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http://www.thisdayonline.com/nview.php?id=124486

Private Sector to Bail Out Stock Market




Efforts to find a solution to the nation’s lingering stock market meltdown continue today as officials of the Nigerian Stock Exchange (NSE) and Securities and Exchange Commission (SEC) meet to work out a plan that will inject private funds to bail out the market.
The meeting to halt the nation’s plummeting global market came on a day stocks suffered sharp falls as worries about the extent of the global financial sector crisis deepened after finance ministers failed to reach a consensus on how to react.
The Director-General and Chief Executive Officer of the NSE, Prof. Ndi Okereke-Onyiuke, dropped the hint about the regulators’ meeting at the Annual General Meeting of the Central Securities Clearing Systems Limited (CSCS) in Lagos yesterday.
Worried by the persistent fall in the prices of shares, the Federal Government had last August introduced some recovery measures to stem the negative trend. However, almost two months after, there appears to be no respite in sight.
Okereke-Onyiuke said that the NSE and Board of SEC would meet today to map out a bail-out plan that would help stem the falling share prices.
Okekereke-Onyiuke, who was silent on the details of the bail-out, added that the plan would also involve the Central Bank of Nigeria (CBN) and market operators including banks.
She explained that the market regulators decided to use the internal mechanism to bail out the market because the Nigerian Government is not in a position to take the decision similar to that of the United States Government.
The US government is using $700 billion to mitigate the impact of its current financial crisis. The Nigerian government had recently shelved plans to set up a Stabilisation Fund meant to enhance liquidity in the stock market.
The Finance Minister, Dr. Shamsuddeen Usman, who announced the decision to shelve the stabilisation fund, had explained that the measures already introduced by the CBN and the Share Buy-Back were enough to address the liquidity problem.
But Okereke-Onyiuke said that US government agreed to inject $700 billion into the market because of the number of citizens that invest in their financial system.
Specifically, she said the ratio of Nigerians investing in the Nigerian stock market is very minimal compared to the entire population. This, she explained, informed the regulators’ decision to embark on an internal bail-out plan apart from other efforts by the government.
She said: “Our nation is not in a position to do what America did. If by October 2008, they have not passed the budget for 2007, is it the intervention fund that they will meet to approve? We went to the government in the first place to use moral suasion to allow the CBN take part in whatever measures we are going to take because they are an organ of the government. After the meeting tomorrow (today) you will see what will happen in the market. I tell you there is hope for this market.”
Okereke-Onyiuke called on well-meaning Nigerians to imbibe the American spirit of patriotism and not selfishness.
“Nigerians should develop the American spirit. You can see how they put aside political and personal interests to bail out their market. It is even now that we are even appreciating the fact that the capital market is the barometer with which you measure the economy,” she said.
The stock market has been depreciating since early March after two months of bull run. The market climbed to a historic level with the NSE All-Share Index peaking at 66,371.20 on March 5, 2008. The market capitalisation on that date was N12.6 trillion.
However, the bear run that set in afterwards has persisted and has caused the index to shed 31 per cent to close at 45,504.69 yesterday. Similarly, the market capitalisation of equities has dipped by N2.9 trillion as at close of trading yesterday.
In a related development, on Wall Street, the Dow Jones Industrial Average fell 4.3 per cent to 9,884.9, a drop of 445 points that took it under 10,000 mark for the first time since October 2004. The S&P 500 fell 4.8 per cent to 1,046.9.
London’s FTSE 100 closed 7.9 per cent lower at 4,589.2, a loss of 391 points. The sell-off was the UK benchmark index’s third biggest one-day drop on record, its largest since Black Monday in 1987 and took it to levels last seen in October 2004.
Meanwhile, crude oil prices fell to its lowest in eight months yesterday, trading below $90 a barrel on speculation that the financial crisis will exacerbate a global economic slowdown and cut demand for crude oil.
For most of 2008, oil had been well over $100 a barrel, causing pain at the pumps.
But amid the global financial crisis, light, sweet crude for November delivery fell $3.06 to $90.82 a barrel on the New York Mercantile Exchange, after earlier dipping to $88.89, the lowest level since February, 8. Last Friday, the November contract lost nine cents to close at $93.88 a barrel.
Oil prices have tumbled nearly 40 per cent since peaking in July. A significantly stronger dollar also weighed on prices.

