In two days, a new cooking and lifestyle show will debut on GOtv, the digital terrestrial television platform from MultiChoice Nigeria. Titled ‘Jollof With Me’, the show will feature media personality Nancy Isime hosting friends over a meal and some fun, light-hearted discussions.
Viewers will learn new things about the guest through the conversations as well as the cocktail game that will see Isime make a cocktail that best describes the guest, her accuracy will be judged by the guest and viewers can catch all the fun and excitement on GOtv Channel 29 and on Africa Magic Family.
‘Jollof With Me’ is one of the numerous ways MultiChoice is promoting Nigerian local content on its DTT platform. As aptly stated by John Ugbe, the Chief Executive Officer of MultiChoice Nigeria during the annual MultiChoice Media Showcase held virtually this year, the company’s booming success lies in its investment in local entertainment.
Its mantra is to go hyper-local, reaching subscribers with content that resonates with their lifestyle and culture. However, GOtv goes the extra mile. Its large vault does not only boast of content variety but comes with a premium tag.
Shows that are ordinarily accessible to big spenders are available to middle and low-income earners. For as little as N2,460, one can subscribe to GOtv Jolli, and gain access to over 50 channels that offer the best in sports, news, entertainment and lifestyle. This affordability is what positions GOtv as a top-of-the-mind recall for many Nigerians when it comes to local entertainment.
This year particularly has seen the brand offering the best of local entertainment to subscribers despite the uncertainties that clouded the early days of the capricious coronavirus pandemic.
From Big Brother Naija Lockdown season that shattered previous records of public votes with 900 million votes to the club-like show ‘Turn Up Friday’ and live party ‘Owambe Saturday’, the Pay-TV platform ensured that viewers stay entertained while on lockdown. The two music lifestyle shows are set to return this month with more party vibes and grooves for viewers to enjoy this festive period.
Also, during the lockdown period, it showed its unwavering commitment to entertaining Nigerians with the campaign ‘We Dey Your Side’. Subscribers were entitled to an upgrade in their respective packages saving up to 75%.
This afforded them the opportunity to watch the slew of Nollywood content available on Africa Magic Channels as well as upbeat Afrobeats music on music channels such as MTV Base Africa. Similar rewards are in the offing this festive season. The company recently announced a special price offer for the purchase of GOtv decoder, antenna and Jolli package for just N8,400, tagged GOtv Jolli Offer”
Beyond entertainment, GOtv which marked its presence in Nigeria in 2011, is very visible in the local sports entertainment sector.
Through the GOtv Boxing Night, the brand has reignited a passion for the sports while placing African champions on the spotlight. For instance, the West African Boxing Union (WABU) welterweight champion, Rilwan ‘Real One’ Oladosu in a recent report expressed his enthusiasm that the African premier boxing show is returning for the 21st edition, happening today, Friday, November 27.
It was scheduled earlier for April but due to the constraints of COVID-19, the show was postponed. Matches will be held under strict health guidelines at Rowe Park Sports Centre, Lagos and viewers can catch the heart racing actions on Super Sports Select 2.
Arguably, the company which prides itself as a family-focused platform is geared to meet and exceed expectations of Nigerians in the TV entertainment landscape. Whether they are on GOtv Jolli package or GOtv Max package, the platform is guaranteeing nothing but doses of entertainment that suit their lifestyle. Simply put, they want you to ‘love it’.
Themed, “Responsible Investing: Challenges and Opportunities for the Nigerian Investor”, the webinar will lay the foundation for engagements with investors and highlight the most pressing challenges and opportunities for advancing RI imperatives in Nigeria. Interested participants can register to attend at https://bit.ly/nse-pri.
The event will be headlined by Ms. Nicole Martens, Director, Middle East, and Africa, PRI, and will feature Mr. Bola Adeeko, Divisional Head, Shared Services, NSE; Mr. Jude Chiemeka, Divisional Head, Trading Business Division, NSE; and Ms. Anastasia Guha, Director of Northern Europe, Middle East & Africa, PRI.
These distinguished speakers will share valuable insights on the international and regional trends in RI, as well as introduce participants to tools and resources available for implementing RI in Nigeria.
Speaking about the event, Mr. Adeeko, said,
“At The Exchange, we are pleased to collaborate with PRI, the world’s leading proponent of responsible investment to deepen the capacity of investors within our ecosystem. For investors, there has been strong growth in sustainable, responsible, and impact-focused finance over the past two decades.
