I love the stock market.

Are people still interested in capital market investments?

The stock market remains what it is.
If you will begin your investment by undergoing some training first about the character of different investments, then you will do absolutely well. I love it when people make money and know how they made the money and equally repeat it
with ease.

All of us aint blind. For some months now it has been negative report galore from the exchange. So whats in for investors right now?

Now, is celebration time for informed investors.
Stocks are selling at prices below their real values, so its a better time to buy.

Hello, you cannot be a good investor in stocks if you do not have other sources of income.
Why, investments in stocks takes 3-5 years to mature depending on your choosen approach.
Lastly, its long term investment or you loose your funds.

Be careful of these fire your boss articles.
learn before you leap.

Guesss what? Skye bank gained today.Over 200 million units of oceanic sold today,I thought only 50 million were on offer.Could it be Ibru mopping back her shares or The bulls about to overcome the bears.Just waiting for my cash to land @ this current prices.Iam gonna strike the following stocks,DSR,SKYE,Unic and Oceanic.I will strike very hard like steven gerard.

2ND QUARTER ENDED JUNE 2008
NIGERIAN BOTTLING CO. PLC. 2ND QUARTER ENDED 30/06/08.

TURNOVER 08 N39.4B 07 N34.1B

PBT 08 N2.22B 07 N2.0B

TAXATION 08 (N5M) 07 (N332.0M)

PAT 08 N2.21B 07 N1.68B

2ND QUARTER ENDED JUNE 2008
BERGER PAINTS PLC. 2ND QUARTER ENDED 30/06/08. TURNOVER 08 N1.29B 07 N1.06B

PBT 08 N117.95M 07 N90.68M

TAXATION 08 (N35.38M) 07 (N27.20M)

PAT 08 N82.56M 07 N63.48M

2ND QUARTER ENDED JUNE 2008
JULIUS BERGER PLC. 2ND QUARTER ENDED 30/06/08. TURNOVER 08 N43.18B 07 N34.15B

PBT 08 N1.68B 07 N0.985B

TAXATION 08 (N750.0M) 07 (N295.0M)

PAT 08 N930.07: 0M 07 N690.0M

YEAR END 2008
LAW UNION AND ROCK INS. PLC. 2007 AUDITED ACCOUNT. TURNOVER 07 N2.50B 06 N107: .33B

PBT 07 N368.69M 06 N179.35M

TAXATION 07 (N57.4M) 06 (N14.7M)

PAT 07 N311.2M 06 N164.6M.

DIV - 6K C/DATE 26/09/08

P/DATE 17/10/08

Acenins 9 OTHERS DELISTED:
THE FOLLOWING TEN COMPANIES HAVE TODAY BEEN DELISTED FROM THE OFFICIAL LIST FOR FAILURE TO MEET THE POST-LISTING REQUIREMENTS OF THE EXCHANGE:- ACEN INSURANCE PLC; AMICABLE ASSURANCE PLC; BAICO INSURANCE PLC; from ATLAS NIGERIA PLC; CERAMICS MANUFACTURING PLC; BEVERAGES (W.A.) NIGERIA PLC; ENPEE NIGERIA PLC; TATE INDUSTRIES PLC; MAUREEN LABORATORIES PLC AND RIETZCOT NIGERIA PLC

ECOBANK SHARE RECONSTRUCTION:
Ecobank Nigeria Plc has informed The Exchange on its decision to reconstruct its shares in the ratio of 1 for 3 (i.e. one new share replacing every three previously held).

Heavy buying of oceanic bank's shares today. In the region of N4.07b. Number of deals also jumped 300% from the previous day's.

2ND QUARTER ENDED JUNE 2008
BENUE CEMENT CO. PLC 2ND QUARTER ENDED 30/06/08. TURNOVER 08 N4.10B 07 N3.01B

PBT 08 N1.46B 07 N1.43B

EI 08 NIL 07 N128.7M

PAT&MI 08 N1.46B 07 N1.56B

Iwerebor:

Heavy buying of oceanic bank's shares today. In the region of N4.07b. Number of deals also jumped 300% from the previous day's.

That shows some turn around soon.

Hope this will finally bring the bulls!!!!!!!

ABUJA, Sept 18 (Reuters) - Nigeria's central bank said on Thursday it injected about 150 billion naira (around $1.27 bln) into the financial markets and reduced the cash reserve requirement to 2 percent from 4 percent.

"In order to lubricate the system, (the Monetary Policy Committee) has decided to ensure that the financial system remains liquid," said Central Bank Governor Chukwuma Soludo.

