Update – C & I LEASING PLC – RIGHTS ISSUE….

By NGSE,

C & I Leasing Plc – Rights Issue of 539,003,333 ordinary shares of 50 Kobo each at N6 per share on the basis of 4 new ordinary shares for every 3 ordinary shares held.

Dealing Members are hereby notified that the Rights Issue of C & I Leasing Plc of 539,003,333 ordinary shares of 50 Kobo each at N6 per share on the basis of 4 new ordinary shares for every 3 ordinary shares held as at the close of business on 4 September 2019, will open for subscription as shown below:

Acceptance list opens: Monday, 18 November 2019

Acceptance list closes: Friday, 27 December 2019

 

DELISTING OF DANGOTE FLOUR MILLS PLC…

By NGSE,

Delisting of Dangote Flour Mills Plc from the Daily Official List of The Nigerian Stock Exchange

We refer to our Market Bulletin dated Monday, 28 October 2019, with Reference Number: NSE/RD/LRD/MB59/19/10/28, notifying Dealing Members of full suspension of trading in the shares of Dangote Flour Mills Plc (DFM or the Company). The above suspension, was as a result of the approval of the Scheme of Arrangement for the acquisition of the entire issued and fully paid ordinary shares of 50 kobo each in DFM held by Scheme Shareholders by Crown Flour Mills Limited which will ultimately lead to the delisting of Dangote Flour Mill Plc from The Nigerian Stock Exchange (The Exchange).

Consequently, Dealing Members are hereby notified that DFM was today, 18 November 2019, delisted from the Daily Official List of The Exchange.

Afrinvest Weekly Bond Market Update dd. 15/11/2019….

By Afrinvest Research,

FGN Bills Market Update:

The Bulls Take Center Stage as Average NT-Bills Yield Dips to 10.9% W-o-W

Last week, the Nigerian Treasury Bills (“NT-Bills”) secondary market activity reversed its bearish stance from the previous week as a result of the sustained demand by local investors. Demand in “NT-Bills” intensified as unfilled bids from the Primary Market Auction (“PMA”) and maturities from OMO bills trickled into the secondary market. Thus, average yield was pressured and settled at 10.9% W-o-W relative to the average yield at the OMO market which settled at 13.3% W-o-W.

In last week’s T-Bills Primary Market Auction (“PMA”), the CBN successfully offered N125.2bn worth of instruments across 91-, 182-and 364-Day at respective stop rates of 7.80%, 9.00% and 10.00%. In line with our expectation, the auction recorded an oversubscription across all tenors, albeit, investors demand for the short tenored bills surpassed other maturities as the 91- Day bill recorded 13.3x oversubscription while the 182-, 364-Day bills recorded an oversubscription of 4.5x and 4.1x respectively.

In a bid to mop liquidity from maturities last week, the Apex Bank also sold OMO bills worth N253.8bn to the Foreign investors and Banks across the 82-,173- and 362-Day tenors. There was an undersubscription across the short and medium dated bills at (0.3x) and (0.2x), while the 362-Day bill recorded an oversubscription of (1.2x) respectively. Consequently, the market was cleared at 11.50%, 11.69% and 13.30% respectively.

Going into the week, we expect to see an improvement in system liquidity (N198.8bn short as at Friday) as N352.0bn worth of OMO maturities would hit the financial system. Consequently, we expect NT-Bills rates to decline further due to the inability of most investors to re-invest their maturing OMO bills. We expect that the CBN will sustain its weekly OMO auction to mop up excess liquidity. Investors are therefore advised to take advantage of medium to long term NT-Bills or invest in short dated FGN Bonds (e.g 2 – 3yrs FGN Savings Bonds) which provides more attractive yields.

FGN Bonds Market Update:

Bullish Momentum Sustained as Average Yield Dips by 66bps W-o-W

Similarly, the domestic FGN bonds market extended its bullish run as average yield slipped 66 bps on the back of sustained investor’s interest. The market continued to enjoy buying interests as investors took positions, especially in the attractive short dated bond instruments. As a result, average yield settled at 12.3% W-o-W. The 13-FEB-20 (-462bps) instrument enjoyed the most buying interest, trailed by 17-MAR-27 (-112 bps) and 22-JAN-26 (-83 bps) respectively. On the flip side, the 18-APR-37 (+3bps) suffered the most selloffs.

This week, the Debt Management Office would be re-opening Instruments worth N150.00bn across 5- (N50.00bn), 10-(N50.00bn) and 30-Year (N50.00bn) tenors through a Primary Market Auction.

