Economy
Are Stop Losses for Wimps?

By Steve Brice
When I started out in banking, I was based in a dealing room advising traders on potential positions to take. The positions were focused and generally very short-term in nature. Therefore, risk management was not a ‘nice-to-have’, it was vital to job security. When entering a trade, a stop-loss – a level at which the position taken would be unwound if it was losing money – was a must.
It was against this backdrop that a former colleague quipped that ‘stop-losses are for wimps’. He was of course referring to certain stocks in his portfolio which had fallen dramatically – he was probably justifying to himself why he should keep it! However, it raises an interesting question: Should we employ stop-losses when we invest?
While many people will be very passionate about this topic, as with most things in life, context is key. If you think about it, the existence of the stop-loss is a hedge against the fact that nobody knows what is going to happen and therefore you need to build in a circuit-breaker to avoid the behavioural biases that come with a loss-making position – the ostrich, or ‘head in the sand’, syndrome.
So, how does this translate for an average investor? I would argue that there are two dimensions to consider: the nature of investments being discussed and your time horizon. Let’s take each in turn.
I have a much greater conviction level that a diversified ‘foundation’ allocation (which includes exposure to different asset classes such as stocks, bonds, gold and private assets), or even a diversified equity portfolio, is more likely to rise over a given period of time than any individual stock.
The reason is simple. Different asset classes have different drivers and hence are usually uncorrelated in their moves. Therefore, just combining them into a portfolio smooths out the bumps and increases the probability of positive returns for the portfolio as a whole.
When it comes to the stock market, there are also different drivers that determine equity market or individual stock returns, but let’s simplify them into broad market drivers and idiosyncratic drivers. If the economy enters a recession, then most stocks will fall sharply in value. However, a company’s failed product launch will largely hit one stock, and those of a few of its suppliers. Its impact on the overall market will be much less severe.
This brings me to Principle Number 1: The broader the investment, the less likely a stop-loss is warranted and that a buy on dips approach makes sense.
A very good friend of mine recently questioned how applicable this ‘buy on dips’ approach was to stock markets outside of the US. So, we ran the numbers for some major global and Asian markets in terms of probability of positive returns over different time horizons and the potential size of returns for investors. The results are pretty interesting.
First, the historical probability of positive equity market returns across any given 12-month period, at around a two-thirds probability, is generally similar across major global or Asian indices – China is an outlier at just 55%. If you extend your time horizon to 5 years, this probability generally increases to around 80% – the outliers are Japan’s TOPIX (66%) and India’s Sensex (92%).
Second, we looked at what has happened after a 10% or 15% market pullback. Focusing on the 1-year time horizon, we can break the countries into 3 groups:
1) either the probability of positive returns or size of average return or both have increased significantly after a market sell-off. Markets that fall into this group include the US, Germany, UK, India.
2) there is no material change in either variable. This includes Hong Kong, Malaysia and Korea. Once you lengthen your time horizon to 5 years though, they all move into the first group.
3) the probability of positive returns or their average quantum actually declines after a sell-off. Japan and onshore China markets fit into this group. On a 5-year time horizon, China also moves into the first group but, interestingly, Japan stays firmly in group 3.
Hence the conclusion is: outside of Japan, the ‘buy on dips’ mantra has made sense, especially when held by long-term investors.
The above analysis highlights the importance of the last factor: time horizon. The dealing room environment generally takes narrow exposures over a very short time horizon. Thus, stop-losses are crucial. However, I believe the message for the average investor is the reverse as long as they are focused on a diversified foundation allocation with a long-term focus.
Structural thematic investments also potentially fall into this category. The longer your time horizon, the more likely your investment is to generate positive returns as long as the structural fundamentals remain supportive. Here, again, instead of a stop-loss being appropriate, market declines offer an opportunity to add to longer-term thematic positions given the likelihood that declines will prove temporary.
Principle number 2: The longer your time horizon, the less desirable a stop-loss is, especially for diversified allocations or long-term structural themes.
Thus, for investors who are trying to trade the market and pick stocks, we believe a strict risk management framework including the use of stop-losses is absolutely critical to returns. However, we believe the majority of investors would be much better served by building a foundation allocation with a ‘buy on dips’ approach. Investors can systematise this ‘buy on dips’ approach through regular portfolio rebalancing – say at least once or twice a year and especially after major market dislocations to bring their allocations back to their desired risk tolerance. Such rebalancing is akin to an investor systematically “buying low and selling high” – a win-win proposition. For these investors, stop-losses are likely to get in the way of wealth accumulation.
Steve Brice is Chief Investment Officer at Standard Chartered Bank’s Wealth Management division
Economy
Champion Breweries Gets Shareholders’ Nod for N45bn Capital Injection

