Spotlight Stories
Experts highlight market data as critical to navigating shocks in the Capital Market
Equities market recorded negative performance in the first quarter of the year, with the ASI posting a quarterly return of -20.65% in Q1’2020.
Globally, there is an increasing reliance on market data as a fundamental tool for making sound financial decisions and the Nigerian case is no different.
This was highlighted at The Nigerian Stock Exchange (NSE or The Exchange) 5th Market Data Workshop 2020 hosted in collaboration with InfoWARE Limited.
The event, which held virtually on Friday, 13 November 2020, was themed, “Handling Shocks in the Capital Market: A Quantitative Risk Management Approach Using Market Data.”
READ: NG Clearing gets SEC’s approval to launch Central Counterparty Clearing House
Speaking at the event, the Chief Executive Officer, NSE, Mr. Oscar N. Onyema, said, “In Nigeria, the equities market recorded negative performance in the first quarter of the year, with the NSE All Share Index (“ASI”) posting a quarterly return of -20.65 percent in Q1’2020.
However, the market saw an upswing since April 2020, and has so far gained +31.67% as at 12 November. This feat – particularly during the COVID-19 pandemic – can be attributed to smart investors bargain hunting and the release of positive year-end financial results of several listed companies, coupled with improved dividend declarations.
READ: Microsoft shares fall, despite impressive Q2 2020
It demonstrates the opportunities that abound in the market for discerning investors, even in a time of crisis, and underscores the importance of quality market data for investment decision-making.”
The first panel session of the event featured Felix Egbon, Group Head, Risk Management, Zenith Bank Plc; Tapa Das, Chief Executive Officer (CEO), NG Clearing Limited; Oladipupo Oyefuga, Head, Risk, Stanbic IBTC Bank; and Dr. Olaoluwa Simon Yaya, Sub Dean, Faculty of Science, University of Ibadan.
READ: 82% of Ethereum investors are in profit
This panel session, which was moderated by Olufemi Balogun, Head, Market Services, NSE, highlighted the importance of building financial or investment models that can be tested with real-life situations.
Panellists agreed that the unprecedented happenings of 2020 have proven that reliable real-time and historical data that can easily be understood is critical to building these models.
READ: WHO to secure initial COVID-19 vaccine for 20% of Africans
In addressing the topic, Adopting a Data Driven Culture: The Key to Innovation, the second panel session addressed changes in business operations occasioned by the COVID-19 pandemic and how the timeliness, accuracy and availability of data has been critical in shaping how they interact with stakeholders.
The panel session featured Uwa Agbonile, CEO and Chief Software Architect, Infoware Limited; Lilian Olubi, CEO, EFG-Hermes; Saheed Bashir, CEO, Meristem Stockbrokers Limited; Carl Larry, Principal Consultant, Oil Outlooks and Opinions LLC; and was moderated by Dr. Ogho Okiti, Managing Director, BusinessDay Media Limited.
READ: NSE promotes investment diversification, as it holds 4th Market Data Workshop
During the workshop, Ms. Anita Gopaldas, Market Data Officer, Market Services, NSE, gave a presentation which highlighted The Exchange’s wide range of reliable, accurate and timely market information services and data solutions across all asset classes and data products to market participants locally and internationally.
Some of these provisions include the NSE API which ensures the dissemination of real-time data to stakeholders; FIX Order Management System which allows trade information to be transmitted from anywhere to The Exchange; and the recently upgraded X-DataPortal, which serves as a consolidated, streamlined platform for market participants to access quality and timely data at an affordable rate.
READ: 98% of Bitcoin wallets in profit, hit 2-year high
Other presentations at the workshop were delivered by Olufemi Balogun, Head, Market Services, NSE; Uwa Agbonile, CEO, Infoware Limited; and Benedict Whittam Smith, CEO, Deontic Data.
From their presentations, it was made clear that quality, accessible data is critical not only to dealing with the problems of today, but in mitigating the crises of the future.
Other sponsors of the 2020 NSE Market Data Workshop were Zenith Bank, EFG-Hermes, WCM Capital, Apel Asset Limited, Investor Hangout, Cordros Capital, CSL Stockbrokers, NG Clearing Limited and Meristem.
Explore Data on the Nairametrics Research Website
Currencies
Naira appreciates at NAFEX as Nigeria’s external reserve is set to get a boost
Naira gained against the US Dollar at the NAFEX window on Friday to close at N409/$1.
Cryptocurrency
Unknown Bitcoin whale moves $714 million, Bitcoin stays above $60,000 mark
The flagship crypto traded at $60,514.60 on the FTX exchange with a daily trading volume of $45.5 billion.
Bitcoin whales are moving the vastly used treasury crypto in large amounts amid price volatility and bullish rush, as Bitcoin bulls regain control above the $60, 000 mark.
Data retrieved from BtcBlockBot an advanced crypto blockchain tracking and analytics firm, an anonymous cryptocurrency user revealed someone (possibly http://coinbase.com) moved 11,901 BTC $714 million in block 678,688.
Whale alert! 🐋 Someone (possibly http://coinbase.com) moved 11,901 BTC $714 million in block 678,688
Whale alert! 🐋 Someone (possibly https://t.co/jIWhXDP3O5) moved 11,901 BTC ($714M) in block 678,688 https://t.co/harpPfXLjD
— Bitcoin Block Bot (@BtcBlockBot) April 11, 2021
The tracker further disclosed that the whale may have come from the world’s pioneer crypto exchange, Coinbase.
Nairametrics’ research has recently seen the surge in unknown crypto transactions involving Bitcoin, Ethereum, and other top crypto assets at levels not previously seen in the cryptoverse suggesting that more institutional players are getting into the game.
At the time of writing, the flagship crypto traded at $60,514.60 on the FTX exchange with a daily trading volume of $45.5 billion. Bitcoin is down 0.04% for the day.
During bull trends in the cryptoverse, these large entities can take profit on their positions, especially if the futures market is overcrowded.
Wealthy investors reducing their crypto exposure to rebalance their portfolios can cause high price swings in the market, especially when accompanied by cascading liquidations.
However, recent data suggests otherwise as data retrieved from Glassnode points at entities holding more onto the world’s most popular crypto, rather than selling; as data shows Bitcoin balance on Crypto Exchanges just reached a 2-year low of 2,337,271.262 BTC.
A previous 2-year low of 2,338,724.621 BTC was observed on 08 April 2021.
📉 #Bitcoin $BTC Balance on Exchanges just reached a 2-year low of 2,337,271.262 BTC
Previous 2-year low of 2,338,724.621 BTC was observed on 08 April 2021
View metric:https://t.co/9vOOAmwh32 pic.twitter.com/sV3lhECEGU
— glassnode alerts (@glassnodealerts) April 11, 2021