In response to this, companies are making concerted efforts to improve engagement and provide the information needed by investors to make sound investment decisions. The NSE recognizes its unique role in promoting the creation of investment instruments and adoption of practices that are focused on achieving environmental and social impact and we will, therefore, continue to provide platforms such as this webinar to foster engagement.”
On her part, Ms. Martens commented,
“The PRI thanks the NSE for the invitation to co-host this webinar on the issues of Responsible Investing and we look forward to this discussion with Nigerian investors. The session will be focused on building capacity in responsible investment across the country and PRI anticipates that the session will present invaluable insights both for the PRI and participants alike in this regard.
We will also leverage the session to garner valuable feedback from Nigerian investors regarding the potential opportunities and challenges with respect to RI in the local context which would be used to design specialized programmes for future sessions”.
This workshop will be organised as the first in a series of workshops aimed at empowering key stakeholders across the Nigerian capital market on RI.
Lagos, Nigeria, 26th November 2020 – The Board of Directors of Studio Press Nigeria PLC has approved the appointments of the following Executive Directors of the Company:
Mr. Sukamal Mukherjee – Finance Director
Mr. Hassan Ismail – Technical Director
Mr. Ghaith Ismail – Logistics Director
Mr. Sukamal Mukherjee is a Fellow, member of the Institute of Chartered Accountants of India. He has over 40 years of experience in all areas of Finance & Accounts internationally and in Nigeria. He has worked with various reputable organisations in Shipping, Steel, Food, Tea, Insurance and Textile Industries. He has garnered more than 20 years of working experience in the Industrial Sector of the Nigerian economy.
Mr. Hassan Ismail is a Fellow, member of the Institute of Engineers and Architects, Lebanon. He has over 30 years of experience in all areas of Electrical & Electronics, Printing and Production Industry in Nigeria. His expertise in the Printing industry has earned him much accolades and reverence among his contemporaries executing many printing projects for top tier companies in the country.
Mr. Ghaith Ismail holds a Bachelor degree in Banking & Finance from one of the most reputable Universities in Lebanon (LAU). He has 10 years of experience in the packaging industry in Nigeria. He started his career in the corrugated Industry and then moved to Studio Press Nigeria Plc.
In 2014, his responsibility was expanded with more exposure in other types of packaging like labels, flexibles and Mono-Cartons. Currently, he is in charge of marketing and sales functions of the Company including and logistics aspect of the business.
Studio Press (Nigeria) Plc is a printing and manufacturing company in Nigeria involved in lithographic printing and manufacturing cartons, light packaging materials and labels. The company produces nylon and poly wrappers using flexo printing. Studio Press Nigeria Plc is a subsidiary of Rommac Agencies Limited. The company’s head office is in Lagos, Nigeria.
Stanbic IBTC Holdings PLC is pleased to announce that it has obtained all required Regulatory Approvals as well as a License from the National Insurance Commission to establish a wholly-owned Life Insurance subsidiary to be known and referred to as Stanbic IBTC Insurance Limited.
The establishment of this new subsidiary essentially complements the bouquet of product offerings by Stanbic IBTC as it continues its goal of being the leading end-to-end financial solutions provider in Nigeria. In this regard, SIIL will aim to facilitate long term insurance for already financially included individuals and will seek to become the preferred Insurer in the Life Insurance Business.
Stanbic IBTC Holdings PLC, a member of Standard Bank Group, is a full-service financial services group with a clear focus on three main business pillars – Corporate and Investment Banking, Personal and Business Banking and Wealth Management. The group’s largest shareholder is the Industrial and Commercial Bank of China (ICBC), the world’s largest bank, with a 20.1% shareholding.
In addition, Standard Bank Group and ICBC share a strategic partnership that facilitates trade deals between Africa, China and select emerging markets. Standard Bank Group is the largest African financial institution by assets. It is rooted in Africa with strategic representation in 21 countries on the African continent.
Standard Bank has been in operation for over 158 years and is focused on building first-class, on-the-ground financial services institutions in chosen countries in Africa; and connecting selected emerging markets to Africa by applying sector expertise, particularly in natural resources, power and infrastructure.
Increased borrowing and spending in recent years have driven concerns Africa is heading towards a debt crisis. The economic fallout from the COVID-19 pandemic has now brought the precarious fiscal situation in some countries into stark relief.
Extensive relief from international financial institutions and bilateral lenders will partially mitigate the negative economic impacts of the COVID-19 pandemic.
This will prevent the emergence of a regional sovereign risk crisis whereby a large number of African states default on their debt obligations.
Nonetheless, countries facing particularly severe economic challenges – such as Zambia, Angola and Mozambique – will likely continue to defer or renegotiate debt payments in the coming months.
Meanwhile, sovereign risks will rise in other countries from 2021 as their debt matures.
Debt warnings
Since the early 2010s, countries across the region have sought the help of bilateral and multilateral lenders to finance ambitious infrastructure projects and have tapped into the international bond market to raise further funds. This borrowing has been accompanied in most areas by increased public spending on the social and healthcare sectors to address the needs of rapidly urbanising populations.
Where this has been accompanied by weak economic growth, pressure on fiscal sustainability has grown as countries struggle to balance limited revenues with debt repayment obligations.
The pandemic has tightened this pressure. Global supply and demand disruption weakened export revenue streams and interrupted economic activity in key sectors across the region, and many governments do not have the fiscal headroom to stimulate recovery. The IMF estimates that GDP in sub-Saharan Africa will contract by 3.2% in real terms in 2020.
Thin ice
This has raised questions over the ability of many governments to service debt obligations, and these questions are being asked with ever-increasing urgency – particularly in those countries where gross government debt already dwarfs GDP. In 2020, international rating agency Fitch Ratings has downgraded five countries, including Angola and Zambia twice.
In July, it stated that the average debt-to-GDP ratio – a key measure of a state’s ability to repay its debts – across the 19 regional states for which it provides ratings had risen from 57% in 2019 to an expected 71% by the end of 2020. Fitch noted further that the median budget deficit across these states had risen from 4.9% in 2019 to an estimated 7.1% by the end of 2020.
Zambia on the brink
Zambia on 22 September announced plans to negotiate the restructuring of its debt, stating it would struggle to meet three upcoming repayment obligations (around USD 120m) on three Eurobonds totalling USD 3bn. It has since missed the first repayment, which matured on 14 October; the others are due on 30 January 2021 and 20 March 2021. To date, it has not been able to negotiate a deferment with its creditors, making it likely to officially default by 20 November.
This would be Africa’s first “COVID default”. Nonetheless, Zambia was already in a particularly perilous debt position before the pandemic. It is also one of the only countries not to benefit from the IMF’s emergency credit line funding, given its unsustainable debt profile and the multilateral lender’s concerns over its fiscal indiscipline.
Vulnerable economies
Zambia’s fiscal woes have raised questions about other countries that went into the pandemic with high debt loads and have been hit hard by the commodities slump, including Angola and Mozambique. Angola’s debt-to-GDP ratio is forecast to reach 121.3% in 2020, according to our strategic partner Oxford Economics. Its debt has climbed steeply in recent years, the result of both borrowings to support infrastructure development and of spending outstripping revenue following the oil price crash of 2014.
Meanwhile, Mozambique has not received donor funding since 2016, when it was revealed it had concealed more than USD 2bn of debt, on which it subsequently defaulted. Although less reliant on commodities, it continues to battle a large budget deficit. Fiscal pressures are expected to persist until revenues from liquefied natural gas (LNG) projects begin to flow around 2024. Its debt-to-GDP ratio is forecast to reach 117.5% in 2020.
But no wider crisis
However, Angola has managed to negotiate its debt-servicing obligations effectively, indicating positive relationships with its main creditor China and its primary lender, the IMF. The government in June reduced oil shipments to China, which it has been using as collateral for an estimated USD 20bn worth of loans.
This agreement has provided Angola with more oil to sell, boosting export earnings at a critical time. Meanwhile, the IMF on 16 September approved the third tranche of funding for Angola under the Extended Fund Facility arrangement agreed in 2018. This originally constituted a USD 3.7bn loans to be paid out over three years until 2021, but the total amount was recently increased to USD 4bn.
The decision had been delayed, likely owing to concerns over the sustainability of the country’s debt, particularly its repayments to China.
Details of the deal are yet to be released, but early indications suggest that China is likely to have granted further relief to the government (it typically operates on a case-by-case basis and is therefore difficult to predict) and that the IMF is confident the government will continue to demonstrate fiscal prudence. This third tranche entailed a disbursement of USD 1bn.
