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Citron Research that Called Jumia Fraud, Ends 20 Years of Short Selling Report After Losing Big on GameStop

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Andrew Left, Citron Research

Citron Research that Called Jumia Fraud, Ends 20 Years Short Selling ReportĀ  After Losing Big on GameStop

What a day for Jumia? Wallstreetbets just killed Citron Research’s criminal short-selling report that tagged Jumia fraud and plunged the shares of the e-commerce giant shortly after getting listed on NYSE.

The same report was rejected by over 3 million amateur traders on Reddit, a popular forum in the US, who took aggressive opposite trades on GameStop following Citron Research publication.

Citron Research sell positions plunged into the red zone. The firm and other short sellers lost a combined $19.75 billion in January after the price of GameStop surged by 870 percent in the last two weeks.

Background Story of Citron Research

Citron Research is a firm that specializes in demonizing companies, especially small companies and then sells their stocks, saying they will fail. Sometimes these negative publications are not true but because it creates panic and negative sentiment around those stocks, a lot of investors will start dumping their shares out of fear. Andrew Left, the founder was ban from trading in China and Hong Kong but not in the USA as his activities were seen as legal despite its damages.

Citron went after Jumia and the price of Jumia’s shares plunged from around $45 per share to $2 per share. Presently, trading at $57.65 per share, another evidence of Citron Research wrong projections.

However, Citron met its waterloo when it took on GameStop. Amateur traders that number over 3 million on a thread popularly referred to as Wallstreetbets on Reddit, refused the report and took several buy positions while encouraging others to do the same

In few days, Citron’s position worth billions of dollars turned red. Andrew Left, the founder went to court to halt their activities but it failed as they fought back and were allowed to resume trading.

In a Youtube video, he said “I took the lawsuits, I went to court, I took the questions to lay the foundation. So obviously, I support any opposing opinions.”

“But what I never did was I never got personal, I never got nasty, and I never threatened a corporate executive, their family, or any shareholders. It was always business.” That was in response to a series of threats that trailed the shutdown of their thread on Reddit and suspension of trading on GameStop by several trading platforms.

Citron Research has now announced it would suspend its 20 years of short-selling research that brought sadness to several small businesses and to executives.

Left also has some words of advice for amateur traders, “When you make your profits, make sure you put some away for the IRS,” he warned.

That money is not all your money. But, at the end of the year, you do owe tax money.

GameStop rose from $17 per share to $300 within two weeks.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Bonds

African ESG Bond Issuance Surges to $4.4bn in 2024

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Bonds- Investors King

The landscape of sustainable investment in Africa is experiencing a significant upswing as the issuance of Environmental, Social, and Governance (ESG) bonds by African entities hit $4.4 billion in 2024.

This substantial increase highlights a growing commitment among African institutions to raise funds for investments aligned with ESG principles.

The surge in ESG bond issuance underscores a broader trend towards responsible and sustainable investing on the continent.

The African Development Bank (AfDB) emerges as a key player in this segment, having successfully issued social bonds worth $2 billion in January 2024, in addition to hybrid sustainable bonds amounting to $750 million.

Joining the AfDB in this endeavor is the Arab Bank for Economic Development in Africa (BADEA), which, with the support of the African Export-Import Bank, has issued bonds totaling ā‚¬500 million.

This momentum in the ESG bond market has propelled financial institutions like BNP Paribas, JPMorgan, and Bank of America Securities into leading positions as arrangers for such bonds on the continent.

The surge in ESG bond issuance reflects a broader global trend towards sustainable finance, with the total value of emissions of this kind expected to reach $950 billion in 2024, according to Moody’s.

It is evident that ESG bonds are gaining traction in Africa, supported by development finance institutions and initiatives aimed at fostering sustainable economic growth and development across the continent.

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Nigerian Exchange Limited

Nigerian Exchange Extends Bullish Run as Investors Gain N2.123 Trillion Last Week

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Nigerian Exchange Limited - Investors King

The Nigerian Exchange Limited (NGX) extended its bullish run last week as investors gained N2.123 trillion following a N3.258 trillion profit reported in the previous week.

During the week, investors exchanged 1.773 billion shares worth N52.867 billion in 44,713 deals, against a total of 2.157 billion shares valued at N108.824 billion that exchanged hands in 51,556 deals in the previous week.

The Financial Services Industry led the activity chart with 1.136 billion shares valued at N23.185 billion traded in 19,896 deals. Therefore, contributing 64.04% and 43.86% to the total equity turnover volume and value respectively.

The Conglomerates Industry followed with 339.390 million shares worth N5.874 billion in 3,650 deals.

The third place was the Consumer Goods Industry, with a turnover of 82.645 million shares worth
N6.724 billion in 6,155 deals.

Transnational Corporation Plc, Guaranty Trust Holding Company Plc and Access Holdings Plc were the three most traded equities and accounted for a combined 677.439 million shares worth N17.287 billion in 7,789 deals. The three equities contributed 38.21% and 32.70% to the total equity turnover volume and value respectively.

The NGX All-Share Index appreciated by 3.71% or 3,754.40 index points from 101,330.85 index points reported in the previous week to 105,085.25 index points last week.

The market capitalization rose by 3.71% to close the week at N59.416 trillion, up from N57.293 trillion filed in the previous week.

Similarly, all other indices finished higher with the exception of NGX Oil and Gas and NGX Sovereign Bond which depreciated by 0.11% and 3.12% respectively.

Fifty-five equities appreciated in price during the week higher than twenty-two equities in the previous week. Twenty-four equities depreciated in price lower than fifty-six in the previous week, while seventy-five equities remained unchanged, lower than seventy-six recorded in the previous week.

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Stock Market

US Equity Funds Fueled by Record $56 Billion Inflows Amid Stagflation Concerns

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Dow

Despite looming concerns over stagflation, US equity funds have experienced an unprecedented surge as $56 billion inflows into the market.

Bank of America Corp. revealed the influx, underscoring investors’ apparent dismissal of the risks associated with the economic phenomenon.

The influx, reported by strategist Michael Hartnett, cited data from EPFR Global and highlighted a remarkable turnaround for technology stocks, which witnessed the largest inflow among sectors, tallying $6.8 billion.

This resurgence follows a previous record outflow, indicating a notable shift in sentiment among investors.

However, amidst this bullish wave, Bank of America Corp. strategist Michael Hartnett has sounded a cautionary note, noting the shift in the macroeconomic landscape from a Goldilocks scenario to one potentially characterized by stagflation.

Stagflation, marked by high inflation and stagnant economic growth, poses a significant threat to traditional asset classes.

Hartnett’s observations are not without merit, as economic data presents a mixed picture. While prices paid to US producers exceeded forecasts in February and consumer prices rose briskly, fewer people applied for jobless benefits.

Such contradictions underscore the complexity of the economic environment investors currently navigate.

Yet, despite the ominous signs, US equity markets seem undeterred, with Barclays Plc strategist Emmanuel Cau noting that investors maintain a positive outlook, bolstered by the Federal Reserve’s endorsement of market expectations.

Cau points to a prevailing narrative of a soft landing, further fueled by ample liquidity awaiting deployment into risk assets.

As the markets continue to grapple with the specter of stagflation, the resilience of US equity funds in the face of such concerns reflects a potent cocktail of investor optimism and risk appetite, tempered by cautious optimism amidst an uncertain economic landscape.

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