oko4lucky:
Na lie

debaj10:
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.

Troublemaker007:


You didn’t even read the post.

spafu:
I know some useless zombie will come and tell us that Buhari is working.

danjumakolo:
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?

oko4lucky:


Abeg leave me joooorr.

Rich4god:
Is it just me... I didn't understand anything..

syncACE:
now we're told of massive gains in 2 weeks; and
the highest value in 8 years.

Wailers over to you

uglodoh:


That was in 2006/2007. I bought from five companies, the stocks are as useless as anything.

syncACE:

why are you always happy to hear bad news concerning the country... Do bad news give you orgasm?

Stycon:
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