Stock Market Tips For Nigerians

Dunlop,Ecobank and Afribank still heading north.DSR showing some resistance,Who knows when others will join.

SEC issues new rules on share buy-back


Slashes fees

Raises panels to review corporate governance

By Gbenga Agbana and Mathias Okwe
FRESH initiatives to reposition the waning Nigerian Capital Market were yesterday adopted by the Securities and Exchange Commission (SEC), the apex-regulating agency of the market in Nigeria.

The initiatives, coming on the heels of recent similar action by the Nigerian Stock Exchange (NSE), include the slashing of fees charged by SEC for investment in the market by 50 per cent, the release of new rules on share buy - back and the setting up of two new committees on the review of the code of corporate governance for public companies and the review of capital market structure and processes.

The fees slash by SEC would mean more value for investors who, before now, were charged about five per cent of the value of their investment by SEC whether they are buying or selling. Now, they would have to pay half of that, which is two and half per cent. The move is aimed at encouraging activities in the market by investors.

Also under the new regime of incentives, SEC has reviewed the rules relating to shares buy-back (acquisition of own shares by companies) to allow firms to buy back up to 15 per cent of their existing issued and paid - up equity capital in any given financial year, while market markers shall now be eligible to operate in the market only after fulfilling the condition of a minimum paid - up capital of N2 billion including liquid assets at all times to cover its current indebtedness.

The Chairman of the SEC Board, Senator Udo Udoma Udo, who announced the new incentives while performing the inauguration of the two committee members in Abuja yesterday, said the initiatives were in line with the Federal Government's action in stabilising the Nigerian Capital Market as was outlined by the stakeholders' meeting last August 26 with the Vice President, Dr. Goodluck Jonathan at the Aso Villa.

Senator Udoma said: " It would be recalled that on Tuesday, August 26, at a meeting the Vice President held with stakeholders towards stabilising the Nigerian Capital Market, a number of recommendations were made. Some of the recommendations were to be implemented by the Central Bank of Nigeria (CBN); some by the NSE and some by SEC."

According to him, SEC was required to give consideration to "the reduction of its fees by 50 per cent; issuing rules for share buy - back by quoted companies and issuing guidelines for the operation of market markers."

"Immediately after the meeting, the management of SEC was directed to begin extensive consultations for the purpose of bringing forward proposals for the consideration of the board at its next scheduled meeting for Thursday, September 11, 2008. Notwithstanding the extremely tight schedule given management for these consultations, they were given and were able to present proposals on all the three issues for the consideration of the Board.

"At this meeting therefore, the board was able to consider and approve proposals for the following: immediate across-board reduction of all SEC fees by 50 per cent; rules for share buy-back by quoted companies in accordance with the Law as set out in the Companies and Allied Matters act and Operational guidelines for the registration of market markers.

"These new rules have since been approved by the Hon. Minister of Finance and the Director-General of SEC will be releasing them today (yesterday) and there are with immediate effect, Senator Udoma stressed.

He pledged the SEC board's commitment to checking market abuse and improving the efficiency of the capital market processes as well as the quality of the products.

As a first step of realising this vision, he disclosed that the board was retaining consultants to do a complete diagnostics of SEC to identify the Commission's weaknesses in order to strengthen and fortify its institution capacity.

He also explained that the setting up of the two Review committees on the market was in line with the objective as they would identify weaknesses in and constraints to good corporate governance in public companies in Nigeria and review the capital market structure and processes so as to make recommendations to SEC for measures that can be taken to improve its operational efficiency, international profile and transparency.

The Technical Committee on Corporate Governance is headed by a lawyer, Mr. A.B Mahmoud (SAN), while that on review of Capital Market Structure and Processes is headed by an accountant, Mr. Dotun Sulaiman.

The two committees have eight weeks to submit their reports and they are among other things, to examine in the light of recent experiences the quality of corporate governance; identify weaknesses and constraints to good corporate governance in public companies and recommend ways of effecting greater compliance by them.

They are to also identify the strengths, weaknesses, opportunities and challenges of the Nigerian Capital Market with a view to positioning it to meet immediate and future developmental aspirations in Nigeria and review the current market structure and processes as well as the regulatory and institutional framework and make recommendations for the improvement of the operational efficiency and transparency of the market, including any suggested amendments of existing legislation.

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Ipso-facto,

Taqueant colloquia effugiat risus hic locus est ubi mors qaudet succerre vitae.

Most businessess happens to be in the laps of the gods, foreign investors in the nigeria stock exchange market have withdrawn their green backs, Soludo is clamping hard on banks over foreign exchange deals,. the bubble is about to fully burst, watch your money

www.101creativitytosucess.blogspot.com

If you have a million naira to invest today, would you buy shares, or would you put in fixed deposit account? Or put it under your pillow

That one has its own risks
1. If you are the first to buy the land, the same land may be sold to someone else (behind your back) and you both end up in court dragging the land.
2. The land may have been sold to someone before you bought it.
3. A new government can come and claim the land.
4. The landlord that sold the land can refund your money when he sees a higher bidder.
5. The land can still be taken over by the community/family that owns the lands if there was family dispute before it was sold.

All this can happen even if you build a structure on the land.

Am right at your side, some companies shares that are  bought in the  sixties, and seventies, where are they? a piece of land bought along Ikorodu road at same time, with same price what is the worth?, estate investment is the primary investment for any sensible person.

Na wao oo,see wetin NSE crash dey cause 

The stock market is for only the brave in heart now

Investment is not gambling, the problem with majority of investor in the capita our capital market is that they always follow the bandwagon without analysing the fundamentals that supports the stock they are buying. some people also put their trust in their broker, so anything their brokers pick for them is the best, 
There is need to be inform about the market for an investor that want to make if big from the stock market, so that you will be able to know when to buy and when not to buy. As the market is today, some investors are still making big money but you just need to be knowledgeable about investing before jumping into the market.

@jamace

so which stock do you recommend?

I will personally consider the following stocks:

Banks: Most of them are good.

Construction: J berger and Costain.
Food and beverages: Most of them are ok.
Insurance: Mbenefit, AIICO, NEM, Cornerstone, Crusader and a few others.
Mortgage: All ok.
Petroleum: All.
Information and media: Starcomm and DAARCOM

Well, note that these are my personal choices based on my stockmarket psychology. Yours could be different. On the whole, I will advice any one with money to go in now, but at their own risk. Thanks.

Your psychology eh
On what are you basing your recommendation of the above-highlighted?

You got to believe in the stock market before you can put your next bucks in there.

There are still some good stocks not over-priced at the mo.

GTB - strongly recommended
Oceanic - strongly recommended
Zenith - strongly recommended
Dangsugar - strongly recommended
NB plc - strongly recommended
Guiness - strongly recommended

As someone rightly said, investment is not about immediate returns as most of think.

Just set aside funds you don't need for at least the next 18months and just cross your fingers while it yield returns.

Its still the best time to invest, all we need is to BELIEVE IN THE MARKET AGAIN and not to expect overnight returns.

Investment is not for those who can not withstand a litle dip in their investment, that is why I talked about psychology. As an investor, you must be ready to accept losses while keeping your eyes on the gains. You must also have flexible plans so that if your immediate target is not met, you can either accept the loss by selling off and moving on or you can hold for long term. That is why it is advised that you should invest only money that you do not require immediately.

What you think  Warren Buffet has lost,  is not  yet lost until he sells off the shares at present rate. And so it is with all investors in the stockmarket.  It is only book loss.