The bank also lowered its liquidity ratio to 30 percent from 40 percent, and said it would allow repo transactions against eligible securities for 90 days, 180 days and 360 days. (Reporting by Camillus Eboh; Writing by Randy Fabi)

The Nigerian Capital market continued the decline which began on September 4, 2008.  For the current week ended September 12, 2008, daily average of declining stocks outnumbered advancing stocks by 60 to 10, The situation is beginning to look dismal as the numbers of advancing stocks dropped below 10 during the last 2 trading days. Additionally, the numbers of unchanged stocks have continued to increase as shown in the graph below. The daily number of stocks with no changes in their prices is again back above 150, a level experienced in July 2008

For the week ended September 12, 2008, the NSE index declined 878 or 1.8% to 48,738, representing a 17,633 or 26.6% decline relative to its 52 week high of 66,371; maintaining the market in a bear state. However, it should be noted that the decline in the NSE index would have been more severe if the new NSE regulation which mandates that only a one percent maximum downward limit on daily price movement would be allowed, while the current five per cent limit on upward movement is retained.
Since the market began its downtrend in the middle of March 2008, there has been three attempts at recovery. These brief recoveries were spurred by some new polices or policy changes by the government and market regulators.  Some of the policy changes that have been implemented to turn the market around are:

1.       Posting the uniform fiscal year-end deadline for commercial banks from December 31, 2008 to December 31, 2009.

2.       Suspension of the N 1 billion capitalization for Stock brokerage firms

3.       Issuance of an exemption to the provisions of the relevant sections of CAMA, to permit quoted companies to buy back up to 20 per cent of their shares to curb the spate of bearish trading in the market by the office of the Attorney General of the Federation

4.       Policy reversal to allow commercial banks to continue extending margin loans to inventors

5.       Reduction of the NSE fees by 50 percent effective September 8, 2008.

6.       Allowance of one percent maximum downward limit on daily price movement , while retaining the current five per cent limit on upward movement

The regulators and the government should get some kudos for all the efforts they have put forward so far to turn the market around. I believe it is time to give this market the shock treatment that it truly needs.

For example, the NSE’s new policy of one percent maximum downward limit on daily price movement, while the five per cent limit on upward movement is retained is very wrong. This policy has an upward bias and in the long run negates what the NSE is trying to achieve, which is to prevent the continued decline of the capital market.

With this new policy of one percent downward  price movement limit, it will take longer for the market to complete its current downtrend, because the policy will never completely allow stock prices to truly bottom out. For the markets to truly correct, sellers in the market must be completely washed out.

Although this may sound callous, studies have shown that until most traders (or gamblers) not investors throw in their towels saying that they can’t take the beating any more, the market downtrend will continue.

The truth of the matter is that some investors in the Nigerian stock market for the 4 years prior to March 2008 saw the NSE as a casino that paid out large sums of money.  As a result, some of these investors invested heavily in the market by buying every secondary or initial public offering and throwing caution to the wind with some of their speculative trades.  Some of these investors were caught in the downtrend and are still waiting in the winds to sell their shares.  Since the Nigeria bull market had a prolonged run ( approximately 4 years), it is safe to believe that there are  many speculators in this category and significant up trend will be sold into.

Some of the recent government/NSE policies that I believe will help the market turnaround are:  

1) The postponement of the  uniform fiscal year-end deadline for commercial banks from December 31, 2008 to December 31, 2009;

2) The possible issuance of an exemption to the provisions of the relevant sections of CAMA, to permit quoted companies to buy back up to 20 per cent of their shares to curb the spate of bearish trading in the market;

3) The policy reversal to allow commercial banks to continue to extend margin loans to inventors; and

4) The 50% reduction in NSE fees.

I believe allowing stock prices to decline only by one percent, while allowing the prices to increase by 5% daily is the worst policy. As noted in the schedule below, a N10.00k stock which gained 5% daily in five consecutive days will take 18 days to lose the same points it gained in five days.

One of the reason that I believe that this is a wrong policy is that the banks and institutional traders might be favored in this policy. While the large and institutional traders might be able to sell easily in an uptrend, retail investors might not be able to do so.  Additionally, the commercial banks might use the uptrend in a bear rally to sell the shares of customers who are unable to satisfy their margin requirements.

My recommendations:

·         Scrap the current policy of one percent daily allowable decline, while the 5% allowable increase is still in effect.  This policy has an upward bias and will result in traders selling into the upward trend.

·         Reinstate the former policy of the 5% upward limit and a 5% downward limit. This will allow the market to get to the bottom faster.

·         Remove all artificial stop gap measures and let prices float freely with one caviar, introduce simple option strategy and shorting selling to enable investors hedge their positions. The current policies will discourage foreign investors from investing in the NSE, because it breaks all the rules of an “efficient market”.  My stance might seem controversial to many investors, but I believe that in the long run it will be good for the market. The current policy strikes me as stock price manipulation.

YOU TRADE FOR A LIVING AND INVEST FOR LIFE

Economic Update

The Central Bank of Nigeria (CBN) has reiterated that the recent turmoil in United States ’ financial markets turmoil would not affect the Nigerian economy.



