Stock Market

Are Tanking Chinese Tech Stocks Now a Bargain for Global Investors?

Published

3 years ago

July 27, 2021

China's Stocks Tumble as Markets Reopen After Week-long Holiday

The sharp drop in the value of Chinese tech stocks will be seen as a major buying opportunity for some investors, but they must exercise extreme caution, warns the CEO of one of the world’s largest independent financial advisory, asset manager and fintech organizations.

The warning from Nigel Green, chief executive and founder of deVere Group, comes as fears mount over a regulatory crackdown by the Chinese government.

In the third day of plummeting values for China’s tech giants, Tencent’s shares lost 10%, Alibaba dropped 7.7%, JD.com shed 8.9% and Meituan fell 17%.

Hong Kong’s Hang Seng benchmark was down more than 5% on Tuesday. Meanwhile, in mainland China, the CSI 300 index of Shanghai and Shenzhen-listed stocks lost 3.5%.

The sharp sell-off in Chinese and Hong Kong shares spilled over into European markets and Wall Street futures are pointing to a lower open.

Mr Green notes: “Chinese tech stocks were dropping again on Tuesday for the third consecutive session as markets become increasingly jittery over concerns of a regulatory crackdown by Beijing.

“The sell-off has been focused on China’s $100 billion private education industry following a leaked government memo highlighting incoming new, tougher severe regulations which will prevent companies in the sector accepting foreign investments, raising capital through the stock market, or teaching outside school hours, amongst other rules.

“This tough new approach being taken by Beijing has spooked the tech sector which is already on high alert amid fears that the government wants more control over private enterprise.

“The effect has been wiping hundreds of billions of market value from China’s largest tech giants.”

He continues: “It can be expected that some investors will swoop in and view these events as a major buying opportunity; as a chance to top-up their portfolios within the booming Chinese economy.

“They may have a point – these shares do look like bargains.

“However, they must exercise extreme caution as the situation remains highly unpredictable and any further similar actions – or even suggestions – from Beijing will mean more, sustained volatility and sell-offs.

“It could be a long time until there is clarity.”

A good fund manager, says the deVere boss, will help investors seize the opportunities and sidestep the risks by seeking out the inevitable winners and losers from the Chinese government’s possible regulatory crackdown.

“As always, investors should be as diversified as possible in order to maximize returns relative to risk. This means geographical, sector and asset class diversification.”

Mr Green concludes: “As China rolls out another round of regulatory tightening, global stock markets will be impacted, and investors must tread carefully to avoid unnecessary risks and to capitalize on the potential opportunities.”

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Samed Olukoya

Is the CEO and Founder of Investors King Limited. He is a seasoned foreign exchange research analyst and a published author on Yahoo Finance, Business Insider, Nasdaq, Entrepreneur.com, Investorplace, and other prominent platforms. With over two decades of experience in global financial markets, Olukoya is well-recognized in the industry.

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Nigerian Exchange Limited

Investors’ Profit Taking Chip Off N187bn From Nigerian Stock Market

Published

14 hours ago

October 3, 2024

Iyanuoluwa Martins

Nigerian Exchange Limited - Investors King

Profit-taking weakened the Nigerian Exchange Limited (NGX) by 0.33 percent on Wednesday as sell-offs persisted in 32 stocks.

As a result of this, the NGX market capitalisation of the stock market lost N187 billion to close at N56.448 trillion from N56.635 trillion.

The All-Share Index (ASI) also shed 0.33 percent or 327 points to close at 98,232.39, against 98,558.79 reported on Monday. The market didn’t trade on Tuesday (October 1) due to the 64th Independence Day celebration.

Investors King analysis of the market activities showed trade turnover settled lower, relative to the previous session, with the value of transactions down by 92.43 percent.

A total of 425.76 million shares valued at N8.45 billion were exchanged by investors in 11,954 deals, in contrast to 1.86 billion shares valued at N111.58 billion were exchanged in 10,583 deals posted previously.

Market breadth also closed negative with 32 losers and 26 gainers.

On the losers’ chart, Ellah Lakes led by 9.93 percent to close at N3.99 per share, while International Breweries led the gainers’ chart by 9.98 percent to close at N4.41 per share.

International Breweries emerged as the highest price gainer of 9.98 percent to close at N4.41, per share.

Meyer followed with a gain of 9.94 percent to close at N8.52, while Veritas Kapital Assurance increased by 9.93 percent to close at N1.66, per share.

