Dear Client(s),
The Nigerian Stock Exchange serves as an active secondary market for the FGN S-bonds, thereby providing an electronic liquidation platform to retail bond owners who wish either to purchase extra bonds outside the primary auction monthly schedule or to redeem partial or whole of their bonds before maturity.
TRW E-Trader platform’s secondary bond trading on the NGSE is active thus you can buy/sell daily your FGN S-Bonds remotely on your desktop/laptop/smartphone.
Alternative: sending us a ‘FGN S-Bonds’ purchase/sales mandate via e-mail remains a normal option.
NGSE Secondary Market Bond Trading Report:
– Liquidity: The most liquid FGN Saving bonds security remains the 13.01% FGNSB 22-MAR-2017 with a 2-yr tenor (code: FGS2019S1). At the moment, the clean price of FGS2019S1 is being offered @ 100% bond face value which is equivalent to a dirty price @ N1,021.57
–Transaction Opportunity: Take note that TRW Stockbrokers is creating it’s own reserve of FGS2019S1 thus will try to sell these bonds at a reduced price of N1000 (all transaction charges incl.) exclusively for TRW clients when possible as the reserve is limited. It is a first-come first-serve situation.
– Transaction sizes: Minimum order of one bond.
TRW Stockbroker Investment Recommendation:
We hope those clients that bought FGN Savings Bonds in May-2017 (FGS2019S4 & FGS2020S5) received their respective 1st coupon (interest) payments in August-2017. If you miss any of your quarterly coupon (interest) payments or did not get the expected bank sms alert(s), kindly inform us accordingly.
The stock market seems to have entered a new short-term bearish trend since last week with clear profit taking activities. We advise retail clients to consider investing their profits/cash out in FGN Savings Bonds via secondary market operations thereby re-balancing your portfolios accordingly to reduce loss risk.
1st Trader’s Rule: “Never give back your profits to the market”
Av. 91-day NTB (FGN T-bills) yield at CBN PMAs (Primary Market Auctions) was 13.89% in July-2017, less than 13.97% in June-2017 but higher than 13.60% in May-2017. The forecasted average for Aug-2017 is 13.5%. In 1-wk-Aug-2017 CBN PMA, CBN sold N23.2bln of 91-day NTB at a lower 13.4% compared to DMO’s 13.535% – 14.535% on the Aug-2017 FGN Saving Bonds PMA.
Caution – selling on the secondary market before maturity, can either incur capital loss or capital gain !!!!
TRW Stockbroker Transaction Fee Policy:
Fixed income trades of the bond segment of the NGSE trading platform can be subject to the following terms:
– Primary Auction: There are no charges for purchases made through the primary auction.
– Secondary Market: A transaction fee of 1% of total consideration will be charged for additional NGSE Buy / Sell transaction(s) while CSCS will charge 0.0001%;
Should you require further information, please contact us via the following channels. We will attend to it promptly.
Reception Phone(s): during working hours, Monday through Friday on the following lines: +234-17646689, +234-1-2710224, 0805-810-4210 (24 hours ), 0803-716-1440 (24 hours), 0805-6172779 (24 hours),
Contact Person(s): Ekwueme Mike Anyadibe (080 6656 4748)
Corporate Office: 62/64 Campbell Street (Kajola House) 4th & 5th Floor, Lagos Island, Lagos State – NIGERIA…
Email: info@trw-stockbrokers.com, Website: www.trw-stockbrokers.com
Thank you
TRW TEAM
Corporate Office: 62/64 Campbell Street (Kajola House)
4th Floor Lagos Island Lagos .
234-1-7646689,234-1-2710224-5
website: www.trw-stockbrokers.com
A few weeks ago, cement manufacturer giant, Lafarge Africa Plc presented an un-audited score card, which revealed yet another inconsistence in performance, a situation that has so far reflected on its share price over the years, especially against the backdrop of Nigeria’s economic situation, which in line with the decision of its major competition led to the merger of its sister companies in Nigeria, as well as the South African operation of its parent company. All of these have kept investors thinking: What is next.
