pendy79:
Lagos (INVESTADVOCATE)-The Nigerian Stock Exchange (NSE) all-share index (ASI) on Thursday recorded its lowest loss in five (5) years to 20 percent from its 2014 high, heading for a bear market.
The NSE ASI declined 4.07 percent to close at 34,494.93 basis points, while market capitalisation lost 484.74 billion to close at N11.43 trillion, in response to sustained selling pressure, according to Cordros report.
Current Year-to-Date (YTD) returns at the Nigerian bourse stands at a negative 16.54 percent.
With this development at the end of transactions,  the Nigerian equities market went down in one of the longest losing streak to nine (9) consecutive sessions since January 2009; thereby hitting the highest one-day loss in more than four (4) years.
Cordros say sustained sell-offs saw the NSE ASI shed the most since 19th March 2010. ‘’This decline came on the back of OPEC's decision to cut oil demand forecast,’’ the report said.
Market breadth ended woefully as the NSE recorded five (5) gainers and 49 losers. Nigerian Aviation Handling Company (NAHCO) led the gainers chart, while cement manufacture Lafarge Wapco Nigeria Plc led the losers table.
In terms of sectoral performance, all of the five (5) NSE sectoral indices mirrored the broader markets performance. ‘’Once again the industrial goods index topped the losers chart with a significant 6.57 percent loss, the oil/gas index followed with a 5.70 percent, while the consumer goods, banking and insurance indices also lost by, 4.14 percent, 3.51 percent and 2.10 percent respectively,’’ the report affirmed.
Similarly, market turnover shows that volume traded climbed up 231.66 percent to 1.33billion shares, worth N8.37billion and traded in 4,188 deals, compared to a negative 46.83 percent reported in the previous session.
‘’We posit a positive outcome in tomorrow's trading session, as we expect investors to capitalise on fallen share prices,’’ the Cordros report said.
 

loopman:
My brother, it's really bad.

In a single day, I lost a whooping N3M, I was supposed to buy interbank forex at 168/dollar in the morning, before we could transfer the funds and send necessary Exchange Control Documents, the Naira slided to 171 at the interbank

BlackTechnology:



Expatiate on what you have in mind when you said its really bad

loopman:
My brother, it's really bad.

In a single day, I lost a whooping N3M, I was supposed to buy interbank forex at 168/dollar in the morning, before we could transfer the funds and send necessary Exchange Control Documents, the Naira slided to 171 at the interbank

loopman:


So you didn't read my second paragraph.
The capital market and the forex markets are both taking heavy beatings since 2 days ago.

Or you think anyone here is telling politics?

pendy79:


You better buy it. Western Union rates has been increased too and I heard it gonna go higher next week.

We have a supposed Harvard Trained professor managing our economy but it seems the glaring stealing and corruption filled elements have overwhelmed her.

She told us out of the $20billion Emir Sanusi told us was unaccounted for, only $10.8billion is missing and she has selected Auditors to check what went amiss.

10months after her public utterances of auditors looking into the books of the NNPC, have you heard anything again? Does that speak well of her and the government she represents?

The minister of petroleum a close associate of the president hired a private jet for trips for a whooping N10billion in one year and when asked to come defend such senseless action that even PM david cameron dare not try, she ran to the president and the courts for protection.

investors are taking notes of all these proven cases of economic mismanagement and the worst of it is the falling oil prices and the sliding southwards of the Naira. Everyone is pulling out their investments in Nigeria cos of the risks.

Government actions of corruption loving is a threat to our economic survival.

The sooner people realize retaining the PDP beyond 2015 will be tantamount to Nigeria turning a somalia or Zimbabwe.

We need to all come together to rescue this nation.

pendy79:


You better buy it. Western Union rates has been increased too and I heard it gonna go higher next week.

We have a supposed Harvard Trained professor managing our economy but it seems the glaring stealing and corruption filled elements have overwhelmed her.

She told us out of the $20billion Emir Sanusi told us was unaccounted for, only $10.8billion is missing and she has selected Auditors to check what went amiss.

10months after her public utterances of auditors looking into the books of the NNPC, have you heard anything again? Does that speak well of her and the government she represents?

The minister of petroleum a close associate of the president hired a private jet for trips for a whooping N10billion in one year and when asked to come defend such senseless action that even PM david cameron dare not try, she ran to the president and the courts for protection.

investors are taking notes of all these proven cases of economic mismanagement and the worst of it is the falling oil prices and the sliding southwards of the Naira. Everyone is pulling out their investments in Nigeria cos of the risks.

