Global News: What the heat wave is telling you to invest in...
Oil prices edged up about 1% on Wednesday on a smaller-than-expected build in U.S. crude inventories, a big withdrawal from distillate and gasoline stocks and remarks by the U.S. Federal Reserve chief that he still expects interest rate cuts this year. Lower interest rates could increase oil demand by boosting economic growth.
Our thoughts
Oil prices are being pulled in different directions by competing factors. OPEC+ has extended supply cuts till June this year, the anticipation of rate cuts also putting demand pressure on prices. However, there are growing concerns about significant adoption of electric vehicles (EVs) in China leading to reduced demand. The short term outlook seems bullish, but trends appear to be changing in the long term. When we consider the recent heat wave in some areas and extreme cold weather in others, there appears to be a mounting case for renewable energy.
What should you be doing?
Invest in the future. Public stocks or startups in the renewable energy space. Why? With energy prices drawing closer to the skies, a one-time investment in solar panels is making more and more sense.
It will take a while for these companies to get their time in the limelight, but when they do, it will be cash out for those that jumped in early. The TMWC US stock recommendations is a good guide.
Nigerian News: Transcorp Power goes public...Nigerian banks in Ghana..
Transcorp Energy goes public: Transcorp Power Plc, the power generation spinoff of Transnational Corporation of Nigeria (Transcorp), advanced 10 per cent in market value on its debut in Lagos on Monday. The company’s shares closed at a cumulative value of N1.98 trillion against N1.8 trillion at the beginning of trade. The power utility listed 7.5 billion shares at N250 per unit, which were admitted to the Nigerian Stock Exchange (NGX)’s main board, the listing segment for companies with high standards of disclosure and corporate governance. Read more here
Ghana suspends Nigerian banks’ FX licences over alleged fraud: The Bank of Ghana which is also its Central Bank has suspended the foreign exchange trading licenses of some Nigerian banks, effective March 18, 2024, for a period of one month over fraudulent practices. Read more here
AfCFTA: Nigeria commences export to S’Africa, others in April: Nigeria is to begin the formal export of locally produced commodities to South Africa, Rwanda, Cameroon and Kenya from next month under the Guided Trade Initiative of the African Continental Free Trade Area, the national centre of AfCFTA announced on Thursday. Read more here
Our thoughts
Since going live, the share price of Transpower has risen by over 25%. Gerugu power, another power listed company is trading around N1,000/share. Given the massive energy deficit in Nigeria, It can be argued that Transpower has the potential to get to N1000/share. Are you an early adopter or still watching? First step to take action is to set up a stock broking account.
The Nigerian banks affected put out a statement that the challenges would be resolved quickly. Brand erosion!
On AfCFTA, its really good to see little rays of progress. This is just beginning, the teething and logistics challenges will create opportunities for businesses. If you have a product or service you want to sell to the world, please join the AfCFTA private sector database.
What's happening at The Money Wit Club (TMWC)
We’ve invested in movies, wine and art in the past! Amazon prime announced their exit from Africa earlier this year, this session is to let us know where the money is, who is spending money on movies and what kind of movies they are looking for. #investinthefuture
#TMWCINNAIROBI
The Money Wit Club business tour to Nairobi Kenya To be a part of any of these?
Join The Money Wit Club, visit www.themoneywitclub.com
