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TrustBanc Daily Stock Market Scorecard, 20th April 2020

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Oil Price Alert! US WTI futures price is now trading at $0.01, the collapse is scary and unprecedented. As at 7.00 p.m today it was trading 47% down, it’s now trading 99.5% down in less than an hour, its last price before the crash was $18.44. Guess what? It eventually closed in the negative

UK’s Brent is 9% down at $25.62 while Nigeria’s Bonny Light is currently up by 4.5% at $22.32.

WTI traders have been managing serious storage and capacity issues. They are now battling to rid themselves of unwanted US crude. With the current trend, it may close in the negative zone today.

Stock Market Update:

The All-Share Index (ASI) suffered a marginal loss of 0.01% to halt the 7 consecutive days gaining streak of the equities market.


Market Capitalization of listed equities also depreciated by 0.01% to close at 11.94 trillion as against 11.95 trillion recorded at the close of trading on Friday.

FBNH First Quarter Results: Gross earnings up by 8.30%, Interest income down by 4.22% and profit for the period up by 62.74%. See highlights below and details of the financials here.

Market Breadth:  The market recorded a total of 14 gainers as against 16 losers to close today’s trading session on a negative note. Linkage Assurance and Julius Berger top the gainers chart while Guinness and PZ top the losers chart. See the list of top gainers or losers below:

Market Turnover: NESTLE top the turnover table in value while GUARANTY led in volume. See top 10 traded stocks below:

It’s a wrap!

KEEP STRATEGY: How to Grow Your Business

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I once read a story about three entrepreneurs that approached a hungry man with three different questions. Below is the conversation between each of the entrepreneurs and the hungry man.

  • First entrepreneur to hungry man: What do you want?
  • The hungry man: I want “a sandwich,” 
  • The action: The first entrepreneur opens a sandwich shop. 
  •  Second entrepreneur to hungry man: What is your problem?
  • The hungry man replied: “I am hungry.”
  • The action: The second entrepreneur opened a grocery store 
  • Third entrepreneur to hungry man: “What is your goal’?
  • The hungry man replied: “To feel full and nourished.
  • The action: The third entrepreneur invents a nutritious, filling pill.  

The three entrepreneurs met the hungry man’s need in completely different ways, but the third entrepreneur is the one that had the most impact because of the result he was able to achieve. He asked about the goal, and this question helped him to make the most impact of the three. 

To establish a long-lasting and rewarding relationship with your customers, you must know their goals. This is similar to the concept of beginning with the end in mind. Gone are the days when you only want to sell to your customers, make money, and forget about them. You must learn how to partner with your customers to give them what they want, solve their problems, and help them achieve their business objectives.

Today’s world is outcome-driven. According to Jeb Dasteel, Oracle senior vice president, “The ability to succeed in this new economy will depend on how well you sell and deliver measurable business outcomes to your customers.” 

The question now is, do you know the outcome that your customers want? 

For Amazon – they know that their customers want a one-stop-shop where they can conveniently buy everything they want, right at the comfort of their homes. 

Tesla is capturing the automobile market share because they appeal to customers that care about protecting the environment by offering electric vehicles. 

In the US political landscape today, the Democratic presidential candidate Bernie Sanders has been able to gain so much influence because of the outcome he promises the electorate – Free healthcare, Free College education, and so on. He appealed to the people who believe that it’s the government’s responsibility to meet all those needs. 

Donald Trump won the 2016 US presidential election because of the outcome he sold to the people – to make America great again. He promised to bring jobs back to the United States, reduce government deficits, and provide a path for every American to live the American dream. 

Without knowing the outcome that your customers want, it will be challenging to build a long-lasting relationship with them. You need the KEEP strategy to create a future where you prosper with your customers. Here are four strategic ways to KEEP healthy relationships with your customers and make your business thrive. 

