Markets
Chams Plc has charmed investors
@chams_plc was the best performing stock this week on the NSE appreciating by 28.57%. Year to date, the stock is up 80%.
The Nigerian Stock Exchange ended this week’s trading session on a positive note, after two weeks of downward movement.
The NSE All-Share Index appreciated by 1.78% to close the week at 30,086.31 and N11.301 trillion respectively. Year to date, the index, however, remains in the red, down 4.28%.
33 equities appreciated in price during the week, lower than 35 in the previous week. 33 equities depreciated in price, higher than 31 equities of the previous week, while 101 equities remained unchanged, the same as the preceding week.
Top Gainers
Chams Plc
Chams Plc was the best performing stock this week, appreciating by 28.57%. The stock opened at N0.28 and closed at N0.36 up N0.08.
Chams has had a spot in the top 10 gainers list, for the last three weeks, and is up by 80% year to date.
This week, the stock was marked down by N0.03, following a dividend payment.
First Aluminum Plc
First Aluminum Plc opened the week at N0.32 and closed at N0.41, up N0.09 or 28.13%. Year to date, the stock is up 13.89%.
Dangote Flour Mills
Dangote Flour Mills appreciated by 27.38% this week. The stock opened at N8.40 and closed at N10.70, up N2.30. Year to date, the stock is up 56.2%.
Access Bank Plc
Tier one lender, Access Bank Plc, gained 15.13% this week. The stock opened at N5.95 and closed at N6.85, up N0.90. Year to date, the stock is up 0.74%.
The bank released its first quarter 2019 results this week. Gross earnings rose from N137 billion in 2018 to N160 billion in 2019. Profit before tax increased from N27.2 billion in 2018 to N45.1 billion in 2019. Profit after tax jumped from N21.9 billion in 2018 to N41.1 billion in 2019.
A conference call was held following the release of the results.
AIICO Insurance Plc
AIICO Insurance Plc gained 10.29% this week. The stock opened at N0.68 and closed at N0.75, up N0.07. Year to date, the stock is up 19.05%.
AIICO Insurance Plc released its results for the 2018 financial year. Gross Premium Increased from N32 billion in 2017 to N37.6 billion in 2018. Profit before tax rose from N3 billion in 2017 to N3.4 billion in 2018. Profit after tax also increased from N1.2 billion in 2017 to N3.1 billion in 2018.
A dividend of N0.06 per share was declared.
The Initiates Plc
The initiates Plc appreciated by 9.59% this week. The stock opened at N0.73 and closed at N0.80, up N0.07. Year to date, the stock is up 19.40%.
Livestock Feeds Plc
Livestock Feeds Plc opened the week at N0.55 and closed at N0.60, up N0.05 or 9.09%. Year to date, the stock is up 22.45%.
Cadbury Nigeria Plc
Cadbury Nigeria Plc appreciated by 8.91% this week. The stock opened at N10.11 and closed at N11, up N0.90. Year to date, the stock is up 10%.
Nestle Nigeria
Nestle Nigeria Plc opened the week at N1,456 and closed at N1,580, up 8.52%. Year to date, the stock is up 6.4%.
Consolidated Hallmark Insurance Plc
Consolidated Hallmark Insurance rounds up the top 10 gainers for the week. The stock opened at N0.24 and closed at N0.26, up N0.02 or 8.33%.
Year to date, the stock is up 31.58%.
Losers
ABC Transport Plc
ABC Transport Plc was the worst performing stock this week. The stock declined by 7.50%, opening at N0.40 and closing at N0.33. Year to date, the stock is up 13.79%.
Royal Exchange Plc
Royal Exchange Plc shed 12% this week. The stock opened at N0.25 and closed at N0.22, down N0.03. Year to date, the stock is flat.
United Capital Plc
United Capital Plc fell by 11.43% this week. The stock opened at N2.80 and closed at N2.48, down N0.52. Year to date, the stock is down 12.06%.
