Economy
Real Estate Delivers 15.6% RoI for Risevest Investors
By Adedapo Adesanya
Real estate portfolio delivered the best return for investors on US stocks and investment platform, Risevest, in 2022, with a 15.6 per cent return on investment (RoI).
In its Investment Wrapped: A Look At Our Investment Journey in 2022 newsletter, seen by Business Post, the company said that the year’s investment was actively affected by inflation and the measures to tackle it.
The company, despite the tough year, paid out $23.2 million to users while 109,800 plans were created while its members in its investment club grew to 15,100.
“All the monetary easing that central banks worldwide did in response to COVID led to the worst inflation numbers in over 40 years. US inflation peaked at 9.1%, and the aggressive increase in interest rates by the US Federal Reserve and other major central banks led to the global increase in the cost of capital,” it explained.
It added that although inflation in the world’s largest economy dropped as rate hikes hit 5 per cent, the increased rates and higher cost of capital led to a massive drop in the valuations of stocks and other assets, leading to some of the worst stock markets drop in recent history.
This was coupled with the energy and wheat crisis caused by Russia’s invasion of Ukraine, as well as the meltdown in the crypto industry.
The company revealed that real estate markets, including Myrtle Beach South Carolina homes for sale, were strong for most of the year until the final quarter, delivering double-digit returns for the Rise portfolio.
Also, energy commodities were up in the review year, and energy stocks like ExxonMobil defied the downturn and gained 70 per cent, adding that, “all of that was overshadowed by what has been the 7th worst performance of the stock markets ever in history.”
After the real estate market, fixed income delivered a 10 per cent return for the year, providing much-needed returns to users and balancing out the losses from stocks that fell 22 per cent in the year.
Speaking on moves it made, the company, in the newsletter, revealed that it introduced Airbnb to its portfolio based on its seasonal advantage and consumer-driven demand.
“For real estate, we introduced Airbnb rentals to our portfolio. While they are much more hands-on than our traditional rentals, their returns, even after expenses, are much higher, making it well worth the experience.
“However, we will continue to invest in Airbnb rentals as a smaller component of our real estate strategy due to their seasonality and the risk of changes in consumer behaviour,” parts of the article read.
For stocks, the company noted that it exited companies without either significant growth or cash-flow generation capabilities and, moving forward, will prioritise defensive companies with strong demand profiles and solid balance sheets.
“We held onto some tech companies like Facebook (Meta) and Google, who still present a lot of value despite deep sentiment against them, and we added new positions in both short and long-term bets that will pay off when stocks rebound.”
For the fixed-income portfolio, the overall fixed-income market saw relatively stable returns, with the Bloomberg Barclays U.S. Aggregate Bond Index returning 4.26 per cent and our portfolio delivering 10 per cent for the year.
“Our portfolio has a good representation of (third-party provided) consumer credit and mortgage-backed fixed-income assets and an increasingly smaller position in emerging market sovereign debt. Despite a tough market position, credit and debt profiles remain relatively stable.
“Also, with higher interest rates, it’s becoming increasingly possible to move up the risk ladder into even safer fixed-income assets without sacrificing returns, which is great news,” it said.
Presenting its outlook for the year, it said that looking at a possible recession, weakened demand, and a lean global supply chain, it expects a tougher first half and advised more people to “keep their budgets lean, emergency funds funded, and their investment plans disciplined.”
Product-wise, Risevest said “multi-year asset class plans are on the way, as well as varied account types. Multi-country support and a slew of new features, including dark mode, potential localised offerings, and more personalization, should also be expected to support our users’ financial journeys and unlock more wealth-creating opportunities for all Risers.”
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited came under pressure on Friday, staggering by 0.21 per cent at the close of trading activities.
Investors embarked on profit-taking yesterday, particularly in the energy and industrial goods sectors, which closed lower by 0.43 per cent and 0.06 per cent, respectively.
The gains reported by the others could not extend the stay of Customs Street in the positive territory yesterday.
Data showed that the insurance counter closed higher by 2.07 per cent, and the banking space improved by 0.55 per cent, while the consumer goods and commodity indices closed flat.
When the closing gong was struck by 2:30 pm, the All-Share Index (ASI) was down by 224.91 points to 104,563.34 points from 104,788.25 points and the market capitalisation contracted by N141 billion to N65.707 trillion from N65.848 trillion.
Deap Capital lost 9.71 per cent to trade at 93 Kobo, Royal Exchange crumbled by 9.09 per cent to 80 Kobo, Sovereign Trust Insurance fell by 7.61 per cent to 85 Kobo, Guinea Insurance depreciated by 7.35 per cent to 63 Kobo, and Oando dwindled by 5.57 per cent to N39.00.
