We maintain a favorable outlook for Total Energies Marketing Nigeria PLC (TOTAL). The company has successfully grown its topline to over a trillion Naira, driven by its leadership position within Nigeria’s downstream oil and gas sector as demonstrated in its robust FY’24 financial performance.
In its Q2'24/25 earnings, Guinness Nigeria Plc (GUINNESS) delivered its strongest quarterly performance in over a decade. The strong performance was aided by easing cost inflation and FX volatility, which we expect to positively cascade to other players in the sector in varying degrees. Given these favourable dynamics, we have revised our 12-month Target Price ("TP") upward to N96.57 (from N85.69) while maintaining our BUY recommendation.
PRESCO Plc (PRESCO) delivered a strong performance in FY'24, with revenue surging by 93.5% YoY, driven by favourable CPO prices, the partial consolidation of Ghana Oil Palm Development Company (GOPDC), and increased sales volumes.
System liquidity was robust in January 2025, as inflows from maturities, coupon payments, and FAAC totalled N3.07 trillion. This buoyant liquidity fueled strong buying interest at the short end of the curve and prompted banks to net deposit N236.16 billion at the CBN deposit discount window.
The Nigerian equities market also proved resilient in January. Specifically, the All-Share Index (ASI) advanced by 1.5% MoM to reach 104,496.12 points— its highest close in 9 months— while market capitalization increased by N1.95 trillion to N64.71 trillion.
Exogenous factors such as the upward adjustment to the Cash Reserve Ratio (CRR) and higher interest rates have led to liquidity constraints for FCMB, with cost-of-funds (CoF) rising by 2.6ppts to 8.3% in 9M'24.
