Jumia Technologies’ stock was among the hottest in the tech sector in 2020 and is likely to carry the momentum through 2021 and beyond. According to the research data analyzed and published by Sijoitusrahastot, its share price grew by over 1000% in 2020.
Based on an analysis by Benzinga, 74% of the investors and traders who participated in the study think that Jumia’s share price will soar to $100 by the end of 2022.
Jumia’s Revenue Sank by 12% YoY in Q1 to Q3 2020
According to research firm Ovum, mobile internet penetration was expected to rise from 32% in 2017 to 73% by 2023. However, due to the pandemic, key markets such as South Africa and Nigeria went into recession. Fitch Ratings revealed that South Africa’s GDP sank by 7.3% in 2020 and Nigeria by 3%. These two markets account for over 40% of Jumia’s total economic output.
The eCommerce platform saw its gross merchandise volume (GMV) contract by 11% in Q1 2020, 13% in Q2 2020 and 28% in Q3 2020. Its revenue slumped by 7% in Q1 2020, 10% in Q2 2020 and 18% in Q3 2020.
In the first nine months of 2020, Jumia’s revenue fell by 12% as a result of a 47.2% decline in first-party sales. On the bright side though, active annual customers rose by 23% to 6.7 million. Orders shot up by 9% to 19.8 million while the number of transactions increased by 34%, raising total payment volume by 74% to €137 million.
In the countries where Jumia operates, the internet penetration rate is below 3%, presenting an opportunity for growth. However, Africa has an average internet usage rate of only 39.3% compared to the global 59%. Jumia Pay could boost its performance since it offers a digital wallet on a continent where two-thirds of adults are unbanked.
Price of Shares of Nigerian Exchange Group Near N20 a Unit
The recently listed Nigerian Exchange Group (NGXGROUP) extended gains to N19.5 per share as more investors keyed into the prospect of the newly created company following the demutualisation of the Nigerian Stock Exchange to reposition the organisation for better growth and opportunities.
The Group listed 1,964,115,918 ordinary shares on the Nigerian Exchange Limited on Friday, 15 October 2021 at N16.15 per share.
On the same day, investors traded 3,562,076.00 shares of the company, pushing the price to N17.75 a share by the close of business.
The price of the stock continues to rise on Monday, hitting N19.5 per as more investors jumped on it. Investors traded 19,000,933 units on Monday.
Nigerian Exchange Group has now gained 20.74 percent in value since being listed on the Nigerian Exchange Limited on Friday.
“The most significant benefit of our listing on the NGX exchange is the ability it gives us to drive inorganic growth as we add new subsidiaries and business lines that complement our business. This new era is indeed very exciting for us and we look forward to many possibilities achievable from deepening our various partnerships,” stated Mr. Oscar Onyema, the Chief Executive of NGX Group.
Nigerian Stock Market Opens Lower on Wednesday
The Nigerian Exchange Limited (NGX) opened lower on Wednesday after shedding N153 billion on Monday.
The market value of all the listed equities hover around N21.455 trillion in the early hours of Wednesday, a N17 billion decline when compared to the N21.473 trillion the Exchange closed on Monday.
The NGX All-Share Index dipped to 41,112.99 index points on Wednesday from 41,144.67 index points it closed on Monday.
|NGXGROUP||N 17.75||N 19.50||1.75||9.86 %|
|IKEJAHOTEL||N 1.05||N 1.15||0.10||9.52 %|
|CUSTODIAN||N 7.30||N 7.85||0.55||7.53 %|
|HONYFLOUR||N 3.55||N 3.78||0.23||6.48 %|
|CHAMS||N 0.22||N 0.23||0.01||4.55 %|
Top Losers on Monday
|MAYBAKER||N 4.74||N 4.36||-0.38||-8.02 %|
|ROYALEX||N 0.64||N 0.59||-0.05||-7.81 %|
|NPFMCRFBK||N 1.85||N 1.71||-0.14||-7.57 %|
|FBNH||N 12.70||N 11.75||-0.95||-7.48 %|
|MBENEFIT||N 0.30||N 0.28||-0.02||-6.67 %|
Top Trades on Monday
Fidelity Bank to Raise U.S$500 Million for General Corporate Purposes
Fidelity Bank, Nigeria’s leading tier-II bank, is planning to raise US$500,000,000 from the international debt capital market through an unsecured note issuance, the bank disclosed in a statement filed with the Nigerian Exchange Limited on Monday.
According to the bank, the proceeds will be used for general corporate purposes and to support its trade finance business.
The proposed aggregate offer size is US$500 million, due 2026, which will when issued ranked parri passu, without preference among themselves, with all other unsecured and unsubordinated obligations of the Bank. The lender intends to list the Notes on the Irish Stock Exchange, with the expectation that the notes will be traded on its regulated market. The Securities and Exchange Commission has confirmed that it has no objection to the transaction.
“In view of the foregoing, the Bank is pleased to notify the Nigerian Exchange Limited of planned investors meetings with respect to the Transaction scheduled to commence today October 18, 2021.
“The final decision to issue the Notes will however be subject to finalising the necessary transaction documentation and prevailing market conditions,” the bank stated.
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