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Markets
NEM Insurance tops gainers chart this week
This week’s trading on the Nigerian Stock Exchange (NSE) closed on a positive note.
This week’s trading on the Nigerian Stock Exchange (NSE) closed on a positive note. The All Share Index opened at 29,830.70 basis points and closed at 31,005.17 basis points, up 1,174.47 or 3.94%. Year to date, the index is in the red, down 1.35%.
38 equities appreciated in price during the week, higher than 22 in the previous week. 29 equities depreciated in price, lower than 44 of the previous week, while 102 equities remained unchanged, lower than 103 equities recorded in the preceding week.
Top Gainers
NEM Insurance Plc
NEM Insurance Plc was the best performing stock this week. The stock opened at N1.73 and closed at N2.48, up N0.75 or 43.35%. Year to date, the stock is down 8.15%.
The company yesterday announced that AFIG funds, a private equity firm, had taken up a 30% stake. AFIG is now the single largest individual shareholder.
The stake, from all indications, could be shares sold by VFD Group and several investors.
Sovereign Trust Insurance Plc
Sovereign Trust Insurance gained 30% this week. The stock opened at N0.20 and closed at N0.26, up 30%. Year to date, the stock is up 23.81%.
The company, through its stockbroker, Dynamic Portfolio Limited, submitted an application to the Nigerian Stock Exchange for the approval and listing of a rights issue of 4,170,411,648 ordinary shares of N0.50 each at N0.50 per share, on the basis of 1 new share for every 2 ordinary shares held.
The qualification date for the rights issue was Tuesday, 15 January, 2019.
Royal Exchange Plc
Royal Exchange Plc opened at N0.21 and closed at N0.27 this week, up N0.06 or 28.57%. Year to date, the stock is up 22.73%.
Cement Company of Northern Nigeria Plc
CCNN (also known as Sokoto Cement) gained 25.50% this week. The stock opened at N20 and closed at N25.10, up N5.10. Year to date, the stock is up 29.38%.
Custodian Investment Plc
Custodian Investment opened at N5.30 and closed at N6.45, up N1.15 or 21.70%. Year to date, the stock is up 14.16%.
Union Bank of Nigeria Plc
Union Bank of Nigeria appreciated by 12.50% this week. The stock opened at N6 and closed at N6.75, up N0.75. Year to date, the stock is up 20.5%.
Dangote Cement Plc
Dangote Cement opened the week at N177 and closed at N194.90, up N17.90, or 10.11%. Year to date, the stock is up 2.74%.
Regency Alliance Plc
Regency Alliance Plc gained 10% this week. The stock opened at N0.20 and closed at N0.22, up N0.02. Year to date, the stock is up 4.76%.
Unity Bank Plc
Unity Bank Plc opened at N0.83 and closed at N0.91 this week, up N0.08 or 9.64%. Year to date, the stock is down 14.95%.
Ikeja Hotels Plc
Ikeja Hotels rounds up the top 10 gainers for the week with a 9.35% gain. The stock opened at N1.39 and closed at N1.52 up N0.13. Year to date, the stock is down 0.65%.
Top Losers
Resort Savings and Loans Plc
Resort Savings and Loans Plc was the worst performing stock this week. The stock shed 29.73%, opening at N0.37 and closing at N0.26, down N0.11. Year to date, the stock is down 48%.
Beta Glass Plc
Beta Glass Plc opened at N67 and closed at N55, down N12 or 17.91%. Year to date, the stock is down 19.47%.
Linkage Assurance Plc
Linkage Assurance declined by 13.85% this week. The stock opened at N0.65 and closed at N0.56, down N0.09. Year to date, the stock is down 22.22%.
Berger Paints Plc
Berger Paints opened at N8.60 and closed at N7.75, down N0.85 or 9.88%. Year to date, the stock is down by the same margin.
Etranzact International Plc
Etranzact International Plc dropped by 9.87% this week. The stock opened at N3.95 and closed at N3.56, down N0.39. Year to date, the stock is down by the same margin.
The company had this week held an Extra Ordinary General Meeting (EGM) to obtain shareholders approval to raise N7 billion fresh capital. It has yet to issue a notice pertaining to the outcome.
Newrest ASL Plc
Newrest ASL opened at N7.90 and closed at N7.15, down N0.75 or 9.49% this week. Year to date, the stock is down by the same margin.
Livestock Feeds Plc
Livestock Feeds shed 9.43% this week. The stock opened at N0.53 and closed at N0.48, down N0.05 or 9.43%. Year to date, the stock is down 2.04%.
Northern Nigeria Flour Mills
Northern Nigeria Flour Mills (a subsidiary of Flour Mills of Nigeria Plc) opened the week at N4.35 and closed at N3.95, down N0.40 or 9.20%. Year to date, the stock is down 17.71%.
Cornerstone Insurance Plc
Cornerstone Insurance Plc fell by 9.09% this week. The stock opened at N0.22 and closed at N0.20, down N0.02. Year to date, the stock is flat.
Wapic Insurance Plc
Wapic Insurance Plc rounds up the top 10 losers for the week. The stock opened at N0.44 and closed at N0.40, down N0.04 or 9.09%. Year to date, the stock is down 4.76%.
Currencies
CBN frowns at continued diaspora remittances in naira, introduces sanctions
The CBN has frowned at activities of some IMTOs and unlicensed companies who continue to facilitate diaspora remittances into the country in Naira.
The Central Bank of Nigeria (CBN) has frowned at activities of some International Money Transfer Operators (IMTOs) and unlicensed companies who continue to facilitate diaspora remittances into the country in Naira.
The apex bank’s reaction follows the contravention of its earlier directive that all diaspora remittances must be paid to the beneficiaries in dollars.
This disclosure was contained in a circular titled, ‘Modalities for Payout of Diaspora Remittances’, issued by the CBN on Friday, January 22, 2021, and signed by its Director Trade and Exchange Department, Dr O.S. Nnaji.
READ: CBN revokes licenses of 7 Payment Service Providers
What the CBN is saying
The CBN in its circular said, ‘’Further to our circular titled ‘Receipt of Diaspora Remittances: Additional Operational Guidelines’, it has come to our notice that some IMTOs and unlicensed companies continue to facilitate diaspora remittances into the country in Naira, “in clear contravention of the Central Bank of Nigeria directive that all remittances be paid to beneficiaries in dollars.’’
READ: More pressure on the naira as Diaspora remittances to drop by 20%
For the avoidance of doubt, the Central Bank of Nigeria further clarifies as follows;
- Only licensed IMTOs are permitted to carry on the business of facilitating diaspora remittances into Nigeria;
- All diaspora remittances must be received by beneficiaries in foreign currency only (cash and /or transfers to domiciliary accounts or recipients);
- IMTOs are not permitted, under any circumstances, to disburse diaspora remittances in Naira (either in cash or by electronic transfers), be it through remittance settlement accounts (which had been earlier directed to be closed), third party accounts or via any other payment platforms within and/or around the Nigerian financial system.’’
READ: Nigeria’s forex devaluation timeline – 2020
The apex bank in the circular said that the measures were intended to promote transparency, grow diaspora remittances and significantly improve foreign exchange inflows into Nigeria.
The CBN warned that strict sanctions, including withdrawal of operating licenses, shall be imposed on any individuals and/or institutions found to be aiding, abetting or directly contravening these guidelines.
It went further to say that it shall not hesitate to authorize the closure of the accounts of unlicensed operators in Nigerian banks, including being barred from accessing banking services in Nigeria.
It promised continued monitoring of developments in this regard, adding that it would also issue further guidance as appropriate.
