Economy
Investment in COVID-19 World: What You Must Know and do
On September 9, 2020, Anchoria Asset Management engaged its followers on LinkedIn and provided answers to key financial investment questions, especially, as it relates to investing in a COVID-19 period.
The Financial Fitness Chat session helped participants understand the principle of how, when, where and what to invest depending on individualist approach and capacity.
In a conversational chat tone, Ms Ete Ogun, MD of Anchoria Asset Management Limited, was able to engage participants on the group and provided bespoke responses during the session:
In the light of the COVID-19 pandemic and its effect on the Nigerian business environment, what alternative investments opportunities exists out there, especially for working-class professionals?
The alternatives are investing in growth companies which means you must have research on their products, people and process
I assume this applies to long term investments. Are there any profitable short-term investment alternatives available at this time?
Short term and profitable don’t actually go hand in hand for investment. Short term can have competitive yields. Competitive yields are returns which outperform current short-term government instruments for instance 91 days treasury bills. This is currently at 1.2 per cent. If you get any return above 2.8 per cent to 3 per cent, then it is competitive.
I know firms (including investment brokers like yours) are affected by this pandemic, what structure or structures do you have in place to help safeguard investor funds and help protect us from the effect this pandemic will have on investments?
Thank you for your question. The structures around safeguarding investors’ funds are diversification and asset allocation. Break down your investment objectives into timelines and invest based on those timelines i.e. short needs money market investment, the medium needs money market/ fixed-term investment and equity funds for longer-tenor objectives. I believe that your funds will be very safe.
Another question from my end, do you have investment plans for Nigerians in the diaspora? Must BVN be subscribed to or my non-Nigerian bank can be used for the transactions?
There is the issue of regulation across jurisdictions. However, we do have investment products for Nigerians in Diaspora in the country. You are at liberty to use a local or foreign bank provided that the documentation for each location is supplied appropriately.
Good day team, I so much appreciate this initiative. It is a way out for most of us in this pandemic period. Please I will like to know how I can invest for my kids?
Thank you for your question, sir. You can invest periodically in the mutual funds especially the Equity Fund because it is a good store of money value. It is also favourable because the initial investment is as low as N5000.00.
You can go to www.anchoriaam.com and get further directions or speak to our Client Relations Officer. The reward is immeasurably especially when you start to keep at the investment plan over time
In view of the current economic uncertainty, is it advisable to hold FX denominated investment in order to hedge against inflation or devaluation?
Thank you for your question, sir. This is a tricky question. I will ask if you have dollar obligations? You won’t have any near term need for the funds in foreign currency? If the answer is no, then it’s not a real investment option for you simply because the returns for these can be lower than Naira and any conversion before the expected deregulation can cause a huge drop in your expected return.
How do we then “research on their financial products, people and process”. I mean for laymen like us who don’t have deep knowledge of the sector. Is that an aspect Anchoria can take care of as well?
It is aspect Anchoria can work with you. The goal is to partner to achieve your financial objectives.
Post COVID-19 Era makes my savings in the bank useless; please what investment can help me out? It can be long-term I don’t mind.
You should diversify your investment holdings. For your immediate needs within one year invest in Anchoria Money Market Fund. For your 1- 3 years need, invest in the Anchoria Fixed Income Fund and your bigger longer tenor objectives say 5-7 years invest in Anchoria Equity Fund.
By Adedapo Adesanya
Four securities weakened the NASD Over-the-Counter (OTC) Securities Exchange by 1.95 per cent on Friday, erasing N41.17 billion from the bourse, which had its market capitalisation at N2.567 trillion compared with the previous session’s N2.618 trillion.
In the same vein, the NASD Unlisted Security Index (NSI) decreased at the close of business by 85.28 points to 4,277.07 points from 4,362.32 points.
The price decliners were led by 11 Plc, which gave up N20.50 to sell at N200.50 per share compared with the preceding day’s N221.00 per share, FrieslandCampina Wamco Nigeria Plc dropped N16.94 to close at N155.20 per unit versus Thursday’s closing price of N172.14 per unit, Central Securities Clearing System (CSCS) Plc went down by N2.11 to N84.68 per share from N86.79 per share, and Afriland Properties Plc lost 11 Kobo to end at N16.74 per unit, in contrast to the N16.85 per unit it closed a day earlier.
During the trading day, the value of transactions jumped by 172.1 per cent to N29.9 million from the preceding session’s N10.9 million, and the volume of trades soared by 136.5 per cent to 955,096 units from the previous 403,901 units, while the number of deals went down by 11.4 per cent to 31 deals from 35 deals.
Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis, with 3.4 billion units valued at N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units worth N6.5 billion, and CSCS Plc with 68.6 million units sold for N4.7 billion.
GNI Plc also ended the session as the most traded stock by volume on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, trailed by Infracredit Plc with 2.3 billion units traded for N6.5 billion, and Resourcery Plc with 1.1 billion units transacted for N415.7 million.
By Dipo Olowookere
The last trading session of this week on the floor of the Nigerian Exchange (NGX) Limited ended on a negative note, with a 0.66 per cent loss on Friday.
This was influenced by sustained selling pressure and cautious trading, which forced investors into profit-taking.
Data obtained by Business Post showed that the energy sector fell by 4.66 per cent, the insurance counter dipped by 2.23 per cent, the consumer goods index depreciated by 0.96 per cent, and the banking segment shed 0.28 per cent, while the industrial goods space remained unchanged.
At the close of business, the All-Share Index (ASI) of Nigeria’s stock exchange went down by 1,531.81 points to 232,049.02 points from 233,580.83 points, and the market capitalisation dropped N983 billion to settle at N148.905 trillion compared with Thursday’s N149.888 trillion.
Aradel was the worst-performing equity after it lost 10.00 per cent to close at N1,417.50. International Energy Insurance slipped by 9.95 per cent to N5.79, Trans-Nationwide Express depreciated by 9.89 per cent to N3.28, eTranzact crashed by 9.79 per cent to N14.75, and UPDC slumped by 9.72 per cent to N28.12.
The best-performing equity for the day was Universal Insurance, which gained 6.32 per cent to close at N1.01, McNichols grew by 5.52 per cent to N8.60, Linkage Assurance expanded by 4.67 per cent to N1.57, NGX Group appreciated by 4.35 per cent to N120.00, and Transcorp increased by 3.62 per cent to N41.50.
As look at the activity level indicated that investors traded 388.7 million stocks worth N18.4 billion in 44,631 deals compared with the 393.7 million stocks valued at N19.2 billion executed in 45,813 deals a day earlier, representing a decline in the trading volume, value, and number of deals by 1.27 per cent, 4.17 per cent, and 2.58 per cent, respectively.
By Adedapo Adesanya
The Naira recorded a loss of 82 Kobo or 0.06 per cent against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, June 26, exchanging at N1,380.93/$1, in contrast to the previous day’s rate of N1,380.11/$1.
Equally, the domestic currency further weakened against the Pound Sterling in the official FX market yesterday by N6.06 to settle at N1,824.90/£1 versus the preceding session’s N1,818.84/£1, and lost N10.74 on the Euro to sell at N1,577 .58/€1 versus N1,566.84/€1.
At the GTBank forex counter, the Naira depreciated against the greenback during the session by N4 to close at N1,387/$1, in contrast to Thursday’s value of N1,383/$1, and at the parallel market, it was unchanged at N1,395/$1.
Interbank FX activity among financial institutions has fluctuated amid a sharp slowdown in forex market interventions by the Central Bank of Nigeria (CBN), as it allows demand and supply to move the market.
Also, a stronger greenback has generally put significant pressure on emerging-market currencies.
Nigeria has accessed the first tranche of a proposed $5 billion derivatives financing arrangement with First Abu Dhabi Bank PJSC, the largest lender in the United Arab Emirates (UAE).
The $5 billion facility, approved by the National Assembly earlier this year, is part of the federal government’s plan to diversify external financing sources and reduce borrowing costs. Structured as a Total Return Swap with First Abu Dhabi Bank, proceeds are earmarked for refinancing debt and supporting infrastructure financing.
If the proceeds are brought into the country through the official FX market, the transaction will increase the currency reserves or Dollar liquidity.
At the cryptocurrency market, Solana (SOL) grew by 2.2 per cent to $71.92, Cardano (ADA) gained 1.1 per cent to trade at $0.1474, Ripple (XRP) also appreciated by 1.1 per cent to $1.05, Dogecoin (DOGE) expanded by 0.9 per cent to $0.0755, and Ethereum (ETH) improved by 0.4 per cent to $1,578.84.
On the flip side, TRON (TRX) slid 0.6 per cent to $0.3203, Binance Coin (BNB) slumped by 0.3 per cent to $564.33, and Bitcoin fell by 0.2 per cent to $60,219.37, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
-
Feature/OPED6 years agoDavos was Different this year
-
Travel/Tourism10 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz3 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking8 years agoSort Codes of GTBank Branches in Nigeria
-
Economy3 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking3 years agoSort Codes of UBA Branches in Nigeria
-
Banking3 years agoFirst Bank Announces Planned Downtime
-
Sports3 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn