Markets
NSE opens the week on a positive note
The Nigerian Stock Exchange continued its bullish streak from last week. The All Share Index ended today’s trading session at 31,781.87 basis points, up 0.80%. Year to date, the index is up 1.12%.
Top Gainers and Losers
The top three best-performing stocks all gained 10%. Cadbury gained 10% to close at N11. LASACO gained 10% to close at N0.33. Oando Plc rounds up the top three gainers, closing at N5.50.
On the flip side, C&I Leasing was the worst performing stock. The stock shed 9.96% to close at N8.14. Medview Airlines declined by 8.11% to close at N1.70. Total Nigeria Plc rounds up the top three losers, dropping by 7.20% to close at N205.
Top Trades by Volume
Access Bank was the most actively traded stock today. 101 million shares valued at N700 million were traded in 326 deals. UBA was next with 69.9 million shares valued at N547 million traded in 463 deals. Diamond Bank rounds up the top three trades by volume today with 52.6 million shares valued at N125 million traded in 235 deals.
Corporate Actions
Sterling Bank Plc to hold a board meeting
Sterling Bank Plc will hold a board meeting on Tuesday the 26th of February 2019. The board will consider the bank’s audited financial statements for the 2018 financial year, as well as issues pertaining to dividends as well as date and venue of its Annual General Meeting.
Royal Exchange Plc
Royal Exchange Plc will hold an emergency board meeting on Thursday, February 14, 2019. The board will consider among other issues, the update on a proposed investment in the company.
Dangote Cement fixes board meeting
Dangote Cement Plc will hold a board meeting on Monday, February 25, 2019. Agenda is to consider the company’s full-year results. In the notice, the company also stated that the results will be submitted to the Nigerian Stock Exchange (NSE).
Access Bank adjusts EGM time
Access Bank has moved the take off time for its Extra Ordinary General Meeting (EGM) holding on the 5th of March 2019 from 10:00AM to 1:00PM.
On the Money
Naira drops to N460 against dollar
Naira has depreciated against the US dollar, as it dropped from N455/$1 to N460/$1 on Thursday afternoon.
Naira has depreciated against the US dollar, as it dropped from N455/$1 to N460/$1 on Thursday afternoon.
Data from Everdon BDC stated that the Naira, which Nairametrics had reported on Wednesday that it closed at N455, appreciated to N460 against the international legal tender.
What it means for Nigerians: A weaker naira makes imports more expensive and increases the cost of production for businesses, as many Nigerian businesses rely on imported raw materials which can result in cost-push inflation.
The naira also dropped against British pounds sterling as it stands at N548 to £ 1 from its previous close rate at N545 to £1, while the Euro selling at N480 to €1 from its previous close rate of N470 on Wednesday.
(READ MORE: Official rate: Naira could depreciate “to N440 by year end” – Analysts)
In addition, the central bank of Nigeria has now said it would resume sales of forex to BDC for onward sales to businesses and Nigerians looking to purchase for approved items.
Consequently, Aminu Gwadabe, president, Bureau De Change Operators of Nigeria (Association of Bureau De Change of Nigeria) explained recently that Bureau De change operators will resume fully as soon as restrictions placed on air travel and international airports are lifted.
He said the return of the operators will help stabilize the naira and reduce the impact of currency hoarders and speculators.
“I, therefore, want our members and the General public not to engage on panic buying as anytime soon fingers might be burnt from such behaviors,” he added.
Cryptocurrency
The odds against Bitcoin- Goldman Sachs
Cryptocurrencies do not have same characteristics as financial assets such as bonds due to prices swing
Reports from America’s elite bank, Goldman Sachs, at an investor conference held yesterday, stated that cryptocurrencies do not offer same characteristics as financial assets like bonds (supplying consistent cash flow in form of coupons).
Goldman Sachs also explained that one of the odds of Bitcoin is its price swings, as it lost over 37% on Black Thursday. The financial institution compared that with America’s stock index, the S&P 500, that lost 35% but from its all-time high between February and March, which took some weeks to happen.
READ ALSO: Explained: All the risk associated with investing in Cryptocurrency by Manasseh Egedegbe
Pretty clear-cut messaging from Goldman Sachs here:
– Bitcoin and other crypocurrencies are "not a suitable investment for our clients"
– Allure of high volatility in crypto for hedge funds "does not constitute a viable investment rationale" pic.twitter.com/cso3MjKSyW— Ryan Browne (@Ryan_Browne_) May 27, 2020
READ ALSO: Goldman Sachs misses Q1 profit projection, drops by 46%
Interestingly, America’s elite bank also claims that there are no signs of proof that the asset class has the qualities of gold such as an asset used for hedging against inflation.
Goldman Sachs’s financial advisor further explained that because Bitcoin valuations are primarily driven by one trader or investor selling to another one at a higher price, and not much else, it is not a reliable investment for Goldman Sachs clients.
Goldman Sachs also warned that although hedge funds may trade the cryptocurrencies to take advantage of the high price swings of Bitcoin, for what it is known for; it is not suitable for individual investors.
However, America’s billionaire Michael Bloomberg’s statement months ago openly acknowledged cryptocurrency as a major financial asset class and stated why it should be regulated. He said;
“Cryptocurrencies have become an asset class worth hundreds of billions of dollars, yet regulatory oversight remains fragmented and undeveloped. For all the promise of the blockchain, Bitcoin, and initial coin offerings, there is also plenty of hype, fraud, and criminal activity.”
Business News
Google signs in to Theta (blockchain) to transform the global digital economy
Theta fuel can be bought indirectly on most cryptocurrency exchanges like Binance and Coinbase. You will need to already own an Ethereum or Bitcoin (BTC) before you can trade with it.
Google is collaborating with Theta Labs in a move to make video delivery networks more efficient through Google Cloud.
“As part of the business partnership, Google is assisting Theta with its Mainnet 2.0 launch, a hard fork happening around noon Pacific time on Wednesday,” said Theta Labs’ Chief Executive Officer Mitch Liu.
Allen Day, a developer for Google Cloud, explained that the distributed ledger technology “enables new business models that potentially transform the global digital economy, including the media and entertainment industry.”
“We look forward to participating as an enterprise validator, and to providing Google Cloud infrastructure in support of Theta’s long-term mission and future growth,” He added.
(READ MORE:Google, Facebook extend remote working for employees)
Theta blockchain
Things you need to Know
Theta, which is blockchain-based, enables content-delivery with high-bandwidth content delivery using a decentralized system. It is a cryptocurrency with its own type of blockchain (Theta). It can also be described as the operational token of the Theta protocol. Individuals use Theta Fuel to complete transactions like interacting with or deploying smart contracts.
READ ALSO: Blockchain technology expected to tackle Africa’s challenges across industries
How to buy Theta Fuel?
Theta fuel can be bought indirectly on most cryptocurrency exchanges like Binance and Coinbase. You will need to already own an Ethereum or Bitcoin (BTC) before you can trade with it.
Google joins the likes of Gumi Cryptos, Blockchain Ventures, and Binance, as external enterprise validators that propose and confirm new blocks on the Theta blockchain. This statement defends the fact that Google Cloud is also becoming Theta Fuel preferred cloud provider with yesterday’s statement.
“YouTube is particularly interesting because they utilize mostly internally-developed technology for video delivery and streaming, which makes experimentation a lot easier without having to rely on external platforms like Akama,” Liu said.
