable housing units, as well as accessible and cheap mortgage finance.
So far, more than 600 first-time buyers have been allotted houses under HOMS at mortgage rates (fixed at 9.25%) lower than what
commercial banks and mortgage companies typically charge (22.00-25.00%). The houses offered under the scheme are usually more
affordable, sell for 30-35% less than similar houses constructed by private developers.
LASG is still a long way from bridging the existing housing gap, we believe. Attracting additional private sector participation by offering
incentives to property developers (such as subsidising land costs and providing financial support) would be one way to significantly increase
home ownership, in our view.
News Headlines
Stanbic IBTC to raise N24bn (US$120m) from rights issue: Stanbic IBTC Holdings says it is planning to raise N24bn from a rights issue
once shareholders approve the transaction. The lender said on Wednesday that the development would help it to achieve its growth targets.
Stanbic IBTC, majority owned by South Africa’s Standard Bank, said it would seek approval at a general meeting on June
3, Reuters reported. Source: punchng.com
Governors should be blamed for unpaid salaries – Okonjo-Iweala: The Federal Government on Wednesday absolved itself of blame for the
inability of some state governments to pay their workers’ salaries. It said the governors of such states should be blamed for the development
in their states because they were told through the Federation Accounts Allocation Committee to make the issue of wages a priority. The
Minister of Finance, Dr. Ngozi Okonjo-Iweala, said this in a statement by her Special Adviser on Communications, Paul Nwabuikwu.
Source: punchng.com
Military rescues 25 more women and children, destroys seven terror camps: The Nigerian military has rescued 25 more women and
children from Sambisa Forest, and destroyed seven additional terrorist camps in the Boko Haram enclave, in a renewed onslaught against
the Islamist sect. The Director of Defence Information (DDI), Maj-Gen. Chris Olukolade, disclosed this in a statement on Wednesday, adding
that more Boko Haram fighters were killed in the process. Source: thisdaylive.com
Important Risk Warnings and Disclaimers

4. Daily Retail Report
Page 4
Retail views
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