MARKETS AND COMMODITIES MONITOR News COMMODITIES EXCHANGE RATE FMDQ Close FX outlook: When Oil US $56.91 NSE Close BDC TRAVELEX FX Treasury bills FGN Bonds) $-N400 356 $/N 3M 6M 5Y 10Y 20Y can we expect GOLD $ 1,178.60 39.30 £N598 N/A 0.00 0.08 0.67 0.02 0.10 0.05 uninterrupted supply COCOA $ 2,261.00 26,251.39 €N510 N/A 305.00 13.48 18.71 16.04 16.51 16.52 in the market? Page 8 FIFTEEN YEARS OF DEFENDING LIBERAL ECONOMIC THOUGHT NEWS YOU CAN TRUST I ** MONDAY 09 JANUARY 2017 I VOL. 14, NO 262 I GN300 Slashed import GTBank, Okomu, Access, Dangote Cement, tariffs will cut production cost Zenith, top analysts’ stock picks for 2017 – Manufacturers ODINAKA ANUDU & AMAKA ANAGOR-EWUZIE IHEANYI NWACHUKWU & INNOCENT UNAH ment Plc, and Zenith Bank Plc cent equity market return or available to BusinessDay, even anufacturers and trade are among some of analysts’ N603.68billion value loss in though in the first trading week experts predict that the espite a scaling- picks for year 2017. 2016, many stock buyers are into 2017, the share price of GT- MFederal Government’s back of expecta- Also found in the basket of eagerly searching for investment Bank lost N1.16 from year-open decision to slash import tariffs tions on a number most analysts’ stock picks are clues on some value stocks to level of N24.70 to close N23.54 on raw materials and machinery of listed compa- Flour Mills of Nigeria Plc, Nige- place their money on this year. Friday. will cut production costs, boost nies’ earnings, the rian Breweries Plc, Oando Plc, Guaranty Trust Bank Plc, Kayode Tinuoye, head re- input inflows and rejuvenate Dshares of Guaranty Trust Bank and FCMB Group Plc. resilient in the tier-one bank- search, financials, United Capital activity in Nigerian seaports. Plc, Okomu Oil Palm Plc, Ac- With investors still suffer- ing space, repeatedly occurred Plc, told BusinessDay that if “The inflation we are dealing cess Bank Plc, Dangote Ce- ing from a negative 6.17 per- in some analysts’ stock picks Continues on page 4 Continues on page 47 Weaker demand sees Herbert Wigwe leads interbank foreign most active bank CEOs exchange transactions on Twitter survey ... over 70% CEOs not on drop to 4-month low social network LOLADE AKINMURELE FRANK ELEANYA rading activity in Nigeria’s Spot foreign exchange he chief executive officer T(FX) market between the and managing director of banks and their clients for the TAccess Bank has the most week-ending December 30, active presence on popular so- 2016 stood at US$284.82 mil- cial media network, Twitter, as lion, the lowest weekly turno- over 70 percent of bank CEOs ver since September 16, 2016, Continues on page 47 according to data compiled by BusinessDay. Turnover in the aforemen- Nigeria to start building tioned week also represents Seated L-R: Ben Okoye, executive vice chairman, Brass Fertiliser & Petrochemical Company, with John Goodridge, BP’s head of market- a 62 percent decline from the ing and origination, Europe, Africa and Russia. Standing L-R: Gareth Hodder of White and Case LLP; Sanjay Patel of BFPCL; Mychael railway to decades- $512.59 million recorded the Obaseki, BP Nigeria; Tom Fox, BP London; Abhishank Jajur; Taylor Dejongh; Rema Shrestha and Alex Moulsdale, both of BP London, at the official signing of the $6 billion Methanol Offtake Agreement between Brass Fertiliser & Petrochemical Company (BFPCN) and BP Continues on page 47 Oil International Limited, at the London office of BP Oil International. delayed steel plant Page A11 2 Monday 09 January 2017 Monday 09 January 2017 3 4 BUSINESS DAY C002D5556 Monday 09 January 2017 NEWS Mills Nigeria Plc lost 1kobo in the Analysts at Cordros Capital are GTBank, Okomu, Access, Dangote Cement... first trading week into 2017, from also recommending Cadbury Plc. Briefs N18.49 to close Friday at N18.48. “We think Cadbury is presently Continued from page 1 (LPFO) is set to boost Dangote Cement Plc margins. Its stock ap- Flour Mills of Nigeria half-year under-priced, given that their fun- US jobs growth slows to 156,000 in December results shows that sales expanded damentals are good. The manage- profit from a possible come-back pears to be trading at a rich valua- US businesses added 156,000 of foreign portfolio investments tion”, said Dunn Loren Merrifield by 43 percent to N136billion. ment is always working on branding, “A diversified product portfo- formulation and it has a discount to jobs in December in the last (FPIs) post another round of for- research analysts. release of key economic data eign exchange reforms, GTBank’s lio by Flour Mill should support Nestle’s products. We expect that the “Although the management before Donald Trump is sworn strong long dollar position should of Dangote Cement Plc effected a growth in a challenging year”, market will