Thanks to everybody that has in one way or the other contributed to this forum.
I have questions to ask tho.
I want to know what it means to invest in Fund or Forex.
Like some of us here, i bought the union bank shares through the IPO last year and i haven't gotten my certificate. What do i do?

Thanks to everybody that has in one way or the other contributed to this forum.
I have questions to ask tho.
I want to know what it means to invest in Fund or Forex.
Like some of us here, i bought the union bank shares through the IPO last year and i haven't gotten my certificate. What do i do?

GOVT RAISES MINIMUM FUND PORTFOLIOS FOR CAPITAL MARKET
A new minimum capital base was yesterday approved by the Federal Government for all capital market operators in the country, with December 31, 2008 as deadline. The Minister of Finance, Mrs. Esther Nenadi Usman who announced the new minimum capital requirements, also approved a reduction in transaction costs in the capital market by about 40 per cent. Under the new capital base regime, which takes immediate effect, the minimum paid up capital for issuing houses has been increased from N150 million to N2 billion, while broker-dealers' capital base has been increased from N70 million to N1 billion. Clearing and settlement agencies are now to have a capital base of N1 billion up from N500 million while registrars are now to have N500 million, up from N50 million. Underwriters, who before now had a minimum capital requirement of N100 million are now to have N2 billion, while that of fund/portfolio managers has been increased from N20 million to N500 million. In addition, the capital base for corporate sub-brokers with a current capital base of N5 million was increased to N50 million. Guardian front page.

FG REDUCES CAPITAL MARKET TRANSACTION COSTS BY 40%
The Minister of Finance, Mrs Nenadi Usman, has given approval to the Securities and Exchange Commission for a 40 per cent reduction in transaction costs in the Nigerian capital market. The reduction will affect all capital market fees for both primary and secondary market transactions. The minister also approved new capital requirements for capital market operators in Nigeria, 80 per cent mandatory underwriting for public offerings, and a code of conduct for shareholders’ associations in Nigeria. The costs of transactions in the nation’s capital market are said to be one of the highest in the world, a situation blamed for the relatively low patronage of the market. But the Head, Corporate Affairs, SEC, Mr Ismaila Mohammed Ville, said in a statement on Tuesday, that cost reduction was the culmination of industry wide efforts at ensuring that the domestic capital market was made more competitive to attract both local and foreign investments. Punch (online).

We need a direct link to the page where you got that from, please. Thanks.

joshO:

@SavvyLanre,

Where are you based?

I informed a friend of mine about the Union Bank IPO last year and he participated. All this time he had been expecting his certificate, but I found the number for the UK office and gave it to him to call. The union bank office turned out to be accross the street from his office in London, he just walked in there and picked it up. They were even asking were he had been all the time!!

Why they don't communicate with people properly beats me.

@ JoshO
I am actually in Mass, USA, used to be in London.
But, please pass me the details for the office in London - may be they can help.

Many thanks for the heads up.

Seun:

We need a direct link to the page where you got that from, please. Thanks.

.
It appears the link is no longer available as it was on yesterday's news. I got the information from the extract that the reseach department of my bank sends to us.

frankiriri:

.
It appears the link is no longer available as it was on yesterday's news. I got the information from the extract that the reseach department of my bank sends to us.

Here is the link, http://www.tribune.com.ng/25042007/stock.html

                                                                                                                 NIGERIAN Stock Exchange's All-share index rose further last week following major price gains by highly capitalised companies in the banking, insurance and food beverages and tobacco sub-sectors.

The market opened for four days, as Friday was declared work-free day by the Federal Government.

Specifically, the index appreciated by 2.6 per cent to close on Thursday at a record 47,093.27 points, while market capitalisation closed higher at N6.8 trillion.

The development was due to price gains by Guinness Nigeria Plc, which gained 2,199 kobo to close at N142.00 per share, while Nigerian Aviation Handling Company Plc followed at N54.93 per share.