Mozambique has benefited from the IMF’s rapid credit facility (RCF) granted in response to the pandemic. It has also received extensive support from the EU, which on 2 November pledged EUR 100m (USD 117m) in support of the state budget for the next two years to help the government to cope with the fallout from the COVID-19 pandemic. The money is to be directed towards education, health and social welfare, including activities already underway to minimise the spread of the virus.
Huge help
External support alongside government efforts to improve fiscal management has helped countries to mitigate the immediate impact of the crisis. Indeed, since the outbreak of the COVID-19 pandemic, multilateral lenders have scrambled to provide debt relief for indebted countries. The World Bank’s Development Committee and the G20 finance ministers in April endorsed the Debt Service Suspension Initiative (DSSI) in response to the COVID-19 outbreak, with both the IMF and the World Bank supporting its implementation.
The DSSI suspended debt repayment obligations for around 40 low-income countries to enable them to redirect spending towards the COVID-19 response, including health, social and economic measures. This initially extended until the end of October and has since been renewed for at least another six months. The IMF has also called for private-sector lenders to participate in the initiative.
Meanwhile, for its part, the IMF has extended emergency financing to 33 states in sub-Saharan Africa through its Special Drawing Rights (SDR) facility. The UN and others have urged it to expand this further and consider cancelling some existing debts, rather than just postponing payments.
China, the continent’s largest creditor and estimated to hold approximately 20% of Africa’s external debt, have considered renegotiating interest-free debts on a bilateral basis, as indicated in the case of Angola. The region’s debt is unevenly distributed, with China believed to account for approximately 33% of Kenya’s debt and as much as 75%-80% of that of Djibouti, underlining a case-by-case approach to negotiation.
Most recently, market optimism on the back of news in November of an apparently effective vaccine has buoyed the oil price, bringing a measure of relief to state coffers in those economies reliant on the commodity for revenue and foreign exchange earnings. Although the oil price rally could be short-lived, and the economic fallout throughout the year will not be mitigated, it will provide some short-term relief for several indebted economies going into 2021.
Not out of the woods
Africa is not hurtling towards a continent-wide debt crisis. Debt levels and the vulnerability of countries vary widely, and mass sovereign defaults will not materialise in 2020 or early 2021. Nevertheless, the overall trajectory is negative.
Pressures elsewhere will rise as several large Eurobonds become due for repayment in Kenya, Tanzania, Zambia, Ghana and Senegal – among others – between 2021 and 2024. Should the price of oil dip below USD 35 per barrel, commodities-reliant economies will have limited ability to ensure fiscal sustainability.
The 2020s are unlikely to be a repeat of the 1990s “lost decade”, but they will almost certainly see debt challenges become increasingly prominent as countries find their room for fiscal manoeuvre ever more limited amid economic pressures.
Sahara Foundation, the corporate responsibility vehicle of energy conglomerate, Sahara Group and the Sahara Talent Entrepreneurship Program (STEP) volunteers recently gave some young Nigerian students a platform to pursue their dreams through a project that was designed to power learning activities at the Oshodi Junior High School in Lagos, Nigeria. Funmi Oguindare reports.
While Africa is home to almost a fifth of the world’s population, it accounts for less than four per cent of global electricity use. More than half of the sub-Saharan population—600million people—live in the dark while half of the secondary schools in sub-Saharan Africa lack access to power.
It wouldn’t be too far-fetched to assert that a computer laboratory without stable access to power supply defeats the purpose for which it was created. This was the state of Oshodi Junior High School where the Computer Laboratory established in 2018 was not optimally functional due to epileptic power supply that disrupted students’ ability to learn effectively.
In trying to fix this challenge, a two-month internal fundraising campaign was launched by staff volunteers (STEPers) across the country. Having purchased the inverter solar system, batteries, and solar panels, all was set for the launch of the project at the school.
However, rather than simply install the system, Sahara Foundation came up with a robust program that sought to build the capacity of some of the Junior Secondary School (JSS3) students who are at the verge of moving to Senior Secondary School. This is the point where they decide on the first path to take in the journey to future careers in the sciences, Arts or Commercial disciplines.
Sahara Foundation also planned to transform the ‘look and feel’ of the computer laboratory to inspire the students. To this end, both volunteers and artisans worked on delivering various murals and wall painting which brought the energy in the computer laboratory to life.
