10:57AM BR-E-A-KI-NG! INVESTORS book above N300.00billion loss in just 27mins as Huge Sell activities hit stocks in #EarlyTRADES @NSEcontact

11.00AM #BREAKING Stocks record sharp fall in #EarlyTRADES, @NSEcontact tumbles further by 3.01% as INVESTORS book N314.24bn in just 30mins


11:16 SECTOR-WATCH! #BankingSTOCKS are under intense PRESSURE, no Gainers yet as VOLATILITY hits the sub-sector considerably

11:48AM @ZenithBank down by 4.93% @gtbank dips by 4.98% @UBAGroup tumbles by 4.42% @StanbicIBTC slips by 0.44% as @NSEcontact down by 3.29%


12:07PM OFFICIAL! #Stocks end morning session BEARISH, @NSEcontact[b]DOWN by 3.38%, trading at 29,333.18bpts, 3Gainers Vs 36Losers[/b]

http://www.proshareng.com/

Let all those without genuine interest in Nigeria leave, if they so choose....

True investors would stay. People that believe in the country would invest.

There is an adage that says 'Until you fall, you don't know who your true friend is'...

Buhari is a curse.

Guy(citizenisb) abeg stop disturbing us with this "JP Morgan delisting Nigeria from its bond index market" nonsense.. It not like we were the ones that begged them to list us in their market in the first place.

You don't expect our CBN to destroy our economy and put Nigerians in a very sticky situation just because we want to satisfy some bloody imperialist market in the west....


mtcheewwww

SeverusSnape:
Buhari is a curse.

You this half-baked semi literate, what do you know about bond index markets or economics? I guess nothing.

The only thing you are good in is insults and insults.



Fool.

Buhari body odour has killed the economy

front page things, booharist the terrorist

Kastonkastroll:
You this half-baked semi literate, what do you know about bond index markets or economics? I guess nothing.

The only thing you are good in is insults and insults.



Fool.

You this cantankerous zombie. I thought you've been gassed. I know more than you and even that dull'ard at Aso rock.

Like seriously, Do I even insult...Just shut your dirty mouth already.

Since we've been on JP Morgan listing, what has been the effect on common Nigerian on the street, only those that have been benefiting from the listing are losing now.

This is very very disturbing.
Nigerians, irrespective of party affiliation, religious or tribal differences should rally round and assist our economy from this mess.

Abbeyme:
Let all those without genuine interest in Nigeria leave, if they so choose....

True investors would stay. People that believe in the country would invest.

There is an adage that says 'Until you fall, you don't know who your true friend is'...

Define genuine interest People invest to make profits , if you cannot deliver a road map for profits, they pack up and move on.

Realdeals:
Since we've been on JP Morgan listing, what has been the effect on common Nigerian on the street, only those that have been benefiting from the listing are losing now.

You will be feeling the cold air of the market decline soon enough. Keep pretending.

atlwireles:


Define genuine interest People invest to make profits , if you cannot deliver a road map for profits, they simply pack up and move on.

Thats also true sha...

But JP Morgan does not guarantee profit. Its a basis for comparison, detailing and history/records. Of course, it also gives coverage and leverage.
But we as a country is being exposed to a continual and systemic financial raid. And after we succumb, they raise the bar...? So what shall we then do...

These guys are imperialist with no value for labour...

SeverusSnape:

You this cantankerous zombie. I thought you've been gassed. I know more that you and even that dull'ard at Aso rock.

Like seriously, Do I even insult...Just shut your dirty mouth already.

hmmm... Anyway you are still an undergraduate, possibly a dummy undergraduate who knows nothing and only constitute as a nuisance in whatever school you are in. My little brother is a lecturer so I won't waste anymore time on a dummy like you.

Insulting buhari is the only thing you are good at. Give us an analytical backlash of our delisting from JP Morgan bond index market, you won't be able to do that.

olodo rapata...........

Kastonkastroll:
Guy(citizenisb) abeg stop disturbing us with this "JP Morgan delisting Nigeria from its bond index market" nonsense.. It not like we were the ones that begged them to list us in their market in the first place.