Government actions of corruption loving is a threat to our economic survival.

The sooner people realize retaining the PDP beyond 2015 will be tantamount to Nigeria turning a somalia or Zimbabwe.

We need to all come together to rescue this nation.

BlackTechnology:



You said its really bad

That is why I am asking you to explain how falling prices will affect the ordinary man on the street

BlackTechnology:



So the solution is to vote out PDP

OK

What will APC do differently since oil supply has exceeded oil demand leading to a crash in price which has reduced the acquisition of new dollars


Pls state your answers step by step

loopman:
My brother, it's really bad.

In a single day, I lost a whooping N3M, I was supposed to buy interbank forex at 168/dollar in the morning, before we could transfer the funds and send necessary Exchange Control Documents, the Naira slided to 171 at the interbank

I beg which kind business you dey do? I pray that God will help you to recoup from the loss and save Nigeria.

BlackTechnology:



So the solution is to vote out PDP

OK

What will APC do differently since oil supply has exceeded oil demand leading to a crash in price which has reduced the acquisition of new dollars

Pls state your answers step by step

RockMaxi:




I beg which kind business you dey do? I pray that God will help you to recoup the loss and save Nigeria.

loopman:


Imports! While I may want to say amen to your prayers, the prognosis going forward is not exactly encouraging.

Nigeria is in for a rough ride and we have little or no external reserve to cushion us, it has almost been squandere by this govt on political patronage of different interests.

loopman:

Please don't bring this your APC vs PDP nonsense here, I know all along that is your intention.
What good governemt all over the world do in this type of period is to protect their currency from attack by using their huge external reserve to protect it., the doctorine of saving for the rainy days.
Nigeria due to corruption and economic bleeding have almost depleted it reserve with barely the ability to sustain and protect the Naira for three months.

nku5:



Sanusi Lamido Sanusi, the suspended Governor of the Central Bank of Nigeria (CBN) is very quick to point out that one of his achievements in office is stabilizing the Naira. But is this really true?What do the facts say?
Data from the CBN website shows that from June 3, 2009, the date Sanusi Lamido Sanusi assumed office as CBN Governor to the date he left office, the CBN sold $117 billion (N18.8 trillion) in the interbank market in a bid to stabilize the Naira. All the money was sold in the twice a week auctions done by the CBN.

What Sanusi’s CBN sold is more than twice what Chukwuma Soludo in his years as the Governor of the Central Bank sold- $57 billion- to defend the Naira in his time as CBN governor.

Was Sanusi’s massive spending to defend the Naira successful? Once more, data from the Central Bank shows that Sanusi’s massive spend to defend the naira was not successful in the sense that the naira did not get stronger but actually weakened in his time at CBN. The exchange rate of the naira to the dollar in the week Sanusi became Governor of the CBN was N146.75 to the dollar. This was the rate the Central Bank was willing to sell naira to the banks. In the last week before Sanusi was suspended as CBN Governor, the Central Bank was selling the Naira at about N155.75 to the dollar, approximately N10 more expensive than it was sold when Sanusi became Governor.

Similarly, the pound sterling which the CBN sold at approximately N241 to the Naira when Sanusi became Governor had depreciated toN260.819 to the Naira as at when Sanusi was suspended as CBN Governor. This represents N20 more per every pound sterling than when Sanusi became Governor.

So despite a whopping $117 billion in five years to defend the Naira, twice more than what the previous Governor spent to defend the Naira, Sanusi actually left the Naira worse than he met it.

The impact of Sanusi’s massive spend of the external reserves to defend the naira was significant. In the five years of Sanusi as CBN Governor, Nigeria spent almost every dollar it earned to defend the naira and that was not even enough. Nigeria’s external reserves stood at $42 billion as at the close of 2009, the year Sanusi became CBN Governor. By the close of 2010, the first full year of Sanusi being at the helm of the CBN, it had deteriorated to $32 billion and remained that way until the end of 2011.

Realizing his mismanagement of the external reserves will soon plunge the country’s economy into a crisis Sanusi Lamido Sanusi opened the door to the inflow of very hot money in the name of portfolio investment, by removing a policy restriction that had been wisely put in place by previous CBN governors, which compelled foreign portfolio investors to keep their money in the country for a minimum of six months before taking it out of the country. Sanusi also raised interest rates on government instruments to an all-time high with interest rates on treasury bills going as high as 16 percent.

