yinkaoke:

IF THIS IS TRUE IT THEREFORE MEANS THAT THE WORLDS RICHEST MAN WILL NO LONGER BE AT NO 1 i.e Warren Buffet
HOW THEN CAN ONE BUY AT THE SECONDARY MARKET OR IS THERE ANY IPO's.

I still dont get your analogy, Warren Buffet will no longer be No. 1? Who gives a f.uck about that? If the market crashes that doesnt stop people from trading, remember that some investors are contrarians while some employ momentum strategies, so it depends on ur strategy but people are still going to trade.
People rushin to liquidate their investments will further dampen the market and push prices down. The need the liquidity has increased sharply with raising oil prices, credit crunch etc


My opinion: Personally i think the nigerian stock make needs to go through some corrections as most companies are trading far beyond their fundamental values!

IncaGold:

My opinion: Personally i think the nigerian stock make needs to go through some corrections as most companies are trading far beyond their fundamental values!

Very sensible opinion
Greedy operators taking advantage of greedy investors

Reasons why stock portfolios are RED

By

Ogunyemi@gmail.com

Dear Investors,

Below are five reasons, (in my opinion) why the Nigerian stock market is going southwards and may continue in that trend or around such till August or thereby. These are obvious time to BUY, however one must endeavour to make informed buys as would soon realize.

1. GOVT. FISCAL POLICIES
MPR was raised from 9.5%to 10% in April - interest rate caps was removed/deregulated previous month and Feb was the month with the least cash in circulation in this year. In summary, the government put in place machineries (fiscal policies) to mop excess liquidity that caused the liquidity driven run in Q1.

2. DELAYED NATIONAL BUDGET APPROVAL
This has also further reduced liquidity in the economy - and while the budget was being delayed several reforms took place nationide that have great impact on utilization of FGN disbursements. The proposal that disbursements should be tied to specific projects, implementation of NEEDs and SEEDs programmes in many states, the sweeping era of probes, efficacy of EFCC/ICPC, persuasive pressure on banks to translate huge paper profits to poverty eradiation steps in real sector or via PPP programmes/projects, renewed focus on microfianance/SMEs, implementation of DMOs policy on compulsory bonds backed loans by FG/State/LGS among other issues might have made monetary discipline popular across the nation. The effect of such is that the capital market does not respond to FG allocations as sensitive as in the days of "Ghana Must Go!".

3. GLOBAL FOOD CRISIS
The global food crisis undoubted shifted financial attention from capital/money market to infrastructural development, policy development, agriculture and developing of sustainable strategies for curtailing the crisis. The crisis has since been linked to rising oil prices while government has learnt/is learning to maximize excess oil funds having realized the opportunity cost. Only recently about 80 billion naira was allocated for purchase or rice to avert future shortages. The trend is likely to continue until the price of oil is arrested and/or global harvest periods/Asian cyclone shock and food shortages are over.

4. SEC/NSE REGULATOR INDUCED MARKET CORRECTIONS/SANCTIONS
Aftermath of baseless price movements on the floor of NSE and allegations of price manipulations, SEC sanctioned some companies and began intensive review of regulations. Eventually, a new regulation was introduced that put an end to baseless price movement and the market is yet to adjust to nor fully understand the implications of that rule: only stocks that have over 100000 units sold would move either up or down on a trading day as compared o 15000 units hitherto applicable. This suggests that only relatively highly capitalized stocks with strong fundamentals would consistently move up in price while "lukewarm' stocks would require more than miracle to move either up or ROIs of over 100% in Q1 - what a way to cage the bears posing as "bulls".

Market response to the above rule is the most obvious reason why the market is southwards - the most capitalized stocks are at advantage and once the are declining the market index also decline - note correlation in price of FBN and market index since early April. This trend also led the market to correct itself and several stocks without strong fundamentals may not rising or give inexplicable ROIs after the market correction. Most penny stocks with limited outstanding shares are also likely to dilute or split their equity structure to make the stock more fluid so as to attain the daily minimum 100000 unit trade for

5. IMPLICATIONS OF BORROWED FUNDS (MARGIN ACCOUNTS), FDIs & PROFIT TAKING From NSM
Analyst have opined that 80% of funds in NSM are borrowed funds and the origin of massive infusion of borrowed funds into capital market as the FBN PO of 2007 which as oversubscribed by 800billion naira. The tenor for most of the borrowed funds that were locally sourced is one year - May/June this year and investors are netting off their stock accounts to find their facilities/margin accounts.