You don't expect our CBN to destroy our economy and put Nigerians in a very sticky situation just because we want to satisfy some bloody imperialist market in the west....


mtcheewwww

illiteracy at work
is obvious that you don't understand
what's going on
cos if you do
you wouldnt have commented
rubbish
this not matter of APC or PDP it will affect all

since 2008, the stock market has never been the same even before GEJ came in so I wonder what is all the noise about? even NOI told us earlier in the year that Nigerians will have a rough year, but no Buhari must be hanged as far as some bitter fellows are concerned.

Kastonkastroll:
hmmm... Anyway you are still an undergraduate, possibly a dummy undergraduate who knows nothing and only constitute as a nuisance in whatever school you are in. My little brother is a lecturer so I won't waste anymore time on a dummy like you.

Insulting buhari is the only thing you are good at. Give us an analytical backlash of our delisting from JP Morgan bond index market, you won't be able to do that.

olodo rapata...........

Hehehehehehehehehehe

If your little brother is a lecturer, Then my younger brother is a professor. , See who's talking!


Yes, I love insulting the Presidiot, Do you have any problem with that?...oh!, I know, You feel tormented that a "lowly undergraduate" like me is insulting that man, Don't worry, there is more to come.

I've tried being rational with zombies like yourself, But you guys never reason, Even if the truth is staring at you in the face, you'd still blame Jonathan. Even my little cousin knows the after effects of this unfortunate delisting. Why waste my precious time educating zombies?... Zombies ain't gat no brain!!!

Foolish neanderthal!

Abbeyme:


Thats also true sha...

But JP Morgan does not guarantee profit. Its a basis for comparison, detailing and history/records. Of course, it also gives coverage and leverage.
But we as a country is being exposed to a continual and systemic financial raid. And after we succumb, they raise the bar...? So what shall we then do...

These guys are imperialist with no value for labour...

This country has passed the stage of imperialist and exploitation arguments. Labour and capital are extremely cheap today, Nigeria will not be attracting neither. Maybe we should ask why? JPM provided outside investors a window into the Nigeria financial market, a mark of credibility, an emblem of trust. Fund managers look to it as barometer for sizing up a country. Nobody is exploiting us but ourselves. Nigeria is a loser for this move today, no going around it. Our loss is Ethiopia, South Africa and Kenya's gain.

SeverusSnape:

Hehehehehehehehehehe

If your little brother is a lecturer, Then my younger brother is a professor. , See who's talking!


Yes, I love insulting the Presidiot, Do you have any problem with that?...oh!, I know, You feel tormented that a "lowly undergraduate" like me is insulting that man, Don't worry, there is more to come.

I've tried being rational with zombies like yourself, But you guys never reason, Even if the truth is staring at you in the face, you'd still blame Jonathan. Even my little cousin knows the after effects of this unfortunate delisting. Why waste my precious time educating zombies?... Zombies ain't gat no brain!!!

Foolish neanderthal!

my guy hope you are ready for a very long ride, I must warn you, its not going to be easy o, are you ready for the fire?

Goke7:


my guy hope you are ready for a very long ride, I must warn you, its not going to be easy o, are you ready for the fire?

Fire from who exactly?... Bubu?... DSS??... aallah

Buhari is a cursed fool. Let's start from there.

sdindan:


illiteracy at work
is obvious that you don't understand
what's going on
cos if you do
you wouldnt have commented
rubbish
this not matter of APC or PDP it will affect all

You must be very stup!d to think many of us are ediots like you. Tell me you fool, what will be the negative effect of this hullabaloo in the long-run?

Is JP Morgan not just a bank like any other big banks in the world ?


Fool

Abbeyme:
Let all those without genuine interest in Nigeria leave, if they so choose....

True investors would stay. People that believe in the country would invest.

There is an adage that says 'Until you fall, you don't know who your true friend is'...

Well said.

Ogbelle O!!!!!!!! Buari don destroy zoogeria!

SeverusSnape:

Hehehehehehehehehehe

If your little brother is a lecturer, Then my younger brother is a professor. , See who's talking!


Yes, I love insulting the Presidiot, Do you have any problem with that?...oh!, I know, You feel tormented that a "lowly undergraduate" like me is insulting that man, Don't worry, there is more to come.

