REGENCY RESEARCH

REGENCY RESEARCH

Monday June 18, 2018 MACROECONOMIC ENVIRONMENT

WEEKLY MARKET REPORT

.Headline Inflation Drops to 11.61% in May 2018; 0.87% Lower Than April 2018 Rate The Consumer Price Index (CPI) which measures inflation increased by 11.61 percent (year-on-year) in May 2018. This is 0.87 percent points less than the rate recorded in April 2018 (12.48) percent and represents the sixteenth consecutive disinflation since January 2017. Increases were recorded in all COICOP divisions that yield the Headline Index. On a month-on-month basis, the Headline index increased by 1.09 percent in May 2018, up by 0.26 percent points from the rate recorded in April 2018. The percentage change in the average composite CPI for the twelve months period ending May 2018 over the average the average of the CPI for the previous twelve months period was 14.79 percent, showing 0.41 percent point lower from 15.20 percent recorded in April 2018. The urban inflation rate eased by 12.08 percent (yearon-year) in May 2018 from 12.89 percent recorded in April, while the rural inflation rate also eased 11.20 percent in May from 12.13 percent in April. On month-on-month basis, the urban index rose by 1.10 percent in May 2018, up by 0.25from 0.85 percent recorded April, while the rural index also rose by 1.08 percent in May 2018, up by 0.26 percent from the rate recorded in April (0.82) percent. The corresponding twelve-month year-on-year average percentage change for the urban index is 15.10 percent in May 2018. This is less than 15.47 percent reported in April, while the corresponding rural inflation rate in May 2018 is 14.53 percent compared to 14.95 percent recorded in April. The composite food index rose by 13.45 percent in May 2018. This rise in the index was caused by increases in prices of Potatoes, yam and other tubers, Vegetables, Fish, Bread and cereals, Fruits and Meat. On month-on-month basis, the food subindex increased by 1.33 percent in May 2018, up by 0.42 percent points from 0.91 percent recorded in April. The average annual rate of change of the Food sub-index for the twelvemonth period ending May 2018 over the previous twelvemonth average was 18.36 percent, 0.53 percent points from the average annual rate of change recorded in April (18.89) percent.

Capital Market Summary .

Analysis of the market activity in the week ended June

14, 2018 technically reveal continued optimistic trading

pattern as investors continue to display bargain hunting

on some stocks with attractive prices during the week.

The Nigerian Stock Market thereby closed on a positive

note with All Share Index and Market Capitalization of

listed equities appreciating by 0.67% each from the

opening figures of 38,669.23 and N14,008 trillion to

close at 38,928.02 and N14,102 trillion respectively. Its

year to date (YTD) return stands at +1.79%.

Regency Research | Weekly Market Report

MACROECONOMIC INDICATORS

GDP Growth Rate Un-employment Rate Broad Money Supply (M2) Money Supply (M1) Consumer Price Index (YOY) Monetary Policy Rate (MPR) Cash Reserve Ratio (CRR) Nigeria's Bonny Light Crude Oil Nigeria's Gross External Reserves

1.95% 18.80% N24,303 Trn N10,913Trn 11.61%

14% 22.50% US$75.24 US$47.62Bn

March 31. , 2018 March 31, 2017 March 31, 2017 March 31, 2017 June 14,2018 May 23, 2017 May 23 .,2018 June 14, 2018 May 30 2018

Source: Central Bank of Nigeria (CBN)

ALL SHARE INDEX & MKT. CAP

Source: Nigerian Stock Exchange (NSE) & Regency Research PERFORMANCE OF THE NSE INDICES

NSE INDICATORS

INDEX TITLE prev week

NSE PREMIUM

2,817.19

NSE MAI BOARD

1,698.64

NSE 30 INDEX

1,750.44

NSE CONS.GOOD

915.75

NSE BANKING

489.66

NSE INSURANCE

140.76

NSE OIL & Gas

336.76

NSE LOTUS

2,562.51

NSE IND. GOODS

2,019.81

NSE ASeM

949.59

NSE PENSION

1,502.28

NSE CG INDEX

1,551.17

curr week CHANGE %

2,843.88

0.95

1,705.68

0.41

1,761.28

0.62

907.99

(0.85)

490.95

0.26

144.33

2.54

349.68

3.84

2,607.69

1.76

2,017.37

(0.12)

949.59

-

1,508.07

0.39

1,549.99

(0.08)