This double gift to foreign investors led to a massive inflow of foreign portfolio investors into Nigeria. In fact, CBN data shows that foreign portfolio investment in company stocks in Nigeria moved from just N323 billion as at the close of 2010 to N1.57 trillion as at the close of 2012 while foreign portfolio investment in government debt securities increased from N232 billion in 2010 to N1.12 trillion in 2012. The result was that total portfolio investment stood at N2.69 trillion or approximately $17 billion because of an extremely high interest rate offered by Sanusi on CBN instruments and government instruments as well as his policy allowing foreign investors to take out their money out of the country without any restriction.

Sanusi’s liberalization of the foreign exchange market helped cover his woeful record of managing the nation’s external reserves and resulted in an increase in external reserves to about $44 billion as at the close of 2012. This deceived many Nigerians and gave the impression that everything was okay.

Meanwhile, foreign portfolio investors were making huge profits from investing in Nigerian paper instruments while largely ignoring the real sector of Nigerian economy which would have led to creation of jobs for many of Nigeria’s unemployed.

They were rather happy to give us money to sustain a huge import bill and help Sanusi keep up the pretence that everything was okay.

The truth is that of the $44 billion external reserves as at the close of 2012, $17 billion was portfolio investment which meant what the country can really count on was just $27 billion. So without opening the doors to allow portfolio investors, Nigeria’s external reserves would have closed at $27 billion in 2012 instead of the $44 billion it closed at.

Sanusi effectively deceived Nigerians into thinking they were rich, when they were actually poor.

This gave Sanusi room to continue his reckless spending at the CBN, as revealed in the Financial Reporting Council report, while giving Nigerians a false sense of hope that everything was well with the economy which he was busy running aground. This deception continued till the day that Sanusi was suspended.

When Sanusi was suspended, the CBN put Nigeria’s external reserves position at about $41 billion without telling us the truth that about $15 billion represented foreign portfolio investment which means the effective external reserves position was about $26 billion.

Since Sanusi’s removal, there have been several sponsored reports linking the pressure the naira has come under to Sanusi’s suspension. But that is far from the truth.

Discerning investors have known for a long time that Nigeria was living on borrowed time and that it was just a matter of time before we run out of foreign reserves to defend the Naira due to the way it has been mismanaged in the last five years. Discerning investors have been gradually taking out their money from the Nigerian economy well before the tragic end of Sanusi.

Sanusi even knew the game was up. That is why he engaged in several panicky measures well before his exit from the CBN. Several of the panicky measures include the punitive action of asking banks to deposit 75% of public sector funds at the CBN at zero interest rate, the refusal to reduce MPR from q12% despite the fact that it is hurting the real sector of the economy, the return to Retail Dutch Auction System (RDAS), and the banning and unbanning of sales of foreign exchange to Bureau the Change Operators.

ven with all these panicky measures, the Naira remained under pressure and will remain under pressure because the damage has already been done. The Naira is going to depreciate sharply and sadly the next CBN Governor will be blamed. But the damage has already been done by Sanusi Lamido Sanusi.

 
http://emerge-ng.com/newsletter-editr/?success=1

Gorrbachev:
The problem is global, the americans and arabs are measuring joysick with oil price. Every currency pegged against the USD has taken a hit, the impact depends on how buoyant your country is.

nku5:



Sanusi Lamido Sanusi, the suspended Governor of the Central Bank of Nigeria (CBN) is very quick to point out that one of his achievements in office is stabilizing the Naira. But is this really true?What do the facts say?
Data from the CBN website shows that from June 3, 2009, the date Sanusi Lamido Sanusi assumed office as CBN Governor to the date he left office, the CBN sold $117 billion (N18.8 trillion) in the interbank market in a bid to stabilize the Naira. All the money was sold in the twice a week auctions done by the CBN.

What Sanusi’s CBN sold is more than twice what Chukwuma Soludo in his years as the Governor of the Central Bank sold- $57 billion- to defend the Naira in his time as CBN governor.

Was Sanusi’s massive spending to defend the Naira successful? Once more, data from the Central Bank shows that Sanusi’s massive spend to defend the naira was not successful in the sense that the naira did not get stronger but actually weakened in his time at CBN. The exchange rate of the naira to the dollar in the week Sanusi became Governor of the CBN was N146.75 to the dollar. This was the rate the Central Bank was willing to sell naira to the banks. In the last week before Sanusi was suspended as CBN Governor, the Central Bank was selling the Naira at about N155.75 to the dollar, approximately N10 more expensive than it was sold when Sanusi became Governor.

Similarly, the pound sterling which the CBN sold at approximately N241 to the Naira when Sanusi became Governor had depreciated toN260.819 to the Naira as at when Sanusi was suspended as CBN Governor. This represents N20 more per every pound sterling than when Sanusi became Governor.