By Aduragbemi Omiyale
The board of Champion Breweries Plc can now go ahead to source N45 billion to inject into the business as part of its bold expansion drive.
The company received approval for this significant capital injection from shareholders at an Extraordinary General Meeting (EGM) held virtually on Thursday, July 24, 2025.
Recall that in 2024, EnjoyCorp Limited became the majority shareholder of the brewery company and since then, the firm has been on an upward trajectory, with its stock price rising at the Nigerian Exchange (NGX) Limited.
At the EGM, investors authorised the board to increase the share capital of the organisation to five billion shares, with fresh capital raise of N45 billion be raised by way of debt and bonds.
The proceeds will fund a landmark acquisition of key intellectual property and brand assets, underscoring Champion Breweries’ ambition to accelerate growth and strengthen its market leadership.
Under the resolutions passed, the capital raise will bolster the company’s balance sheet, enhance liquidity, and provide the financial flexibility required to execute an aggressive expansion and innovation programme.
Shareholders also endorsed the acquisition of select intellectual property and brand assets to broaden Champion Breweries’ portfolio, boost operational efficiency, and cement its position in Nigeria’s competitive beverage market.
The virtual EGM recorded robust shareholder participation, with voting conducted electronically and via proxy. In compliance with statutory requirements, the Register of Members was closed from July 7 to July 10, 2025, to facilitate seamless preparations.
The board expressed deep appreciation to shareholders for their unwavering support and reaffirmed its commitment to expanding operational capacity, broadening its product portfolio, and deploying capital prudently to deliver consistent returns while sustaining market leadership.
“We are extending our promotional reach with eco-friendly units already on the road. This capital raise empowers us to fast track growth, launch premium innovations, and deepen market presence, all while upholding our commitment to quality, sustainability, and long-term shareholder value,” the chairman of Champion Breweries, Mr Imo Abasi Jacob, stated.
Also, the Managing Director of the company, Mr Inalegwu Adoga, said, “Champion Breweries has consistently demonstrated resilience and potential, even as previous challenges required a stabilization phase. With this new era of industrial growth, we are poised to evolve beyond mere shelf presence to create meaningful market impact by positioning Champion Breweries as a driver of cultural and economic value.”
Economy
Nigeria to Dominate Refined Petroleum Products in West Africa

By Adedapo Adesanya
The federal government has reaffirmed its commitment to positioning Nigeria as the marketing hub for refined petroleum products across West Africa.
Speaking during his keynote address at the West African Refined Fuel Market Conference organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) on Friday, the Minister of State for Petroleum Resources (Oil), Mr Heineken Lokpobiri, said recent developments will see the country dominate the market.
Speaking at the conference themed Creating a West African Reference Market for Oil & Gas Products the minister highlighted the government’s strategic drive to support refiners, marketers, and regulators in creating an enabling environment for seamless trading within the region.
“Our ambition is to ensure Nigeria becomes the centre of refined product marketing in West Africa. That is why we are giving continuous support to our refiners and stakeholders to stimulate growth and create a world-class trading ecosystem,” Mr Lokpobiri stated.
He noted that the government’s efforts to boost the midstream and downstream sectors are complemented by sustained progress in the upstream segment.
“We are witnessing considerable growth across the value chain, and this is no coincidence. It is the result of deliberate policy interventions,” he added.
The minister further commended President Bola Ahmed Tinubu for the bold step in removing fuel subsidy, describing it as a catalyst for downstream sector growth.
“The removal of petroleum subsidy is already triggering expansion in the market and encouraging private sector investment,” Mr Lokpobiri affirmed.
The Minister also applauded indigenous operators in the refining space, and further called on both local and international investors to seize the opportunity to invest in Nigeria’s refining sector.
“By expanding our refining capacity, we won’t just meet domestic demand, we will service the entire West African market and beyond,” he stressed.
Economy
NASD Market Cap Jumps 4.16% to N2.127trn in Week 30 of 2025

By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange recorded a 4.16 per cent appreciation in the 30th trading week of 2025 despite closing with lesser price gainers than losers.
NASD Plc rose by 33 per cent to close at N33.25 per unit versus the preceding week’s N25.00 per unit, Central Securities Clearing System (CSCS) Plc added 30.2 per cent to settle at N49.47 per share compared with the earlier week’s N61.00 per share, AG Mortgage Plc improved by 21.1 per cent to N1.09 per unit from 90 Kobo per unit, Friesland Campina Wamco Nigeria Plc grew by 21.1 per cent to N73.84 per share from N61.00 per share, and Afriland Properties Plc surged by 20.6 per cent to N21.10 per unit from N17.50 per unit.
These stocks increased the market capitalisation of the bourse by N84.93 billion to N2.127 trillion from N2.042 trillion, and raised the NASD Unlisted Securities Index (NSI) by 145.05 points to 3,633,79 points from the 3,488.74 points it ended in Week 29.
In the five-day trading week, Food Concepts Plc slid by 4.7 per cent to N3.05 per share from N3.20 per share, UBN Property Plc declined by 3.5 per cent to N1.95 per unit from N2.02 per unit, Okitipupa Plc slid by 2.1 per cent to N234.50 per share from N239.50 per share, Nipco Plc lost 1.9 per cent to sell at N240.00 per unit versus N244.83 per unit, Lagos Building Investment Company (LBIC) Plc went down by 1.3 per cent to N3.08 per share from N3.12 per share, and Acorn Petroleum Plc dropped 0.8 per cent to N1.19 per unit from N1.20 per unit.
Last week, the total turnover by value jumped by 28.8 per cent to N559.6 million from N439.9 million, total volume of stocks rose by 1,002.7 per cent to 1.4 billion units from 127.4 million units, and the number of deals increased by 192.31 per cent to 228 deals from 78 deals.
The most traded stock by value was Industrial and General Insurance (IGI) Plc with N462 million, trailed by CSCS Plc with N30.2 million, Okitipupa Plc recorded N23.1 million, Friesland Campina Wamco Nigeria Plc posted N17.3 million, and Nipco Plc achieved N10.9 million.
By volume, IGI Plc also led with 1.4 billion units, UBN Property Plc closed with 2.5 million units, LBIC Plc recorded 0.77 million units, CSCS Plc quoted 0.63 million units, and Friesland Campina Wamco Nigeria Plc traded 0.24 million units.
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