Markets
NEM Insurance Plc leads this week’s losers
@neminsuranceplc was the worst performing stock this week declining by 13.14% to close at N2.05
This week’s trading session on the Nigerian Stock Exchange was abridged, due to holidays declared on Tuesday 4th and Wednesday 5th June, 2019 to mark the end of holy month of Ramadan and commemorate the Eid el-Fitr celebrations.
The NSE All-Share Index depreciated by 2.05% to close the week at 30,432.13 basis points. Year to date, the index is down 3.18%.
15 equities appreciated in price during the week, lower than 35 in the previous week. 44 equities depreciated in price, higher than 24 equities of the previous week, while 109 equities remained unchanged, the same as recorded in the preceding week.
Gainers
Champion Breweries
Champion Breweries Plc was the best performing stock this week. The stock gained 18.81% this week, opening at N1.01 and closing at N1.20, up N0.19.
Year to date, the stock is down 39.70% however, and is the worst performing stock in the breweries segment.
Academy Press Plc
Academy Press Plc opened the week at N0.25 and closed at N0.27, up N0.02 or 8%.
Year to date, the stock is down 46%.
Livestock Feeds Plc
Livestock Feeds Plc at N0.59 and closed at N0.63, up N0.04 or 6.78%.
Year to date, the stock is up 28.57%.
NPF Microfinance Bank
NPF Microfinance Bank Plc appreciated by 6.67% this week. The stock opened at N1.35 and closed at N1.44, up N0.09. Year to date, the stock is down 12.73%.
LASACO Assurance Plc
LASACO Assurance Plc also gained 6.65% this week, but appreciated by a smaller rate in absolute terms. The stock opened at N0.30 and closed at N0.32, up N0.02.
Year to date, the stock is up 6.67%.
Sterling Bank Plc
Sterling Bank Plc opened the week at N2.30 and closed at N2.45, up N0.15 or 6.52%.
Year to date, the stock is up 28.95%.
Conoil Plc
Conoil Plc appreciated by 4.55% this week. The stock opened the week at N22 and closed at N23, up N1. Year to date, the stock is down 1.08%.
Access Bank Plc
Access Bank Plc opened the week at N6.10 and closed at N6.30, up N0.20 or 3.28%. Year to date, the stock is down 7.35%.
AIICO Insurance Plc
AIICO Insurance Plc gained 3.03% this week. The stock opened at N0.66 and closed at N0.68, up N0.02. Year to date, the stock is up 7.94%.
FCMB Group Plc
FCMB Group Plc rounds up the top 10 gainers for the week. The stock opened at N1.61 and closed at N1.65, up N0.04 or 2.48%. Year to date, the stock is down 12.70%.
Losers
NEM Insurance Plc
NEM Insurance Plc was the worst performing stock this week. The stock declined by 13.14%, opening at N2.36 and closing at N2.05, up N0.31.
The stock was this week marked down by N0.13, following the closure date of a dividend payment.
Year to date, the stock is down 24.7%.
Capital Oil Plc
Capital Oil Plc opened the week at N0.23 and closed at N0.20, down N0.03. Year to date, the stock is down 13.04%.
Consolidated Hallmark Insurance Plc
Consolidated Hallmark Insurance Plc also declined by 13.04%. The stock opened at N0.23 and closed at N0.20, down N0.03.
Year to date, the stock is down 47.37%.
Dangote Sugar Refinery Plc
Dangote Sugar Refinery Plc opened the week at N13.20 and closed at N11.50, down N1.70 or 12.88%.
The stock was this week marked down by N1.10, following the closure date of a dividend payment.
Year to date, the stock is down 24.59%.
Vitafoam Nigeria Plc
Vitafoam Nigeria Plc shed 12.71% this week. The stock opened at N4.25 and closed at N3.71, down N0.54. Year to date, the stock is down 15.68%.
Japaul Oil and Maritime Services Plc
Japaul Oil and Maritime Plc opened the week at N0.28 and closed at N0.25, down N0.03 or 10.71%. Year to date, the stock is up 19.05%.