So despite a whopping $117 billion in five years to defend the Naira, twice more than what the previous Governor spent to defend the Naira, Sanusi actually left the Naira worse than he met it.

The impact of Sanusi’s massive spend of the external reserves to defend the naira was significant. In the five years of Sanusi as CBN Governor, Nigeria spent almost every dollar it earned to defend the naira and that was not even enough. Nigeria’s external reserves stood at $42 billion as at the close of 2009, the year Sanusi became CBN Governor. By the close of 2010, the first full year of Sanusi being at the helm of the CBN, it had deteriorated to $32 billion and remained that way until the end of 2011.

Realizing his mismanagement of the external reserves will soon plunge the country’s economy into a crisis Sanusi Lamido Sanusi opened the door to the inflow of very hot money in the name of portfolio investment, by removing a policy restriction that had been wisely put in place by previous CBN governors, which compelled foreign portfolio investors to keep their money in the country for a minimum of six months before taking it out of the country. Sanusi also raised interest rates on government instruments to an all-time high with interest rates on treasury bills going as high as 16 percent.

This double gift to foreign investors led to a massive inflow of foreign portfolio investors into Nigeria. In fact, CBN data shows that foreign portfolio investment in company stocks in Nigeria moved from just N323 billion as at the close of 2010 to N1.57 trillion as at the close of 2012 while foreign portfolio investment in government debt securities increased from N232 billion in 2010 to N1.12 trillion in 2012. The result was that total portfolio investment stood at N2.69 trillion or approximately $17 billion because of an extremely high interest rate offered by Sanusi on CBN instruments and government instruments as well as his policy allowing foreign investors to take out their money out of the country without any restriction.

Sanusi’s liberalization of the foreign exchange market helped cover his woeful record of managing the nation’s external reserves and resulted in an increase in external reserves to about $44 billion as at the close of 2012. This deceived many Nigerians and gave the impression that everything was okay.

Meanwhile, foreign portfolio investors were making huge profits from investing in Nigerian paper instruments while largely ignoring the real sector of Nigerian economy which would have led to creation of jobs for many of Nigeria’s unemployed.

They were rather happy to give us money to sustain a huge import bill and help Sanusi keep up the pretence that everything was okay.

The truth is that of the $44 billion external reserves as at the close of 2012, $17 billion was portfolio investment which meant what the country can really count on was just $27 billion. So without opening the doors to allow portfolio investors, Nigeria’s external reserves would have closed at $27 billion in 2012 instead of the $44 billion it closed at.

Sanusi effectively deceived Nigerians into thinking they were rich, when they were actually poor.

This gave Sanusi room to continue his reckless spending at the CBN, as revealed in the Financial Reporting Council report, while giving Nigerians a false sense of hope that everything was well with the economy which he was busy running aground. This deception continued till the day that Sanusi was suspended.

When Sanusi was suspended, the CBN put Nigeria’s external reserves position at about $41 billion without telling us the truth that about $15 billion represented foreign portfolio investment which means the effective external reserves position was about $26 billion.

Since Sanusi’s removal, there have been several sponsored reports linking the pressure the naira has come under to Sanusi’s suspension. But that is far from the truth.

Discerning investors have known for a long time that Nigeria was living on borrowed time and that it was just a matter of time before we run out of foreign reserves to defend the Naira due to the way it has been mismanaged in the last five years. Discerning investors have been gradually taking out their money from the Nigerian economy well before the tragic end of Sanusi.

Sanusi even knew the game was up. That is why he engaged in several panicky measures well before his exit from the CBN. Several of the panicky measures include the punitive action of asking banks to deposit 75% of public sector funds at the CBN at zero interest rate, the refusal to reduce MPR from q12% despite the fact that it is hurting the real sector of the economy, the return to Retail Dutch Auction System (RDAS), and the banning and unbanning of sales of foreign exchange to Bureau the Change Operators.

ven with all these panicky measures, the Naira remained under pressure and will remain under pressure because the damage has already been done. The Naira is going to depreciate sharply and sadly the next CBN Governor will be blamed. But the damage has already been done by Sanusi Lamido Sanusi.

 
http://emerge-ng.com/newsletter-editr/?success=1

BlackTechnology:



First and foremost it was pendy76 that said the solution is to vote out PDP that is why I made that comment


My brother your view which I highlighted shows you don't have basic knowledge about Nigeria's economy

US has stopped buying our crude oil and we are now looking out for crude oil markets like India and china which are not reliable and heavily contested by Iran and Venezuela oil.