  1. Know your customer:Obviously, the starting point is to get into the room with your customer. You need to understand the customers, know their pain points, empathize with them, and have an in-depth knowledge of a day in the life of your customer. To be successful at this stage, you must have a means of collecting relevant customer information, such as email addresses, current and future projects, and all details that you use to develop a knowledge database about your customer.
  2. Establish relationships with the customer:This is where you need to begin segregating and segmenting the customers. Who are your key customers? Who are the high paying customers? And you must regularly engage with your customers. Let them know about new products or services in the pipeline before they ask. You need to be proactive to be successful at this stage.
  3. Execute for the customer:You will be successful in your relationship with your customer if you also learn how to deliver and execute for them. That includes ensuring that your products and services meet or surpass customer’s expectations, your whole supply chain ecosystem has to be functional to avoid delays or sending defective products to the customer.
  4. Prosper with the customer:The partnership with your customer must be a mutually beneficial one. You are making money from the customer, and at the same time, you are also helping your customer to either reduce cost or make more money. If a customer spends $100k on your product or services, in return, that investment should be able to boost your customer’s bottom line by over $300k.

Every business must be able to provide the outcome that their clients desire to maintain a healthy and prosperous relationship with the clients. It is no longer enough to just ask what the customer wants; you must be able to predict what’s next and figure out how to implement and sell the future to your clients. Apple saw that future, and they make smartphones that we all have come to accept as one of the most crucial gadgets to possess. Amazon saw that future, and they built a behemoth eCommerce platform where millions of customers shop every day. 

Do you want to build that future for your business? Then it would help if you use the KEEP strategy to create outcomes that your customer desires so that you can make your business thrive.

 

Forward – How to Create A Compelling Vision That Will Get You Ahead In Life

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vision concept with business elements on blackboard

I believe that everyone, one way or the other, should have a personal vision statement. This vision statement could be used as a framework to evaluate personal values in life and measure the progress that an individual makes as it relates to their goals. 

I like Helen Keller’s quote that says, “The most pathetic person in the world is someone who has sight but no vision.” Having a vision statement will significantly simplify your life because it will guide you to move towards what you want in life, and away from those things that you care less about.

You should create a vision statement for virtually everything in your life, the vision should cover your relationships, career, finances, spiritual, health, and any aspect where you want to make any positive impact in life.

This post will focus on the following points about the vision statement.

  1. Why do you need a vision statement?
  2. What do you need in your vision statement?
  3. Who do you need to be to fulfill the vision?

The Why

The Bible says, “People perish for lack of vision.” This tells you why everyone must have a vision for the life that they want. The vision statement is a statement about the future, i.e., what you hope to become in the future.

If you don’t have a vision statement, you will be leaving your life to chances. It means you live based on the thoughts of other people around you. You do what others do; you go where they go; basically, you go with the flow.

Not having a vision is like embarking on a trip, but without any predetermined destination. On getting to the airport, you decided to go anywhere where everyone else is going – the result, you will get nowhere in the end.

Having a vision will help you create a future that you desire. It provides the energy, the creativity, and the motivation to work towards your goals.

The What

So you may be thinking, what should your vision statement be about? My answer is everything about your life.

  • Career Development – What do you need to do to advance in your career or business?
  • Health – What are your health goals?
  • Money & investment – This is about income and how you need to plan it so that you can live the life you desire.
  • Relationship – Everything regarding how you want to allocate your time with your loved ones.
  • Spiritual Growth – It’s about ensuring that you put Put God first in your life affairs.
  • Academics – For students, its about your grades.

You should have a vision statement for anything you want, and you must write it down.

If you don’t write it, you aren’t going to achieve it. Your vision is not one of those things that you will say its in your mind.

Even the Bible says in Habakkuk 2:2, “And the Lord answered me, and said, Write the vision, and make it plain upon tables, that he may run that readeth it.”

You don’t necessarily have to have all the answers as per how you will accomplish all your plans. That’s why it’s called a vision. Sit down quietly, think about where you are today, and ask yourself where you want to be in the future. For example, where do you want to see yourself at the end of this year?

Most serious organizations have vision statements, which is generally a road map that states what the company wants to become.

Check this out:

  • Tesla: wants to accelerate the world’s transition to sustainable energy. Tesla’s vision statement is “to create the most compelling car company of the 21st century by driving the world’s transition to electric vehicles.” That vision recently helped Tesla, a car manufacturer that is less than 20 years in existence, recently surpassed General Motors, which has been around for over 110 years to become the most valuable carmaker in the USA.
  • Disney vision statement is “to be one of the world’s leading producers and providers of entertainment and information.” 
  • Amazon – Their vision is “To be the world’s most customer-centric company.”
  • Google – Their vision is “To organize the world’s information and make it universally accessible and useful.”
  • Facebook – Their vision is “To give people the power to share and make the world more open and connected.

