Avoid Being Drawn into Social Media-Fuelled Stock Hysteria: deVere CEO
Investors need to exercise the utmost caution before joining social media-led stock frenzies, warned the CEO of one of the world’s largest independent financial advisory and fintech organisations.
The warning from Nigel Green, chief executive and founder of deVere Group, comes as a group of at-home retail investors on Reddit have been promoting a number of stocks, with the aim of squeezing short sellers that have been betting against them.
GameStop, AMC, Pearson, Blackberry, Nokia and Cineworld are amongst the targets.
GameStop’s stock has surged nearly 700% in the past two weeks, while Blackberry is up 185% and on track for its best month ever.
The Reddit community r/wallstreetbees, which has 2.8 million members, is full of users urging each other to keep pushing the stocks higher.
Mr Green says: “I would urge investors to exercise the utmost caution before joining social media-led stock frenzies of this nature. The valuations can be expected to be extremely wild – in both directions – and there’s a legitimate risk that investors could get burned.”
He continues: “This is being pitched as a battle-play of Wall Street or The Square Mile versus The Little Guy. However, this is not typically the way reasoned, savvy investors should strategise to create and build their portfolios in order to reach their financial goals.
“This is a dangerous game to play for retail investors.”
Earlier this week, the deVere CEO noted: “In today’s landscape, it is not the macro-bubble of which investors should be wary.
“Any potential bursting of bubbles is likely to be within specific stocks, so unlikely to rock the global financial markets as has happened previously – but individual investors could still be caught off-guard.
“Micro-bubble spotting, and diversification across asset class, sector, region and even currency, should become a priority for investors right now.”
Nigel Green concludes: “As ever, investors should work alongside a good fund manager to seek out those stocks most likely to generate and top-up their wealth over the long-term.
“I would avoid being drawn into the hysteria driven by social media.”
Presco Plc to Hold Emergency Meeting to Recommend Acquisition of Private Company to Shareholders
Presco Plc, an agro-industrial company, has notified shareholders of the company, the Nigerian Exchange Group and the investing public that the Board of Directors of Presco Plc will hold an emergency meeting on Thursday 24th June, 2021 to recommend for the shareholders to consider the acquisition of an existing private company through shares.
The existing private company, according to a statement signed by Patrick Uwadua Esq., Company Secretary, Presco Plc, is in the same line of business with Presco Plc.
Presco said once considered, a resolution will be passed at the company’s next General Meeting to authorise the acquisition of all the shares of the existing private company.
Meanwhile, the company commenced its closed period on today, Wednesday 16 June 2021 until 24 hours after the decisions taken at the Board Meeting are released to the public.
Cornerstone Insurance, Morison, Others Lead Gainers as Stock Market Gains
Nigerian Exchange Group rebounded from 1.66 percent decline recorded on Tuesday to close with 0.15 percent gain on Wednesday as more stocks closed in the green.
Investors traded 302,722,917 shares valued at N2.809 billion during the trading hours of Wednesday, against the 297.35 million shares worth N3.65 billion that were exchanged in 4,402 deals on Tuesday.
Market value of listed stocks appreciated from N20.07 trillion on Tuesday to settle at N20.099 trillion on Wednesday.
Nigerian Exchange Group All-Share Index gained 0.15 percent from 38,507.29 index points on Tuesday to 38564.70 index points on Wednesday.
Cornerstone Insurance led gainers with 10 percent, while Morison followed with 9.68 percent as shown below. Sterling bank emerged the most traded stocks with 37473362.00 shares valued at N57825053.65.
|CORNERST||N 0.50||N 0.55||0.05||10.00 %|
|MORISON||N 1.24||N 1.36||0.12||9.68 %|
|LEARNAFRCA||N 0.92||N 0.98||0.06||6.52 %|
|AFRIPRUD||N 6.05||N 6.40||0.35||5.79 %|
|COURTVILLE||N 0.20||N 0.21||0.01||5.00 %|
|ABBEYBDS||N 1.05||N 0.95||-0.10||-9.52 %|
|CHIPLC||N 0.74||N 0.67||-0.07||-9.46 %|
|CWG||N 1.24||N 1.15||-0.09||-7.26 %|
|WAPIC||N 0.57||N 0.53||-0.04||-7.02 %|
|REGALINS||N 0.48||N 0.45||-0.03||-6.25 %|
Dangote Cement Completes Issuance of N50 Billion Series 1 Fixed Rate Senior Unsecured Bonds
Dangote Cement, Africa’s largest cement producer, announced it has successfully issued N50 billion Series 1 Fixed Rate Senior Unsecured Bonds under the company’s new NGN300 billion Multi-Instrument Issuance Program.
The leading manufacturer disclosed in a statement signed by Edward Imoedemhe, Deputy Company Secretary, Dangote Cement Plc.
According to the statement, the bonds were issued on May 26 2021 at coupon rates of 11.25%, 12.50% and 13.50% for the 3, 5 and 7-year tranches respectively.
The statement read in part, “Despite market headwinds, the bond issuance was well received and recorded participation from a wide range of investors including domestic pension funds, asset managers, insurance companies and high net-worth investors.
“The proceeds of the bond issuance will be deployed for the company’s expansion projects, short-term debt refinancing and working capital requirements. Aside from this first issuance of a traditional bond under the new Multi-Instruments Programme, Dangote Cement has registered a programme enabling it to consider different types of fixed income instruments to cater for different type of investors.”
“The ability to issue Green Bonds and Sukuk will enable the company leverage the depth and breadth of the Nigerian market.”
Commenting on the bond issuance, Michel Puchercos, Chief Executive Officer of Dangote Cement Plc. stated: “This bond issuance allows us move a step further in achieving our expansion objectives and will be deployed to projects instrumental in supporting our export strategy while improving our cost competitiveness.
“We thank the investor community for their continued support in the management of Dangote Cement and their successful participation in the bond issuance.”
Absa Capital Markets Nigeria acted as Lead Issuing House for the Series 1 Bonds, and Stanbic IBTC Capital, Standard Chartered Capital & Advisory Nigeria Limited, United Capital Plc, FBN Quest Merchant Bank, FCMB Capital Markets, Coronation Merchant Bank, Ecobank Development Corporation Nigeria, Futureview Financial Services, Meristem Capital Limited, Rand Merchant Bank, Quantum Zenith Capital and Vetiva Capital Management acted as Joint Issuing Houses. The Bonds will be listed on the Nigerian Exchange Limited and FMDQ Securities Exchange.
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