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A research team reveals these are stocks to watch this week

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One of Nigeria’s most popular stockbroking firms, Meristem Securities, listed the following stocks as one to watch this week. This was contained in a report sent to its subscribers and we thought to share with you, our readers.

As usual, contact your financial adviser if you require any financial advice. All disclaimers apply.

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GUARANTY

  • The counter gained 7.03% in the week, to close at NGN39.60 settling its year to date return at 60.32%.
  • The RSI at 58.18, though still upward trending, signifies that the ticker is tending towards the overbought region. Similarly, the MACD shows that there are still positive sentiments on the stock, though minimal.
  • The candle further supports this assertion, as bullish candles were seen.
  • Despite the fact that the stock is trading close to its year high of NGN41.10, technical indicators indicate the possibility of a gain at the start of the week, however, we believe that this might reverse towards the end of the week

CONTINSURE

  • The stock appreciated by 9.79% to close at a 5-year high of NGN1.57 at the end of last week.
  • The RSI at 75.37 shows that the stock is in the overbought region and sell sentiments may begin to arise. The breakout above the upper Bollinger band also supports this.
  • However, the MACD still signals growing positive momentum towards the counter.
  • It is likely that the stock may gain slightly at the start of the week before profit-taking activities ensue towards the close of trades for the week.
  • Average Volume Traded YtD 18,125,918 Average Price YtD (NGN) 30.86 Closing Price (NGN) 39.60 YtD Return 60.32% Year High (NGN) 41.10 Year Low (NGN) 22.90
  • Average Volume Traded YtD 3,754,744 Average Price YtD (NGN) 1.23 Closing Price (NGN) 1.57 YtD Return 58.59% Year High (NGN) 1.57 Year Low (NGN) 0.96
  • Beyond fundamental valuations, stock price movement is also tied to investor sentiments.
  • This report seeks to envisage trends and patterns using technical analysis indicators. Therefore, our intention with this report is not to give stock recommendation which is largely based on fundamental analysis, but to provide an alternative perspective to the outlook of market and stock prices & volume behaviour.

UBN

  • The ticker lost 5.50% in the week, to close at NGN5.67 settling its year to date return at 3.09%.
  • The RSI currently stands at 46.89 and is also downward trending, which shows that the counter is getting close to the oversold region. The MACD signals growing negative sentiments on the counter.
  • The counter also signified that there are negative sentiments on the counter
  • The bank commenced its earlier planned rights issue in the previous week, with an offer price of NGN4.10 per share. We believe that the selloffs on the counter was in reaction to the price of the rights.
  • Technical indicators show a possible decline at the beginning of the week.

ETERNA

  • The ticker shed 3.51% in the week, to close at NGN3.30 settling its year to date return at 6.45%.
  • The RSI which stood at 24.05 indicates that the counter closed the week deep in the oversold region.
  • The MACD which began to trend upward recently shows that the negative momentum towards the stock is moderating.
  • Given that the stock closed at its 4-month low and even broke below the lower Bollinger band, a reversal of the downward trend is imminent.
  • It is expected that bullish sentiments will arise according to the technical indicators. Also, investors take advantage of the relatively low price the stock is trading at given the company’s strong fundamentals.

 

Patricia

Nairametrics Research team tracks, collates, maintains and manages a rich database of macro-economic and micro-economic data from Nigeria and Africa. Our analysts share some of the data collated on Nairametrics, using formats such as docs, tables and charts etc. The team also publishes research based analysis as articles on a regular basis.

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COVID -19 saving Nigerians millions in wedding and burial costs 

As long as the pandemic persists, the ‘new normal’ is for ceremonies to remain subdued.  

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It was a sunny Saturday in May and like it had been for the better part of 8 weeks, the new normal was in force in Nosa’shousehold. The lockdown induced COVID-19 meant that all the hustle and bustle of giving attention to side hustles on weekends had all evaporated. Now he spent more time with his kids watching TV and playing video games. Whilst he has had to endure multiple weekends of lost revenue, staying indoors meant that his personal finance was still intact. But things would change dramatically this weekend. 

Nosa got a call that he had just lost his aged mother to a brief illness. He had been battling with a terminal illness for years, but things seemed to be under control so her death came as a surprise. Even as he grappled with the thought of losing his mother, Nosa knew that he had to start making preparations for the expenses that are bound to come with burials in an African setting.  

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Thanks to the pandemic, and rules that came with it, Nosa ended up spending much less than he would have for his mother’s burial with most of the funds going towards mortuary expenses, transport and the direct cost of the actual burial itself.  

“This COVID-19 is bad but it has saved me millions of naira that I would have spent in this burial,” he remarked.  