shift away from Nestle be earnings-positive for the tier- significant price hike of around 39 United Capital analysts said. to Cadbury, given the challenged in as US President. one bank. percent for the Nigerian cement Zenith International Bank Plc disposable income of Nigerians. The amount of jobs created Okomu Oil Palm Plc followed, as market in late August, the com- is another value stock for inves- Moreover, the company has intro- fell from an upwardly revised the company is believed to ride on bination of slower sales growth in tors in 2017. Zenith Bank shares duced new products such as the 204,000 in November and came renewed focus and strong growth the three month ending September gained 2kobo into this year, from Trident sugar-free chewing gum” in below market expectations of in the agriculture sector. The share (relative to the months preceding N14.75 to N14.77. Zenith Bank’s Lafarge Wapco is among pre- 175,000 new roles. price of Okomu Oil steadied at the price review) and significantly nine months results came in strong ferred stocks for the year, as ana- N40.17 into the year 2017. higher fuel costs more than offset with profit after tax growing by 151 lysts forecast that they are going to Apple boss’s salary and bonuses fall percent to N83billion in the nine overcome their foreign exchange “Okomu’s strong sales growth the effect of the upward review in Apple chief executive Tim was mainly responsible for the prices,” according to FBNQuest’s months ended September. chalenges for the year and improve growth in earnings. We believe Tunde Abidoye. Another top pick stock is Ni- on their performance. Cook saw his salary and bonus the strong growth in palm oil sales Access Bank is another value gerian Breweries Plc. “Nigerian “The market has overreacted to slide in the last financial year, was mainly as a result of expan- stock for investors in 2017 which Breweries defensive attribute and the challenges and it is anticipated but his income from the sale of sion plans by the firm. In the past, analysts believe its good asset qual- foray into new low tier beer market that the factors that impeded their shares jumped dramatically. Okomu management expressed ity and strong non-interest revenue should support top-line growth, performance will be reversed in the Mr Cook was paid $8.75m plans to aggressively expand the will support the bank’s earnings, despite foreign exchange chal- first quarter of 2017. This will lead (£7.1m) in salary and bonus in company’s palm oil plantation. making its valuation also attractive. lenges and pressured consumer to improved performance, as the 2016, down from $10.3m the “We also suspect that weaker Access Bank shares gained 41kobo wallets”, United Capital analysts cement sector remains attractive.” previous year. competition from imports due this year, from year open price of said. Nigerian Breweries Plc lost United Capital also made the to foreign exchange devaluation, N5.87 to N6.28. N5.99 in the first trading week of list of stocks that can make inves- Samsung profit surges despite Note 7 battery fiasco 2017, from N147.99 to N142 tors money this year. helped Okomu gain share and Access Bank group’s financial Samsung Electronics has re- boosted its topline”, said the Ju- highlights in the nine months pe- United Bank for Africa Plc “High dividend payout which (UBA) is also another pick for we expect to be sustained makes ported a 50% profit surge in its moke Okeowo-led team of analysts riod to September 30 2016 show guidance for the fourth quarter at FBNQuest. Gross Earnings of N274.468billion analysts who say that the bank’s the stock an investor’s delight” said On an annualised basis, the from N257.590billion in the nine well diversified operations across analysts at Planet capital. despite the fiasco with its flag- nine months sales of Okomu Oil months period of 2015, an increase Africa give it a competitive edge African Prudential is also on ship Note 7 phone. Palm were on course to meeting of 7 percent. and dilute the headwinds in any the recommendation list. The earnings estimate is analysts’ consensus Full Year (FY) Profit Before Tax (PBT) in- particular market. “The stock moved by over 20 higher than analysts predicted estimates of N13.2billion. creased by 19 percent to N72 billion Dangote Sugar is another pre- percent last year and though there and would mark its highest On a nine-month basis, Okomu from N60.4 billion; while Profit After ferred stock for investors. “ The we expect mild profit taking by the quarterly profit since 2013.The sales grew by 41 percent year-on Tax (PAT) also rose by 19 percent to company is a big player in the beginning of the second quarter, South Korean tech giant said market and controls significant we are of the opinion that perfor- year.