Ecobank Trans International
The tier two lender fell by 10.31% this week. The stock opened at N11.15 and closed at N10, down N1.15.
Year to date, the stock is down 28.57%.
Thomas Wyatt Nigeria Plc
Thomas Wyatt Nigeria Plc shed 10% this week. The stock opened at N0.40 and closed at N0.36, down N0.04. Year to date, the stock is up 56.52%.
GSK Consumer Nigeria Plc
GSK Consumer Nigeria Plc also declined by 10% this week. The stock opened at N8.50 and closed at N7.65, down N0.85.
Year to date, the stock is down 47.24%.
BOC Gases Plc
BOC Gases Plc rounds up the top 10 losers for the week. The stock opened at N4.16 and closed at N3.76, down N0.40.
The stock was this week marked down by N0.40, following the closure date of a dividend payment.
Year to date, the stock is down 10.69%.
Business
CBN appoints 3 Pre-Shipment Inspection and 2 Monitoring Agents for non-oil exports
The CBN has announced the appointment of 3 PIAs and 2 Monitoring/Evaluation Agents for non-oil exports.
The Central Bank of Nigeria (CBN) has announced the appointment of 3 Pre-Shipment Inspection Agents (PIAs) for non-oil exports with effect from January 15, 2021.
The apex bank in addition, also announced the appointment of Monitoring and Evaluation Agents (MEAs) to oversee the activities of the PIAs in their respective zones of operations.
This disclosure is contained in a circular that was issued by the CBN on January 26, 2021, and signed by its Director for Trade and Exchange Department, Dr. O. S. Nnaji.
The CBN in the circular said that the Pre-Shipment Inspection Agents are;
- Angila International Limited with the responsibility to cover North West and North Central Zones,
- Neroli Technologies Limited to cover South West and South-South,
- Gojopal Nigeria Limited has the responsibility to cover the South East and North East.
Similarly, the newly appointed Monitoring and Evaluation Agents are;
- Foops Integrated Services Limited with the responsibility to cover North East, North West and North Central,
- Ace Global Depository whose areas of coverage include South East, South West, and South-South.
The apex bank in the circular directed all authorized dealers, operators in the non-oil export sector, and members of the general public to take note and ensure compliance.
What you should know
- It can be recalled that in a revised policy, the Federal Government had said that all non-oil exports from Nigeria shall be subject to inspection by Pre-Shipment Inspection Agents appointed for that purpose by the government.
- The focus of the PIAs shall be to ascertain the quality, quantity, and price competitiveness of exports from Nigeria and shall collaborate with other regulatory agencies like NAFDAC, SON, Plant and Animal Quarantine, Federal Produce Inspectorate, and so on, for quality inspection of regulated products.
Stock Market
High demand for Azure, homework tools boost Microsoft earnings
Microsoft disclosed Azure revenue grew 50% as more businesses integrated into the cloud.
The world’s most valuable software maker, Microsoft, announced impressive earnings results for the quarter that ended on December 31, 2020, as data retrieved showed that the $1.75 trillion company saw increased demand on its work-at-home tools triggered by the reduced human mobility presently in play.
- Microsoft disclosed that Azure’s revenue grew by 50% as more businesses integrated into the cloud.
- Stock experts had expected around 42% growth, although the software giant didn’t reveal Azure’s revenue in dollars.
- The COVID-19 pandemic caused many businesses to speed up moves to the cloud and upgrades to internet-based collaboration software.
READ: Microsoft outlook users experience Software Blackout
The Productivity and Business Processes segment, including LinkedIn, Office, and Dynamics, printed $13.35 billion in revenue, which was up 13% and more than the $12.89 billion anticipated by wall street experts.
“What we have witnessed over the past year is the dawn of the second wave of the digital transformation sweeping every company and every industry,” said Satya Nadella, Chief Executive Officer of Microsoft.
READ: Oracle wins bid to acquire TikTok’s US operations after Microsoft offer was rejected
“Building their own digital capability is the new currency driving every organization’s resilience and growth. Microsoft is powering this shift with the world’s largest and most comprehensive cloud platform.”