“I wanted to give my mom a befitting burial but these are hard times and I may have borrowed money just to fund this. But with COVID-19 and social distancing in place I did not have to do any of this,” Nosa informs our reporter.  

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Nosa’s gains translate to massive losses for a whole chain of service providers in the event management industry. Similar occurrences over the last few months have resulted in the loss of revenue for such businesses.  

Events in Nigeria often cost anywhere between half a million naira to over N100 million depending on the financial muscle of those spending. Burials, weddings, naming ceremonies and birthday parties, make a burgeoning industry that spans several sectors of the economy.  

From mortuaries to casket makers, event planners, event Halls rentals, professional mourners, caterers, confectionaries, party rentals, photographers, video editors, tailors, newspapers , etc, its an entire value chain of businesses that provide one service or the other for this industry. 

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Each of these events cost millions of naira to organize hosting as many people as the budget can support. According to a CNN article quoting a report from TNS Global, Nigerians spend as much as $9,460 for a wedding ceremony. The report also indicates the party industry could be worth as high as $17 million based on statistics in 2017. 

The math can be easily deducted. Assuming 50,000 ceremonies every weekend at an average cost of N1 million that is a N50 billion per weekend or N2.7 trillion ($6.75 billion) per annum. GDP data from the National Bureau of Statistics indicates sectors that support the ceremonies market in Nigeria, telecoms, transportation, Arts and Entertainment is worth a combined N18.4 trillion. 

Technology Ceremonies 

Chuks, a Partner at a top consulting firm in Nigeria admits were it not for the pandemic his wedding could have cost him about N15 million personally and another N20 million spent by family, friends, colleagues and well-wishers. He is in his forties and his wedding had been much anticipated. He went ahead with his wedding last weekend with less than a dozen people in attendance and over 140 others logging on via Zoom. He claims while he ended up not spending millions on food, drinks, wedding halls and other logistic costs, he still achieved his goal of getting married.  

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Necessity they say is the mother of invention and has millions stay locked in their homes, they have resorted to apps such as Zoom, Instagram Live, Microsoft Teams to hold virtual events. These days Zoom themed parties now have their own rules and conventions. Friends from all parts of the world log in with each person taking turns to say nice things about the celebrants. Games are conducted to spice up the event and stories told by the celebrant. Music is also played by the Zoom host with participants dancing and having fun.  

“It is like watching a live movie and also being part of it as the audience and participant” a wedding planner informed Nairametrics. Whilst one cannot underrate the connection physical socializing brings, virtual meetings are gradually becoming a lifestyle and the longer social distancing continues its cultural significance will only continue to increase.  

AderonkeAdebamibola, CEO of  Unik Ushering Agency, an Event management firm, confirmed to Nairametrics that business has really slowed down in the last few months. “Even though the NCDC has now given rules to guide weddings and other events, the budget now is way less than it used to be due to the cap on numbers of guests” she explained.  

Now, most events are kept within the premises of family residences, depriving hall rentals, the money they could have made from leasing out their halls. Venue decorators also have much less on their hands to do, as they no longer have to decorate big halls.  

According to Adebamibola, every single business in the chain has been affected, from caterers to ushers.  

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“Now, we even have to convince them to use one or two ushers for their events because they believe they don’t need ushers for 20 or 30 guests. Caterers cannot even cook a half bag of rice now because of the number of guests. This means that they are also paid less for their services, even if they expend the same energy and time” she said.  

The new normal in this industry means that the things that used to be prioritized are no longer priorities. Hand sanitisers, face masks and hand washing equipment are now compulsories in events, while the hand-shaking, and hugs that would have characterized such weddings 

Due to the nature of the industry, a large percentage of the staff are kept on contract basis, so the reduction has not really translated into lay-offs. However, the industry revenue has been badly hit. A contract staff with NPU Events, who preferred anonymity, noted that in the last three months, she has only been called twice for events.  

Since this forms a major part of her income, it has caused a major dip in her resources. COVID-19 has brought unwanted hardship to the Nigerian economy with small businesses and workers in the informal sector suffering the most.  

A recent World Bank report indicates the Nigerian economy might contract by as much as 3% in GDP growth rate this year. This informed government’s latest decision to inject about N2.3 trillion into the economy to spur economic growth. The funds will be targeted at small businesses through non-collateralized low-interest loans.  Whilst all these initiatives are geared towards stimulating the economy, the spending power of Nigerians will remain pivotal and as long as the pandemic persists, ceremonies will remain subdued. 

 

 

Patricia
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Top 10 travel agencies in Nigeria  

Whatever the case, everyone needs a travel agency or at least knows someone that does.