We anticipate a sustained bullish momentum in the bonds market as investors continue to seek alternatives to reinvest maturing OMO bills. Thus, investors are advised take advantage of the short-term bonds (TTM of 2-3 years) due to their higher yields relative to long term NT-Bills.

ARMF Bond W/H: Collaterized Margin Loans Are Now Available Under The Upfront Interest Savings Scheme….dd. 15/11/2019

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With CBN directive for commercial banks to improve their LDR (loan/deposit ratio) to >65% by 31/12/2019 – TRW Stockbrokers is working with its settlement banks & finance partners to make equity investment margin loans accessible and reasonably safe for the investing retail public in the form of a new product known as “collaterized security margin trading”.

The collaterized margin loans are accessible only to bond investors who have fixed savings under the Upfront Interest Savings Scheme (UPFISS) starting from a min. fixed savings of N1MLN @ margin loan rate of 0.1072% per day (pro rata).

Thus, savers can now leverage on their bonds (fixed savings) under UPFISS to obtain fresh cash to invest on the NGSE equity and/or derivative market(s). A N1MLN fixed savings will gain access to an equivalent N1MLN margin loan => N2MLN margin account => leverage ratio (asset/equity) of 2:1 (200%).

Margin borrowers will get free stock (equity) buy/hold/sell recommendations from our Traders Navigator trend, timing & stock selection econometric models to ensure better risk management of their equity portfolio in their respective margin accounts.

If a margin borrower wants the UPFISS fund/portfolio manager(s) to manage his/her margin account, the performance fee is 20% of the net profit after monthly payment of transaction charges & loan interest. The 1st month of portfolio management is free !!!

Margin Loan Window Status: CLOSED.

Window status will become ”opened” once our Traders Navigator confirms the presence of a ”true” bull market. Notwithstanding, feel free to order your standby margin loan as the market starts to bottom after 2 years of bearish market trend. Also, we will not stop qualified borrowers who want to trade on margin on their own though the window status advises ”closed”….yes, there are always some rare opportunities in the equity market.

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Should you require further information on how to get steady & positive returns on Your margin accounts, please contact directly:

Contact Person: Ekwueme Mike Anyadibe

Mobile: 08066564748

E-mail: ekwueme.anyadibe@trw-stockbrokers.com or respartner@live.com

Skype #ID: respartner

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TRW Stockbrokers Limited
Corporate Office: 62/64 Campbell Street (Kajola House)
4th Floor Lagos Island Lagos .
234-1-7646689,234-1-2710224-5
Email: info@trw-stockbrokers.com
website: http://www.trw-stockbrokers.com

Stock Watch: Access Bank Plc…

1/2/2019

• The New “Access/Diamond” management has cancelled the N75bln capital increase thus delaying any potential ”price dilution” event. Based on the capital increase expectation in the last month, Access had fallen deeply towards the recent support level @ N5.20
• Though there was a short-term rebound in wk-4-Jan-2019 above N6.50…..we suspect that in the short-term, Access price may continue to fall even below the last support @ N5.20 based on this week’s sudden sharp fall in the trader’s navigator indicator.

2/11/2019

Access Bank hit a top @ N8.20 dd. 27/9/2019 and since then has been in a corrective trend thereby developing an expanded flat pattern which seems to be attempting to break above the recent top.

Caution!….it’s trader navigator indicator remains in a ‘sell’ signal…thus it may be more reasonable to wait for Access to break over N8.20 before taking any investment action(s). For this reason, our preferred expectation is for Access to continue it’s initial bearish trend since Oct-2019 towards a support level @ N6.65

In the coming trading days, we recommend ”buy the dip” on Access Bank Plc.

16/11/2019

Access Bank may have hit a top @ N10.50 and with it’s fair price around N8.49, it looks overbought. The stock seems to have formed an ending diagonal pattern with a massive bullish thrust-out but take note that it’s Traders Navigator indicator still remains in a ”sell” mode notwithstanding the massive surge in price from N7.07 to N10.50 in the last 3 weeks.

Thus, what could make Access fall again to N5.00 support level? Maybe it is time for the new “Access/Diamond” management to execute its N75bln capital increase thus creating the potential ”price dilution” event.

In the coming trading days, we recommend ”bearish caution’‘ on Access Bank Plc.

ARMF Bond W/H: Create Your Fixed Savings Acct(s) At High Interest Rate(s) >10% p.a….dd. 15/11/2019

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With CBN ban on local individual & corporate investors from participation in it’s OMO bills primary & secondary market operations (except for foreign investors & local commercial banks) and limited access (low liquidity) in the FGN Treasury Bills” primary & secondary market operations, FGN Treasury & Savings Bonds on the NGSE/FMDQ exchanges are the alternative fixed income securities that can give investors higher yields than FGN T-bills and also similar yields to those obtained in the CBN OMO-bills market.

