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Markets

Alcoholic beverage makers on NSE lose a total N27.7 billion in a single day

Stocks of brewers in the Nigerian Equity space lost a total of N27.7 billion in today’s trading session.

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Stocks of brewers in the Nigerian Equity space lost a total of N27.7 billion in today’s trading session as investors continue to cycle their funds out of the stock market in search of yields in the fixed income space.

Data tracked on the Nigerian Stock Exchange website at the close of trading activities today revealed that the shares of three brewing companies – out of five – declined on the local bourse today.

With shares in Guinness Nigeria Plc, Nigerian Breweries Plc, and International Breweries Plc declining by 2.13%, 5.34%, and 3.77% to close lower at N23, N47, N5.1 respectively, while Champion Breweries and Golden Guinea shares closed flat at N2.44.and 0.81.

The recent decline in the shares of companies listed on NSE can be attributed to the recent move by investors, as they continue to offload stakes in key companies, with a focus on fixed income securities in anticipation that the CBN will continue to raise interest rates on treasury bills and OMO bills.

In line with this, the review of the performance of GUINNESS, NIGERIAN BREWERIES and INTERNATIONAL BREWERIES on the Nigerian Stock Exchange today, the 15th of March 2021, revealed the total market capitalization of these companies declined by a whopping N27.7 billion.

Their performance on the exchange

  • By the close of trading activities on the exchange today, the market cap of Nigerian Breweries declined from N397.05 billion to N375.85 billion, followed closely by International Breweries, with the market capitalization of the brewer declining from N142.37 billion to N137 billion.
  • While the market capitalization of Guinness Nigeria declined from N51.47 billion to N50.38 billion.
  • When added up, these brewery companies have lost N27.66 billion in market capitalization in a day.

The Consumer good index to which the brewers belong has fallen by 4.26% month to date as of 12th March 2021, compared to the Nigerian Stock Exchange All Share Index -2.89%.

Omokolade Ajayi is a graduate of Economics, and a certificate holder of the CFA Institute’s Investment Foundation Program. He is a business analyst, and equity market researcher, with wealth of experience as a retail investor. He is a business owner and a stern advocate of Financial literacy, who believes in the huge economic prospect of the Nigerian Payment channels and Fintech space.

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Cryptocurrency

Bloody Sunday: Over 1 million investors liquidated, altcoins crash by 20%

For the day, about 1,018,638 investors had their account worth about $10 billion liquidated.

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A significant number of investors in the crypto market have had their accounts liquidated amid the sudden drop seen in a number of altcoin assets.

For the day, about 1,018,638 investors had their account worth about $10 billion liquidated. The largest single liquidation order happened on Binance-BTC valued at $68.73 million.

The flagship altcoin is under high selling pressure with Ethereum trading at $1,952 at the time of writing this report, down 21.46% for the day. It is the biggest daily drop since March 12, 2020.

Such a fall pushed Ethereum’s market value to $247.15 billion, or 12.16% of the total cryptocurrency market value. At its highest, Ethereum’s market value was close to $300 billion.

On the altcoins side, the sudden crash at the time of writing this report could not be fully assessed, but market sentiments point to rumours that the U.S. Treasury is planning to charge several financial institutions for money laundering using crypto.

Top cryptos such as XRP lost as much as 21.17%, Polkadot and Litecoin were down by 20%, bitcoin cash down 20% for the day, while dogecoin has lost about 15% in value.

Many weeks ago, leading United Kingdom financial regulator, the Financial Conduct Authority, issued a piece of stern advice on crypto investments. The statement highlighted the risks associated with investing in Bitcoin and other crypto assets and warned the public that there were high chances that all their funds could be lost.

“The FCA is aware that some firms are offering investments in crypto assets or lending or investments linked to crypto assets, that promise high returns.

“Investing in crypto assets, or investments and lending linked to them generally involves taking very high risks with investors’ money. If consumers invest in these types of products, they should be prepared to lose all their money,” said the FCA.

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That said, a significant number of crypto investors appear to be shrugging off the huge fall as another typical bump on the crypto path, and one which, no doubt, will likely see crypto trading volume return as crypto investors look to buy what many are viewing as a bargain, to buy into what is still very much a bullish run.

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Cryptocurrency

Crypto Armageddon: Over $200 billion wiped off in the Crypto market 

The global crypto market value was put at $2.03 trillion, a 10.42% plunge for the day.

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Crypto

The Crypto is under intense selling pressure amid the recent sell-offs in the cryptoverse, as the fast ever-changing Crypto market lost over $200 billion in value within a few hours.

The flagship crypto was down by more than 5,000 dollars pulling back below $60,000.

At the time of writing this report, the global crypto market value was put at $2.03 trillion, a 10.42% plunge for the day.

The crypto market has shed much of its stellar gains earlier recorded, as significant selling pressure from crypto investors pushed the value of cryptos lower across the market spectrum amid profit-taking.

Other Crypto assets like XRP, Bitcoin Cash EOS, lost as much as 20% within a twinkle of the eyes.

Market pundits argue that a likely factor for such intense drop was the relatively high funding rates for taking long positions on Bitcoin alongside a strong dark cloud built around the $64,000-$65,000 price level.

Adding credence to such bias is Cantering Clark, a popular crypto strategist, who added that recent data points to the market cooling off arbitrarily.

“50k and 80k strikes highest contract/notional for $BTC I think these writers will be happy and I am still in the same opinion that the end of April – May begins the shift that makes Bitcoin a less favourable long. No breakout, just range and rotation.”

Crypto pundits anonymously interviewed by Nairametrics are saying that a market correction was long overdue after the sudden bullish move.

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The bearish trend prevailing at the bitcoin market is largely attributed to a significant amount of profit-taking in play, on the account that Bitcoin’s realized profits are at record highs.

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