Thisday

This timely write-up is from my Cabot wealth advisory mailbox,let's share it

The subject of today's column--Patience Precedes Profits--comes from a
lapel button on my cubicle wall.  It's one of 82 buttons on the wall that
I've collected over the past few decades on my pilgrimages to the Contrary
Opinion Forum in Vergennes, Vermont.  Next Wednesday marks the start of
the 46th annual forum and I expect to meet up with many old friends
there--meet new ones too--and hear some stimulating presentations on the
subject of investing.

I'll write more about the Forum next week, but today I want to talk about
patience, a quantity that appears to be in increasingly short supply in
our world.  Patience Precedes Profits.

Warren Buffet knows it.  He just plunked down $3 billion for part of
General Electric, which is down 47% in the past year, and you can bet that
years down the road, that investment will look smart ,  because Warren
will be patient. 

Too many investors have no patience at all.  They're glued to their
computer screens, clicking on the latest news stories.  And they're
listening to the talking heads on television, thinking the answers might
come right after the next round of commercials.

But they're not thinking for themselves.  And they're not being patient.

Successful long-term investors like Warren Buffett, however, know that
patience is an asset, as long as you buy at a bargain price.  And how do
you determine that price?  The best way is to subscribe to Cabot Benjamin
Graham Value Letter.

Cabot Benjamin Graham Value Letter is based on the value investing system
developed by Benjamin Graham in the 1930s and refined in the decades
since, mainly by editor J. Royden Ward, who computerized the system in
1969 and has been its steward ever since.

And its results have been excellent.  In fact, Roy has two Models.  The
first, the low-risk Classic Benjamin Graham Value Model, has achieved a
compound annual return of 17.4% since 2002, while the Dow has gained just
4.6%.  The second, the Wise Owl Model (which is even calmer), has gained a
compound annual return of 15.3% since its inception in 1995, while the S&P
500 has gained 6.0%

Sound good?  Here's more.

Through the month of September, while the Dow lost 10% of its value and
the S&P 500 lost 9%, the fully invested Benjamin Graham models did
significantly better; the Classic Benjamin Graham Value Model (with nine
stocks) lost just 6%, while the Wise Owl Model (with eight stocks) lost
just 5%.

And that's typical.  With the Benjamin Graham Models, you lose less on the
way down, and the result is you make more in the long run.

Now, technically, anyone could do the same by following this system.
After all, Benjamin Graham's teachings are no secret; he wrote two great
books detailing his methods.

But practically, I've got to say it's a bear of a job.  For each stock in
his universe, Roy tracks 44 (!) separate items that size up the company
using four separate sets of factors, QUALITY, VALUE, GROWTH and
TECHNICAL.

QUALITY encompasses measures like Current Ratio, Earnings Stability and
Price Growth Stability.

VALUE tracks items like P/E ratio, Historical Price/Book Value relative to
Current Price/Book Value, and Historical Price/Dividend ratio versus
Current Price/Dividend Ratio.

GROWTH looks at things like five- and 10-year historical revenue growth
trends, Quarterly Earnings Acceleration and five-year projected cash
flow.

TECHNICAL measures things like Relative Strength, Price Stability and
Industry Strength.

And there are 32 more items!

But you don't need to worry about those details, because Roy does all the
work and presents the results, each month, in a 12-page letter that tells
you in plain English what to buy and why. And, importantly, he gives you
specific maximum buy prices, as well as minimum sell prices (i.e., target
prices), and updates them in every issue.