N.B: Your fixed savings account on the NGSE is actually Your CSCS Account.

The bond warehouse of our ARMF Bond Portfolio can execute purchase/sales trade deals on FGN T-bonds & S-bonds near the below current e-o-d market rates:

Bond                          Tenor (Years)             Market Yield (%)

2020                                 1                                     8.74

2021                                  2                                    11.53

2022                                   3                                   11.76

2023                                   4                                    11.67

2024                                  5                                     11.95

2025                                  6                                     12.28

2026                                  7                                     11.89

2027                                  8                                     12.37

2028                                  9                                     12.75

2029                                 10                                     12.79

2030                                  11                                    12.83

2034                                 15                                     12.72

2036                                 17                                     13.09

2037                                 18                                     13.04

2049                                 30                                     13.19

N.B: A FGN Savings Bond is a ”revolving” 90-day FGN Treasury Bond.

Standard fixed savings acct opening starts at min. N5,000 where your CSCS acct acts as your e-custodian & e-savings account within the CBN S4 platform. Only FGN bonds with coupon >10% p.a qualify to be allocated to bond clients under the Upfront Interest Savings Scheme. at min. purchase order of N100,000.00

FAQ:

• What is the effective yield of a FGN bond under the upfront interest savings scheme? – it is calculated by deducting the sum of transaction charges and/or upfront funding expenses from the total yield till maturity (excl. compounding opportunity) and divided by the holding period, for example, purchased at ‘par’ NIGTB 14.2% 14-MAR-2024 (FG112024S1) and held for 5-yrs to maturity => estimated effective yield of 12.6% p.a
• What is the current 91-day FGN T-bill PMA rate ? – 7.8% p.a….as far as the bond’s effective rate is higher than the 91-day bill’s pma rate => investing via the upfront interest savings scheme is a good deal for institutional savers.
• What is the current commercial banks av. savings deposit rate ? – 3.2% p.a….as far as the bond’s effective rate is higher than the savings deposit rate => investing via the upfront interest savings scheme is a good deal for retail savers.
• What will be the increment to the bond’s effective rate under the upfront interest savings scheme if the quarterly upfront interest(s) were compounded (re-invested) in 12-month TTM FGN bonds with coupon >10% for example? –  we estimate an increment of 0.9% p.a on the respective FGN bonds’ effective rate. Thus, compounding is an investment strategy that should never be ignored !!!
• Must i have a CSCS trading acct with TRW Stockbrokers Limited to participate? – preferably YES !!!

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ARMF Bond Portfolio has opened a new sub-product called ”collaterized security margin trading” which is accessible only to bond investors under the Upfront Interest Savings Scheme starting from a min. fixed savings of N1MLN @ margin loan rate of 0.1072% per day (pro rata).

Thus, savers can now leverage on their bonds (fixed savings) under the upfront interest savings scheme to obtain fresh cash to invest on the NGSE equity and/or derivative market(s). A N1MLN fixed savings will gain access to an equivalent N1MLN margin loan => N2MLN margin account => leverage ratio (asset/equity) of 200% (2:1).

Margin borrowers will get free stock (equity) buy/hold/sell signals from our Traders’ Navigator trend/timing & stock selection econometric models to ensure better risk management of their equity portfolio.

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ARMF Bond portfolio re-opens its sourcing for funds upto N500MLN to be used for the following:

• to finance upfront quarterly interest payments to bond savers under the upfront interest savings scheme;
• to finance collaterized margin loans to bond savers who want to leverage on their bonds (fixed savings) under the upfront interest savings scheme in order to obtain fresh cash to invest on the equity and/or derivative market(s);
• participation starts from min. N20MLN at a ”negotiable” annual fixed interest rate for a 12-month revolving holding period.

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Caution – selling bonds on the secondary bond market before maturity, can either incur capital loss or capital gain !!!!

Should you require further information on how to get the best (and/or highest) annual interest on Your savings, please contact directly:

Contact Person: Ekwueme Mike Anyadibe

Mobile: 08066564748

E-mail: ekwueme.anyadibe@trw-stockbrokers.com or respartner@live.com

Skype #ID: respartner

======================================================

TRW Stockbrokers Limited
Corporate Office: 62/64 Campbell Street (Kajola House)
4th Floor Lagos Island Lagos .
234-1-7646689,234-1-2710224-5
Email: info@trw-stockbrokers.com
website: http://www.trw-stockbrokers.com

NGSE WEEKLY STOCK MARKET REPORT FOR NOVEMBER 15TH 2019

By NGSE,

Weekly Market Report for the Week Ended 15-11-2019