Whynotthetruth:


And this post is to what end?

Do you even know the difference between money market and capital market?

Did you read the content of this post you sent to me?

Quit embarrassing yourself and disturbing my mention...

jaybee3:


Dude, so because garri isn't quoted on the exchange mean price of food isn't being directly correlated with price movement in the stock exchange?

What affects the price of food?
Commodity and transport stocks right?

So that has no knock on effect?

Are you listening to yourself?

Whynotthetruth:


What are you doing in London...

jaybee3:

You called me out and i ain't hiding so why are you running?
Why don't you tell me how they are closely correlated

jaybee3:


There are various factors affecting equities and it isn't restricted to the emerging markets.

China is slowing down
Greece is lingering
America is not growing at the predicted pace

There is an obvious knock on effect on with a slow down in major economies such as their inability to by commodity (Our key export).

If Nigeria's stock index is heavily weighted by energy stocks then surely that will weigh the market down , No?

Whynotthetruth:


Good pm bro

jaybee3:


You called me out and i ain't hiding so why are you running?

Why don't you tell me how they are closely correlated

jaybee3:

You backing down?

Whynotthetruth:


Teaching someone who started with a boast on how he would school me on equities and shares...That's a big NO to me...

jaybee3:


I could place a bet that you were probably still in secondary school when i was actively trading

So please make it a Yes Yes

You think i'm one of those that can talk the talk but won't be able to walk the walk?

Anyhoo, i will let you off

Ciao

Whynotthetruth:


Braggart byeeeee bro

Firefire:



Is cutting off the head cure for headache ?

jaybee3:


I like being Intellectually challenged so no issues.

Stay blessed

jaybee3:


We are talking about the Naira here dumbass

FX is not directly correlated with the Stock market

Come back next time so i can school you

IBBG:
actually I think it does, because when foreign investors want to buy Nigerian stock they will need to change their dollars for naira hence pushing up the naira due to demand. In a situation when foreigners are dumping our stocks they will convert the naira to dollars hence putting a downward pressure on the naira since dollars is in higher demand. So that's the likely scenario I can envisage. Although I'm not an economist by profession, but I'm so fond of economics as it affects our world.
Hoping to become good at it, as it will enable me make sound decision as a potential investor.

rati ken:

The summary of Boyo's position is:
Boyo has maintained that the foreign exchange role of the CBN should be de-monoploized which i consider very valid.
We sell our crude in US dollar, why should the CBN single handedly provide equivalent naira to the various ministries and states even for dollar expenditures. Because the states and ministries will go back to the open market to source the dollar equivalents at prices artificially manipulated by the CBN. If CBN provides allocations in equivalent dollars as needed, this will drive up the value of the naira as there will be less demand pressure on the US dollars.

As such the price of PMS in equivalent naira will drop as well as the imported products are purchased in dollars. At an improved naira rate, subsidy rate will be greatly minimised or even disappear depending on the strenght of the naira.

In a more simpler terms, a lot of factors influence our foreign exchange rates, overr and above the place of our economy, the demand of a particular currency drive up the exchange rate. CBN creates artificial scarcity by providing funds/ allocations to various parastatals and states in naira rather than in dollars which is the actual currency on which our revenue is derived. If we eliminate this artificial scarcity by providing funds in dollars, we can get our exchange rate down to 1$ = 110 naira (my assumption) (sic).

InvertedHammer:
/
It has nothing to do with naira.

Due to contagion effects of Greece, world equities have been selling off. Infact, Shanghai index lost 30% of its value in 2 weeks.
DJIA, NiKKEI, you name it, they all bled in the last one week. So Nigeria stock market followed suit. A rising wave takes all and vice versa.

That's all.

\

ttmacoy:
Not exactly true. China's stock.market crash has nothing to do with Greece and the Greek issue will not impact Nigeria that much compared to other European countries.

[s]Th pressure on the naira is directly linked to the fall in government revenue from oil prices and depletion of the foreign reserve. [/s]

I other factors you mentioned may have some impact but those are not the main reasons.

Firefire:



Painfully yes, and you see them quoting yeye 196.5N/$ on their website.

I can reliably confirm to you that over 2 Billion Dollars are waiting FOREX in all tier 2 or 2nd tier banks in Nigeria.

Most firms are passing through hard time to remit fund to their foreign suppliers.

I pray "Miracle" happen soon.

989900:
I wish this people would just listen to Henry Boyo an astute economist, and a large chunk of our economy will be revived in 'no time'.

