Newdevco Investments & Securities Limited

Newdevco Investments & Securities Limited Stockbroking and Investments counselling comp. Operating in Nigeria since 1978. Member of the NSE registered by SEC operate in the Nigerian capital market.

09/12/2015

we believe investors are wary of equities due to a number of macroeconomic concerns relating to FX restrictions and operational bottlenecks of companies which translated into weak corporate earnings and declining Foreign Portfolio Inflow (FPI) into equities (down from US$956.2m in July-2014 to US$433.7m in July-2015). In our view, there are five major signals that will herald the change in market sentiments and garner investor confidence for equities. In the following sections, we analyze each of these signs ranging from fiscal pronouncements, removal of subsidy on petrol, infrastructure spending, accommodative stance on FX policies and economically viable states.

09/12/2015

Despite weaker macroeconomic fundamentals, the Nigerian equities market was undervalued compared to its emerging market peers before the new government was inaugurated. Market P/E as at 28 May, 2015 was at 12.8x relative to a peer multiple of 14.0x. However, with weak corporate earnings, as evident in the Q3:2015 earnings numbers, the deafening silence onfiscal policy direction and further monetary policy restrictions on FX, huge sell-offsacross the sectors between May and December, saw the equities market shed 20.3% (04/12/2015). Despite this decline, the much weaker earnings recorded has caused the market P/E to shoot up to 18.2x compared to the average for emerging (12.7x) and frontier (10.4x) markets.

09/12/2015

The Nigerian equities market has sustained a bearish run for most of 2015 as issues ranging from a fragile polity, foreign exchange restrictions, stifling monetary policy stance, weakening domestic growth and rising inflationary pressure have weighed in to weaken investor sentiment. While the victory of President Buhari at the polls boosted investor confidence between April and May, the five months of waiting before the eventual inauguration of cabinet on 11th November, 2015 has had a debilitating impact on the overall market.

17/11/2015

ALIKO DANGOTE Resigns from Board of DANGFLOUR as Tiger Brands Decides Against Further Financial Support.

Tiger Branded Consumer Goods Plc (Formerly Dangote Flour Mills Plc) has filed the following notification to The Nigerian Stock Exchange:

“Interim Announcement”

“Shareholders are advised that Tiger Brands Limited has informed the Board of Directors of Tiger Branded Consumer Goods Plc that Tiger Brands Limited has reached a decision not to provide any further financial support with respect to its investment in Tiger Branded Consumer Goods Plc.

Tiger Brands Limited has also informed the Board of Tiger Branded Consumer Goods Plc that it is currently exploring various alternatives with regard to its investment in Tiger Branded Consumer Goods Plc.

Shareholders are also advised that Alhaji Aliko Dangote, Mr. Olakunle Alake, Mr. Asue Ighodalo and Mr. Arnold Ekpe have resigned their appointments as directors of Tiger Branded Consumer Goods Plc.

The Board of Directors of Tiger Branded Consumer Foods Plc is considering the implications of these developments for the Company, and further information will be communicated in due course.

In the meantime, shareholders are advised to exercise caution when dealing in the company’s securities until a further announcement is released."

17/11/2015

Nigeria’s Oando Plc plans to seek shareholders’ approval next month to raise up to N80 billion ($402 million) through a rights issue and spin off its power and gas subsidiaries, the energy firm said yesterday.
Oando, with dual listings in Johannesburg and Toronto, will also seek approval on Dec. 7, to issue new shares in lieu of convertible debt owed to two shareholders.

16/11/2015

5 Weekly Stock Picks -

Monday, November 16, 2015’

NSE Weekly Market Performance

The NSE All-Share Index and Market Capitalization depreciated by 1.14% to close the week at 28,841.67 and N9.915 trillion respectively. Similarly, all other Indices finished lower during the week with exception of NSE Insurance and NSE Lotus Islamic Index that chalked up by 0.93% and 0.17% respectively, while NSE ASeM Index closed flat.

Commentary

Champion Breweries makes its debut on the top 5 this week and claims the top spot. The small sized brewer attracted investor’s attention after its acquisition by Global brewery giant, Heineken, and the contract brewing arrangement in place with Nigeria Breweries as well as the injection of fresh capital has given the company a new lease of life.

The Company has turned the corner and is back to profitability after over 5years of consistent losses declared. Even though this Company doesn’t not totally fit the profile of companies that make our top- 5 because of the lack of dividend history. We have however made an exceptional waiver because of the expected upside momentum.

UBA claims the second spot on the table this week. This is yet another company making its debut on our top 5. The bank has shown some consistency since the beginning of this year. We were particularly concerned about the bank’s capital adequacy in the past, but are impressed by the progressive growth in the bank’s shareholders fund since the beginning of the year.

Dangote Cement claims the third spot on the GTI 5 for this week. The company controls about 80% of the cement market in Nigeria and has made major in routes into other African countries. The recent announcement of a slash in cement price as well as the tightening margins due to the tax element on some of its production lines which previously enjoyed the 5year moratorium for expansion projects (including the economic parameter which has generally affected the market) has increased the stocks volatility in the recent past. However, our long term estimates for the firm are still realizable for its share market dominance.

Zenith Bank claims the fourth spot this week. The top tier lender has shed some value following the bearish sentiments that has prevailed over the Nigerian capital market.