According to the African Development Bank, less than 25 per cent of African higher education students are in Science, Technology, Engineering & Math (STEM) fields, with the majority of students studying social sciences and humanities. The effect of this is a lack of adequate domestic STEM workforce which thus means that STEM jobs in Africa today are outsourced to other countries, including the U.S., China, and India.
This reflects a gap that needs to be bridged. Hence, on Thursday, November 12, in addition to presenting the solar system to the school authorities and education district leaders (duly represented), we also highlighted the benefits of careers in STEM (Science, Technology, Engineering & Mathematics) and provided examples of how they could build the careers they desire, a luxury many young people do not enjoy which can sadly lead to unsuitable career choices. STEM education is critical to Africa’s future, and we are taking action to ensure this gap in STEM education is fixed.
During the launch, Sahara Foundation Volunteer, Onu Omar, using a mini solar system explained to the students how energy from the sun was used to power their Laboratory. Mrs. Olajumoke Ajayi, another Sahara Foundation volunteer, who works with Sahara’s Upstream Division, Asharami Energy, engaged the students on STEM careers, providing helpful tips and guidance on how the students can surmount challenges along the path of their dreams.
Other Sahara Foundation volunteers from different divisions of the energy conglomerate also hosted 20-minute conversation cafés/group mentoring sessions with the students where they discussed varying subjects from understanding STEM, to choosing the right courses, careers and academic excellence. Going by the enthusiasm expressed by the students and their teachers, Oshodi Junior High School is certainly poised to take full advantage of their brightly coloured solar power computer laboratory.
With the solar-powered lab, hundreds of students can learn how to use computers, develop necessary skills to be competitive in this fast-growing technology-driven world and 30 students would make the right career transitions. With this activity, we promoted the SDG Goals 7 and 13.
According to Pearl Uzokwe, Director, Governance and Sustainability at Sahara Group,
“This is what drives us at Sahara, the joy of energizing aspirations and bringing energy to life, especially when it involves youths. Sahara Foundation remains committed to supporting young people by creating platforms that provide an enabling environment for their development while promoting access to clean and affordable energy in Africa.”
At the heart of Sahara’s business objectives, lies an unwavering commitment to promoting good corporate citizenship across the globe. This is achieved through the Sahara Foundation – the vehicle for the Group’s Personal and Corporate Social Responsibility (PCSR initiatives. The activities of Sahara Foundation are aimed at empowering the communities where we operate in a sustainable, transparent and efficient manner.
Sahara Foundation’s PCSR approach is centred around the Extrapreneurship Concept. This concept involves creating value through leveraging internal and external strengths to drive cross-sectoral collaboration by connecting the right people and organizations towards providing sustainable solutions to global social problems in the areas of Health, Education & Capacity Building, Environment and Sustainable Development.
Although the COVID-19 pandemic slowed the growth of digital advertising, online ads are still expected to increase their market share this year. After a sharp fall in ad spending in March, the last few months have witnessed strong growth across all regions, as millions of consumers shifted to websites and webshops from brick-and-mortar stores.
Global Digital Ad Spending to Jump 14% YoY and Hit $395B in 2021 – www.brandspurng.com
According to data presented by Buy Shares, the increasing trend is expected to continue in 2021, with global ad spending growing by 14% YoY to $395bn.
Search Ad Spending to Jump 16% YoY, Social Media Ads Follow With a 15% Increase
In 2017, brands and media buyers spent $251.7bn on digital advertising worldwide, revealed Statista Digital Market Outlook. Over the next two years, this figure jumped by 33% to $335.7bn.
However, the COVID-19 pandemic triggered a sharp fall in ad spending between January and March 2020, as one quarter of media buyers and brands paused their budgets in times of economic uncertainty. Nevertheless, many of them adapted to a new environment where businesses and consumers are getting used to living with COVID-19 and adjusted their budgets in response. As a result, the global digital ad spending is expected to grow 3% year-over-year to $345.9bn in 2020.
Digital advertising spending worldwide from 2017 to 2024, by format (in million U.S. dollars)
Digital advertising spending in selected countries worldwide in 2020 (in million U.S. dollars)
Statistics show that ad spending in the classifieds segment is expected to drop by 2.1% YoY to $18.5bn in 2020. By the end of next year, this figure will jump over $19.7bn.
Video ad spending is projected to rise by 4.1% YoY to $27.8bn in 2020. Over the next twelve months, this figure is expected to jump to $30.9bn.
Banner ad spending is forecast to hit $58.6bn value next year, a $6.5bn increase year-over-year.
Statista data indicate the search advertising segment is expected to witness the most significant boost in spending, and grow from $148.5bn in 2020 to $172.2bn in 2021, a 16% jump YoY. The social media ad spending follows with a 15% YoY increase to $113.6bn in 2021.
Statistics show the global digital ad spending will continue growing in the following years and hit $447.4bn value by 2023.
Mobile Advertising to Hit Almost 60% Market Share
Recent years have witnessed a surge in the use of mobile phones, which had a significant impact on the digital advertising industry. To keep up with consumer demands, generate higher revenues, and boost their brand name, companies had to create user-friendly mobile ads.
In 2017, 45% of the total digital advertising spending was generated through mobile devices. Mobile advertising continued growing in the last three years and hit a 55% market share in 2020. Statistics show this figure is set to jump to 57% next year, and by the end of 2022, mobile ads will account for almost 60% of total digital ad spending.
Analyzed by geography, the United States represents the world’s leading digital advertising industry, expected to hit $129.4bn in spending in 2020, a 0.3% drop in a year. However, this figure is forecast to jump by 17% and reach $151.5bn in 2021.
Digital ad spending in China, as the second-largest market globally, is expected to grow by 9% YoY to $77.7bn in 2020. United Kingdom, Japan, and Germany follow with $21.8bn, $15.8bn, and $9.8bn, respectively.
Statistics show the combined ad spending in the top five digital advertising markets is expected to jump by 14.5% YoY and hit $291.5bn value in 2021.
The Chinese manufacturer saw its revenue grow by 34% during the three-month period ended on 30 September as a result of a surge in smartphone shipments, with sales landing at RMB 72.16 billion (£8.2 billion), up from the RMB 53.66 billion (£6.1 billion) it sold during the same period a year ago.
Xiaomi became the third-largest smartphone producer in the world by shipment volume during this quarter, shipping a total of 46.6 million units during the three-month period, which represents a 45.3% year-on-year growth. The firm’s market share by shipment volume just surpassed Apple (AAPL) by 2%.
Strong growth outside of China has supported a portion of this incredible growth, with shipments to European markets growing by 90.7% compared to a year ago, while the company said it achieved an 18.7% market share in the region.
Overseas markets as a whole accounted for 55% of Xiaomi’s revenues during the third quarter, while, given that the firm has only achieved a 13.5% global market share, Xiang Wang – the firm’s president – said he believes that the “room for growth is huge”.
Operating profits for the quarter landed at RMB 10.16 billion (£1.16 billion), up 115% compared to a year ago, while net adjusted profits ended the three-month period at RMB 4.13 billion (£470 million) – almost 800 million yuan higher than analysts’ forecasts.
How have Xiaomi shares performed this year?
Xiaomi global market share – Source: Counterpoint
Xiaomi shares have surged 142% since the year started, as the company has capitalized on the woes seen by its rival Huawei as a result of US sanctions.
The Chinese phone maker’s market share – measured by shipment volumes – has been growing steadily since the first quarter of 2018, with the company’s global participation moving from 8% to 13% until this last quarter according to data from Asian research firm Counterpoint.
The firm highlighted the importance of keeping its supply chain stocked up during the fourth quarter of the year, emphasizing the need for “more precise production” to avoid shortages in key components.
Meanwhile, Xiaomi has reportedly approached multiple Huawei-exclusive vendors to persuade them to shift their allegiances in an effort to steal more market share from its rival in Southeast Asia and Europe.
What’s next for Xiaomi shares?
Xiaomi (HKEX: 1810) price chart – 1-day candles view with volume, fibonacci, RSI, and MACD – Source: TradingView
The daily Xiaomi chart shows how the stock has been on an uptrend since May, as the firm progressively reported better-than-expected financial results despite pandemic headwinds.
However, the stock paused its rally at HK$25.70, when tech stocks melted down worldwide, and has struggled to move past that level in the last two sessions.
Today’s downtick seems to contradict the positive sentiment that should have come along with this positive earnings report and it could be the result of some short-selling as there’s a huge bearish divergence in the RSI. This technical flaw points to a decreased momentum in the price action that could ultimately lead to a reversal.
That said, the ascending triangle shown in the chart above shows that sellers have consistently failed to move the stock to a lower low since late September, which indicates that buyers are showing up every time the price goes down.