Regulators have not out rightly banned margin accounts however market operators are reassessing the suitability of margin facilities for retail investors in the light or recent developments since most beneficiaries were not able to break even with retail portfolio. Investors have also realized the little or no risk position of margin facility providers with their rigid growth/matured-stock-only margin finance options and this has also created a measure of discouragement/investor confidence in infusing borrowed fund into the system. Most leading banks and margin facility providers also had cause to call back heir funds a they closed their books for the Dec 31 2007 and March 2008 year ends.

Also Foreign Direct Investors with strong market analytics too profit after the market dipped downwards on March 5 to make up for losses incurred in their local markets. The rising price of oil and gold ha dollar slips downwards globally has also opened new haven for speculative global investors and might have reduced influx of FDIs while global decline in stock markets pains a less attractive outlook for equity/securities trading.

The effect of delays in allotment and over subscriptions to public offer, cancellation of preferential allotments and challenges/cost of return monies have equally eroded investor confidence locally and international and has compelled both regulators and operators to urgently see methodologies and technologies to support the fast growing challenges.

WAY FORWARD
The is a need for investors, particularly those with portfolios structured by technical analysis, to do portfolio valuation and realignment/re-mix with priority given to fundamental analysis as the market may respond largely to market fundamentals only for a couple of months after sustained rebound.

I urge doomsday forecasters to apply caution. They should not whip what may be nothing more than expected market corrections, which is a feature of all stock markets, into a crash with their mouth.

The investing public should educate itself more on the fundamentals of the stock market. Everything should not be left solely in the hands of stockbrokers.

Stocks are long term investment [15 years at least] and in the long term, you can't lose unless you did not buy stocks with good fundamentals.

It is the get-rich-quick-penny-stock craze coupled with unethical activities on the part of some stockmarket operators that is creating the rather unusual dynamics we've witnessed in the market in recent times.

Government must toughen the regulatory framework of the stockmarket to check sharp practices or else there will be a massive loss of confidence in the market.

Some of us do not really understand how strong the Nigerian capital market is.The issue of crash is unthinkable in this issue.I am not a stock broker but i have been around for a while and i beleive strongly in experts opinions before taking decisions because no matter how smart you are some people have seen it all.

The continious fall in the price of shares can be likened to the consistent increase in the price of crude oil. who on earth believed the price of crude oil would ever get to $130 per barrel from the $32 in the Nigerian budget about a year ago.

If you agree with the above assertion, then i can posit that when the prices of goods are solely determined by the forces of DD & SS, such prices will not remain either HIGH OR LOW forever as it will be up and down becasue of sentiments of the market ( i.e. the combination of investors attitude and regulator's decisions).




still writing

I have set aside about N 500 k to buy stock for a short term trading(6 months).Can anyone in the house advise me the best sector i can invest my money into? I also need a reliable stockbroker for this transaction.Thanks in anticipation

AM REALLY EXCITED ABOUT THIS!! PLEASE LET IT CRASH VERY QUICKLY AND LET US THINK OF BETTER WAYS TO MAKE MONEY AND BE CREATIVE FOR ONCE IN THIS FATALLY USELESS COUNTRY RATHER THAN ADOPTING INDOLENCE BY TRADING IN STOCKS. IV ALREADY CONTACTED MY BROKER AND HE'S ADVCING ME PROFESSIONALLY ON MY REMAINING EQUITIES ON THE FLOOR,  PLLLEEAASE CRASH NOW ABEG!!    
 

eminemkayc i don't think u understand what is meant by 'don't work for ur money,let ur money work for u'[i][/i]

It certainly not going to crash, ATTLEAST NOT NOW. guy u want make Nigerians die abeggo

why would anyone pray for the stock market to crash?

na wa for us we keep reading all those books about investing and money makin this is the time to practice wat uv read buy low people the markrt had always been a bubble wish ihad mo money to jst kip buyin so stop sellin now let it slump mo then buy please buy buy buy and buy it is time to mak crious bucks,cheers.