I've tried being rational with zombies like yourself, But you guys never reason, Even if the truth is staring at you in the face, you'd still blame Jonathan. Even my little cousin knows the after effects of this unfortunate delisting. Why waste my precious time educating zombies?... Zombies ain't gat no brain!!!

Foolish neanderthal!

fool. Your junior brother is a professor while you are languishing with dullness, and you are happy about it.

Guy na only baba- suwe go fit cure your foolishness.

Fool

SeverusSnape:

Fire from who exactly?... Bubu?... DSS??... aallah

Buhari is a cursed fool. Let's start from there.

anyway i can see from your bitterness that you are about to commit suicide, pls hurry cos Buhari still have more than 3 years to go and if you are like this already, it is certain you may not witness the 1yr anniversary of Buhari. Bitterness kills fast bro.

What It Means For Nigeria To Be Kicked Out Of The JP Morgan EM Bond Index

http://nairametrics.com/jp-morgan-index-list-of-possible-implications-when-nigeria-is-evetually-kicked-out

Political Capital
The current Buhari Government has been taking credit for some of the policy initiatives carried out by Goodluck Jonathan Government such as stable power, the Treasury Single Account, tax initiatives, war on terror, renewal of strong diplomatic ties with the US etc. The Buhari Government is also not relenting in calling out the past government for its bad policies and alleged corruption. This development will now give critics of the current government, the opposition party and sympathisers of the past government enough armory to blame the current government. They will surely blame the Buhari government for not acting swiftly enough to stop the decision of JP Morgan considering that it issued the threat about 9 months ago. They will also say it is because of the slow mode of operation of the current government (which for example has not announced a cabinet more than 100 days after being in office) that has made the CBN Governor act alone thus portraying the country as one without an economic direction. This will cost the president a lot of political capital as even his supporters must now be jittery.
Bond Yields

When Nigeria borrows money by selling bonds they pay investors based on the on prevailing bond yields. For example, a unit of a bond priced at N1000 may have been originally sold at an interest rate of 10%, that is N100 per N1000. With Nigerian thrown out of the index holders of that bond could dump it and sell for lower than N1000 per paper just to exit. If the average price drops to N800 due to high volume of sellers then that interest rate of 10% is now 12.5%, that is N100 dividend by N800.
This means the next time the Nigerian Government goes out to borrow it will no longer attract a 10% yield but will now borrow from investors at a yield of 12.5% or even more. This will cost the government more money in servicing interest thus taking money it could have used for capital projects for debt servicing.

Lack of foreign demand
By taking Nigeria off the index, there will be little or no demand for our bonds from foreign investors. Already, since JPM threatened to yank Nigerian off back in January, foreign holding of our bonds has dropped from a peak of $11 billion in 2013 to $3 billion today. It is therefore likely that this may even shrink further thus affecting the demand for our debts. A lack of demand for our debts means yields may even get higher as fewer investors will now sought for our bonds
Gain for other emerging markets
With Nigeria out of the scene, other emerging markets in Africa like Ghana, Kenya and even South Africa could now be more attractive to investors. They will simply now move their funds to competing countries leaving Nigeria in its wake. Since investors like to follow the money, it is also likely that other forms of investments may elude Nigeria because of this singular move.
Prestige and Clout
With the above happening, Nigeria will lose its prestige as not just the largest economy in Africa but the economy attracting the most foreign investments. This will be damaging to an economy that has been thumping itself as the destination to be for foreign investors.

Corporate Bonds

Local companies and banks also borrow money from foreign investors by selling foreign denominated bonds and also Naira bonds. Now that the Federal Government is likely to see their borrowing cost go up due to this development, it is likely that banks and other corporates seeking to borrow may have to pay more in interest as well. Some companies may not even have the courage to borrow with bonds again due to high lending rates and may result in some companies gets starved of funds so much that they may start to incur losses or even fold up. For those that have even borrowed refinancing such loans will now be expensive as yields have already gone up.

Higher lending rates
For the banks that are lucky enough to borrow, they will have to pass on that cost to someone else. Small businesses which rely on banks for small loans such as overdrafts, local purchase orders, letters of credit etc. may also see their borrowing rates rise even higher. For individuals with consumer loans they may also be expecting a letter from banks telling them that their loan rates have gone up.

