The Nigerian Stock Exchange (NSE) ended Tuesday’s trading session in negative territory. The All-Share Index closed at 27,058.62 basis points, down 0.21%. Year to date, the index is down by 13.91%.
Top Gainers: Oando Plc was the best-performing stock today. The stock gained 10% to close at N3.85. Transnational Corporation of Nigeria Plc also gained 10% to close at N0.99. Chams Plc gained 9.52% to close at N0.23. Berger Paints Plc gained 9.49% to close at N7.50. UAC of Nigeria Plc rounded off the top five gainers for today. The stock gained 9.38% to close at N5.25.
Top Losers: On the flip side, Cutix Plc was the worst-performing stock, declining by 9.62% to close at N1.41. Pz Cussons Nigeria Plc fell by 8.33% to close at N5.50. Union Diagnostic & Clinical Service Plc fell by 8.33% to close at N0.22. May & Baker Nigeria Plc fell by 6.83% to close at N1.91. Honeywell Flour Mill Plc rounded off the top five losers for the day. The stock shed 6.06% to close at N0.93.
[READ MORE: Nigeria and the burden of debt]
Top Trades by Volume: Transnational Corp of Nigeria Plc was the most actively-traded stock today. 43.5 million shares valued at N42.7 million were traded in 152 deals. Guaranty Trust Bank Plc was next with 42.9 million shares valued at N1.1 billion traded in 304 deals, followed by Zenith Bank Plc with 34.1 million shares valued at N591 million traded in 589 deals.
Ecobank Transnational Inc was next with 24.2 million shares valued at N148 million traded in 139 deals. FBN Holdings Plc rounded off the top five most actively traded stocks today with 6.3 million shares valued at N31.3 million traded in 199 deals.
The Board of Directors of Total Nigeria Plc appointed Mrs Lesley Baxter-Green as a Director of the company. The appointment took effect from the 16th of August, 2019.
Etranzact has scheduled its 15th Annual General Meeting to hold at Colonades Hotel, 21, Alfred Rewane Road, Ikoyi, Lagos on Thursday, September 26, 2019, at 12 noon.
LASACO Assurance Plc also scheduled its Annual General Meeting to hold at City Hall, Catholic Mission Street, Lagos Island, Lagos on Thursday, 12th September 2019 at 11:00 am.
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%.
- 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.
“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.
“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.
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.
“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.
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.
— Bloqport (@Bloqport) January 21, 2021
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
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.
🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 🚨 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.
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.
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.”