Create a compelling vision today, and you will see the vision unleash the energy that will drive you to achieve your plans.

The Who

Outside of the Why or the what, also very important is the who. Who do you need to become to achieve your goals?

Every great achievement will require some sacrifices. It is not enough to write a vision that you want to become a manager at work without willing to make the sacrifice expected of leaders. (Time, volunteer, contribution, learning). It is not enough to say; I want to be a better husband without the willingness to learn about the qualities necessary to make you one. It is not enough to say I want to save $10,000 by the end of December 2020 without being ready to create a budget and plan your money to achieve the goals.

  • Integrity: Honesty for a leader
  • Hardworking: Employee looking for promotion
  • Devoted: Business owner
  • Caring: Husband/Wife
  • Learner: Student/Employee

You need to identify who you need to be to fulfill your vision.

So I encourage you to write your vision in this new year. You don’t have to know how you will achieve everything; the first step is to have the vision. The Bible says in the book of Proverb 16:3 Commit to the LORD whatever you do, and he will establish your plans.

People perish for lack of vision. Write the vision, make it clear, and you will receive the motivation to work on them. That’s the way to create a compelling vision statement that will help you live a life that you desire.

Let me know what you think.

Why U.S. Suddenly Wants High Oil Price

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For decades, every American president has pushed OPEC, the oil oligopoly, to do everything necessary to bring the price of oil down. President George W. Bush, campaigning for the U.S. Presidency, made a strong case that as an oil man, he would help Americans spend less in gas stations. The strategy has been this: push OPEC to pump more, and by doing that boost supply. Of course, from elementary economics, other things being equal, when supply increases, price drops, as new equilibrium points emerge.

But that is changing. Now, America wants OPEC to reduce production. It could be confusing – why would the nation which has castigated OPEC for cutting production volume suddenly wants it to pump less? Why should cheap oil be bad in a period when people are losing jobs? It comes down to third party externalities.

Coronavirus pandemic has decimated demand – that is not news. And if that is the only reason, cheap oil would not be a bad thing. But it goes further. And that’s where President Trump is going. Simply, as oil price drops – “West Texas Intermediate (WTI), the benchmark for U.S. oil, dropped 39.09 per cent to $10.98 a barrel on Monday”, a 21 year low, the president is concerned that the U.S. energy sector could be rattled. Yes, huge distortion in banking and asset quality due to exposures to the sector.

The price of West Texas Intermediate (WTI), the benchmark for U.S. oil, dropped 39.09 per cent to $10.98 a barrel on Monday.

Lack of sufficient demand and storage place is the likely cause of the steep fall in price.

[…]

“It hasn’t taken long for the market to recognise that the Opec+ deal will not, in its present form, be enough to balance oil markets,” BBC quoted Stephen Innes, a chief global market strategist at Axicorp as saying

Nigeria’s benchmark crude oil grade, Bonny Light, slumped significantly earlier last week, trading at $12 and $13 per barrel.

Also, the benchmark used by Europe, and the rest of the world, Brent oil, as at the time of this filing is down 6.55 per cent to $26.24 a barrel.

Already, most U.S. shale gas producers are already out of the breakeven price. Largely, the further the price drops, the more the paralysis is, as most of them would go under. And if they go under, banks which had lent them billions of dollars would have underperforming loans. If you scale that from Texas to Oklahoma, balance sheets of banks would take serious hits. One thing the president does not want now is deteriorating assets in banks’ balance sheets!

Oil prices

So, he has a big job: make sure the price of oil goes up, irrespective of his promises during the campaign to keep it low! This is war and closing the flanks is important.

Coronavirus: One Virus, Many Discourses on How to Boost Immune System

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In the absence of verified vaccines and drugs against Coronavirus, a global pandemic that has infected million of people and killed thousands in the last few months, many discourses have emerged on how to protect the body system against the virus. From medical professionals to academic scholars, people and governments need to be careful on management of the disease.

They have warned and still counselling that people need to be cautious of what they are consuming as defenders against the disease. Governments have been equally chided to intensify efforts on containment of the virus and development of vaccines and drugs as soon as possible. To achieve quick development of the right vaccines and drugs, academic researchers and medical practitioners need support of the governments, businesses and private individuals.