Thanks for taking time to read the rather long piece

MARKET WILL BEGIN RECOVERY THISWEEK- NDY OKEREKE-ONYUIKE

The decline, which the Nigerian capital market had been witnessing in the past seven months may come to an end this week, according to the Director-General, Nigerian Stock Exchange, Prof. Ndi Okereke-Onyiuke.

The DG, who said this during the 14th Annual General Meeting of the Central Securities Clearing System Limited in Lagos, on Monday, said that investors would start to experience a significant improvement in the market.

She stated that wide ranging measures that were expected to shore up the major market indicators had been put in place by the NSE.

This, she noted, would be announced after the NSE’s council meeting on Tuesday.

She pointed out that fresh funds would be injected into the market to ensure stability.

On whether the Federal Government had failed in its effort to revive the market and ensure stability, she said, “We knew from the outset that the government would not be able to solve the problem in the market, we only went to them because one of the agencies (Central Bank of Nigeria) that could help us is a government agency. What we wanted them to do was to assist us through moral suasion.”

She added, “The problem in the market was not caused by us but we are the ones that will solve the problem. As I speak to you now, the problem is almost over. I assure you that after tomorrow’s meeting, we will make some announcements after which you will start to see improvements in the market, starting from this week”

Meanwhile, CSCS Limited has recorded an increase of 381 per cent in profit after tax for its 2007 financial year.

According to the company’s audited result for the year ended December 31, 2007, profit after tax stood at N3.58bn as against N745m in 2006.

Turnover also grew by 269 per cent, up from N2.24bn in 2006 to N8.27bn in the year under review.

The company’s shareholders, at the AGM, approved N400m dividend, translating into 40 kobo per share and a bonus of four shares for every one held as at December 31, 2007.

However, the market capitalisation of the 310 listed equities closed lower, depreciating by N45bn or 0.5 per cent to close at N9.684tn.

Similarly, the All-Share-Index of the NSE dropped by 0.5 per cent to close at 45,504.69.


www.punchng.com/Articl.aspx?theartic=Art2008100713463721

Fraud Deterrence Detection & Control: A Fresh Perspective
« on: Today at 09:05:30 AM »
Modify message
[color=#990000]FRAUD WORKSHOP[/col


TRADEWISE CONSULTING

facilitated the presence of Christopher Gardner of the “Pursuit of Happyness” fame for an MTN Nigeria and event but also proudly and successfully convened a conference on Micro-Financing where no other than the Nobel Peace Laureate 2006 and founder Grameen Bank of Bangladesh, Prof. Muhammad Yunus

NOW PRESENTS

Nick Lesson, the self described "Rogue Trader" speaking at a one day workshop on Fraud DeteDeterrenceection and Control: A Fresh Perspective.

in Lagos Nigeria, October 31st.

Who should attend??

Commercial Banks
Investment Banks
Micro-Finance banks
Insurance Companies
Audit Firms
Stock Broking Firms
Lawyers
Professional Bodies
Telecommunication Companies
E-Card Companies
Credit Bureaus
The Nigeria Police
ETC