Source: Nigerian Stock Exchange (NSE) & Regency Research

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STOCK MARKET REPORT

WEEKLY MARKET REPORT

Domestic Market Review

Forty stocks appreciated in price during the week, as against Forty nine stocks in the preceding week. The top ten price gainers during the week were:

MARKET SUMMARY

Volume Value N=

Curr. Week

1,738 M N=18,462 B

Previous week 1,749 M

N=31,183 B

% Change

-0.63 -40.79

Twenty eight stocks depreciated in price during the week as against twenty nine stocks in the preceding week. The top ten price losers during the week were:

EXCHANGE TRADED PRODUCTS (ETP A total of 62,392 Units of Exchange Traded Products valued at N1,003,618.96 in 14 deals were traded during the week compared with 202.916 units of Exchange Traded Products valued at N1,167,621.27 in 13deals traded in the previous week.

Total Gain

40

Total Loss

28

Deals

14,790

All Share Index 38,927.02

Market Cap.

N=14,102

Trillion

TOP TEN GAINERS

49 29 24,604 38,669.23 N=14,008 Trillion

-18.36 3.45

-39.89 0.67 0.67

Company Op.Price cl. Price Gain

Gain in %

JAPAUL

0.31

0.38

0.07 22.58

EQUITY

0.20

0.24

0.04 20.00

UBN

5.60

6.20

0.60 10.71

OKOMU

82.00

90.40

8.40 10.24

LEARNAFCA

1.44

1.58

0.14

9.72

LASACO

0.35

0.38

0.03

8.57

NPF

1.65

1.79

0.14

8.48

IKEJAHOT

2.63

2.85

0.22

8.37

HONEYWELL

2.30

2.49

0.19

8.26

CIKLEASING

1.61

1.73

0.12

7.45

BOND MARKET

TOP TEN LOSERS

A total of 9,850 units of FGN Bond valued at N9,998,893.63 in 10 deals were traded during the week compared with 10,561 units of FGN Bond valued at N10,380,669.85 in 20 deals executed in the previous auction

Company Op.Price Cl. Price Loss

Loss in %

MBENEFIT

0.36

0.41

0.05 13.89

AGLEVENTIS

0.53

0.49 (0.04) (7.55)

NB

117.00 110.00 (7.00) (5.98)

BERGER

9.00

8.55 (0.45) (5.00)

BOC

4.43

4.21 (0.22) (4.97)

UNIONDISG

0.42

0.40 (0.02) (4.76)

NEIMETH

0.63

0.60 (0.03) (4.76)

LAWUNION

0.86

0.82 (0.04) (4.65)

PRESTIGE

0.67

0.64 (0.03) (4.48)

NEWRESTASL

4.70

4.50 (0.20) (4.26)

Source: Nigerian Stock Exchange (NSE) & Regency Research

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WEEKLY MARKET REPORT

STOCK MARKET REPORT

Domestic Market Review

OUTLOOK AND STOCK RECOMMENDATION FOR THE WEEK 18/06/18-22/06/2018)

RECOMMENDED STOCKS TO BUY

As in the preceding week, the Nigerian Stock Market appreciated during the week under review as investors continue to display bargain hunting in some stocks that have their prices fallen to attractive entry prices. We therefore recommend the under-listed stocks as good for investment during the week. UBA, FBNH, UCAP, DANGOTE FLOUR, FLOUR MILLS, and Zenith prices are attractive. The fundamentals are strong and they have good ROI. The stock prices are low and attractive due to profit taking and adjustments for dividend paid recently. The stocks are also recommended because of their good dividend pay out rates. We expect the prices to enjoy upward trend as we expect their second quarter results.

Also flour mills will soon release its FY end result. Declaration of impressive result and payment of good dividend will impact positively on the price.

Stocks

Current Price

UBA FBNH UCAP DANGFLOUR FLOUR MILL ZENITH TRANSCORP PLC

11.00 10.85 3.18 10.55 32.40 26.40 1.50

Expected

Expected %

Change 6-mths Target

price 15.00

36.36

15.00

38.20

4.00

25.79

12.00

13.75

40.00

23.46

32.00

21.21

2.00

33.33

TRANSCORP PLC, currently is a good stock for speculative investment due to good current price and impressive first quarter result.

