ANAMBRA 2021: THE CONTENDERS AND PRETENDERS
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Investors lose N300bn in one day as stocks fall
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Goddy Egene writes that as inflation rate remains above 18 per cent, the stock market still provides investors opportunity to earn positive returns on their investments
When investors stake their funds, their expectation is to reap positive returns on investments. That means a return that is above inflation rate. And considering the fact that inflation rate stood at 18.12 per cent as at the end of April 2021, investors must invest in securities that would produce a return of above 18.12 per cent.
Although it is difficult to come across investment that can give yields above inflation rate, the equities market offers investors opportunity to enjoy positive returns. However, for investors to earn such positive returns in the equities market, they must seek the advice of professionals. This is so because just as the market is capable of fetching positive returns, investors could also lose their investments if not well guided by professionals.
By Goddy Egene
Shareholders of UACN Property Development Company (UPDC) Plc have authorised its board of directors to enter into loan agreement with its majority shareholders – Custodian Investment Plc and UAC of Nigeria Plc – to discharge its outstanding debt obligations.
UPDC, which used to be a subsidiary of UAC of Nigeria Plc, became a subsidiary of Custodian Investment Plc when the investment firm acquired 51 per cent stake last November.
The company was recording losses in recent time until it strengthened its capital structure with completion of the N16 billion rights issue, leading to an 80 per cent reduction its debt from N21 billion to N6 billion.