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Hindenburg Reveals $4 Million Profit from Adani Short-Sell Amid Market Turmoil



Gautam Adani

Hindenburg Research’s 2023 allegations against the Adani Group resulted in a $153 billion loss in market value for the Indian conglomerate.

Despite the monumental market disruption, the New York-based firm disclosed on Monday that it made a profit of just over $4 million from the report.

This revelation marks the first time Hindenburg has provided a detailed account of its earnings from the bombshell report, which accused the Adani Group of fraud and market manipulation.

The firm’s founder, Nathan Anderson, confirmed the figure on Hindenburg’s website, shedding light on the relatively modest financial gain in contrast to the widespread market impact.

The scathing report, released in early 2023, caused significant fluctuations in Adani Group’s stock and bond prices.

While these securities have since recovered some ground, the conglomerate’s market value remains approximately $30 billion short of its pre-Hindenburg levels, now standing at around $205 billion.

According to Hindenburg, the bulk of its profits, amounting to about $4.1 million, came from gains related to short positions on Adani’s stocks through “one investor relationship.”

Also, the firm earned around $31,000 from shorting Adani’s U.S. bonds. However, Hindenburg did not disclose the identity of the investor involved.

The release of these figures coincides with Hindenburg’s criticism of the Securities and Exchange Board of India (SEBI), accusing the regulator of inadequately addressing the fraud allegations.

Hindenburg posted the full show cause notice it received from SEBI in June, which alleged that the report contained misrepresentations intended to mislead readers.

The authenticity of this notice has not been independently verified by Bloomberg.

In response to Hindenburg’s latest claims, shares of all 10 Adani-linked companies rose on Tuesday, with the energy and gas units leading the charge with gains exceeding 4% each.

Hindenburg also highlighted SEBI’s omission of Kotak Mahindra Bank Ltd. in its notice.

According to Hindenburg, Kotak was instrumental in creating and managing the offshore fund structure used by its investor partner to short Adani.

Hindenburg criticized SEBI for using the acronym “KMIL” instead of directly naming Kotak Mahindra Investments Ltd., the asset management company.

The SEBI notice also implicated U.S. hedge fund Kingdon Capital Management, suggesting that the fund had prior knowledge of Hindenburg’s research and had a profit-sharing agreement with the short-seller.

The details of Kingdon’s involvement remain unclear, as the firm could not be reached for comment outside U.S. business hours.

The Adani Group, SEBI, and Kotak Mahindra Bank have yet to respond to these developments.

Hindenburg’s latest disclosure comes at a politically sensitive time in India, where opposition parties have criticized Prime Minister Narendra Modi for crony capitalism.

The controversy surrounding the Adani Group, led by one of Asia’s richest tycoons, Gautam Adani, continues to fuel debates about corporate governance and regulatory oversight in India’s rapidly growing economy.

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

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Nigerian Exchange Limited

NGX Rebounds with N263bn Gain as Small and Mid-Cap Stocks Surge



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The Nigerian Exchange Limited (NGX) recovered on Thursday amid the surge in strong investor demand for small and mid-cap stocks.

The market capitalisation rose by N263 billion to N56.91 trillion.

The All-Share Index climbed by 0.47%, closing at 100,503.21 points, reflecting a solid buying interest across various sectors.

Despite the market’s overall positive performance, trading activity was subdued with a 64.3% decrease in average daily volume to 392.8 million units.

However, the number of deals increased by 3.4% to 9,013, while the traded value declined by 17.3% to N8.33 billion.

Guaranty Trust Holding Company led the volume trades, with 39.75 million shares worth N1.80 billion across 663 deals.

Meanwhile, Airtel Africa dominated in value, with trades worth N2.25 billion in just 34 transactions.

Sector performance was mixed. Gains were recorded in the oil and gas, consumer goods, and industrial goods sectors, rising by 0.19%, 0.07%, and 0.01%, respectively.

Notable stocks included Airtel Africa, Eterna Plc, Oando, and NASCON Allied Industries.

Conversely, the insurance and banking sectors faced losses, declining by 2.35% and 2.28%.

Top gainers of the day were United Capital, Oando, and Africa Prudential, while Linkage Assurance and Veritas Kapital led the decliners.

This rebound highlights investor confidence in Nigeria’s equities market, with opportunities emerging in small and mid-cap stocks.

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Nigerian Exchange Limited

Equities Market Dips 0.04% as Q2 Earnings Hit NGX



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Nigeria’s equities market experienced a slight decline of 0.04% on Wednesday ahead of the second quarter (Q2) financial results.

At the close of trading on the Nigerian Exchange Limited (NGX), the All Share Index (ASI) fell from the previous day’s high of 100,075.59 points to 100,032.32 points.

Similarly, the equities market capitalization decreased from N56.670 trillion to N56.645 trillion.

Jaiz Bank, Cutix, Zenith Bank, Universal Insurance, and FCMB Group were among the most actively traded stocks.

Investors exchanged 1,099,300,929 shares worth N10.076 billion across 8,720 deals.

Several stocks dominated the sell-side, including RT Briscoe, which fell from 70 kobo to 66 kobo, a 5.71% decrease.

FTN Cocoa dropped by 4.44%, while Tantalizer, Neimeth, and Consolidated Hallmark Holdings also saw declines.

The market’s year-to-date (YtD) positive return decreased to 33.78%. While this month has seen a marginal drop of 0.03%, the week still shows an increase of 0.36%.

The dip reflects investor reactions to the ongoing release of corporate earnings for Q2. As companies disclose their financial results, market participants are adjusting their positions accordingly.

As more Q2 financials are released, market volatility is expected. Investors are closely monitoring earnings reports to guide their investment strategies.

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Nigerian Exchange Limited

Nigeria’s Equities Market Gains 0.11%, Adds N62 Billion in Value



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The Nigerian equities market posted a 0.11 percent gain on Tuesday as increased buy-side actions boosted the market’s value by N62 billion.

This positive movement reflects renewed investor confidence and activity in the market.

Leading the charge were stocks like United Capital, UACN, and Cutix. Investors engaged in 8,151 deals, exchanging 368,392,413 shares worth N7.424 billion.

Among the top advancers, United Capital saw a significant rise from N30 to N33, adding N3 or 10 percent.

Cutix also performed well, climbing from N5.08 to N5.58, an increase of 50 kobo or 9.84 percent.

Sunu Assurances and Cornerstone Insurance were other notable gainers, with Sunu Assurances increasing from N1.29 to N1.39, adding 10 kobo or 7.75 percent, and Cornerstone moving from N1.95 to N2.10, up 15 kobo or 7.69 percent.

UACN also saw a substantial gain, rising from N14.15 to N15.20, an addition of N1.05 or 7.42 percent.

The market’s positive return year-to-date (YtD) now stands at 33.84 percent, with a marginal increase of 0.02 percent for the month. So far this week, the market has grown by 0.41 percent.

Key stocks such as Zenith Bank, Access Holdings, GTCO, Jaiz Bank, and UBA were actively traded, indicating strong investor interest.

At the close of trading on the Nigerian Exchange Limited (NGX), the All Share Index (ASI) and equities Market Capitalisation rose from the previous day’s low of 99,966.28 points and N56.608 trillion to 100,075.59 points and N56.670 trillion, respectively.

This uptick in market activity and value reflects growing optimism among investors, buoyed by positive corporate earnings and macroeconomic indicators.

As Nigeria’s market continues to evolve, stakeholders are hopeful for sustained growth and stability in the coming months.

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