@stock gurus.
pls what is happening to wema?cus they are not trading and we don't have access to our money,for how long are they going to do there restructuring for God sake.
I also have problem with my guinea and universal insurance.pls i don't know what to do,my fellow nairalanders pls advice.

is the market actually crashing or has it crashed?
before we comment lets always get back the the basic
foundamentals of an issue.
if you know about the market well enough you will know
that a common character of stock is to raise and fall.

so what we saw was just a natural phenomenon.
when the market looks down, its time for bumper harvest.

Set up an investment plan.
set your targets. understand the trends. keep informed!

You wanna make it big time in stocks?

Set up an investment plan.
set your targets. understand the trends. keep informed!

hi all

I believe we can all see the stability returning back to the market. The neccessary corrections have been done on overvalued stocks and now what we have is know as the real worth of shares prices.
The suspension of recapitalisation of the stock broking firms has also helped the return of the bulls we are currently seeing in the last five days.

some FUNDAMENTALS

First bank is likely to hit N55 in the next few weeks deu to its intension to pay a dividend of over N1 and a bonus.
GTB is likely to also hit above N35 in the next few weeks, its first quarter result is not looking bad at all.
Dangote sugar and flour are very good anytime anyday because of the market share they enjoy and the possible expansion in the future.The following are also good for both long and short term



If you read my previous posts, i have told people to keep buying because the market will surely bounce back and that is currently happening.

www.cscsnigerialtd.com
www.investordelight.com

Hello Everyone I am new so pardon my inexperience. Stock market crash NO.I believe every market must have a time of coorection and this is our turn, its hiiting hard because the prices of stocks on the NSE was proped up by excess and easy access to cash but this is a phase and it'll pass. long term investors need not worry only those who have over leveraged positions will cry in the following weeks and months.
I suggest that for now investors look to global stocks to find cheap and profitable investment options till the sails return to the NSE.

agadajoey:

long term investors need not worry only those who have over leveraged positions will cry in the following weeks and months.

Na lie
no one is going to cry.

Are you still calculating movements or buying?

Are you still waiting for the bears while the BULLS are raging?

Hope we are learning!

I belief the, stork market will rebound. When I do not know. But before the end of this Year insurance stocks will go for average of N9-N11. YESSSS SS I'm a pastor

crash ke! it is assumed to be taking a corrective delve (sic) . I think I do subscribe to the opinion that we need more creative ways of growing our wealth. we are too comfortable at our comfort zones.

The good news is that, the market is rallying again, on the upbeat for two days running . I pray the momentum is sustained. you should position yourself for a kill!

Goodday , for teh question on wema, investors should not panioc sell, the suspension may soon be lifted , the stock would dip because fo panic selling and rebound almost with the same rate at which it dips.

for no in the next 6 month i would stand by FBN, FCMB, GTB, Sterling and skye in that order.

for more info, as usual ogunyemi@gmail.com

Hi everybody,
i have gone through this thread from begining and i really appreciate everyone's contribution, and to some that are pessimistic about Nigeria and her stock market, i will encourage you guys to keep praying for your country instead of being negative.
Anyway, i'm in the State and i need a link to any online Broker in Nigeria that i will be dealing with, someone thrust worthy and reliable.
I want situation whereby i will have access to my account right from here in USA, if you know any company or person, please do respond or advice.
Thanks.

baloo4u2:

@stock gurus.
please what is happening to wema?cus they are not trading and we don't have access to our money,for how long are they going to do there restructuring for God sake.
I also have problem with my guinea and universal insurance.please i don't know what to do,my fellow nairalanders please advice.

Hi baloo4u2
do not bother about wema. your investment is intact. their second Quater earning was about 0.25K .The former CEO was removed on accusation of fraud, So they are just doing some book cleaning right now.
For stock tips and investment ideas,
always visit: www. stock707.. com please,type it without spaces. Just type it straight with the dots.

baba70
If you want to invest and rip huge returns. I will advice you to invest in NEM insurance. The earnings is very strong and it has a good management. It is very cheap at its current price of below N3.
For investment ideas and stock tips,
Always visit: www. stock707.. com please type it without spaces, just type it straight with the dots

Do you wonder what makes a stock's price to change,
Learn what changes stock prices and how to use it to make more money in the stock market
go to www. stock707.. com
and read the new topic "factors that influence a stock's price"
tell me what you think, Happy reading

THE WORST HAS ALREADY HAPPEN IN THE STOCK MARKET,
SO FORGET ABOUT CRASHING.
I AM BUYING BIG TIME,FOR LONG TERM(10 YEARS AT LEAST)