Price of London Brent crude dropped to $89.85/barrel at the Intercontinental Exchange (ICE). The price of oil has been falling recently on concerns that demand will slow following global economic slowdown.



Equity Market

Key performance indicators of the Nigerian equity market headed southwards with a 0.52% decline on previous close figures. While market capitalization shed N52.3bn to N10.09bn, the All Share Index was down by 249.45 points to 48,129.23 pts. The decline in market performance was in spite of an increase in market activity, where aggregate volumes and value of today’s trades rose to 821.6mn shares and N7.72bn respectively. These were executed in 8,176 deals. Meanwhile, YTD change worsened to -17.00%.



Of the 131 listed equities that were traded today, 5 appreciated, 68 declined, while 58 others closed unchanged. As a result, gainers to losers’ ratio dropped further to 0.07:1 as market breadth declined to -0.48.



Nigerian Breweries Plc announced an interim corporate action of N1.00 cash dividend for its shareholders. The dividends will be paid on October 17 to investors, who hold the company’s shares till October 9, 2008. The company’s stock declined marginally, shedding 38 bpts to N47.11.



For the second consecutive day, CONOIL topped the list of gainers with a 4.99% gain to N103.43. Other stocks on the gainers’ list were INTBREW, N8.92; UNIONDICON, N3.63; ECOBANK, N9.50 and BIGTREAT, N4.25.



On the flip side were two petroleum marketing stocks, CHEVRON, N397.97 and OANDO, N165.16. FIRSTBANK and GUARANTY, N22.88 were among the stocks with maximum possible decline.



SPRINGBANK, 456.8mn (N5.59) and ECOBANK, 148.8mn (N9.50) accounted for over 73.7% of total volume of transactions, as AFRIBANK, 69.1mn (N30.98) followed them closely on the activity chart.



UNIONDAC, N3.63 continues to firm up having gained 21% since its listing last week. The stock’s close price is the highest since its listing. FIDELITYBNK, N7.29 dropped further to a new 52-week low today.



Fixed Income Market

Four FGN Bond issues with the shortest maturity profiles were the active today with noticeable change in yields and thus prices. The most active of these was the 12.00% FGN Bond 2009 Series 12 with a 0.43% increase in yield.



Money Market

Nigerian Interbank Offered Rates (NIBOR) was down today following what could be referred to as a restoration of liquidity in the market. The Interbank call rate recorded the highest decline with 1.63% below previous day’s figure of 17.88%. However, 7-day rate rose marginally to 17.17%. Average Interbank rate has risen from 15.4% to 17.8% over the last two weeks.



Key rates might be relatively stable following anticipated withdrawal of N40bn through the issue of fresh treasury bills tomorrow.



The official exchange rate of the Naira as released by the CBN lowered to N116.06/US$ as at yesterday. Interbank exchange rate averaged 117.77/US$ today.

Hello all,

Just heard from my broker, 5% downward slide will resume on Monday.

CBN is definitely pumping cash into the system.

* Have you noticed the volumes on Dangote sugar? D last time there was a revival, dangote was among d first to move. Seen the vol on Skye and oceanic? Someone I know is buying up tomorrow.

* Noticed the number of announcements and results coming out within the last 2 days? These includes reconstruction and the rest?

*NOTICED D CBN ANNOUNCEMENT? DON"T DISCOUNT IT.

Hope this helps for those interested. CAVEAT DEY PLEEEEEEEEEEEEEEEEETY O!

P.S I am buying tomorrow.

23% drop in volume on Wednesday. Hate to say I told you so, but I told you so,

Market is full of toxic dead weight now. Everything is overinflated in value and people don't want to buy anymore.

Why would CBN inject money into the market? Nigeria doesn't have a liquidity crisis. All we have is a good old fashioned stock bubble that's trying to burst but our government won't let it. Haven't seen anything on recent inflation data, but last I checked we were still trying to bring down inflation. What we need is proper regulation, not more liquidity.

debenzd: If that's true then that's good news. It's bad news for some in that prices will drop precipitously once the floor is lowered, but the good news is that at least now we don't have to wait for months while the market stalls and the cancer begins to creep into the real economy.

I spoke with someone who just attended a meeting with the World Bank and he said Nigeria was already being praised for allowing our stock market go into depression.

The truth is most of the money was leaving the stock market for Ghana and turkey so he says. See how Ghana SE has being growing. He works for CBN.

I guess they want it to get to a level when the would come in again and buy at a cheap rate.

I beg make we sort our own problems ourselves. Why are they not fighting the ECB and the US for pumping money into the the financial system.

They are part of the problem we have.

debenzd:

Hello all,

Just heard from my broker, 5% downward slide will resume on Monday.

CBN is definitely pumping cash into the system.