Given Xiaomi’s strong competitive strength and continuous positive financial performance, it would be plausible to see the stock finally breaking past that HK$27 resistance over the next few weeks.
At this point, it would be interesting to see if the stock continues to move lower, as a lower entry price could give traders further upside when – and if – that breakout is to occur.
Key supports to watch at this point would be the HK$25 and HK$22 levels. Any strong bounce off those levels, in my view, should provide confirmation of a solid upcoming bull run.
Both HP and Dell reported their earnings after the close of markets yesterday. The earnings were better than expected as the work-from-home trend lifted demand for notebooks.
The COVID-19 pandemic has been a boon for the co-called work from home stocks like Zoom Video Communications, Twilio, Workday, CrowdStrike, and Okta. These stocks have surged this year, with markets rerating companies primarily in the computer services segment.
Pandemic winners: HP and Dell report better than expected earnings – www.brandspurng.com
HP and Dell: Pandemic winners
However, the hardware side has been an under-appreciated winner amid the increasing shift towards work from home. While the demand for hardware products such as laptops and PCs have been stagnant for quite some time, demand has been strong this year.
Looking at HP, it reported revenues of $15.26 billion in the fiscal fourth quarter, which was ahead of the $14.69 billion that analysts were projecting. The company’s adjusted EPS of 62 cents was also higher than the 52 cents that analysts were expecting.
HP: Key takeaways from fiscal fourth-quarter earnings
Commenting on the performance, HP’s CEO Enrique Lores said during the earnings call that “What we are seeing is a significant increase in the demand of PCs.” He added, “PCs have become essential. People need it for working, for learning, for gaming, for entertaining, for communicating, and the trend that we see is that for every person to have their own PC. And this is really driving significant demand on the PC side.”
HP earnings
Looking at HP’s performance, the demand from retail customers was strong and consumer revenues increased 24% in the quarter, even as its commercial revenues tumbled 12% over the period. HP’s printer business also reported mixed results with higher demand from retail customers more than offset by weak demand from businesses.
Looking at the product-centric breakdown, HP’s notebook sales increased 18% in the quarter to $7.4 billion on strong demand from retail consumers. Desktop sales tumbled 28% to $2.25 billion while workstation sales fell 45% to $419 million. HP’s printer sales fell 3% to $4.83 billion.
HP provides outlook
HP also pointed to supply-side bottlenecks constraining its revenues in the quarter. The company expects the supply side issues to impact its performance in the fiscal first quarter also. It expects operating margin in the quarter to be between 16-18%. HP expects to post an adjusted EPS between $0.64-$0.70 in the fiscal first quarter.
The company lifted its dividend by 10% during the quarter and repurchased $1.3 billion worth of its shares. It expects to repurchase $1 billion of shares in the current quarter. HP shares closed 2.6% higher in regular trading yesterday and were trading over 5.5% higher in pre markets today as markets gave a thumbs up to its fiscal fourth quarter performance.
HP shares are up 5.8% so far in 2020 and are underperforming the Nasdaq Composite Index which has risen to record highs.
Dell earnings
Dell also reported its fiscal third quarter 2021 earnings yesterday. Its revenues increased to $23.48 billion in the quarter, up from $22.84 billion in the corresponding quarter last year. Its revenues were ahead of the $21.9 billion that analysts were forecasting.
Like HP, Dell posted better-than-expected profits in the quarter. Its adjusted EPS of $2.03 was higher than the $1.42 that analysts were expecting. However, while HP stock was trading sharply higher after the earnings release, down over 0.7% in pre markets today. Dell stock is up almost 37% for the year.
Technology adoption is increasing
While lower printer sales have hurt HP’s performance this year, Dell has benefited from increasing consumer demand. Jeff Clarke, Dell’s COO said during the earnings call that “the mega technology trends that we have long called out are accelerating, and these trends are highly favorable to Dell Technologies. We are uniquely positioned to win in the growing markets of 2020, and we are making the right investments and innovating to capture the growing markets of tomorrow.”
The demand for Dell notebooks rose by 24% in the quarter. However, the company’s guidance looked on the low side. It said that it expects revenues to rise between 3-4% this quarter, which is below the 5-6% growth that it usually sees in the quarter.
Dell and HP investors
Meanwhile, the worry for both HP and Dell investors would be how much of the revenue boost that they have seen this year on higher consumer demand is sustainable. While the COVID-19 pandemic has lifted demand for notebooks, the surge might not be last once people return to offices.