He predicted where we are headed a long while ago.




https://www.nairaland.com/844884/solution-fuel-subsidy-wahala-look (pictorial representation)

http://eaglereporters.com/2014/12/19/dollar-exchange-rate-91474/

http://eaglereporters.com/2015/07/08/fuel-imports-the-real-cabal-by-henry-boyo/

http://eaglereporters.com/2015/02/09/economic-mismanagement-retrospect/

http://eaglereporters.com/2015/06/01/buhari-vs-a-clueless-mpc/

http://thenewsnigeria.com.ng/2015/05/19/okonjo-iweala-a-failure-henry-boyo/

http://www.punchng.com/opinion/viewpoint/soludo-vs-iweala-between-the-pot-and-the-kettle/

http://dailyindependentnig.com/2015/03/cbn-dollarisation-economy/

http://omojuwa.com/2013/01/opinion-cbn-and-the-nigerian-economy-henry-boyo/


https://www.youtube.com/watch?v=tSN3jBu-W20


https://www.youtube.com/watch?v=V7oLw6LuWqM


https://www.youtube.com/watch?v=MLSvITJc9uk

"The problem of the Nigerian economy will remain intractable until the CBN's monopoly of the forex market is dismantled" _ Les Leba.

http://www.lesleba.com/ these guys no more about the economy than all of Nigeria's economic team from the past and now put together, but their voices are consciously drowned.

ttmacoy:
Not exactly true. China's stock.market crash has nothing to do with Greece and the Greek issue will not impact Nigeria that much compared to other European countries.

Th pressure on the naira is directly linked to the fall in government revenue from oil prices and depletion of the foreign reserve.

I other factors you mentioned may have some impact but those are not the main reasons.

1stCitizen:


The only sensible comment so far.

Buhari should suspend Emiefele or whatever his name is.....a precedent has already been set with Sanusi

InvertedHammer:

/
Re-read the OP. You are confused. How much impact from.Greece is enough? I didn't discuss the pressure on naira. I refuted the assertion that the fall in equities in recent times is because of devaluation of naira. Cause and effects? Not so fast.

The world is one global village. Market reacts to anticipations and outlook. Uncertainty kills the market. I don't want to argue blindly. Take a historic look at the Greece crisis and see what happened to global equities each time it came up. Nigeria is a small fish in a big pond. Debts are repackaged and sold to different entities which is why when one country sneezes, everyone catches cold. Naira is still in a sh.it hole but once the Greece saga is temporarily bandaged, Nigerian equity market will go bullish like everyone else.

US had to pull the plug on.NYSE yesterday based on a flimpsy excuse of "technical glitch". Chinese regulators came out with a margin news that affected the global market. Then with the dire situation in Greece hanging on the balance, everything went haywire. Major brokers all over the world even sent out emergency messages to their major clients about temporary changes in margin requirements till the Greece issue is sorted out.

If you are not in the business, you will never understand.
\

ekoscolary:


So r u saying we should directly dollarise our economy ? Hell No. CBN is currently not dispose to subsidising frivolous private & public dollar expenditures. That is d main purpose of its recent policy to yank off some goods from IFEX funding.

joeybankz:
The discussion here got me thinking...... Thanks to Whynotthetruth And jaybee3 for refreshing my memory again, Twas an interesting one there........... Picking up my University text again to check up on some things......

jaybee3:

Nigerian stock index is not traded in Nigeria alone

Do you understand the concept of EFT?

Whynotthetruth:


Kindly stop this...Are you dropping these jargons to scare them or what?....Do you even understand the terms & concepts that you're throwing up...how does this relate to Nigeria Stock Market challenge in the original post?

jaybee3:


Why don't you drop your view for clarity instead of asking unrelated questions?

The dude insisted foreign currency has to be changed into Naira before it can be invested and i said not necessarily

ttmacoy:
The world is a global place yes, but you saying the fall in equities on Nigerian stock exchange and Chinese stock exchange is due to Greece is wrong.

No they are not. Chinese stocks are falling due to the fact that the stock prices have been pumped up in a bubble financed by margins. Same with the real estate sector which is a bubble waiting to burst. It is not because of Greece. There may be some negative sentiment due to the Greek issue but that is not the main reason why these markets are experiencing bears.

The Nigerian stock exchange is falling because of investor uncertainty about the Nigerian economy and the issue o falling government revenue and pressure on naira and not because of Greece.

Yes the Greek issue can have a global impact but that impact will be limited in Nigeria and will definitely not result in 30% fall in Chinese stock market with a value of over $3.5 trillion.

The impact will be felt mostly by European countries and minimally by others. So saying fall in Nigerian stock and Chinese stock is due to Greece is wrong.

If the Greece saga is sorted out, and investors still do not have confidence in the economic ability of the new government in Nigeria , stock prices will not rise.

US pulled the plug on NYSE... really?? So they pulled the plug on United Airlines as well who suffered a technology failure about same time? R just conspiracies