The company released its Q1 2019 results this week. Gross earnings fell from N2.2 billion in 2018 to N1.4 billion in 2019. Profit before tax declined from N1.4 billion in 2018 to N766 billion in 2019. Profit after tax also dropped from N1.2 billion in 2018 to N644 million in 2019.
C & I Leasing Plc
C & I Leasing Plc shed 9.89% this week. The stock opened at N7.99 and closed at N7.20, down N0.79. Year to date, the stock is up 304.49%.
AG Leventis Plc
The conglomerate opened the week at N0.31 and closed at N0.28, down 9.68%. Year to date, the stock is up 3.7%.
UPDC
UPDC Plc fell by 9.64%. The stock opened at N1.66 and closed at N1.50, down N0.16. Year to date, the stock is down 21.47%, and is at its lowest price point this year.
John Holt Plc
John Holt Plc declined by 9.62% this week. The stock opened at N0.52 and closed at N0.47, down N0.05. Year to date, the stock is up 6.82%
Vitafoam Nigeria Plc
Vitafoam Nigeria Plc declined by 9.09% this week. The stock opened at N3.85 and closed at N3.50, down N0.35. Year to date, it is down 20.45% and is at its lowest price point so far this year.
Julius Berger Nigeria Plc
Julius Berger also shed 9.09% this week. The stock opened at N27 and closed at N25, down N2.50. Year to date, the stock is up 24.38%.
Niger Insurance Plc
Niger Insurance rounds up the top 10 losers for the week. The stock opened at N0.22 and closed at N0.20, down N0.02 or 9.09%. Niger Insurance is down 16.67% year to date.
Commodities
Oil prices drop amid fears on energy demand softening
West Texas Intermediate, lost 1.6%, at $52.27 per barrel. It was WTI’s worst daily plunge slide since last Friday when it fell 2.2%.
Oil prices fell their most in a week after the first U.S. crude build in six weeks on the fear that the world’s largest economy might distort energy demand/supply rebalancing.
What you must know: U.S based oil contract, West Texas Intermediate, lost 1.6%, at $52.27 per barrel. It was WTI’s worst daily plunge since last Friday when it fell 2.2%.
READ: Non-oil sector is critical to Nigeria’s economic recovery in 2021 – Cordros Capital
- But for the week itself, the U.S. crude contract lost about 0.2%.
- British based Brent, the global benchmark for crude, settled 1.4%, at $56.10.
- The gain in crude oil inventories coincided with President Joe Biden’s recent statements calling on its citizens for tough days ahead from the Covid-19, which could kill up to about half a million Americans.
Stephen Innes, Chief Global Market Strategist at Axi, in a note to Nairametrics, gave valid insights on the effect COVID-19 and other macros have on oil prices.
READ: FIRS hits 98% of target as it collects N4.95 trillion for 2020 fiscal year
“Oil prices look a tad vulnerable to potential profit-taking after US crude stockpile bearishly rose 2.56 million against consensus draw. Simultaneously, the near-term China crude demand forecast looks high and susceptible to revision lower as lockdown spread in the country ahead of the Lunar New Year
.“While oil traders see through longer lockdowns on the premise that vaccinations will quickly lead us out of the pandemic, COVID mobility clampdowns still hurt the very near-term view.
READ: Bitcoin, Gold, leading Stocks tumble on strong U.S dollar
“And since calls for a commodity supercycle have been many after the November vaccine turnaround, open interest in Brent and WTI has increased hugely, suggesting that the market remains very susceptible to any potential bearish headlines big or small, from a positioning perspective alone.”
What to expect: OPEC production at the moment remains well below the level required to meet anticipated demand. It should continue to drive a reduction in oil inventories as the global economy gradually recovers.
Cryptocurrency
Why Bitcoin could triple in value annually
Michael Saylor recently disclosed why he believes the flagship crypto-asset could triple in value
The leader of the biggest traded business intelligence firm, Michael Saylor recently disclosed why he believes the flagship crypto-asset, Bitcoin, could triple in value yearly.