email: bimboogundairo@tradewisegroup.com
dayoomotayo@tradewisegroup.com

hi,can somebody link me to a good penny stock broker

hi,can somebody link me to a good penny stock broker

NSE, Banks Work out N600bn Bail-out Package

Strong indications emerged yesterday that the Council of the Nigerian Stock Exchange (NSE) may have made a head way in its efforts to bail out the nation’s stock from its lingering slide.
This followed an agreement reached between the Council of the NSE and some banks to inject N600 billion into the market.
The Director-General of the NSE, Prof. Ndi Okereke-Onyiuke, had last Monday said a meeting would be held between the Exchange and the Securities and Exchange Commission (SEC) as part of fresh efforts to find a solution to the falling share prices.
However, SEC officials were not at yesterday’s meeting that was held in Lagos.
A source close to SEC said that while the Commission was in support of efforts to bail out the stock market, it was not aware of the latest arrangement.
But THISDAY gathered that the part of the bail-out package discussed yesterday include an arrangement that would lead to the appointment of six banks to act as major “Market Makers”. The banks would then provide N100 billion each to buy up to 15 per cent of their shares from the market.
Although any company can be licensed under the guidelines issued by SEC for operators to become Market Makers, it was gathered that the NSE may have encouraged banks to take the lead.
A source said that the thinking is that given the financial muscle of the banks, they would easily meet the minimum capital requirement of N2 billion stipulated by SEC.
“The banks, working according to the guidelines issued by SEC, will provide funds to mop up shares from the market and sell the same shares whenever the need arises,” a source said.
Capital market operators said that given the current capitalisation of banks and the urgency to bail out the nation’s stock market, banks are in a good position to play as Market Makers by floating subsidiaries that would do so.
The SEC’s rules define Market Maker as “Any specialist permitted to act as a dealer, any dealer acting in the position of a block positioner, any dealer, who with respect to a security, holds himself out as being ready to buy and sell such securities for his own account on a regular and continuous basis”.
The Market Maker shall be a company duly registered with Corporate Affairs Commission (CAC) and shall have a minimum paid-up capital of N2 billion. A Market Maker is required to at all times maintain sufficient liquid assets to cover its current indebtedness.
Obligations of the Market Maker include: stabilisation of the market by ensuring continuous liquidity by synchronising buy and sell transactions of a security; operate within the established transaction spread (that is bid/offer spread) which shall be a maximum limit of three per cent and subject to review from time to time.
Also, the Market Maker will have the capacity for continuous two-way quotes in the relevant stocks through the trading session in a minimum quote size of 100,000 units of shares and must have the capacity to deliver and settle transactions within the prescribed settlement cycle of T+3. The Market Maker must equally have the capacity to lend and borrow the designated securities at any time, with a view to ensuring stability in the market among others.
Meanwhile, worried by the worsening global financial meltdown, the Senate will today consider a motion on the issue and its impact on Nigeria.
The motion, entitled: “Global Credit Crisis and its impact on Nigeria”, is being sponsored by Senator Anthony Manzo with 18 co-sponsors.
In the motion, listed on yesterday’s notice paper, the sponsor noted that the wave of the global financial crisis sweeping through United States of America and Europe was the first financial crisis of the 21st century.
If the Senate throws its weight behind motion, commendation may come the way of the Central Bank of Nigeria (CBN) for the quick intervention by injecting N1 trillion into the economy.

emydedon:

hi,can somebody link me to a good penny stock broker

Now there's such a word as a penny stock
And there's such a word as a stock broker
But you may want to start by telling us who/what a penny stock broker is

C'mon man,d'you know the season we're in

Now the market meltdown is world-wide

Nikkei 225 9251  -904.90  (-8.91%)
Hang Seng 15669  -1,134.93  (-6.75%)
All Ordinaries 4370  -228.10  (-4.96%)

@rasputin,
thanks for keeping this thread lively in these bears season.Our Oga(fatherof 2) has deserted us and went into hiding.Me think the bear is over as from today.The six banks for the bail out are FBN,Union,UBA,GTB.and two others.They will inject the money(600billion) as from today.Long Live NSE.
Disclosure:i have lost more than 50% of my portfolio.

NSE still closed @ 10.36am. Abi something dey happen?

debenzd:

NSE still closed @ 10.36am. Abi something dey happen?

debenz,
something serious about to happen as from today.