Lafarge Africa Q2 ’17
Market Update for Week Ended August 18 and Outlook for August 21-25
Trading on the floor of the Nigerian Stock Exchange last week was mixed, halting five consecutive weeks of bull-run to close lower on the strength of intense profit booking and portfolio rebalancing by market players in three straight days. So intense was the volatility and profit taking that the market did not react to the positive earnings from two first tier banks Zenith Bank and Guaranty Trust Bank, both of which had rallied since April after the Q2 numbers have been factored into their share prices.
At the same time the market was under selling pressure until the last two trading days of the week when investors took advantage of the correction to reposition in interim dividend stocks that reversed the downward trend.
Volume index on the local bourse for the week was 0.93, with buying position at 44% and 56% selling volume of the total transactions as mixed sentiment as the market witnessed improving demand for banking stocks, while Industrial and Consumer Goods suffered losses duty to profit taking in the subsectors. The recent pullback is one of dynamism in a recovering market after weeks of price rally that was supported by strong half-year corporate earnings, strong liquidity in the import and export window of the foreign exchange market that had attracted inflow into the economy at a time most stocks on the exchange remained undervalued as revealed by the NSE’s Price Earnings Ratio of 9.37x, which is also another driving factor that is attracting inflow as the exchange rate remains relatively stable.
The fear of whether there would be sustained inflow of U.S Dollar into the Nigerian stock market is gradually fading, which would be complemented by inflows from other players like the banks, oil companies and exporters will help to keep the naira stable, just as fear over President Muhammadu Buhari’s health seems to have abated following his return to the country on Saturday from London. Expectation is that the Central Bank of Nigeria (CBN) would intensify efforts to stabilize and thereafter work towards a single exchange rate regime to attract more direct and foreign portfolio investors. Data by Bloomberg reveals a net inflow of $22m to Exchange Traded Fund (ETF) between January and August 4, 2017.
Meanwhile, the composite NSE All-Share Index for the week shed 1278.04 points to close at 36,920.56 points, from 38,198.60 points, with strong resistant above the psychological line of 36,000 after touching low of 35,871.31 within the week. This represented a 3.35% decline on high transaction volume.
Similarly, market capitalisation for the period closed lower at N12.73tr from an opening value of N13.17tr, representing a 3.35% value loss in investors’ portfolio.
Top performing stocks for the week were a mix of low, medium and high cap stocks, as market players cashed out gains from weeks of rallying by the market to rebalance their portfolios ahead of month end and onset of the Q3 earnings season.
Despite the mixed performance during the week, market breadth remained negative as the downturn in share prices reduced year-to-date return of the NSE All-Share-Index (ASI) to 37.38%, just as market capitalisation stood at N3.48tr, representing a 37.62% gain from the year’s opening value.
Market breadth for the period was negative with number of decliners outpacing advancers in the ratio of 43:28 on a high volume of trades to short-live the five-week period of bull transition, despite the reversal on Thursday and Friday of the week under review.
International markets were mixed over the past week despite the eased tension after North Korea yielded to pressure to prevent its missile testing near the U.S boundary, even as equity prices rebounded on impressive economic data, while oil price continued to oscillate.
Germany‘s DAX and Britain’s FTSE 100 were higher for the period, while Japan’s Nikkei and U.S market indexes dropped lower, despite the positive economic data, as Conference Board’s leading index increased by 0.3% in July, after a 0.6% increase in June which suggests that the economy may experience further improvement in the second half of the year. The news comes despite growing turmoil in the white house, where President Donald Trump’s political isolation puts at risk his agenda to invest in infrastructure and reform the nation’s banking sector, among other things.
In Europe, the Eurozone’s economy reported 2.2% growth in Q2, beating economist and analysts’ expectations, which showed that the recovery was on track. In Asia, Japan’s economy extended its longest streak of uninterrupted growth in over a decade, although economists are still waiting for inflation to reach the BOJ’s 2% target rate.
Back home, the All-Share Index opened the week on a negative note, losing 0.65% as investors and traders took profit from the gains recorded in earlier weeks, a trend that was maintained in three trading sessions when the bourse posted 2.25% and 2.68% losses respectively, before Thursday’s rebound that was sustained on Friday when the market gained 0.59% and 1.66% respectively to reduce the week loss to 3.35%.