Dangote Sugar Refinery Plc, UACN Property Development Company Plc, Zenith Bank Plc, National Salt Company Plc, African Petroleum Plc and Nigerian-German Chemicals Plc amongst others also gained 920 kobo, 494 kobo, 480 kobo, 294 kobo, 249 kobo and 227 kobo respectively.

On the other hand, Nestle Nigeria Plc led the price losers, down by 6,300 kobo to close at N235.00, while Ecobank Transnational Incorporated Plc also lost 1,500 kobo to close at N170.00 per share.

Oando Plc, Mobil Oil Nigeria Plc, Chevron Oil Nigeria Plc, Union Bank Nigeria Plc, UACN Plc, Conoil Plc, Nigerian Breweries Plc and Beta Glass Company Plc also lost 754 kobo, 449 kobo, 400 kobo, 389 kobo, 314 kobo, 300 kobo, 254 kobo and 237 kobo per share.

In all, 3.31 billion shares worth N46.35 billion changed hands last week, up from 1.4 billion shares valued at N18.3 billion exchanged the previous week.

There were no transactions in Federal Government Development Stocks, State Government Bonds and Industrial Loan/Preference Stocks sectors.

Transactions was highest in the banking sub-sector last week with 1.9 billion shares worth N30.44 billion exchanged in 23,849 deals.

Further review of the banking sub-sector indicated that the volume was buoyed by activity in the shares of Afribank Nigeria Plc, Fidelity Bank Plc, Intercontinental Bank Plc and Wema Bank Plc.

Trading in the shares of the four banks accounted for 929.11 million shares, representing 49.2 per cent of the sub-sector turnover.

The Insurance sub-sector was boosted by activity in the shares of Cornerstone Insurance Plc with a turnover of 659.3 million shares valued at N1.84 billion.

@ mr frank and all the gurus in the house,

pls what is happening to dangote,

should we sell or maintain, pls answer needed ASAP

this sort of thing happen to me with that useless CONOIL, it rose to N120 and i did nt sell witing with hope and it has been at 70 something naira for many years now

thanks

@Tmoni,
I don't think we should sell. You know the share certificates just came out and people would have started selling, that is why the price is dropping. I think after a while, the excess shares will be mopped up and it will be a case of scarcity (demand higher than supply) once again.
@everyone
Pls who has noticed mutual benefit assurance and first aluminum?
@Frank
Thanks for the info

Mutual benefits has been on a roller coaster ride

Tmoni:

@ mr frank and all the gurus in the house,

please what is happening to dangote,

should we sell or maintain, please answer needed ASAP

Everything depends on your outlook. Are you interested in the long term potential of the stock or you just want to make money.
Personally I believe that given its present fundamentals Dangote is already richly priced. That is why saavy investors are taking profit. With the market beginning to turn bearish and mega offers like First Bank and Access in the pipeline I forsee a situation where investors would be selling off some of their holdings of Dangote to invest in these shares. This would then drive down the price further. So if you can get out at a high price and there are other profitable uses for your money you can sell.
If you want to be cautious you can liquidate part of your investment and then keep part to weather the storm.

cheexy:

@Frank
Thanks for the info

You are welcome

cheexy:

@Tmoni,
I think after a while, the excess shares will be mopped up and it will be a case of scarcity (demand higher than supply) once again.

The demand and supply for other good stocks will also affect the fortunes of the company. The First bank offer is expected to open first week of May and this would take its own toll on the demand for shares so dont expect the demand for Dangote to be too strong anytime soon ( except they relaese some good news)

FINANCE MINISTER APPROVES 40% REDUCTION IN CAPITAL MARKET FEES



http://www.sec.gov.ng/publicnotices.htm

do u know the price for the Access offer,

i bought some units for an avearage of N10.50 and Access is about N15,
is it advisable to sell now and buy in the offer coming out

PS- i really need to come back home and get a serious stockbroker becos there is no point asking somebody for advice and he tells u what u already know.

or i will just stick to my money market jeje, one day i calculated my dangote at N4, and now it is sth else , i tire ooo

Hi.
Please, does anyone know if Intercontinental Bank has released certificates for its Public offer done around October last year? I haven't gotten mine and a stockbroker said he doesn't think its out cos' no one has brought their cerficates for verification with them. Can anyone help out with this info please?