FINANCIAL HIGHLIGHTS OF RECOMMENDED STOCKS

Company

UBA PLC

TRANSCORP PLC DANGOTE SUGAR ZENITH BANK DANGOTE FLOUR PLC NASCON PLC

Result

1ST QTER RESULT 31/03/2017 1ST QTER 31/03/2018 1ST QTER 31/3/2018 1ST QTER 31/03/2018 1ST QTER 31/03/2017 1ST QTER

Turnover

Current

Last

N=bill

N=bil

119.37 26.30 41.14 189.19 26.30

101.25 15.76 59.53 147.74 29.05

FLOUR PLC

MILLS

31/03/2018 3RD QTER 31/12/2017

6.20 427.51

6.46 389.94

yr Current N=bill

PAT Last yr N=bil Curr EPS Last Div. Paid

22.74

22.35

N0.67

N0.85 dividend in 2017 FY

5.41

1.50

N0.06

N=0.02 in 2017 FY

5.28 47.08 1.58

4.76 37.50 2.60

N0.45 N1.50 N0.32

N1.25 in 2017 FY N2.45 final dividend in 2017 FY N0.20 dividend in 2017 FY

1.06 12.25

0.798 7.40

N1.60 N4.56

N1.50 dividend in 2017 FY N1.00 PD IN 2016 FY.

Source: Nigerian Stock Exchange (NSE) & Regency Research

Regency Research | Weekly Market Report

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WEEKLY MARKET REPORT

STOCK MARKET REPORT

MARKET DEVELOPMENTS (LAST WEEK ) On Monday, June 18, 2018 Beta Glass Plc and Cement Company of Northern Nig. Plc will be marked down by the NSE; having declared a dividend of N1.07 and N1.25, respectively in the preceding week.

On Tuesday, June 19, 2018 The Chemical & Allied Products Plc, Stanbic IBTC Holdings Plc and Eterna Plc's Annual General Meeting will hold this day, while the Nigerian Association of Petroleum Explorationists (NAPE) holds its Technical/Business Meeting in Lagos.

On Wednesday, June 20, 2018 the Annual General Meeting of Dangote Cement, NEM Insurance Plc and UAC of Nigeria Plc will holds on the same day.

On Thursday, June 21, 2018 The Annual General Meeting of Dangote Sugar Refinery Plc, Total Nigeria Plc,Julius Berger Nigeria Plc, CWG Plc, Lasaco Assurance Plc and Japaul Oil & Maritime Services Plc will hold this day. and on Friday, June 22, 2018 Dangote Flour Mills Plc will hold its Annual General Meeting this day in Lagos, while the CFA Society Nigeria hosts key stakeholders for a GIPS Sensitization Session.

INVESTMENT BASICS

How to Improve Your Personal Finances The importance of getting your financial life in order cannot be overemphasized. Here, are six specific goals you need to consider to achieve your objective:

1) Start putting aside 15% of your monthly income. One of the most important things you need to do if you want to be financially savvy is to imbibe a savings culture. This can be done by putting aside some percentage of your gross monthly income.To achieve this, we recommend that you set up an automatic transfer from your salary/earning account to your savings account for this amount every month. If it is not something you have tried before and you find yourself in a fix where you need to pay some bills you can always transfer your money back, but you need to discipline yourself to live on what's left in your salary/earning account after the automated transfer has been made.

2) Create an investment plan and follow through. To be financially sound, investing is what follows after saving. Once a substantial sum of money has been accrued, you can now begin investing money. Investing money is the process of using money or capital in the purchase of an asset that can generate a safe and acceptable rate of return over time. A good investment is capable of making you wealthier years down the line, even in the face of the occasional economic turbulence. Investing in mutual funds, stocks, bonds and real estate attracts a much higher interest rate than if you were to leave your money idle in a savings account. The goal is to generate multiple streams of income in order to significantly boost your financial standing.

3) Create a debt repayment plan. Nothing weighs heavy on the shoulders like a debt that hasn't been paid. To achieve this, list out the sum total of the debt you owe, the type of debt it is, and the interest rates that apply.. You probably have a vague/approximate idea of just how much you owe, however listing it out will paint a clearer picture and cast a spotlight on the reality of the situation. Once you have done this, you can now work out a repayment plan. Some prefer to start with the smaller debts and work their way up while others prefer to start with the higher interest rate debts and work their way down. The goal is to use an approach that works best for you and follow through with it diligently.

4) Monitor your daily expenses.Most times, people wonder where all their money went to, as they cannot account for how the money was spent. This is why it is imperative to make it a habit to always monitor your daily expenses. You can make use of excel spreadsheet or simply draw up a list with a pen and paper, listing daily your purchases. This will enable you to keep track of your spending, and you will inadvertently be mindful of how you spend and make adjustments where necessary.

