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Understanding The Nigeria Stock Exchange Gains by debaj10: 6:32pm On Jan 12, 2018 |
1. most investors are in it Long term, 5 to 50+ years. 2. separate them from stockbrokers who play the market. 3. on an average day, only a few companies' stocks pull up or deflate the market. 4. most other companies take a while to rally under bullish (when there are gains) or bearish (losing) trends. in the news a few weeks ago we were told that about 40% of the companies in the NSE were flat/dormant all year, 2017. now we're told of massive gains in 2 weeks; and the highest value in 8 years. here's the economics: 1. divide the value of the NSE in 2009 by the value of the dollar then; do the same for today. this gives you a general idea of what kind of growth we've had, based on the naira:dollar exchange. 2. when dollar went from N200 to N300, the value of your 100k shares went from $500 to $333. so your broker would advise against selling, because you've actually lost money in real terms. therefore to know if the increased share price has covered your losses, calculate for dollar value then factor INFLATION into the result- how many more bags of garri can you buy now, compared to when you first bought shares? 3. a breakdown of the sectors will show you how the real sector of the economy ( companies into manufacturing, construction, healthcare, education and agriculture) benefited from the rise in the index, or if investors are only looking to invest in sectors that will yield quick profits- oil and gas, commodities, etc. 4. rule of thumb: economic growth is measured by growth in the real sector, rather than GDP. the oil industry employs relatively few number of people; how the income is channelled into the economy is therefore crucial to nations like ours. so while increase in crude prices may benefit the GDP through a few companies, it may have very little impact on the economy. as they say, the devil is in the details. so hold off on wailing or cheering until you understand the technicalities and have calculated the real value of the NSE. 15 Likes |
Re: Understanding The Nigeria Stock Exchange Gains by oko4lucky(m): 7:42am On Jan 13, 2018 |
Na lie |
Re: Understanding The Nigeria Stock Exchange Gains by akanbiaa(m): 7:43am On Jan 13, 2018 |
Make money by checking signature |
Re: Understanding The Nigeria Stock Exchange Gains by Troublemaker007(m): 7:43am On Jan 13, 2018 |
19 Likes 3 Shares
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Re: Understanding The Nigeria Stock Exchange Gains by nairaman66(m): 7:43am On Jan 13, 2018 |
In Nigeria can tell you everything to believe anything just so many other people will invest and lose their funds in the long run! 1 Like |
Re: Understanding The Nigeria Stock Exchange Gains by Sweetcollins: 7:44am On Jan 13, 2018 |
To what end |
Re: Understanding The Nigeria Stock Exchange Gains by free2ryhme: 7:45am On Jan 13, 2018 |
debaj10: we dont want to understand make una dey enjoy una scam unaselves 2 Likes |
Re: Understanding The Nigeria Stock Exchange Gains by ufotty2001: 7:47am On Jan 13, 2018 |
Am 100% sure that people will not make comments on this post... Thanks op have learnt alot 15 Likes |
Re: Understanding The Nigeria Stock Exchange Gains by akanbiaa(m): 7:49am On Jan 13, 2018 |
Make money by checking my signature, you won't regret |
Re: Understanding The Nigeria Stock Exchange Gains by spafu(m): 7:49am On Jan 13, 2018 |
I know some useless zombie will come and tell us that Buhari is working. 2 Likes |
Re: Understanding The Nigeria Stock Exchange Gains by swiz123(m): 7:53am On Jan 13, 2018 |
Actually, I just woke up.. I can't see clearly to read..especially shits |
Re: Understanding The Nigeria Stock Exchange Gains by Nobody: 7:53am On Jan 13, 2018 |
Op.. You talk about gains. How about when banks and brokers connive to make their stock look attractive but in real sense,a fraud.Remember the bubble that busted some years back? 1 Like |
Re: Understanding The Nigeria Stock Exchange Gains by oko4lucky(m): 7:57am On Jan 13, 2018 |
Troublemaker007: Abeg leave me joooorr. |
Re: Understanding The Nigeria Stock Exchange Gains by syncACE(m): 7:58am On Jan 13, 2018 |
now we're told of massive gains in 2 weeks; and the highest value in 8 years. Wailers over to you 2 Likes |
Re: Understanding The Nigeria Stock Exchange Gains by syncACE(m): 8:00am On Jan 13, 2018 |
spafu: why are you always happy to hear bad news concerning the country... Do bad news give you orgasm? 3 Likes 1 Share |
Re: Understanding The Nigeria Stock Exchange Gains by uglodoh(f): 8:08am On Jan 13, 2018 |
danjumakolo: That was in 2006/2007. I bought from five companies, the stocks are as useless as anything. 1 Like |
Re: Understanding The Nigeria Stock Exchange Gains by ashjay001(m): 8:08am On Jan 13, 2018 |
@debaj10, u no try at all, sha! Ur topic read, understanding d NSE, but in d article, u're still speaking spanish If u wan break am down, just do that, instead of expecting us to dey find calculator, up n down 4 Likes |
