Nigerian based Popular stock broking application, Bamboo, informed its users on Wednesday that it will no longer allow USD wire transfer options for deposits.

Bamboo offers investors a platform to invest in stocks listed on the New York Stock Exchange and NASDAQ. Users can access these markets by depositing dollars in their wallets, or naira which will then be converting at the prevailing exchange rate (which is usually closer to the parallel market exchange rate).

The company notified its customers via the application’s notification feature leaving the option to fund wallets with United States dollars to USD domiciliary deposits or cash deposits.

“The USD Wire Transfer option is no longer available for deposits. However, you can still make deposits through USD domiciliary transfers or other channels. We apologize for any inconvenience caused.”

The company also sent an email stating in part as follows;

“We will like to inform you that our USD Wire transfer option is no longer available for use due to regulatory reasons. Effective immediately, no transfers made to our Silvergate or BBVA accounts will be received. We encourage you to use our USD Domiciliary Transfer option on the Bamboo app, or any other payment method you prefer.  We sincerely apologize for any inconvenience this may cause you.” 

The company did not provide further information detailing which regulator may issue the instruction to stop the service.

What this means

USD Wire transfers allow investors who have domiciliary accounts in the US to transfer dollars to Bamboo’s corresponding account in the US. It also allowed its users to transfer directly from Nigeria to their US Dollar accounts. This helps investors avoid some of the local USD transfer restrictions from one domiciliary account in a bank to a third party account in another bank.

The is often convenient for investors who have dollars abroad and want to avoid the hassles of sourcing forex locally. Whilst no reason was provided for the regulatory requirement, Nairametrics believes it may not be unconnected with several unscrupulous.  activities associated with wired transfers or a Nigerian regulators trying to block a loophole which would allow investors transfer fx out of the country from their domiciilary accounts.

The Nigerian Stock market kept its bullish momentum on at mid week’s trading session. The All Share Index gained 1.25% to close at 34,769.00 points, as against +0.64% recorded yesterday. Investors daily gain stood at N223.8 Billion.

• Nigerian Stock Exchange capitalization now stands at N18.176 Billion. Its Year-to-Date (YTD) returns currently stands at +29.53%.
• Nigerian bourse trading turnover on Wednesday finished fairly impressive as volume ticked up by 19.02%, as against -35.67% downtick recorded on Tuesday. TRANSCORP, ZENITHBANK, and ACCESS were the most active to boost market turnover.
• MANSARD leads the list of active stocks that recorded an impressive volume spike at the end of today’s session.
• The Market breadth closed positive as FLOURMILL led 36 Gainers as against 11 Losers topped by TRANSEXPR at the end of today’s session – an improved performance when compared with the previous outlook.

READ: Nigerian stocks record gains, investors gain N132.8 billion

Top gainers

1. FLOURMILL up 9.84% to close at N27.9
2. JBERGER up 6.94% to close at N18.5
3. DANGSUGAR up 5.90% to close at N20.65
4. DANGCEM up 2.60% to close at N205
5. AIRTELAFRI up 1.90% to close at N535

READ: MTN Nigeria, GTBank drop amid profit-taking

Top losers

1. TRANSEXPR down 9.38% to close at N0.87
2. OANDO down 6.55% to close at N2.71
3. INTBREW down 5.76% to close at N6.55
4. CAP down 2.93% to close at N21.5
5. UBN down 1.69% to close at N5.8

Outlook

Nigerian Stocks were fired up on all cylinders as the bulls increased their buying pressure across the market spectrum.

• Stock bulls were not short of good macros, as crude oil prices touched $48/barrel for the first time since March, coupled with recent macros coming from COVID-19 vaccine makers revealed the worse will soon be over.
• Dangote Cement’s share price reached its 52 week high, amid significant buying pressure seen lately from institutional funds. Also, other NSE30 stocks pulled off notable gains.
• Nairametrics recommends you seek the advice of a registered stockbroker when choosing stocks to buy, as recent price patterns show cyclic returns often prevail.

U.S. stocks were all fired up at its most recent trading session, amid high hopes on U.S President-Elect, Joe Biden’s smooth transition to power and its top pick for the post of U.S treasury, Janet Yellen, saw investors buying at record levels, leading the Dow 30 to reach its all-time high.

• A significant number of gains were seen in the Basic Materials, Oil & Gas, and Financial sectors.
• At the close of trading at the New York Stock Exchange, the Dow Jones Industrial Average surged by 1.55% to hit a new all-time high, while the S&P 500 index gained 1.63%, and the NASDAQ Composite index added 1.32%.
• The best performers of the session on the Dow Jones Industrial Average were Chevron Corp, which rose 4.92% or 4.48 points to trade at 95.51 at the close.
• Meanwhile, JPMorgan Chase & Co (NYSE: JPM) added 4.28% or 5.05 points to end at 122.92 and American Express Company was up 3.88% or 4.51 points to 120.60 in late trade.

What they are saying

Stephen Innes, Chief Global Market Strategist at Axi, in a note to Nairametrics, hinted at key fundamentals presently pushing U.S stocks to record high:

“The Dow Jones index hit a symbolic milestone overnight, breaking through the 30,000 level. Market sentiment remains underpinned by the trio of successful vaccine trials announced in recent weeks, as well as, by the U.S. President’s decision after the close on Tuesday to co-operate with a transition of power to President-elect Joe Biden.

“Thanks to the multiple vaccines in the pipeline. ‘Joy to the World’ is ringing in earlier than expected as global investors are elated by the vaccine news.”

What this means

Janet L. Yellen, a highly respected Economist, has been tipped to become the first female Treasury Secretary. This has apparently excited investors based on her impeccable records leading the U.S Federal Reserve, some years ago.

Bottom line

Stock traders are simultaneously reveling in the drop in political existential risk premium now knowing the finishing touches on the U.S. election process will not devolve in mobocracy, as the U.S. General Services Administration acknowledged that Joe Biden can start his formal transition to the White House.