@Tmoni

If you keep hold of your shares you will be able to take advantage of a rights offer and buy more shares at a discount to the offer price given to new investors when the offer goes public

If indeed you must sell then keep some so you can still take advantage of a rights offer

@obamedo,

thanks 4 the advice,
do you have an idea hw much the access offer is going to come out,

hi i'm interested oh'''''''

Can anyone in the house advise on a good stockbroker that will not be affected by the new recapitalisation order
and whose services are efficient and professional. I'm based in Abuja. My present brokers may not be able to meet the same.
Recommendations will be welcome

you just have to wait and see, they have until 2008 i think but the big players will definately stay IBTC,Zenith, BGL

frankiriri:

The demand and supply for other good stocks will also affect the fortunes of the company. The First bank offer is expected to open first week of May and this would take its own toll on the demand for shares so don't expect the demand for Dangote to be too strong anytime soon ( except they relaese some good news)

Don't forget that DSR is committed to releasing results and paying dividends quarterly. The next one is due in early July, so perhaps people might begin to stock up in anticipation of a good result. The bearish trend may not last more than the first couple of weeks in May before the stock heads back up.

cheexy:

@everyone
Please who has noticed mutual benefit assurance and first aluminum?

Some interesting things have been happening to Mbenefit lately. Their acquisition of worldwide insurance gave them access to over 1million cooperative accounts and they just acquired new business to provide insurance for some 500,000 exporters under the name of FADU. Mbenefit's management believes that this would increase their projected turnover by about 50% per annum. They've been searching for a core investor to take up 20% of the company, in order to provide more access to funds (and I suspect they're close to finding one -- they already found one for their life business). Anyhow, I learned they're in the market selling convertible bonds (I'm not too sure if the offer has closed already). The good thing about this is that they're able to attract private equity investors with such an offer. The bad thing about the convertible offer is that the investors are free to convert their share to equity at anytime prior to 2011 at an exercise price of N1.50, and this could potentially crash the share price -- unless of course the company is able to negotiate a minimum time frame within which no conversions can be made.

Anyway, I think the best thing would be to buy and hold short-term. I bought close to a million units a few weeks ago and have made almost 45% gain. I'm thinking of getting out within the next month or two, before the convertible bond holders get their share certificates and start to convert to equity -- because with the low exercise price, they could potentially make over 100% profit just by buying the bonds and converting to equity immediately, but I'm banking on the fact that it takes about 3months from the time shares are alloted to when they're verified and lodged with CSCS.

As per first aluminium, don't know nothing about that one.

Does anyone know what's going on with Jos International Breweries? I hear some core investors are taking over . . .

@ Windywendy - Your knowledge of stock is quite deep. I am really impressed.

Does anyone know what's going on with Jos International Breweries? I hear some core investors are taking over . . .

From what I've read, Jos Breweries are in serious trouble, despite a core investor coming in. I'm sure the investor went in with eyes wide open, and can hopefully turn things around.

http://www.businessdayonline.com/?c=56&a=12768

April 19th, 2007
Jos International Breweries battles for life
E-MAIL THIS PRINT THIS Most Viewed


Activities at Jos International Breweries Plc are gradually grinding to a halt, indicating that all is certainly not going well with the brewing company.
Chinedu Dike

The slide to a shutdown is making shareholders to be deeply concerned and is making them to seek the intervention of the regulatory authorities to help salvage their investments in the company.

The company accessed the capital market in 2004 for fresh funds to strengthen its operations. But the results of the offer are yet to be published and there are no clues of the level of subscription.

Though subscribers to the offer have received their share certificates, they are not yet verifiable as the shares are yet to be listed for trading on the floor of the Nigerian Stock Exchange (NSE).