Re: Understanding The Nigeria Stock Exchange Gains by Celestyn8213: 8:09am On Jan 13, 2018 |
Ok you try, weldone. Buh who is talking about stock market in Nigeria sef? |
Re: Understanding The Nigeria Stock Exchange Gains by Rich4god(m): 8:10am On Jan 13, 2018 |
Is it just me... I didn't understand anything.. 1 Like |
Re: Understanding The Nigeria Stock Exchange Gains by Troublemaker007(m): 8:11am On Jan 13, 2018 |
oko4lucky:
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Re: Understanding The Nigeria Stock Exchange Gains by Nicklaus619(m): 8:11am On Jan 13, 2018 |
This is the kind of topic That I want to see on front page. Thank op for the enlightenment |
Re: Understanding The Nigeria Stock Exchange Gains by Troublemaker007(m): 8:11am On Jan 13, 2018 |
2 Likes
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Re: Understanding The Nigeria Stock Exchange Gains by nnachukz(m): 8:13am On Jan 13, 2018 |
syncACE:I know you didn't even understand what the op wrote. He said keep off from wailing or hailing until you have understood the technicality of those statements as it reflects on our economy. Factor in inflation, but you won't do that, would you? Reason why you support failure, you don't read, if you read you don't comprehend. 1 Like |
Re: Understanding The Nigeria Stock Exchange Gains by Nobody: 8:14am On Jan 13, 2018 |
Hmmm...i understand cryptocurrency more than this one o |
Re: Understanding The Nigeria Stock Exchange Gains by misterjosh(m): 8:18am On Jan 13, 2018 |
I still don't understand |
Re: Understanding The Nigeria Stock Exchange Gains by olaskul(m): 8:20am On Jan 13, 2018 |
Dear friends, please am a final year student of yabatech and in need of some financial support the money is to repay a debt of 50k which I incurred when my parent house rent was due but the person is hell bent on collecting his money back. Please people help me avert this shame that's about to befall me i plead. 1 Like |
Re: Understanding The Nigeria Stock Exchange Gains by Stycon(m): 8:29am On Jan 13, 2018 |
Op, please what exactly are you driving at I suggest you start by factoring in exchange rate parity and inflation into your country's GDP growth between 2009 and now first. Then compare it with the NSE performance in real and nominal term. This should give you a better and holistic view of the state of the economy vis a viz NSE Investors are not father Christmas; so what other reason would they invest if not to profit. Yeah if any economy must have a sustainable growth, real sector investment should be prioritised. I guess you should tell that to your government and not to portfolio investors. And of course, we should avoid the fallacy of composition when viewing the recent rally in the market as it is clear that it doesn't mirror every unit in the bundle of company represented on the bounce but this doesn't means NSE has not improved in recent time. Btw, you can do us a favour by giving us a more analytical breakdown of the disparity between the nominal and real performance between 2009 and now with real figure and stop peddling assumptions. Btw, errrrrrrrrm Op, what are saying sef 3 Likes 1 Share |
Re: Understanding The Nigeria Stock Exchange Gains by Coolcash1: 8:34am On Jan 13, 2018 |
Look at the low number of comments on the post simply because it's not about Davido or nudity or snakes. God help this generation. However, the bull is just a mini one because a major one is about to hit the exchange from next week. Any wise person will try and position him or herself to take advantage of the situation.... 3 Likes |
Re: Understanding The Nigeria Stock Exchange Gains by jamace(m): 8:46am On Jan 13, 2018 |
uglodoh:Did you understand the stock market before buying? If I may ask again, do you have a broker? Have you not been getting dividends? Have you submitted your e-dividends form to your broker? Just like every business, Investing in the stock market is a very serious business and one must be serious with it to make profit from it. 2 Likes |
Re: Understanding The Nigeria Stock Exchange Gains by spafu(m): 8:47am On Jan 13, 2018 |
syncACE:Why do you like being a zombie? |
Re: Understanding The Nigeria Stock Exchange Gains by Coolcash1: 8:48am On Jan 13, 2018 |
Stycon: The OP is trying to say that at current prices shares are trading now, they are grossly undervalued due to exchange rate effect. To foreign investors, they still appear very very cheap. For instance, Nestle shares rose from N800 to circa of N1,500 due to massive mopping by foreign investors. This has also spread across other stocks especially banking stocks enjoying bullish ride at the moment. To help the OP, to put the factors responsible for the bullish run succinctly, they are; increase in crude oil prices, stability in forex, creation of import and export forex window, changes in pension rule which allows PFAs to invest 25% of pension funds in the stock market and low return on treasury bills. Hope this helps... 5 Likes |
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