FORECAST PPROFIT AND LOSS ACCTS INFO 2008
UACN PROP DEV. CO. PLC, PERIOD ENDED 31-12-2008 (YEAR END)

FORECAST PPROFIT AND LOSS ACCTS INFORMATION 2008 TURNOVER 08 N11.102b

PBTAXATION 08 N4.251b

FORECAST TAXATION 08 (N1.360b)

PROFIT AFTER TAXATION 08 N2.89b

YEAR END OCT 2008
BETA GLASS PLC PERIOD ENDED 01-10-2008 (YEAR END) FORECAST PPROFIT AND LOSS ACCTS INFORMATION 2008 TURNOVER 08 N1.800b

PBTAXATION 08 N250.00m

FORECAST TAXATION 08 (N50.514m)

PROFIT AFTER TAXATION 08 N200.000m

6 MONTHS JUNE REPORT 2008
NEIMETH INTERNATIONAL PLC, 6 MONTHS 30-09-2008 2ND QTR FORECAST PPROFIT AND LOSS ACCTS INFORMATION 2008

TURNOVER 08 N1.167b

PROFIT BEFORE TAXATION 08 N152.197m

FORECAST TAXATION 08 (N48.703m)

PROFIT AFTER TAXATION 08 N103m

4TH FORECAST P&L ACCTS INFO 2008
NESTLE NIGERIA PLC, PERIOD ENDED OCT 1ST DECEMBER 31ST 2008 (4TH) FORECAST PROFIT AND LOSS ACCTS INFORMATION 2008

TURNOVER 08 N15.475b

PBT 08 N3.182b

FORECAST TAXATION 08 (N1.005b)

PROFIT AFTER TAXATION 08 N2.177b

FORECAST FOR DEC 2008
PRESTIGE ASSURANCE PLC, PERIOD ENDED 31-12-2008 FORECAST PPROFIT AND LOSS ACCTS INFORMATION 2008 TURNOVER 08 N3.083b

PROFIT BEFORE TAXATION 08 N1.200b

FORECAST TAXATION 08 (N384.000m)

PROFIT AFTER TAXATION 08 N816.000m

FORECAST FOR DEC 2008
PRESTIGE ASSURANCE PLC, PERIOD ENDED 31-12-2008 FORECAST PPROFIT AND LOSS ACCTS INFORMATION 2008 TURNOVER 08 N3.083b

PROFIT BEFORE TAXATION 08 N1.200b

FORECAST TAXATION 08 (N384.000m)

PROFIT AFTER TAXATION 08 N816.000m

4TH QTR FORECAST P&L ACCTS INFO 2008
GLAXOSMITHKLINE PLC, PERIOD ENDED 31-12-2008 (4TH QUARTER) FORECAST PPROFIT AND LOSS ACCTS INFORMATION 2008

TURNOVER 08 N12.353b

PROFIT BEFORE TAXATION 08 N1.535b

FORECAST TAXATION 08 (N468m)

PROFIT AFTER TAXATION 08 N1.067b

4TH QTR FORECAST P&L ACCTS INFO 2008
CUSTODIAN & ALLIED PLC, PERIOD ENDED 31-12-08 (4TH QUARTER) FORECAST PPROFIT AND LOSS ACCTS INFORMATION 2008

TURNOVER 08 N4.073b

PROFIT BEFORE TAXATION 08 N1.789b

FORECAST TAXATION 08 (N268.403m)

PROFIT AFTER TAXATION 08 N1.520b

CASH FLOW INFORMATION: CASHFLOW OPERATING ACTIVITIES 08 N1.809b,

CASH FLOW FROM FINANCING ACTIVITIES N3.399b,

CASH FLOW FROM INVESTING ACTIVITES (N1.472b)

4TH QTR FORECAST P&L ACCTS INFO 2008
TRIPPLE GEE & CO. PERIOD ENDED 31-12-2008 FORECAST PPROFIT AND LOSS ACCTS INFORMATION 2008

TURNOVER 08 N236.938m

COST OF SALE 08 N126.990m

PBTAXATION 08 N28.739m

FORECAST TAXATION 08 (N8.621m)

PROFIT AFTER TAXATION 08 N20.117m

YEAR END FORCAST 2008
TRANS NATIONWIDE EXPRESS PLC, PERIOD ENDED OCT -DEC 2008 (YEAR END) FORECAST PPROFIT AND LOSS ACCTS INFORMATION 2008