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Top 10 travel agencies in Nigeria  

Have you ever gone through the rigours of applying for a visa in Nigeria, only to get rejected in the end? Or maybe you had to make a trip and spent hours online trying to book reservations in a good hotel, then ended up getting there and discovering that your reservation didn’t go through.  

Perhaps, you have been defrauded by poser travel agents, in your quest to travel abroad. Or maybe the reason you have not planned for a much-desired vacation is because you don’t have the time to attend to all the details.   

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Whatever the case, everyone needs a travel agency or at least knows someone that does. Even when you know how to get these things done, it cannot compare to having a professional touch. Little things like having someone welcome you at the airport, and ensuring you get checked in at your hotel, can really matter. 

And that is why it is necessary to know some reliable travel agencies off the top of your head. In this article, Nairametrics brings you a list of top travel agencies in Nigeria that can take care of your travel needs and attend to all the details.   

Owing to the relationships these agencies have built over the years, they can get you incredibly lower airfares, hotel rates and other expenses, much more than you could get on your own. They also ensure that even if you are arriving in a country you have never been, you don’t get stranded.   

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Nairametrics does not have affiliations with any of these agencies, but the list was drawn from the hundreds of travel agencies in Nigeria, selecting only the top ones which meet the criteria. All of the agencies listed here are registered with the Nigerian Civil Aviation Authority, the Corporate Affairs Commission, National Association of Nigerian Travel Agencies, and have built some reputation for themselves over the years.   

Each has also cornered a fair size of the Nigerian market share.   


 

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Touchdowns Travels Limited  

Touchdown Travels Limited is the representative of GlobalStar in Nigeria. Though licensed by IATA since 1993, it only started representing GlobalStar in 2012.   

The agency offers services in flight bookings and reservations, as well as in organising tours and travel itineraries.   

The agency was established by Mr. Dayo Adeola, who is also its CEO/Managing Director. It is also a member of the National Association of Nigeria Travels Agencies (NANTA), and from having just 2 staff, it has grown to accommodate about 50 staff, firmly etching its name among the top agencies in the industry.   

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Touchdown is about the top agency in terms of market share and has earned several recognitions from most operating airlines in the country, as well as organisations in the industry.   

Headquartered in Lagos, the agency has travel desks (out-posts) manned by its staff, and situated within some bluechip companies. It also has a branch in Abuja. 


  

Quantum Travels  

Quantum Travels also ranks among top travel agencies in the country, and is Nigeria’s representative of BCD Travel, the third largest travel management company in the world.   

Its global presence gives the agency the advantage of meeting clients travel needs across 97 countries.   

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It is mostly known for corporate travel management, but its services extend to others such as passport and visa arrangements, flight and hotel reservations, as well as providing rentals for transportation.   

This agency also has a fair size of the Nigerian market share, ranking among the top five highest in terms of monthly ticket bookings.   


 

Wakanow.com limited   

Wakanow was launched as the first online travel agency in 2008. Its founder, Obinna Ekezie, a former professional basketball player, led the company till 2019 when Adebayo Adedeji was appointed CEO.   

With IATA code 59-211806, and NANTA code ZTN/NANTA/LOS/08-821, the company did not waste time in capturing a significant market share, and at some point, was reported to own about 10% of the market share. Currently, it has the third highest flight bookings in the country.   

The agency offers travel consulting, hotel reservations, bespoke travel packages, flight booking, visa assistance, travel financing, etc. The company also offers credit facilities with flexible travel payment plans, where the customer can pay 25% upfront, and structure the rest of the payments.   

The regular discounts and reward packages have also contributed to attracting more customers to the company. Recently, a little reward package was introduced, where customers are rewarded for referring new customers to the company. 

The agency recently introduced a new video selling product, where clients can schedule a visual tour of their potential destination with a Wakanow agent.  

To encourage travels after the pandemic, the company has introduced more deferred payment options called “Travel now, pay later”.  


 

FlinchGlow Travels  

FlinchGlow Travels was founded in 2002 by Mr. Bankole Bernard, the current NANTA president who still runs the agency as CEO.   

As a partner with the Nigerian Tourism Development Corporation (NTDC), FlinchGlow offers some of the best services in the tourism industry, although it also serves clients with personal and business travel needs.   

FlinchGlow also takes pride in its ability to secure good hotel rates at choice destinations, and plan tours for its clients. It ranks among the top five in terms of market share and sells a considerable volume of tickets monthly.   