Tripple Gee and Company rose by 9.91 percent to close at N4.99, while Deap Capital Management & Trust appreciated by 9.84 percent to close at N1.34, per share.

For the gainers, Ellah Lakes led others on the losers’ chart with 9.93 percent to close at N3.99, per share. Caverton Offshore Support Group followed with a decline of 9.92 percent to close at N2.18, while ABC Transport shed 9.57 percent to close at N1.04, per share.

Livestock Feeds depreciated by 9.03 percent to close at N2.72, while Consolidated Hallmark Holdings dipped by 7.24 percent to close at N1.41, per share.

On indices performance, the NGX Banking Index dropped by two percent and NGX Oil & Gas Index was down by 0.1 percent, while the NGX Consumer Goods Index added 1.1 percent and NGX Insurance Index appreciated by one percent. The NGX Industrial Goods index closed flat.

Dividends

Access Holdings to Pay N15.99 Billion Interim Dividend, Aig-Imoukhuede to Receive N1.151 Billion

Published

1 week ago

September 24, 2024

Samed Olukoya

Access Holdings Plc has announced an interim dividend of 45 kobo for every ordinary share of 50 kobo held in the company in the first half (H1) of 2024.

With 35.545 billion in outstanding shares, this translates to N15.99 billion in interim dividend. However, Aigboje Aig-Imoukhued, the chairman of Access Holdings, will take home N1.151 billion in dividend.

The chairman presently holds 119,231,715 direct shares and 2,438,256,720 indirect shares in the company, according to the company’s latest financial statement obtained by Investors King.

According to the lender, subject to appropriate withholding tax the dividend will be paid to shareholders whose names appear on the Register of Members at the close of business on Thursday, October 3, 2024.

The bank will pay dividends on Thursday, October 17, 2024 to all shareholders whose names appear on the Register of Members at the close of business on Thursday, October 3, 2024.

These shareholders are expected to have completed the e-dividend registration and mandated the Registrar to pay their dividends directly into their bank accounts.

However, shareholders who are yet to complete the e-dividend registration are advised to download the Registrar’s E-Dividend Mandate Activation Form, which is also available on https://theaccesscorporation.com/ and complete and submit it to either the Registrar, their respective Banks or any Access Bank Plc branch.

Shareholders with dividend warrants and share certificates that have remained unclaimed or are yet to be presented for payment or returned for validation are advised to complete the e-dividend registration or contact the Registrar.

Access Holdings grew profit after tax by 108% to N347.922 billion from N167.601 billion filed in H1 2023 while gross earnings jumped 133.5% from N940.311 billion in the first half (H1) of 2023 to N2.196 trillion in H1 2024.

Nigerian Exchange Limited

Stock Investors Gain N131 Billion on Tuesday

Published

2 weeks ago

September 18, 2024

Samed Olukoya

Nigeria’s equities market opened the holiday-shortened trading week in green as investors bought banking and consumer goods stocks despite record profit taking in insurance, industrial, oil & gas stocks.

“Looking forward, the equities market is expected to retain its buy interest as investors cherry-pick undervalued stocks. However, given the sentiment that rates might have peaked in the fixed income and money markets and investors locking in on current rates, we expect some bearish undertone to persist in the equities market,” according to United Capital research analysts.

The analysts said the bulls “will remain incentivised to persist in bargain hunting, given the tremendous mid-long-term opportunities in the equities market. Fund managers and businesses may begin to entertain mid-long-term (≥6 months) investment objectives, cherry-picking only sound equities with strong fundamentals and ongoing corporate actions. This strategy will maximise market opportunities, thereby optimising portfolio returns”.

The Nigerian Exchange Limited (NGX) All-Share Index (ASI) and equities market capitalisation appreciated by 0.23 percent and N131billion from preceding day’s 97,456.62 points and N56.002 trillion respectively to 97,685.63 points and N56.133 trillion.

The market’s year-to-date (YtD) return rose to 30.64 percent.

According to Meristem research analysts, “While we expect subdued participation in the Nigerian equities market this week, we anticipate that buying activity will outweigh profit-taking. Our outlook is hinged on the belief that no major negative catalysts are expected to shift market direction this week. We anticipate that investors will continue selective buying, seeking opportunities across various sectors.

“Additionally, macroeconomic developments and corporate actions from companies could stimulate moderate buying interest in the market. We also do not foresee a significant shift towards the fixed-income market as yields have started to stabilize. However, we acknowledge the potential for profit-taking as short-term investors may look to capitalize on recent gains. Overall, we expect the market to close in the green zone this week,” Meristem analysts said.