GT Bank grabs the fifth spot this week. The bearish trend in the market has opened up a good entry window for the stock.

13/11/2015

Stocks slip further into oversold zone on weak demand

Thursday, November 12, 2015

The equities market closed today on a negative note, as NSE ASI depreciated by 0.74% to close at 28,798.67basis points, compared with the 0.12% appreciation recorded previously. Its Year-to-Date (YTD) returns currently stands at 16.90%

Market breadth closed positive as CAP led 12gainers against 26losers topped by FIDSON at the end of today’s session- an unimproved performance when compared with previous outlook.

Market turnover closes negative as volume declined by 23.02% against 31.54% decline recorded in the previous session. ZENITHBANK, NASCON and GUARANTY were the most active to boost market turnover. ZENITHBANK and GUARANTY top market value list.

INTBREW leads the list of active stocks that recorded impressive volume spike at the end of today’s session.

12/11/2015

Last minute rally lifts turbulent session, NSE-ASI reclaims 29,000bpts

Wednesday November 11, 2015.

The equities market closed today on a positive note, as NSE ASI appreciated by 0.12% to close at 29,014.78basis points, compared with the 0.64% depreciation recorded previously. Its Year-to-Date (YTD) returns currently stands at 16.28%

Market breadth closed positive as MANSARD led 12gainers against 25losers topped by
OANDO at the end of today’s session- an unimproved performance when compared with previous outlook.

Market turnover closes negative as volume declined by 31.54% against 71.79% decline recorded in the previous session. ACCESS, MANSARD and TRANSCORP were the most active to boost market turnover. ACCESS and NB top market value list.

ABCTRANS leads the list of active stocks that recorded impressive volume spike at the end of today’s session.

09/11/2015

SEPLAT Issues Additional 10,134,248 Ordinary Shares

Monday 09 November, 2015.

The following announcement is being made in accordance with Rule 12.4 of the Nigerian Stock Exchange Amended Listing Rules and Rule 5.6.1A of the Financial Conduct Authority’s Disclosure and Transparency Rules.

The issued share capital of SEPLAT has been increased by the issue of an additional 10,134,248 ordinary shares to SEPLAT’s Long Term Incentive Plan. These shares have been formally listed on the Nigerian Stock Exchange.

SEPLAT’s capital now consists of 563,444,561 ordinary shares of ₦0.50k each, all with voting rights.

Therefore, the figure of 563,444,561 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, SEPLAT under the NSE Rules and the Financial Conduct Authority’s Disclosure and Transparency Rules.

09/11/2015

INDEX MOVEMENT
The NSE All-Share Index depreciated 0.01% while Market Capitalization appreciated 0.02% to close the week at 29,175.35 and N10.029 trillion respectively.

Similarly, all other Indices finished lower during the week with exception of NSE Premium, NSE 30, NSE Insurance, NSE Oil/Gas, and NSE Pension indices, while NSE ASeM Index closed flat.

A turnover of 1.949 billion shares worth N17.336 billion in 15,762 deals were traded this week by investors on the floor of The Exchange in contrast to a total of 1.358 billion shares valued at N14.722 billion that exchanged hands last week in 14,772 deals.

Trading in the Top Three Equities namely – Access Bank Plc, Zenith International Bank Plc and United Bank for Africa Plc.(measured by volume) accounted for 1.276 billion shares worth N8.340 billion in 2,782 deals, contributing 65.45% and 48.11% to the total equity turnover volume and value respectively.

05/11/2015

Bearish run persists as investors remain cautious

Wednesday November 04, 2015.

The equities market closed today on a negative note, as NSE ASI depreciated by 0.07% to close at 29,032.44basis points, compared with the 0.29% depreciation recorded previously. Its Year-to-Date (YTD) returns currently stands at 16.23%

Market breadth closed negative as OANDO led 18gainers against 27losers topped by MOBIL at the end of today’s session- an improved performance when compared with previous outlook.

Market turnover closes positive as volume moved up by 8.90% against 45.88% decline recorded in the previous session. ACCESS, ETI and ZENITHBANK were the most active to boost market turnover. ETI and ZENITHBANK top market value list.

CONOIL leads the list of active stocks that recorded impressive volume spike at the end of today’s session.

04/11/2015

Bears increase pressure, stocks end with two (2) losers to every gain

Tuesday November 03, 2015.

The equities market closed today on a negative note, as NSE ASI depreciated by 0.29% to close at 29,052.87basis points, compared with the 0.14% depreciation recorded previously. Its Year-to-Date (YTD) returns currently stands at 16.17%

Market breadth closed negative as LEARNAFRCA led 14gainers against 28losers topped by
IKEJAHOTEL at the end of today’s session- an improved performance when compared with previous outlook.

Market turnover closes negative as volume declined by 45.88% against 49.56% uptick recorded in the previous session. UBA, LAWUNION and FBNH were the most active to boost market turnover. FBNH and GUARANTY top market value list.

MANSARD leads the list of active stocks that recorded impressive volume spike at the end of today’s session.

Address

CHURCH HOUSE MARINA
Lagos

Website

Alerts

Be the first to know and let us send you an email when Newdevco Investments & Securities Limited posts news and promotions. Your email address will not be used for any other purpose, and you can unsubscribe at any time.

Shortcuts

Share

Category