TheNSE’s benchmark and sectoral indexes closed lower during the week, with the NSE Industrial Good and Consumer Goods recording the highest setbacks of 6.02% and 2.47% respectively, even as the NSE ASeM closed flat.
The week’s transaction, measured by aggregate volume and value, were down by 33.09% and 23.78% respectively as 1.39bn shares changed hands for N25.04bn, as against previous week’s 1.52bn units, valued at N28.9bn.
At the end of last week’s trading, Fidson Healthcare topped the advancers’ table, chalking 9.70% to close at N3.28 per share on the back of market forces and impressive Q2 numbers; followed by Continental Reinsurance’s 6.56% gain at N1.30 each also on impressive Q2 numbers. The decliners’ table on the other hand was led by Cement Company of Northern Nigeria (CCNN), which lost 13.71% to close at N9.22 on market forces, ahead of the 12.73% slide by NEM Insurance, which closed at N0.96 per share, due to profit taking.
Market Outlook
The market this week is expected to continue its volatility due to profit taking and portfolio rebalancing on the strength of the Q2 numbers ahead of end the month that usher in the last month of Q3 especially as inflation data for July and second quarter GDP figures are being awaited. As one of the emerging markets, INVESTDATA expects the Nigerian economy and equities market to continue attracting inflow of funds as factors, given the undervalued nature of stocks and helped by the nation’s improving macroeconomic fundamentals.
Bearing all these in mind, investors should position in stages in valued stocks with high upside potentials, despite their current prices on the exchange as many are still undervalued.
Again, the time to combine company fundamental data and chart pattern for your trading and investing decisions is now, to enable you know the support and the resistance levels.
Dealing Members are hereby notified that Union Bank of Nigeria Plc (?Union Bank?) has through its Stockbroker; Chapel Hill Denham Securities Limited, submitted an application to The Exchange for approval and listing of a Rights Issue of 12,133,646,995 Ordinary Shares of 50 Kobo each at N4.10 per share on the basis of five (5) new Ordinary Shares for every seven (7) Ordinary Shares held.
The Qualification Date for the Rights Issue is today, 21 August 2017. Godstime Iwenekhai Acting Head, Listings Regulation Department
by Jumoke Akiyode Lawanson
Telecoms subscribers on the 9mobile network have taken to social media to vent their anger concerning the network’s terrible service in the last three to four days.
The telecoms network, which was formally Etisalat, has been unable to resolve issues causing very little or no coverage in most parts of Lagos since last week Thursday, August 17, 2017.
A 9mobile subscriber with twitter handle @xyzz_ a tweeted at the network saying, “There has been no service all day, @9mobile has completely ruined my day, now I have to port to MTN because you are the absolute worst.”
Tochuckwu Oluigbo, another 9mobile customer, told BusinessDay that the poor network service in the past few days had in some ways hindered progress in her business as her customers complained of not being able to reach her.
“My phone is basically my business because all my customers have to reach me via phone calls. I even make all my transactions using my mobile banking application, but I haven’t been able to do all that since 9mobile network started acting up last week and my customers have been unable to reach me on that line. I had to switch to using my other network provider,” Oluigbo said.
Experts in the telecoms industry say that these kinds of threats should be taken seriously, as 9mobile risks losing even more subscribers than it did when the company failed to meet its loan obligations and was forced to restructure management and change its brand name from Etisalat to 9mobile.
Statistics from the Nigerian Communication Commission (NCC) show that 9mobile currently has just over 18 million subscribers, down from its over 21 million subscribers in 2016, due to shakeups from bank loan debts.
Etisalat failed to reach an agreement on possible repayment plans with 13 Nigerian banks, where the took out a $1.2billion medium term syndicated loan facility taken in May 2013, hoping to be able to refinance the existing commercial medium term debt of $650 million, but missed payment in February 2017, due to an economic downturn and scarcity of foreign exchange in the country. This forced the UAE company to pull out of Nigeria, causing a total rebranding to the new 9mobile.
Industry analysts say with the recent network problems and without investors, 9mobile may not survive in Nigeria’s telecoms market and may have to merge with any other existing operator to remain competitive in this tightening industry.
