Anchoria Market & Economic Insight: NSE Welcomes BUACEMENT

Macroeconomic

Global Economy

-The UK exit from the European Union (EU) progresses as the House of Commons voted in favour of Prime Minister, Boris Johnson's Brexit deal.

Local Economy

- The President signed into Law the Finance Bill, 2019. The bill exempt companies with less than N25 million turnover from income tax while those with between N25 million and N100 million yearly would pay 20% as Company income tax and over N100 million yearly would pay 30% as company income tax.

- The composite PMI for December strengthened by 1.8 points to 61.5 index points due to festive induced spending supported by both the manufacturing and non-manufacturing sectors.

Market Summary:

The Nigeria Equity Market started the year on a positive note with the index (NSE ASI) up by 9.07% WTD to close at an index level of 29,415.39 while the Market Capitalization grew by 16.55% to close at N15.17 trillion following the listing of 33.9 billion unit of BUACEMENT at N35 per share

The Market sentiment was positive as demand interest was witnessed in all sectors with the exception of the Oil & Gas Sector, down marginally by 0.02%. The Insurance Sectors recorded the highest appreciation, up by 22.27% owing to significant price appreciation in DANGCEM (+21.13%).

In the global space, the market traded on a mixed note as investors remained fixated on US-Iran wars, US - China trade war and Brexit. The US DJIA rose by 0.56% to close at 28,823.77 points.

Stock Watch for the week: 13 January - 17 January 2020

ZENITHBNK rose by 13.51% to close at N21.85 with YTD return of 17.47%. Recommendation: We maintain a buy rating on this stock.

MTNN rose by 6.42% to close at N116.00 with YTD return of 10.48%. Recommendation: We maintain a buy rating on this stock.

GUARANTY rose by 6.15% to close at N31.95 with YTD return of 7.58%. Recommendation: We maintain a buy rating on this stock.

BUACEMENT was listed on the floor of the exchange last week at N35 per shares and rose by 2.55% to close the week at N41.00. The stock is currently under review, it however form part of stock to watch for the week

Corporate Disclosure

MTN Nigeria received a letter from the Attorney General of the Federation and Minister of the Justice (the AGF) formally withdrawing the demand for cN242 billion (US$1,28 billion) alleged revenue indebtedness.

Economic and Financial Crimes Commission invited the Group Managing Director of Access Bank Plc for interrogation regarding the credit facilities that were availed Slok Nigeria Limited by the defunct Diamond Bank Plc which were secured by Slok's assets. The issues relating to these facilities were resolved following the interrogation.

UAC Appointed Mr. Karl Olutokun Toriola as a Non-Executive Director of the company with effect from 1st January, 2020.

Guaranty Trust Bank Plc notified the public of its Board meeting for approval of the Group's audited accounts and financial statement as at 31st December 2019, which is scheduled to hold on Wednesday, January 22, 2020.

Dangote Sugar appointed Mrs Temitope Hassan as the Company Secretary/Legal Adviser with effect from 6th January, 2020.

BUA cement Plc listed 33.9 billion units ordinary shares at N35 per share on the floor of the Nigeria Stock Exchange.

Week Ahead: 13 January - 17 January 2019

The Nigerian Stock Exchange is set to hold its 2019 Market Recap and 2020 Outlook on Monday, 13 January 2020 at the Stock Exchange.

The Federal Government of Nigeria through the Central Bank of Nigeria (CBN) is set to hold its Treasury Bills Auction on Wednesday, 15 January 2020.

The Lagos Business School is set to hold a lecture on Emotional Intelligence in Leadership & Business by Yale University President, Peter Salovey on Friday, 17 January 2020 at the Business School.

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