Stock Market

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

Published

3 months ago

July 2, 2024

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.

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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

NGX Market Cap Further Loses N671 Billion

Published

18 hours ago

October 4, 2024

Iyanuoluwa Martins

Nigerian Exchange Limited - Investors King

The Nigerian Exchange Limited (NGX) continued its presence in the red territory on Thursday as investors counted losses valued at N671 billion at the close of trading on Thursday, October 3.

The market capitalisation dropped 1.19% to N55.7 trillion from N56.4 trillion recorded by the bourse on Wednesday, while the benchmark All-Share Index (ASI) also decreased to 97,064.42 from 98,232.39 recorded the previous trading day.

The market breadth was negative as 23 stocks advanced and 27 stocks declined, while 65 stocks remained unchanged in 8,565 deals.

Investors sold mostly industrial and consumer goods stocks despite the rally seen in oil & gas and insurance stocks.

Dangote Cement Plc decreased most on the Nigerian Exchange Limited (NGX) by N53.20 or 10%, from N532 to N478.80. It was followed by CWG which decreased from N6.50 to N6.20, adding 30kobo or 4.62%.

Seplat, Livestock, and Regalins led other gainers with 10%, 9.93%, and 9.76% growth each in share prices to close at N4, 513.40, N2.99, and N0.90 from the previous N4, 103.10, N2.72, and N0.82 per share.

On the flip side, Dangote Cement, NSL Tech, and UPDC Real Estate led other price decliners as they shed 10%, 7.58%, and 4.72% each to close at N478.80, N0.61 and N5.05 from the initial N532.00, N0.66, and N5.30 per share.

On the volume index, United Bank for Africa (UBA) led trading with 37 million shares valued at N993 million in 909 deals followed by ZENITH BANK which traded 19 million shares valued at N716 million in 323 deals. Dean Capital traded 13 million shares valued at N20 million in 159 deals.

On the value index, Seplat recorded the highest value for the day trading stocks worth N2.3 billion in 13 deals followed by UBA which traded equities worth N993 million in 909 deals and Zenith Bank traded shares valued at N716 million in 323 deals.

Nigerian Exchange Limited

Investors’ Profit Taking Chip Off N187bn From Nigerian Stock Market

Published

2 days ago

October 3, 2024

Iyanuoluwa Martins

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

2 weeks 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.