 

Dees Travels and Tours Limited   

Dees Travels and Tour Limited was founded in 2000 and registered with IATA in the same year. Apart from booking both local and international flights, it handles travel arrangements for individual and group tours, visa procurement, travel insurance, hotel reservations across countries, chauffeur/car hire, and airport protocol services.  

According to data from airline operators, the agency is 5th highest in terms of market share and tickets sold on a monthly base.  


 

Business Travel Management Limited 

This agency is a member of the GHI Assets Ltd group, and has several names under it including Emirates holidays, Sky logistics ltd, Rwandair and HRG Nigeria. It was incorporated in 1998 and it was also accredited by IATA. It specializes in comprehensive travel management, logistics for business, corporate service and corporate travel management. 

The agency is IATA certified, and registered with other regulatory agencies. With the names under the group, BTM Limited has claimed its own share of the Nigerian travel market as well. 


READ ALSO: Airtel loses over 100,000 subscribers in one month, as Glo chases MTN’s market share

Travelstart  

Travelstart another leading online travel agency with operations spread across Africa, and headquartered in Cape Town.  

Customers can utilise the online platform to book flights across all African countries and other continents as well, and also get their itinerary all planned for a vacation or business trip. Apart from flight reservations, the agency also handles car rentals and hotel reservations tailored to the traveller’s budget.  

Travelstart also handles visa processing and travel insurance. It was founded in Sweden by Stephan Ekbergh, but has since extended operations to Nigeria, South Africa, Namibia, Tanzania, Egypt, Kenya, the UAE, Qatar, Bahrain and even Turkey, where it trades under the brand name Geziko. 

Travelstart has also captured its share of the Nigerian market, leveraging on its international network and brand recognition across the continent.  


 

Rewards Travels and Tours Limited  

Rewards Travels and Tours has over the last two decades earned its space in the industry. Its services include travel consultancy, travel itinerary management, tourism and planning corporate travels.  

It was founded in 1999, and now has a network of branches across major cities in Nigeria, with established partners in the global tourism industry. the agency gives hotel booking services, car hires, cruises and charters across several countries.  

It is IATA accredited, giving clients access to international and local airlines.  


READ MORE: Buhari suspends NSITF MD and other top management officials, appoints acting MD  

City Travels and Tours  

City Travels and Tours is one of the travel agencies you want to consider if the purpose of your travel is largely tourism. The company offers tourism services, reservations and bookings, vacations, cruises, consultation, destination and accommodation decisions.  

The agency is registered with IATA, as well as NANTA, and has a commendable network with critical stakeholders in the tourism industry across the continent. City Travels and Tours is often ranked among the top 10 among over 1500 registered travel agencies in the country.  

 

Patricia
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Coronavirus

COVID-19 Update in Nigeria

On the 4th of July 2020, 603 new confirmed cases and 6 deaths were recorded in Nigeria bringing the total confirmed cases recorded in the country to 28,167.

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The spread of novel Corona Virus Disease (COVID-19) in Nigeria touched a new milestone as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 28,167 confirmed cases.

On the 4th of July 2020, 603 new confirmed cases and 6 deaths were recorded in Nigeria, having carried out a total daily test of 3,355 samples across the country.

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To date, 28,167 cases have been confirmed, 11,462 cases have been discharged and 632 deaths have been recorded in 35 states and the Federal Capital Territory. A total of 148,188 tests have been carried out as of July 4th, 2020 compared to 144,833 tests a day earlier.

COVID-19 Case Updates- 4th July 2020

  • Total Number of Cases – 28,167
  • Total Number Discharged – 11,462
  • Total Deaths – 634
  • Total Tests Carried out – 148,188

According to the NCDC, the 603 new cases were reported from 19 states- Lagos (135), Edo (87), Abuja (73), Rivers (67), Delta (62), Ogun (47), Kaduna (20), Plateau (19), Osun (17), Ondo (16), Enugu and Oyo (15), Borno (13), Niger (6), Nasarawa (4), Kebbi (3), Kano (2), Sokoto and Abia (1) case each

Meanwhile, the latest numbers bring Lagos state total confirmed cases to 11,045, followed by Abuja (2,153), Oyo (1,466), Edo (1,353), Kano (1,264), Delta (1,227) Rivers (1,181), Ogun (974),  Kaduna (855), Katsina (579), Borno (528), Bauchi (516), Gombe (513), Ebonyi (438), Plateau (421), Ondo (410), Abia (383), Enugu (372), Imo (352), Jigawa (318).

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Kwara state has recorded 269 cases, Bayelsa (234), Nasarawa (225), Osun (165), Sokoto (153),  Niger (122), Akwa Ibom (104), Benue (97), Adamawa (89), Kebbi (84), Zamfara (76), Anambra (73), Yobe (61), Ekiti (43), Taraba (19), while Kogi state has recorded 5 cases.