* Have you noticed the volumes on Dangote sugar? D last time there was a revival, dangote was among d first to move. Seen the vol on Skye and oceanic? Someone I know is buying up tomorrow.

* Noticed the number of announcements and results coming out within the last 2 days? These includes reconstruction and the rest?

*NOTICED D CBN ANNOUNCEMENT? DON"T DISCOUNT IT.

Hope this helps for those interested. CAVEAT DEY PLEEEEEEEEEEEEEEEEETY O!

P.S I am buying tomorrow.

I for suggest you wait small sha ohhh.Check tomorrow first and try Monday. Some things never ripe yet.

FatherOF2:

I for suggest you wait small sha ohhh.Check tomorrow first and try Monday. Some things never ripe yet.

Thank u my brother. I did take a look at some stocks yesterday night. I no go buy plenty. Just small.

Na monday i go buy more if condition dey okay.

Meanwhile are u watching zenith? End of yr na Sept plus rsi less than 2.

@cuppcakke,are u a stock broker?if you are not,can you reccomend one to me?give me your email address so that i can send you a mail.am interested in buying shares,but i have been  afraid of doing so because of fear of falling into wrong hands.

sweetchi:

@cuppcakke,are u a stock broker?if you are not,can you reccomend one to me?give me your email address so that i can send you a mail.am interested in buying shares,but i have been  afraid of doing so because of fear of falling into wrong hands.

@sweetchi,
Nobody bears cupcake here.But Just load DSR,Oceanic,Skye and Unic @ the current prices if you can.As you can see,all the four stocks have started gaining today.

@fatherof 2,
Are u still sitting on the fence,i don set oo!!

Fof2

you can now see that you alone can bring the Bulls back, your mentioning DSR, Oceanic and skyBank, has turn around the place again.

Please mention others like: Niwicable, LASACO, ETC, YOU CAN SEE YOUR INFLUNCE, WHAT IF YOU COME BE PRESIDENT OF THIS COUNTRY Nko.


Are you seeing BIG TREAT!! I trust that company sha, I no be guru OOOO

More Green to our Portfolios!!!!

Is it still good to invest in the Nigerian Stocks at the moment with the crisis in the world.

www.moneysaversforum.com

@kokorunna

That is the MILLION DOLLAR QUESTION! The recession affecting America's economy is causing panic in other nations of the world who have their reserve majorly dominated in $ dollar.

I am praying that this cycle will quickly be over. I've lost some money in the NSE and I am not finding it funny at all.

husu:

@fatherof 2,
Are u still sitting on the fence,i don set oo!!

Barb wire don hook my trouser for fence, but i go soon fall. I'm still in profit on those stocks sha.

Me na greetin i de greet. My money de pocket. Na Lasaco abe Unic??

Abu-Maryam:

Me na greetin i de greet. My money de pocket. Na Lasaco abe Unic??

Just hold on oh. Many stocks haven't ripened yet. Just recheck positions by Thursday evening again.

truely investing in stock is really a means of letting ur money work 4 u, but most times 4 business guys like me, i end up realizing i makes biger volume on returns in my regular biz than those cash i invested in stock and that is discouraging to me ,but then its really good for those of u office workers or salary earners since u dont have to let ur money domant or wastfully spend them so keep it up, its nice.

OR is there any way i can be trading on stock on quaterly basis, i mean been ably to sell what ever i bougth within tree mnts, cos i feel i ties money down in buying those one or two yrs sturf b/4 making good profit somebody help me, cos i like the sturf though atleast 4 the fun of it
jpeck2k@yahoo.com

@Fo2

I ve been following ur contributions on this forum, i want to appreciate u and other gurus. well done!!

I am interested in stock biz but dont know how to start (i mean trading in stocks). I met with a stockbroker who said i need to open a cscs account and i will start buying shares with a minimum of 200k. I ve been buying public offer but i want to stop doing so cos so many pending certificates, yet to receive.
I'm interested in Dunlop, Uba and Japauloil. do u think these are good buys? thanks

DEAR UGOANI AND MY FELLOW FORUMITES,
With regards to your post on Nairaland forum on how you can be trading stock on quarterly basics? I do trade on stock on short-term basics like 20 days to 60 days with profits percentage in the region of 15% - 100 % depending on the timing of the market.
But for you trade on stock on short-term basics you need to have a good understanding of how the stock market works and the facts the drive the prices of shares up at any given particular time.
If you will be interested on how to trade on the stock market both on SHORT-TERM, MEDIUM-TERM AND LONG-TERM basic you can e-mail for a one on one online comprehensive training on both FUNDAMENTAL AND TECHNICAL ANALYSIS of the market for maximum profits.
You can e-mail me for further information at : Johnagbai24@gmail.com

JOHN AGBAI
CEO
JODELL CONSULTING INC.