In a Stansberry Research interview, Saylor explained Bitcoin is monetary energy that will attract lots of money;
“In a monetary expansion environment where I crank the monetary inflation rate up by 15%, that $300 trillion has got to find a store of value that’s not a fiat derivative.
READ: 94% of Bitcoin investors are making money
“That means that Bitcoin is going to keep growing and its monetary force is going to keep growing and it’s probably going to grow 200% a year until it has demonetized gold, silver, sovereign debt, bond indexes, stock indexes, every source of monetary energy which is just a store of value for someone that doesn’t want to lose their purchasing power and needs a scarce asset, ” Saylor said.
Another key macro supporting the bullish bias of Micheal Saylor is data showing the number of addresses holding 1,000 BTC just reached a new all-time high of 2,446.
Over the last 21 days, 141 new whale addresses with over 1k BTC were created, suggesting large entities are expecting a significant price rise for Bitcoin in the near future.
READ: 100 Crypto wallets have at least 10,000 Bitcoins
The number of addresses holding 1,000 BTC just reached a new all time high of 2,446.
Over the last 21 days, 141 new whale address with over 1k BTC were created, suggesting large entities are expecting a significant price rise for #Bitcoin in the near future.
Chart: @glassnode pic.twitter.com/D6vMXBLugy
— Bloqport (@Bloqport) January 21, 2021
READ: CBN retains MPR at 11.5%, holds other parameters constant
Some days ago, MicroStrategy purchased approximately 314 bitcoins for $10.0 million in cash in accordance with its Treasury Reserve Policy, at an average price of approximately $31,808 per bitcoin, showing they hold approximately 70,784 Bitcoin, and thereby making the flagship crypto-asset scarce.
MicroStrategy has purchased approximately 314 bitcoins for $10.0 million in cash in accordance with its Treasury Reserve Policy, at an average price of approximately $31,808 per bitcoin. We now hold approximately 70,784 bitcoins.https://t.co/zMJSH29bmC
— Michael Saylor (@michael_saylor) January 22, 2021
Cryptocurrency
Crypto entity moves $227 million worth of Bitcoin
a large entity transferred 6,925 BTC worth $226,609,828, from Unknown wallet to Unknown wallet.
Large entities in the Bitcoin market are transferring a significant amount of Bitcoin amid the prevailing market volatility in play.
Data retrieved from Whale Alert, an advanced crypto tracker, revealed a large entity transferred 6,925 BTC worth $226,609,828, from an unknown wallet to another unknown wallet.
READ: 273,000 Bitcoins taken away from crypto market within a month
🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 6,925 #BTC (226,609,828 USD) transferred from unknown wallet to unknown wallet
— Whale Alert (@whale_alert) January 23, 2021
- At the Bitcoin market, investors or traders who own large amounts of bitcoins are typically known as Bitcoin whale.
- This means that a BTC whale would be an individual or business entity (with a single Bitcoin address), that owns around 1000 coins or more.
- As BTC whales accumulate BTCs, Bitcoin’s circulating supply reduces, and this can weaken any bearish trend bitcoin finds itself in.
READ: 230 million XRP worth over $117 million moved by powerful investors
Meaning that over time, it’s possible that as BTC approaches its fixed supply of 21 million – the price of BTC will go up, with BTC’s present demand factored in.
- leading household names in finance that include Paul Tudor Jones and Stanley Druckenmiller endorsed it as an alternative asset, adding to the rally.
- Not forgetting listed U.S brands like MicroStrategy Inc. and Square Inc. that moved their cash reserves into crypto in search of better returns than what near-zero interest rates deliver.
READ: Crypto: LEND gains more than 4000% in one year, set to rally higher
Also, a leading crypto expert, Willy Woo, via his Twitter handle, hinted that Bitcoin’s price could still rally higher on the bias that the “Inventory depletion on spot crypto exchanges has stopped, signifying the re-accumulation phase of this macrocycle is likely to complete. If this cycle mimics the last, inventory on exchanges will increase, as retail starts entering in large numbers, attracted by the price rises.”