5) Indulge in a monthly savings challenge. The surest way to quickly make anything a habit is to constantly do the same thing every day for a month. So assuming you have managed to save 15% every month, challenge yourself to save up to 20% the next month, 30% another month, and so on and so forth. This will help to improve your savings habit and also teach you the benefit of delayed financial gratification as you get to save more and spend less towards a specific set of objectives. If you fail to meet up with your monthly challenge, no worries, just try again until you've mastered the art of meeting up with your desired monthly savings target.

6) Exercise your capacity for financial flexibility. Plan and carry out different financial exercises for different days. You can do this by limiting yourself to a

specific sum of money every day or every week as the case may be, and see how far you can survive on that amount. Nothing makes you more aware of your

spending habits than having to get by on a constrained budget as you go about your day to day activities. On other days, decide that you are not going to

spend any money at all, and limit yourself to just the supplies you have stocked in your home. This means you would have to cook instead of ordering takea-

way, clean instead of paying someone to do it, and so on and so forth. These exercises will help you identify your spending triggers and enable you

to exert greater control over them.

Source: Nigerian Stock Exchange (NSE) & Regency Research

Regency Research | Weekly Market Report

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WEEKLY MARKET REPORT

FIXED INCOME MARKET REPORT

Money Market

NIGERIAN INTER BANK OFFER RATE NIBOR

At the end of the week ended June 14, 2018 the Nigerian Interbank Offer Rates (NIBOR) closed positive for all the tenors. The NIBOR rate appreciated by 290.52%, 16.66, 10.96% and 13.68% for overnight 1, 3 & 6 months tenors to close at 18.88, 15.11, 15.35, and 17.26 respectively.

TENOR Curr. Rate Prev.Rate % Change

Overnight 18.8750 4.8333 290.52

1Month

15.1098 12.9518

16.66

3Months

15.3455 13.8301 10.96

6Months

17.2634 15.1858 13.68

Treasury Bills

The Central Bank of Nigeria during the week under review sold N6.23 billion 91-day treasury bills at 10.20%, N51 billion 182-day treasury bills at 10.50% and N124.64 billion 364-day treasury bills at 11.50% compared with N4.96 billion 91-day treasury bills @10%, N29.80 billion 182-day treasury bills @10.3% and N19.84 billion 364-day treasury bills @11% sold in the previous week.

Foreign Currency (EXCHANGE RATE).

The Interbank rate appreciated slightly by 0.02% to N305.90/$ from its previous rate of N305.95/$, The naira during the week appreciated against some major currencies. It appreciated by 0.02%, 0.44% and 0.38%, against US dollar, pound sterling and Swiss Franc to close at N305.90, N407.98, and N309.62 respectively.

Source: Financial Markets Dealers Quotations (FMDQ)

NAIRA EXCHANGE RATES

Currency Cur. Rate Prev. Rate Change%

US$

305.90 305.95

(0.02)

POUNDS

407.98 409.79

(0.44)

EURO

369.71 359.47

2.85

FRANC

309.62 310.80

(0.38)

YEN

2.77

2.80

(1.02)

CFA

0.55

0.55

(0.42)

WAUA

433.76 434.70

(0.21)

YUAN

47.78 47.72

0.11

RAND

23.06 23.39

(1.38)

DANISH

48.27 48.25

0.04

SDR

434.47 435.40

Source: Central Bank of Nigeria (CBN)

(0.21)

MONEY MARKET RATES

This Week (%)

Last Week (%)

% Change

OIL PRICE

Nigeria's oil price appreciated during the week under review. According to the latest data given by the Central Bank of Nigeria, the oil price went down and closed at $75.24 compared with $74.31 recorded in the previous week.

Open-Buy-Back (OBB)

Overnight (O/N)

3.87

5.83

4.25

5.33

-33.62% -20.26%

Source: Financial Markets Dealers Quotations (FMDQ)

Disclaimer

This report was prepared, issued and approved by Regency Assets Management Limited (RAML). The report is based on information from various sources that we believe are reliable. While due care has been taken in preparing it, investors are reminded that the stock prices fluctuate based on stock market forces.

This report is provided solely for the information of clients of RAML who are expected to make their own investment decisions. Regency Assets Management Limited accepts neither responsibility nor liability whatsoever for any loss arising from the use of this report. All opinions on this report constitute the authors best estimate judgement as of this date and are subject to change without notice This report is for private circulation only. The report may not be reproduced distributed or published by any recipient for any

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