Microsoft Corp. announced its earnings results for the quarter ended December 31, 2020, as compared to the corresponding period of last fiscal year:
- Revenue was $43.1 billion, increasing by 17%.
- Operating income was $17.9 billion, increasing by 29%.
- Net income was $15.5 billion, increasing by 33%.
- Diluted earnings per share were $2.03, increasing by 34%.
READ: Stay-at-Home Stocks: Microsoft, Apple, Facebook surge after upbeat results from Netflix
Earnings: $2.03 per share, adjusted, vs. $1.64 per share as expected by Wall Street analysts, according to Refinitiv.
“Accelerating demand for our differentiated offerings drove commercial cloud revenue to $16.7 billion, up 34% year over year,” said Amy Hood, Executive Vice President, and Chief Financial Officer of Microsoft. “We continue to benefit from our investments in strategic, high-growth areas.”
Cryptocurrency
12.6% of Bitcoin supply moved at prices above $30,000
Bitcoin traded at $32,208.24 with a daily trading volume of $58.9 billion and a circulating supply of 18,611,475 BTC coins.
It’s now becoming certain that a significant number of investors are grabbing flagship crypto asset, Bitcoin, for wealth gains, as about 12.6% of Bitcoin supply is held by investors who bought at over a $30,000 price tag.
- Data retrieved from Glassnode reveals 12.6% of the Bitcoin supply (2.3 million BTC) was moved at prices above $30,000.
- This is substantial, given that $BTC crossed $30k just this year. It suggests that investors are injecting capital, and therefore confidence in further price appreciation.
READ: 273,000 Bitcoins taken away from crypto market within a month
12.6% of the #Bitcoin supply (2.3M BTC) was moved at prices above $30,000 USD.
This is substantial, given that $BTC crossed $30k just this year. It suggests investors are injecting capital, and therefore confidence in further price appreciation.
Chart: https://t.co/Q0OZye5SIk pic.twitter.com/mUFA2cRtPw
— glassnode (@glassnode) January 25, 2021
READ: List of Cryptos expected to outperform many financial assets in 2021
Also, the number of addresses holding 1,000 BTC just reached a new all-time high of 2,446.
What this means: Over the last 21 days, 141 new whale addresses with over 1,000 BTC were created, suggesting large entities are expecting a significant price rise for Bitcoin in the near future.
- The total amount of capital inflows into Bitcoin in the past 30 days (as estimated by the realized cap), is as high as the whole $BTC market cap in Sept 2017 and early 2019 at $70 billion USD.
Bitcoin is seeing the largest depletion of liquidity in years. - Not only are funds being withdrawn from exchanges, but coins are continuously moving to strong hands.
- In the past 30 days, around 270,000 BTC moved to entities considered HODLers.
READ: Crypto traders suffer heavy losses of $639 million within a day
At press time, Bitcoin traded at $32,208.24 with a daily trading volume of $58.9 billion. It is down 0.50% for the day.
It has a circulating supply of 18,611,475 BTC coins and a max. supply of 21,000,000 BTC coins.
Chainalysis found that although retail traders are responsible for 96% of transactions, professionals move the bulk of the volume.
READ: Why Ethereum is becoming more attractive than Bitcoin
“Retail traders, whom we categorize as those who deposit less than $10,000 USD worth of Bitcoin on exchanges at a time, appear to be the large majority, accounting for 96% of all transfers sent to exchanges on an average weekly basis.
“Professional traders, however, control the liquidity of the market, accounting for 85% of all the USD value of Bitcoin value sent to exchanges,” it said.
READ: 94% of Bitcoin investors are making money
The report continued by stating:
“Bitcoin moving from the investment bucket (or potentially even the lost bucket if the earliest adopters still have their private keys) into the trading bucket could become a crucial source of liquidity.
“However, one would expect this will only happen if Bitcoin’s price rises to a level at which long-term investors are willing to sell.”