Apart from suggesting that chloroquine can cure the virus, experts have also hinted that Vitamin C and Black Seed Oil could be used to boost immune system against the virus. While making reference to a number of sources, the Physicians of the Orthomolecular Medicine News Service and the International Society for Orthomolecular Medicine recommend “consumption of Vitamin C: 3,000 milligrams (or more) daily, in divided doses, Vitamin D3: 2,000 International Units daily. (Start with 5,000 IU/day for two weeks, then reduce to 2,000) Magnesium: 400 mg daily (in citrate, malate, chelate, or chloride form) Zinc: 20 mg daily Selenium: 100 mcg (micrograms) daily.”

A team of researchers in Algerian Universities, in their latest study, notes that “Nigelledine docked into 6LU7 active site gives energy complex about – 6.29734373 Kcal/mol which is close to the energy score given by chloroquine (-6.2930522 Kcal/mol) and better than energy score given by hydroxychloroquine (-5.57386112 Kcal/mol) and favipiravir (-4.23310471 kcal/mol). Docking into 2GTB active site showed that ?- Hederin gives energy score about-6.50204802 kcal/mol which is better energy score given by chloroquine (-6.20844936 kcal/mol), hydroxychloroquine (- 5.51465893 kcal/mol)) and favipiravir (-4.12183571kcal/mol).” According to them, “Nigellidine and ?- Hederin appeared to have the best potential to act as COVID-19 treatment.”

In what many described as a political voice to the possible treatment and immune boosting, Engineer Seyi Makinde, Oyo State Governor said he recovered from the virus having consumed black seed oil and honey, including Vitamin C and Carrot. This information increased public interest about black seed oil, honey, Vitamin C and Carrot from April 6, 2020 to April 12, 2020.

Exhibit 1: Seyi Makinde and Immune System

Source: Google Trends, 2020; Infoprations Analysis, 2020

During the same month, NOI Poll, a national polling company, found that 72% of sampled 1000 Nigerians aged 18 above who use mobile phone believe that they are not immune against Covid-19 [see Exhibit 2]. Looking at the data across regions, similar result occurred. A significant number of them indicate not immune against the virus [see Exhibit 2]. Considering below and above 500,000 internet subscriptions per month in a state one would expect a significant knowledge seeking about how to boost immune system against the virus. It’s disheartening to know that the interest was much about Coronavirus outbreak in the country than understanding specific needs and issues on boosting immunity against the virus [see Exhibit 3].

Like other professionals and people working on containment of the virus, our analyst asks one of Knowcovid-19’s co-founders, Abdulhakeem Abdulkareem, about how people are using the Internet during this pandemic. Abdulhakeem notes thus:

The coronavirus epidemic has increased people’s presence on Social Media. However, what we noticed is that they use it to reduce boredom. We noticed an increase in the use of TikTok, a social media app where people make a series of videos to create fun and make themselves happy. Poster challenge on WhatsApp, #DontRush challenge, #SomethingNewChallenge, among others are also some of the things that have been trending on Instagram, TikTok and Twitter. However, similar cannot be said about what people are doing to learn more about the pandemic.

Know COVID-19 had an online hangout on Instagram on 16 April 2020 where two public health enthusiasts were invited to speak on the coronavirus and our body immune system. Dr Abdulmussawir Alli-Oluwafuyi of the University of Ilorin emphasised the need to practice personal hygiene and obey all warnings from constituted authorities regarding preventive measures against the virus. He noted that people should ensure to use a face mask, if they can, when going out and maintain social distancing.

Mr Toyyib Abdulkareem of the World Health Organisation, in his contribution, emphasised on the need for the youths to feel the heat and let the frustration out. He maintained that it is normal for them to react to the boredom or frustration caused by the lockdown. He, however, noted that while they practice social distancing, they should not practice emotional distancing –call your friends, your family, and your parents.

The takeaway from the online session is that the best way to prevent and protect against the virus is by limiting our exposure to people and places where it can be contracted. This is the most important immunity against the virus – not getting exposed to it. Therefore, I will encourage people to stay at home and stay safe.

My advice to people is to use the period to improve their personal and mental hygiene. learn more, read more and understand your life better. People should pay more attention to their growth and personal development. They should engage in things that make them happy and find joy in the process of growth and development.