The Nigerian stock market has been on a roll since the introduction of the forex window for investors and exporters back in April this year. The Month of May alone has recorded a total gain of about 14.48% as stocks rallied nearly across all major indices.
However, some stocks have gained far more than others and ended up as the best stocks this year so far. Here they are, starting from the 5th best
UBA – 5th
United Bank for Africa (UBA) is the best banking stock this year in terms of total returns in the Nigerian stock exchange. It has gained a whopping 66.67% this year alone as investors take position in the tier one bank. UBA reported a profit after tax of N72.2 billion about 21% higher than the N59.6 billion reported in 2015. UBA has also reported a profit of N22.3 billion in the first quarter of this year compared to the N16.9 billion reported a year earlier. UBA closed at N7.50
Stanbic IBTC – 4th
Ever since Stanbic IBTC sorted out its debacle with the Financial Reporting Council of Nigeria, the obvious path for its stock has been northwards. It followed the settlement with a release of its audited accounts showing it profits rose a whopping 51% to N28.5 billion in 2016. Stanbic Share price has gained about 73% this year alone. Stanbic closed at N26
Fidson – 3rd
Rumours that the leading pharmaceutical company will buy May & Baker has helped propelled the share price to levels not seen since January 2016. The company has since denied the rumoured deal to acquire May and Baker. The company’s 2016 FY profits rose by about four folds to N168 million in 2016. Despite this, it did not declare dividend fanning claims that the spurt in share price rally had everything to do with a potential deal. Fidson closed at N2.28
Aviation company, Airline services started its growth spurt sometime in March. From the first day of March when it closed at N2.78 it has gradually crept up closing the month of May at N4.48. The company is yet to release its 2016 FY results which suggest that the spurt in its share price could be attributed to internal “arms race” taking place within the company. Typically, when a company’s share price is rising without a fundamental justification it is typically that a prominent shareholder is scooping up shares or that there is a potential acquisition in the offing. Closed at N4.48
Oando – 1st
The beleaguered oil company is not one to ride on fundamentals for capital appreciations. It’s more synonymous with relying on losses to drive share price appreciation than profits. It however relies more on internal machinations to trigger a rally in its share price. It is either a majority shareholder buying shares on the back of another complex structured deal or just positioning for another spin off of its subsidiary. If there is one thing Oando is good at it is churning out complex entities that inherit bad assets or take on the very good ones. Whatever the case, Oando has gained a whopping 79.8% this year and is the best stock for 2017 as at May 2017. Closed at N8.45
Bitcoin loses $1500 in 3 mins, pigs get slaughtered in BTC market
Bitcoin rose above $10,000 for the first time in six weeks in a move that seems to show a bullish momentum has the $10,000 resistance mark been broken.
Some hours ago, Bitcoin rose above $10,000 for the first time in six weeks in a move that seems to show a bullish momentum as the $10,000 resistance mark been broken.
However, during the rally, over $100 million worth of Bitcoin short positions were liquidated as Bitcoin plunged by nearly $1,500 in less than 3 minutes, before rebounding to around $9,458. Bitcoin is trading at $9,540 4 am local time.
Bitcoin’s plunge was bad news for the bulls. By falling back below the $10,000 psychological support, it has shown a likely downward trend as investors start to close their positions.
According to data retrieved from crypto derivatives platform, Skew.com, an approximate $96 million worth of long positions were wiped with this lower move. This is lower than the $125 million liquidation event that took place when BTC took out $10,000 yesterday, suggesting that the market was leaning to such a trend.
Things you need to understand about Bitcoin’s volatility
The price of Bitcoin is so volatile because of its high use for financial gain by investors and crypto traders. As such, individuals and hedge funds sell and buy Bitcoins like they would do for any other financial asset (Stocks, bonds) with regulatory limitations.
One of the key biases touted by Bitcoin bears is that Bitcoin remains below the key resistance of $10,500 and has refused to break that mark since early 2020.
$10,500 is the level at which the bitcoin price was rejected during two crucial rallies over the past 12 months.