Foreign Currency Cost
It is also likely that foreign currencies will cost more to use due to this action. Holiday makers or business travelers who use their cards abroad for foreign denominated transactions may also see themselves paying more whenever they spend their naira debit cards. Since some banks also channels some of their foreign borrowings in the forex market it is likely that they will charge end users more to recover the higher cost of borrowing.

Shallow market
With the exit of most foreign investors the long term plan of the Debt Management Office of ensuring that our bond market is deep is now in jeopardy. With little demand, it is unlikely that the government and other private companies seeking foreign currency loans will use the bond market as a possible source. This will make the market shallow and unattractive and could even throw some companies out of business. For example, Fund Sourcing Companies, Legal Advisers and other consultants may witness a huge reduction in deals thus affecting their revenues.

Ripple Effect
The Nigerian stock market which has seen some bullish trends in recent days may also be negatively impacted. With this announcement it is likely that this may hurt the confidence of foreign investors which make up about 45 to 50% of transactions in the Nigerian Stock Exchange. If they decide to exit the market because of this then the market may just be primed for another long bearish run.

Devaluation
If this situation is not handled properly it may also trigger another massive devaluation. This could be caused by foreign investors who have had enough and will now use this decision by JPM as a reason to pull out their funds. Pulling out their funds creates demand pressure on forex and may result in a devaluation of some sort.

Kastonkastroll:
Guy(citizenisb) abeg stop disturbing us with this "JP Morgan delisting Nigeria from its bond index market" nonsense.. It not like we were the ones that begged them to list us in their market in the first place.

You don't expect our CBN to destroy our economy and put Nigerians in a very sticky situation just because we want to satisfy some bloody imperialist market in the west....


mtcheewwww

hahahahahahaha! u no know say na d bloody imperialist west way put buari for power? by d time buari masters for west vex dem na so una president go crash like iroko tree dem cut for my backyard.

It is now certain that the wailers have now graduated from the issue of lopsided appointments, to the issue of public declaration of assets, now JP morgan has become their food and they will also fail int his one too by the Grace of God.

Things are falling apart while the man buhari and apc continue using the country to do experiments.

15 million mumus voted for a man that was begging GEJ for ideas on how to start his government because he doesn't have any.

They think running a state is the same with running a country.

I hope they wont leave this country worser than they got it.

drss:

hahahahahahaha! u no know say na d bloody imperialist west way put buari for power? by d time buari masters for west vex dem na so una president go crash like iroko tree dem cut for my backyard.

Mumu, any negative effect on the economy(God forbid) will also affect you. So I dont know what you are happy about.

Kastonkastroll:
Guy(citizenisb) abeg stop disturbing us with this "JP Morgan delisting Nigeria from its bond index market" nonsense.. It not like we were the ones that begged them to list us in their market in the first place.

You don't expect our CBN to destroy our economy and put Nigerians in a very sticky situation just because we want to satisfy some bloody imperialist market in the west....


mtcheewwww

Kastonkastroll:
Guy(citizenisb) abeg stop disturbing us with this "JP Morgan delisting Nigeria from its bond index market" nonsense.. It not like we were the ones that begged them to list us in their market in the first place.

You don't expect our CBN to destroy our economy and put Nigerians in a very sticky situation just because we want to satisfy some bloody imperialist market in the west....


mtcheewwww

The tears that will flow from your eyes soon will be more salty than the red sea. You can't expect to play in the champions league, win some trophies and then the instant you fail to qualify for the group stages, you claim you don't need champions league. Our listing on the JP Morgan index gave us the prestige and bankability to attract funds from the international market for our indigenous OIL and GAS firms and also our MANUFACTURING SECTOR. Now, 1 question, what do you think would happen to our economy, when we no longer can attract those funds. Let me whisper it to you: CAPITAL FLIGHT will hit an all time high. This in combination with the oil glut, will send our economy into PANIC MODE. And to add to that, the absence of a solid economic team headed by someone who is globally known and with a considerable measure of influence in the economy world, you can expect no viable shock absorber plan to slow the impact.
Now, I hope you see why your eyes will compete with the red sea.

This is the battle to save our naira. We are getting there