Worried by this development, Boniface Okezie, President, Progressive Shareholders Association of Nigeria (PSAN), said he went to the company’s factory in Jos to appraise the state at the company. What he saw there was near zero operations. He did not see any truck moving in or out of the factory an indication that no production activity was going on.

He said efforts to reach Albert Kattiens, the managing director, was rebuffed. He wanted to find out from the MD why Jos International Breweries (JIB) has not convened an Annual General Meeting for about five years now and to tell shareholders what is going on in the company. He also wanted to know why the company has not paid any dividend for the past ten years, and the status of the last public offer of the company.

But he was disappointed. Kattiens refused to see him but merely sent a note through his secretary that he should go to the Corporate Affairs Commission (CAC) at Abuja if he wanted to know why the company has not held an AGM.

The PSAN leader said he later reached out to Garuba Izam, Chairman of JIB, who told him the company was having financial difficulties and is currently shopping for core investors to inject fresh funds in the company.

Izam gave an assurance that as soon as a core investor is secured, the company would bounce back into full production.

Efforts by BUSINESSDAY to reach Kattiens were unsuccessful. His Secretary said the board and management of the brewery are working out the way forward.

Though he did not give further details, he said the company is aware of the concern of the shareholders but it would be preempting issues to call the shareholders when the board is still discussing with some investors that have shown interest in investing in the company.

But the PSAN leader is calling on the Securities and Exchange Commission (SEC), and the Nigerian Stock Exchange (NSE) to prevail on the board of Jos Internaional Brewery to convene an AGM and tell shareholders exactly what is going on in the company.

He said if this not possible, the entire board members and management should be made to resign their appointments, while a new leadership would be appointed to ensure that investors interests are not jeopardised.

@Omoba,
Thanks for the info.
@windywendy,
I enjoyed reading your post. I am reading a book called "Beating the Streets" by Peter Lynch and i read about convertible bonds. I also bought mutual benefits assurance stock and i have not regretted it. However, i didn't know that the convertible bond thing worked in Nigeria.
@Obamedo,
I agree with you, we can sell some if you need the money and leave some to benefit from rights issues, dividends and bonus issues.
@all
I remember about 2 months ago when Nahco was 49 naira and i needed some money to buy something else so i sold off all my holdings in Nahco (i bought it at 19.71) and now, there is going to be a bonus issue of 2 for 3. I can't buy Nahco again cos it is doing about 60 naira now and it is very scarce. The lesson here is that once you are sure that the company is going to do well, just sell off some holdings to recoup your capital and then hold the remaining one incase there is an announcement of a bonus, rights issue or good dividend payout. That way you neither lose your capital nor all your holdings in the company. Pls note that you should always do your homework so that you would know if it would be unwise to still have some shares in the company

Pls any gist on unity bank?

Hi All,
Please does anyone have information regarding JAPAUL shares. It appears the price is appreciating.

@Everyone
All hail Guru Windywendy, i definitely think your credibility in this house, is on the same level as Oga Frank. (I have been following your other entries)
@WindyWendy
Back to Mbenefit -
I also noticed the last two weeks activity of Mbenefit, the trend has been upwards, but could not find any good information.
Please, what is your take on Short-term and Long-term,
And, please where can i find more information.

@ Everyone and honoured Gurus,

What is the story of Skyebank and Ecobank?

battleaxe:

Hi.
Please, does anyone know if Intercontinental Bank has released certificates for its Public offer done around October last year? I haven't gotten mine and a stockbroker said he doesn't think its out because' no one has brought their cerficates for verification with them. Can anyone help out with this info please?

@battleaxe,
I have not received my intercontinental bank share certificates either and i have not seen anybody that has recieved. However, i received a letter of appreciation from them for participating in their offer. I guess we would soon recieve them

@wendy
Could you comment more on the Mbenefit bond - what is the offer price for the bonds? What is the earlist conversion date? Is there a callable-option attached to the bond (ie 2011)? What is the ratio of conversion from bond to equity? What is the coupon payment of the bond? Is the coupon paid annually or semi-annually? Whats the minimum amount one can purchase.