The fact that BTC has made successive takes at the level without breaking past it suggests that the crypto market is still situated in a downtrend.
Robert Sluymer of Fundstrat Global Advisors, for instance, recently commented on the importance of the level. He said:
“Next directional move on tap for BTC’s as bull-bear convictions are about to be tested. Bears can point to the downtrend at 10-10.5K. Bulls have the long-term uptrend (200-week SMA) at their back and the past week’s resilience as BTC’s quickly rebounded from its 200-DMA.”
Naira weakens against the dollar by 1.14% amid market uncertainty
The reopening of the economy is expected to put additional pressure on the naira as more businesses try to meet up with accumulated obligations.
The naira was weakened at the parallel market on Monday, thereby depreciating against the dollar. This is the first depreciation of the naira in about two weeks, after four consecutive rounds of appreciation against the dollar.
According to information obtained from Abokifx, the naira depreciated to N445 to a dollar on Monday, June 2, 2020. This shows a loss of N5 (or 1.14% decline) when compared to the N440 to a dollar that was recorded last week Friday.
The local currency was weakened at the parallel market following the announcement of the resumption of domestic flight operations on June 21, 2020, by the Federal Government. The uncertainty resulting from the delayed resumption of sales of dollars to the Bureau De Change (BDC) operators also contributed.
In a related development, the local currency was stable at the Investors and Exporters (I&E) window, having recorded no movement. The naira exchanged at N385.50 to a dollar on Monday, June 2, 2020, which was the same rate it ended with on Friday last week. This came against the backdrop of a marginal increase in the daily turnover to $34.35 million at the I&E window, marking an increase of $2.95 million when compared to the $31.40 million that was recorded the previous trading day. In other words, this represents a 9.4% increase in dollar supply to the window.
(READ MORE: Naira drops to N460 against dollar)
Recall that on April 29, 2020, the Central Bank of Nigeria had announced the resumption of weekly sales of $100 million dollars for school fees and the Small and Medium Enterprises (SMEs), in order to help reduce the pressure on the naira in the foreign exchange market. To a large extent, this has helped to reduce pressure on the naira.
However, despite improvement in the price of crude oil around the world and its positive effect on the country’s foreign exchange earnings, the reopening of the economy is expected to put more pressure on the naira as more businesses try to meet up with accumulated obligations.
Nigeria holds the aces in the peer to peer use of Bitcoin
Nigeria leads the pack in the peer to peer use of bitcoin in African continent with more than $35 million, while the closest rival, South Africa
Nigerians’ use of Bitcoin in the past month has surged exponentially, as the use of Bitcoin for peer to peer lending in the country recorded a feat.
Recent statistics showed that Nigeria led the pack with more than $35 million, while the closest rival, South Africa, had a transactional value of just $7 million during the last thirty days, according to usefultulips (a Bitcoin analytic data provider).
Among the top countries in the last 30 days leading in peer to peer Bitcoin transactional trades on the African continent are:
Nigeria – $35, 147, 166
South Africa – $7, 130, 711
Kenya – $6, 904, 750
Ghana – $4, 007,376
Central African Republic – $336, 579
Tanzania – $220, 463
In addition the report showed that Nigeria’s transactional value of Bitcoin’s peer to peer lending outsized all African countries totaling ($18, 599, 579)
What you should know: In Bitcoin’s case, Peer to peer is the exchanging of Bitcoins between parties (such as individuals) without the involvement of a central authority.
This means peer to peer use of Bitcoin takes a decentralized approach in the exchange of Bitcoins between individuals and groups.
It shows that Bitcoin’s long-running narrative as the “digital gold” for hedging against global economic turmoil is gaining the trust of Nigerians for payments and transfers.
The financial market turmoil triggered by COVID-19 has definitely changed the way Nigerians view the whole financial system as data also obtained from Google trend shows Nigeria leading the pack around the world in Bitcoin searches. This is a testament to the fact that Nigerians truly love their Bitcoin.