READ: Continuous increase in inflation rate may weaken economy – CBN report
What this means
With the insistence of the apex bank on its earlier directive, it means that Nigerians living in the diaspora can transfer foreign currency to their relatives and loved ones in the country, who in turn will withdraw the money in dollar cash and sell anywhere they so desire.
It means they can for instance receive foreign transfers such as Western Union or Moneygram, withdraw it in dollars and then sell at the black market rate or anywhere else they want to. This they believe will help to stabilize the exchange rate and discourage hoarding.
READ: UBS warns Bitcoins could disappear like Myspace
What you should know
- It can be recalled that the CBN, had in November 2020, amended the procedure for the receipt of diaspora remittances and insisted that it must be paid in dollars to the beneficiaries, in an apparent and frantic attempt to improve liquidity in the forex market and reduce the disparity between the black market and the official window.
- Also in an additional guideline for diaspora remittances, the CBN barred IMTOs from sending money to Mobile Money Operators and also stopped the integration of payment services providers to IMTO accounts. It also stopped switches and processors from getting involved in foreign remittances.
Stock Market
CitiTrust Financial Services Limited invests N395.9 million in additional LivingTrust Mortgage shares
CitiTrust has invested an additional N395.9 million for the purchase of an additional 659.8 million units of Living Trust Mortgage Bank.
Cryptocurrency
94% of Bitcoin investors are making money
Microstrategy bought 314 more Bitcoin valued at $10 million, momentarily pushing prices above $32,000.
Bitcoin investors have reasons to be excited amid a significant amount of volatility prevailing at the flagship crypto market.
The number of Bitcoin holders in profit is about 94% as data retrieved from Glassnode, a crypto analytic firm, showed.
Bitcoin Percent Addresses in Profit (1w MA) just reached a 1-month low of 93.851%.
READ: Bitcoin posts biggest daily drop since market crash of March 2020
📉 #Bitcoin $BTC Percent Addresses in Profit (1w MA) just reached a 1-month low of 93.851%
View metric:https://t.co/ik5IkrurRk pic.twitter.com/jvhN6ur50r
— glassnode alerts (@glassnodealerts) January 22, 2021
READ: Ex-Real Madrid Striker, David Barral becomes first-ever footballer to be bought with Bitcoin
Metric description; The percentage of unique addresses whose funds have an average buy price that is lower than the current price. “Buy price” is here defined as the price at the time coins were transferred into an address.
At the time of drafting this report, Bitcoin traded at$32,640.90 with a daily trading volume of $63.8 billion. Bitcoin is up 5.03% for the day.
What this means: Sequel to such metric stated above, the turnaround for investors in profit occurred some hours ago when Bitcoin dropped to $28,950 — a key level when it comes to support from large pocket investors and only its second dip below $30,000 in 2021, as a leading bitcoin investor, Microstrategy bought 314 more Bitcoin valued at $10 million, momentarily pushing prices above $32,000.
READ: 4 cryptos gain over 400% in a month, far outperforming Bitcoin
Microstrategy just bought 314 more #Bitcoin for $10M.@michael_saylor bought the dip.
— Documenting Bitcoin 📄 (@DocumentBitcoin) January 22, 2021
READ: Computers might steal Satoshi Nakamoto’s Bitcoin fortune
Chainalysis researchers explained in detail that as the rush for BTCs keeps increasing, the price will most definitely be affected. The report said:
“With more people looking to trade BTCs, which is only becoming scarcer following the recent halving, bitcoin moving from the investment bucket into the trading bucket could become a crucial source of liquidity.”
Consequently, amid the impressive metric showing a lot of Bitcoin wallets in profits, Jesse Cohen, a senior crypto analyst, in a note to Nairametrics, spoke on the outlook for Bitcoin in 2021.
“I expect Bitcoin to remain highly volatile to the downside in the new year, given the potential for more scrutiny and tighter regulation. That should see prices fall back from their record highs, with the prospect of increased regulation being the most important factor affecting Bitcoin in 2021.”