 

READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government

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Lock Down and Curfew

In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.

The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.

On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020.

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READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous

DateConfirmed caseNew casesTotal deathsNew deathsTotal recoveryActive casesCritical cases
July 5, 2020287115446451111665164017
July 4, 202028167603634611462160717
July 3, 2020275644546281211069158677
July 2, 2020271106266161310801156937
July 1, 2020264847906031310152157297
June 30, 202025694561590179746153587
June 29, 20202513356657389402151587
June 28, 20202486749056579007149957
June 27, 20202407777955848625148947
June 26, 20202329868455458253144917
June 25, 20202261459454977822142437
June 24, 20202202064954297613138657
June 23, 20202137145253387338135007
June 22, 20202091967552577109132857
June 21, 202020242436518126879128477
June 20, 202019808661506196718125847
June 19, 202019147667487126581120797
June 18, 20201848074547566307116987
June 17, 202017735587469145967112997
June 16, 202017148490455315623110707
June 15, 20201665857342445349108857
June 14, 202016085403420135220104457
June 13, 20201568250140785101101747
June 12, 20201518162739912489198917
June 11, 2020145546813875449496737
June 10, 20201387340938217435191407
June 9, 2020134646633654420688937
June 8, 2020128013153617404084007
June 7, 20201248626035412395981737
June 6, 2020122333893429382680657
June 5, 20201184432833310369678157
June 4, 2020115163503238353576467
June 3, 2020111663483151332975227
June 2, 20201081924131415323972667
June 1, 20201057841629912312271579
May 31, 20201016230728714300768687
May 30, 2020985555327312285667267
May 29, 202093023872612269763447
May 28, 202089151822595259260647
May 27, 202087333892545250159787
May 26, 2020834427624916238557107
May 25, 202080682292337231155247
May 24, 202078393132265226353607
May 23, 202075262652210217451317
May 22, 2020726124522110200750337
May 21, 2020701633921111190748987
May 20, 202066772842008184046377
May 19, 202064012261921173444757
May 18, 202061752161919164443407
May 17, 202059593881826159441837
May 16, 202056211761765147239737
May 15, 202054452881713132039544
May 14, 202051621931683118038154
May 13, 202049711841646107037374
May 12, 20204787146158695936704
May 11, 202046412421521090235894
May 10, 202043992481421777834794
May 9, 202041512391271174532784
May 8, 202039123861181067931154
May 7, 20203526381108460128184
May 6, 20203145195104553425071
May 5, 2020295014899548123704
May 4, 2020280224594641722912
May 3, 2020255817088240020702
May 2, 20202388220861735119522
May 1, 20202170238691035117512
April 30, 2020193220459731715562
April 29, 2020172819652730713692
April 28, 2020153219545425512322
April 27, 20201337644102559942
April 26, 20201273914152399942
April 25, 20201182873632229252
April 24, 202010951143312088552
April 23, 20209811083231977532
April 22, 2020873912931976482
April 21, 20207821172631975602
April 20, 2020665382311884662
April 19, 2020627862221704362
April 18, 2020541482021663562
April 17, 2020493511841593172
April 16, 2020442351311522772
April 15, 2020407341211282672
April 14, 202037330111992632
April 13, 202034320100912422
April 12, 20203235100852282
April 11, 202031813103702382
April 10, 20203051770582402
April 9, 20202881471512302
April 8, 20202742260442262
April 7, 20202541661442042
April 6, 2020238650351982
April 5, 20202321851331942
April 4, 2020214540251850
April 3, 20202092542251800
April 2, 20201841020201620
April 1, 2020174352091630
March 31, 202013982091280
March 30, 2020131202181210
March 29, 2020111221031070
March 28, 20208919103850
March 27, 2020705103660
March 26, 20206514102620
March 25, 2020517102480
March 24, 2020444102410
March 23, 20204010112370
March 22, 2020308002280
March 21, 20202210001210
March 20, 2020124001110
March 19, 20208000170
March 18, 20208500170
March 17, 20203100030
March 16, 20202000020
March 15, 20202000020
March 14, 20202000020
March 13, 20202000020
March 12, 20202000020
March 11, 20202000020
March 10, 20202000020
March 9, 20202100020
March 8, 20201000010
March 7, 20201000010
March 6, 20201000010
March 5, 20201000010
March 4, 20201000010
March 3, 20201000010
March 2, 20201000010
March 1, 20201000010
February 29, 20201000010
February 28, 20201100010

Patricia
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