External broker reports(aggregated public sources), CardinalStone

CardinalStone

External broker reports(aggregated public sources)

CardinalStone is an independent, multi-asset investment management firm offering an assortment of financial services to a diverse institutional, high net worth and retail clientele base. The company began operations in June 2008 and its business is conducted across six divisions – Investment Banking, Asset Management, Securities Trading, Trust Services, Registrar Services and Financing. Headquartered in Lagos with offices in Abuja, Nigeria, the firm and its licensed subsidiaries diligently works with its clients to create bespoke solutions for their needs.

Thematic (Sector/Industry)

<ul><li>Last week, the local equities market (NGX-ASI) closed bearish, down 0.97% WoW to 248,363.55 points.</li><li>Similarly, the MEP declined by 0.99% WoW, underperforming the NGX-ASI by 2bps.</li><li>YtD, the MEP has returned 68.04%—844bps ahead of the ASI’s YtD return of 59.60%.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Last week, the local equities market (NGX-ASI) closed bearish, down 0.97% WoW to 248,363.55 points.Similarly, the MEP declined by 0.99% WoW, underperforming the NGX-ASI by 2bps.YtD, the MEP has returned 68.04%—844bps ahead of the ASI’s YtD return of 59.60%.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CardinalStone Research - Model Equity Portfolio - 12 October 2026

Equity Bottom-Up

Zenith Bank PLC is a commercial bank with offices located in several parts of Nigeria.  The Bank provides services to corporate, commercial and individual customers.

<ul><li>Zenith Bank Plc (NGX: ZENITHBANK – TP: UR*) reported a 19.1% YoY decline in PAT to N430.8 billion in H1’26, as gross earnings fell 25.2% YoY on weaker interest income (-8.9% YoY) and Non-Interest Income (NIR, -74.2% YoY).</li><li>Lower impairment charges (-81.5% YoY) provided some respite.</li><li>Overall, EPS settled at N10.48 (H1'25: N12.95) and a N1.50 (H1'25: N1.25) interim dividend subsequently declared.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Zenith Bank Plc (NGX: ZENITHBANK – TP: UR*) reported a 19.1% YoY decline in PAT to N430.8 billion in H1’26, as gross earnings fell 25.2% YoY on weaker interest income (-8.9% YoY) and Non-Interest Income (NIR, -74.2% YoY).Lower impairment charges (-81.5% YoY) provided some respite.Overall, EPS settled at N10.48 (H1'25: N12.95) and a N1.50 (H1'25: N1.25) interim dividend subsequently declared.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ZENITHBANK H1'26 - Trading Losses and Lower Interest Income Weigh on Earnings

Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>DC company share prices are rolling over, foreshadowing increasing pressure on their hyperscaler customers.  Since the July swoon in semiconductor stocks, the DC sector has underperformed both hyperscalers and semiconductors.</li>
<li>DC players face strong headwinds on multiple fronts, including high leverage/circular financing, supply chain delays, public opposition, and questions about aggressive forecasts of future compute demand.</li>
<li>Leverage is the most prominent risk in the DC sector, with questions looming about completion dates and customers' ability to meet their contracted offtake agreements.</li>
</ul>


DC company share prices are rolling over, foreshadowing increasing pressure on their hyperscaler customers.  Since the July swoon in semiconductor stocks, the DC sector has underperformed both hyperscalers and semiconductors.
DC players face strong headwinds on multiple fronts, including high leverage/circular financing, supply chain delays, public opposition, and questions about aggressive forecasts of future compute demand.
Leverage is the most prominent risk in the DC sector, with questions looming about completion dates and customers' ability to meet their contracted offtake agreements.


DATA CENTER SECTOR: From the Tip of the Spear to Canary in the Coal Mine

Director, Sentiment Matters

Lars Kreckel

Director

The mood of the market, mapped and decoded

Sentiment Matters

Investor sentiment is the overall mood of investors - how bullish or bearish they are on a market or asset.

Sentiment is part of every investor’s investment process. Whether for macro investors, stock pickers, or thematic investors, it matters whether a position is consensus or contrarian.

<ul>
<li>
Buy Side Sentiment Tracker: we aggregate asset-allocation views from 54 top asset managers across 73 assets, based on 1,400+ individual views.</li>
<li>
Bullish, but not extreme: Risk appetite is high and rising, yet equity downgrades and resilient sovereign demand show the Buy Side is far from universally risk-on.</li>
<li>
Max Contrarian: Infrastructure, Industrial Metals and Gold are most popular; Swiss Franc, Cash and Consumer Staples are least popular.</li>
</ul>



Buy Side Sentiment Tracker: we aggregate asset-allocation views from 54 top asset managers across 73 assets, based on 1,400+ individual views.

Bullish, but not extreme: Risk appetite is high and rising, yet equity downgrades and resilient sovereign demand show the Buy Side is far from universally risk-on.

Max Contrarian: Infrastructure, Industrial Metals and Gold are most popular; Swiss Franc, Cash and Consumer Staples are least popular.


Sentiment Matters: Buy Side Sentiment Tracker - October 2026

<ul><li>Last week, the local bourse fell 0.52% WoW to close at 239,351.16 points, while the MEP lost 0.81% WoW, underperforming the market’s benchmark by 28bps.</li><li>Despite a weaker weekly performance, the MEP maintains a superior YtD return of 69.76%, outperforming the ASI’s 61.17% return by 858bps.</li><li>The MEP’s underperformance last week largely stemmed from our “strongly overweight” position in MTNN (-2.67% WoW) and GTCO (-3.07% WoW), which collectively cost the MEP 55bps in the week.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Last week, the local bourse fell 0.52% WoW to close at 239,351.16 points, while the MEP lost 0.81% WoW, underperforming the market’s benchmark by 28bps.Despite a weaker weekly performance, the MEP maintains a superior YtD return of 69.76%, outperforming the ASI’s 61.17% return by 858bps.The MEP’s underperformance last week largely stemmed from our “strongly overweight” position in MTNN (-2.67% WoW) and GTCO (-3.07% WoW), which collectively cost the MEP 55bps in the week.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

CardinalStone Research - Model Equity Portfolio - 05 October 2026