The Minister of Petroleum Resources, Chief Timipre Sylva will commission a 5,000 barrels per day (BPD) modular refinery located in Ibigwe, Imo State on 24 November 2020.
Professional roller-skater Nigerian born British Tinuke’s Orbit (aka Tinuke Oyediran), age 27 years has broken the record for most cartwheels on roller skates in one minute with 30 and the most spins on e-skates in one minute with 70 in celebration of Guinness World Records Day 2020.
Polo Avenue, Nigeria’s foremost luxury fashion destination, has received exclusive rights to retail Gucci Ready-to-Wear clothing in Nigeria. Polo Avenue has so far successfully established itself as the gatekeeper for luxury brands in West Africa.
Star Radler premium tasting beer has just unleashed the next best antidote for thirst with its double refreshment offering. The flavoured alcoholic beer unveiled its new look and new red fruit variant this October.
The Ministry of Tourism, Arts and Culture has designed an eligibility form for the 1 billion seed capital released by the Lagos State government in order for interested practitioners to have access to the fund.
While the International Monetary Fund acknowledges the damaging recession effects of Covid-19 in Africa the economic outlook for the continent remains optimistic, as the introduction of technologies brings with it accessibility and exposure to economic and personal finance possibilities.
The Economist Intelligence Unit’s Worldwide Cost of Living (WCOL) index, which this year reports the prices of 138 goods and services in about 130 major cities as at September 2020, has risen by just 0.3 points on average over the past year.
As part of continued efforts to upskill and empower women across underserved communities in Nigeria, Coca-Cola’s women empowerment programme tagged “Catalyst for Change” has seen the graduation of another set of 1000 women from the third tranche of the programme organized in the Ogijo, Ikorodu area of Lagos State.
Coca-Cola Nigeria Limited in partnership with Karis and Eleos Foundation is on a journey to empowering 5,000 women in Nigeria. With over 2,600 women trained and empowered so far, the Ogijo community in Ikorodu was not left out of the success story of the Catalyst for Change programme.
Building on a unique and diverse product portfolio across HDD and flash, Western Digital (NASDAQ: WDC) today announced a suite of new NVMe SSDs for enabling next-generation, data-centric architectures for data centres, industrial IoT, automotive and client applications.
Dangote Sugar released its 9M’20 financial statements showing remarkable growth in both topline and bottom-line figures. The company’s Q3 revenue grew 55% y/y to ₦57.3 billion, translating to a 9M’20 figure of ₦160.5 billion and a growth rate of 37% y/y (Vetiva estimate: ₦145.3 billion).
Football transfer fees have exploded over the last two decades with some of the top clubs not afraid to spend more than €100M for the most elite of players. According to data gathered by Safe Betting Sites, Manchester City FC spent the most in transfer fees on their current squad among the top 5 leagues in Europe having spent over a billion Euros on transfer fees on their current squad.
Manchester City Current Squad Worth €1.04B In Transfer Fees
Out of Europe’s Top-5 Leagues – Premier League, La Liga, Serie A, Ligue 1, Bundesliga – Manchester City’s current squad is the most valuable in terms of transfer fees spent by their club with a squad value of €1.036B. This is a €22M increase from the previous year and is also €148M more than the second most expensive squad, Paris St Germain whose total squad is worth €888M in transfer fees.
Chelsea FC had the biggest increase from 2019, with an additional €198M in transfer fees for 2020 taking the total squad value to €761M. Wolverhampton FC rounds out the top 20 with a total squad value of €293M.
Premier League Most Representatives In Top 20 Most Expensive Squads In Europe
The Top 20 most expensive squads in Europe is littered with massive clubs from all over the continent but it is the English Premier League that had the most representatives in the top 20, with 9 Premier League clubs included in the list. Serie A has 4 teams in the list, La Liga with 3, and the Bundesliga and Ligue 1 with two representatives each.
Bayern Munich, Juventus, Paris St. Germain, Juventus, Real Madrid Most Expensive Squads In Europe’s Other Leagues
The aforementioned Paris St. Germain has the most expensive club in France’s Ligue 1 while Bayern Munich is the most expensive squad from the Bundesliga in terms of transfer fees with a squad value of €408M. Barcelona is the most expensive squad in La Liga beating out their arch-rivals, Real Madrid by €118M, with a total squad value of €826M. Juventus meanwhile is the most expensive squad from Italy with a value of €594M in transfer fees.
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