Conversely, Caverton jumped by 9.96 per cent to N2.54, VFD Group surged by 9.90 per cent to N87.70, Abbey Mortgage Bank gained 9.86 per cent to close at N6.13, FTN Cocoa advanced by 9.83 per cent to N1.90, and Regency Alliance rose by 9.43 per cent to 58 Kobo.
On Friday, investors traded 380.0 million equities worth N10.1 billion in 10,791 deals versus the 432.6 million equities valued at N9.7 billion transacted in 12,027 deals in the previous trading session, indicating an uptick in the value of transactions by 4.12 per cent and contractions in the volume of trades and the number of deals by 12.16 per cent and 10.28 per cent apiece.
Access Holdings retained its position as the most active equity with 73.2 million units sold for N1.5 billion, Zenith Bank exchanged 33.4 million units worth N1.7 billion, Cutix transacted 29.7 million units valued at N63.0 million, GTCO traded 25.7 million units worth N1.7 billion, and Fidelity Bank transacted 19.7 million units valued at N374.2 million.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange went down by 0.31 per cent on Friday, April 10, with the Unlisted Security Index (NSI) depreciating by 1038 points to 3,277.57 points from the previous session’s 3,287.85 points.
Similarly, the market capitalisation of the bourse depleted by N6.02 billion to close at N1.919 trillion from the N1.925 trillion it ended on Thursday.
FrieslandCampina Wamco Nigeria Plc gave away N2.95 to close at N35.55 per unit versus the previous day’s N38.50 per unit and Acorn Petroleum Plc lost 13 Kobo to end at N1.17 per share from the previous closing value of N1.30 per share.
During the session, there was a 750.8 per cent surge in the volume of securities transacted to 152.3 million units from the 18.1 million units transacted in the previous trading day, the value of transactions grew by 2,268.9 per cent to N4.6 billion from N192.9 million, and the number of deals went down by 20 per cent to 16 deals from 20 deals.
Impresit Bakolori Plc remained the most active stock by volume on a year-to-date basis with 533.9 million units worth N520.9 million, followed by Okitipupa Plc with 153.6 million units sold for N4.9 billion, and Industrial and General Insurance (IGI) Plc with 71.2 million units valued at N24.2 million.
However, Okitipupa Plc became the most traded stock by value on a year-to-date basis with 153.6 million valued at N4.9 billion, trailed by FrieslandCampina Wamco Nigeria Plc with 14.6 million units worth N562.7 million, and Impresit Bakolori Plc with 533.9 million units sold for N520.9 million.
By Adedapo Adesanya
The Naira closed the last trading session of the week in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on a positive note on Friday, April 11 with a gain of 1.2 per cent or N18.86 against the United States Dollar.
During the trading day, it was exchanged at the official forex market at N1,611.08/$1, in contrast to the N1,629.94/1 it was traded a day earlier.
The local currency strengthened yesterday at the currency market after the Dollar weakened in the international scene, making currencies like the Naira have a sigh of relief.
Also supporting this is efforts by the Central Bank of Nigeria (CBN) to prop the market with the necessary liquidity.
However, the domestic currency depreciated against the British Pound Sterling at the spot market during the session by N5.57 to settle at N2,090.58/£1 compared with Thursday’s closing price of N2,085.01/£1 and lost N10.18 against the Euro to sell for N1,815.82/€1, in contrast to the preceding day’s N1,805.64/€1.
At the parallel market, the Nigerian Naira traded flat against the greenback on Friday, remaining unchanged at N1,620/$1.
As for the cryptocurrency market, it was bullish after the US Dollar fell to a 3-year low and Producer Price Index (PPI) inflation dropped sharply.
The drop in the greenback made it possible for investors and traders to buy more while the index came in at 2.7 per cent versus the anticipated 3.3 per cent while the core PPI print also surprised to the downside.
Solana (SOL) appreciated by 5.4 per cent to $123.31, Dogecoin (DOGE) rose by 4.3 per cent to $0.1638, Bitcoin (BTC) increased by 3.2 per cent to $83,697.39, and (XRP) added 2.4 per cent to quote at $2.04, and Binance Coin (BNB) soared by 1.4 per cent to $587.41.
In addition, Ethereum (ETH) improved by 1.2 per cent to $1,573.75, Cardano grew by 0.3 per cent to $0.6234, Litecoin (LTC) also went up by 0.3 per cent to $76.20, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) closed flat at $1.00 each.
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