5th August, 2019

On the Bid Cart:  DANGFLOUR closed limit up today (+10.00%) to settle at N20.35. The stock appreciated on the back of the news that Crown Flour Mills (on behalf of Olam International) put in their final bid for DANGFLOUR. The initial bid on the 23rd of April 2019 was valued at N130 billion, however, the final consideration announced today is N120 billion resulting to a final settlement of N24.00/share. We foresee a rally similar to that seen after the initial announcement, where the stock rallied 136% over 15 sessions. DANGFLOUR is now trading at a 197% premium to its year open (FLOURMILL: -32%; Consumer Goods: -27% YTD).  

On the Offer Cart: ETI lost 10.00% today taking the stock to a 2-year low of N7.20. ETI has been on a downtrend since August 2018 (N22.15) shedding 67% over the one year period. The stock dipped 25% in July alone and has declined 49% YTD (STANBIC: -21%; Banking sector: -18% YTD). ETI peaked at N15.00 in January and has not seen significant activity this year. We might see bargain hunting on the stock tomorrow, despite the general direction of the market.

Reporting for EasyKobo on Monday , 05 August 2019 in Lagos, Nigeria

Source: Vetiva Capital Management Limited