TURNOVER 08 N44.862m

PBTAXATION 08 N4.968m

FORECAST TAXATION 08 (N995.000)

PROFIT AFTER TAXATION 08 N3.973m

YEAR END FORCAST 2008
UAC OF NIGERIA PLC PERIOD ENDED 31ST 2008

(YEAR ENDED)

FORECAST PPROFIT AND LOSS ACCTS INFORMATION 2008

TURNOVER 08 N40.023b

PROFIT BEFORE TAXATION 08 N6.584b

FORECAST TAXATION 08 (N1.947b)

PROFIT AFTER TAXATION 08 N4.636b

DECEMBER YR END FORECAST 2008
A.G LEVENT PERIOD ENDED 31-12-2008 (YEAR ENDED) FORECAST PPROFIT AND LOSS ACCTS INFORMATION 2008 TURNOVER 08 N11.000b

PROFIT BEFORE TAXATION 08 N1.460b

FORECAST TAXATION 08 (N467.200m)

PROFIT AFTER TAXATION 08 N992.800m

DECEMBER YR END FORECAST 2008
A.G LEVENT PERIOD ENDED 31-12-2008 (YEAR ENDED) FORECAST PPROFIT AND LOSS ACCTS INFORMATION 2008 TURNOVER 08 N11.000b

PROFIT BEFORE TAXATION 08 N1.460b

FORECAST TAXATION 08 (N467.200m)

PROFIT AFTER TAXATION 08 N992.800m

YEAR END FORCAST 2008
UNION DICON SALT PLC, PERIOD ENDED 31-12-2008 (YEAR END)

FORECAST PPROFIT AND LOSS ACCTS INFORMATION 2008

PROFIT BEFORE TAXATION 08 (N10.143m)

PROFIT AFTER TAXATION 08 (N10.143m)

NOTE THE MAJOR HIGHLIGHT IS THAT THE COMPANY WOULD BE MAKING AN ESTIMATED LOSS.

THIS IS AS A RESULT OF MAINTANCE OVERHAULING OF PLANT & MACHINERY AT OUR PORTHARCOURT FACTORY WHERE PRODUCTION WOULD COMMENCE IN JANURAY 2009.

Can I really invest now? Will the share prices ever go up again? I just want to be sure before I invest additional money in stocks as I am yet to recover from the crash in prices

@nossycheek,
this thing has gone so bad in Nigeria.God bless Nigeria

nossycheek:

Can I really invest now? Will the share prices ever go up again? I just want to be sure before I invest additional money in stocks as I am yet to recover from the crash in prices

Of course.Why not if not.There has never been any market that crashed @ worst or experienced a prolonged bear run that did not recover.

It's just that any investment now will have to be extra evaluated and must be for LONG TERM
In the US,stock prices are spiralling down,but the guru of all investors and arguably the richest man in the world;Warren Buffet just recently bought $3 billion worth of GE cuz he knows that the prices will rise again sometime in the future.Now do you think he's foolish(if he were,he wouldn't be the richest man on the planet)

In addition,you may want to spread your risks by also embracing other investment forms such as real estate(if your war chest is considerable)

Caveat Emptor

husu:

@rasputin,
thanks for keeping this thread lively in these bears season.Our Oga(fatherof 2) has deserted us and went into hiding.Me think the bear is over as from today.The six banks for the bail out are FBN,Union,UBA,GTB.and two others.They will inject the money(600billion) as from today.Long Live NSE.
Disclosure:i have lost more than 50% of my portfolio.

My brother no be my fault oh. I never go desert yet oh. My mouth never still close since public holiday wen DOW loose 777 till now.If DOW dey take hammer like this, i no wan look NSE at all. I go soon sign my SEMINARY application form. Technicals dey fail now. People no wan gree, na worldwide panic we dey now. Na watch and see we just dey. I dey go submit my form on Monday morning by 2pm.If market change by 1pm i go withdraw my form.