This means new dollar notes are not flowing in.

Since global trade is done with mostly dollar , it is advisable we save as much dollars as possible.


Except we find other commodities we can export to bring in new dollars, this is how we will be forced to live if we are to survive.


The best thing government can do for us, is to encourage Asian/Indigenous companies to establish electronics, mechanical etc industries within our shores to reduce the flight of our now few dollars.

pendy79:


As you can see I deliberately ignored you, cos asking me to give you steps on how to nail and end the glaring corruption in the land smack of ignorance or mischief.

If I give it to you, are you in power to implement it or have the resources to combat the forces hell bent on enriching themselves to the destruction of the nation.

Is the first lady not going round the country distributing rice and money now? What happened she didn't do same for the nigerian women she loved so much in 2012, 2013 but just remembered the women need empowerment of jonaTAN rice few months to the general elections

Did the americans voted out the republicans after george bush's economic disaster and chose the the democrats instead? Did the same americans not decided to vote out the democrats few years down the line in mid year elections last week and favored the republicans.

That's the beauty of democracy, putting government and politicians on their toes and letting them know the ultimate power lies with the people and not their cronies.

Learn if you want, read if you want and reason if you want. But the ultimate question is, is the country better with the present crops of looters running it?

Oil was above $167 at a point last year, it was averaging well over $100 for over 4years. Where is the excess earnings from it? Is it in our foreign reserve? Is it in the sovereign wealth fund? Is it in the excess crude account? Is it manifested in infracstructure reconnaisse across the country? Is it manifested in the quality of life nigerians lived?

Ask yourself those questions and by providing answers yourself, you will get the truth and the answers you want step by step.

pendy79:


We have a supposed Harvard Trained professor managing our economy but it seems the glaring stealing and corruption filled elements have overwhelmed her.

She told us out of the $20billion Emir Sanusi told us was unaccounted for, only $10.8billion is missing and she has selected Auditors to check what went amiss.

10months after her public utterances of auditors looking into the books of the NNPC, have you heard anything again? Does that speak well of her and the government she represents?

loopman:


Imports! While I may want to say amen to your prayers, the prognosis going forward is not exactly encouraging.

Nigeria is in for a rough ride and we have little or no external reserve to cushion us, it has almost been squandere by this govt on political patronage of different interests.

No mention that external reserve o, is that not part of this administration's achievement, who now squandered it. What happened to $38.2billion?

pendy79:


Sorry bruv, this thread isn't about sanusi and he did or didn't do. You can't come up with an editorial opinion of somebody to justify anything. I can give you million and one editorials about the magical performances of sanusi while he was CBN governor. He had multiple national and international awards to proof that too.

I only brought sanusi into my post concerning the missing monies in the NNPC he wrote about and the position of the minister of finance. If you have an issue with sanusi create another thread for it.

Thanks

RockMaxi:



No mention that external reserve o, is that not part of this administration's achievement, who now squandered it. What happened to $38.2billion?

loopman:


Imports! While I may want to say amen to your prayers, the prognosis going forward is not exactly encouraging.

Nigeria is in for a rough ride and we have little or no external reserve to cushion us, it has almost been squandere by this govt on political patronage of different interests.

edogirl2:


I am certainly not as charitable towards Mrs Okonjo - Eweala as you are. You say the stealing has overwhelmed her. I don't believe that. She's doing her own stealing. And if she isn't, but is turning a blind eye to the stealing, she is a thief too. There are no two ways about it.

And what has Harvard training got to do with anything. Please can you tell me one, yes, just one major initiative that this woman has introduced that marks her out as a stand-out finance minster. I can't think of one.


Like you, I agree, PDP needs to be voted out! Their corruption has ruined the country.

edogirl2:


I read some where that the $37 billion in reserves will finance our foreign currency and import requirements for 7 months.


7 months only! After that nko? And this is following a sustained period (nearly 4 years) of very high oil prices - a period when Nigeria earned more money than any other 4 years in its history.


Its pathetic. GEJ and his cohorts has done so much damage to this country. The man must go.

pendy79:


My sister I'm just giving her the benefits of doubts. At least she's the only one in this corruption laden government to agree that money is missing from NNPC accounts. She's as guilty as them all. She collects her salary in dollars denomination but she is telling other Nigerians to manage and bear with the economy.

I find it hard to imagine the kind of people that exist in this country, people celebrating and supporting cluelessness and corruption since they feel cultural and religious affinity to the people doing it.

It is well with this country.