₦airaland Forum

toyeoye:
🚨 Red corner before noon.

ARADEL joins the limit-down list (-10%), alongside DEAPCAP(DWL)

Pressure is spreading across the market, but trading activity remains selective with volume still thin. 📉

We just might break 230k support tomorrow.
June might end up nearing -9% maiking it the slowest month since at least 2024.

For anyone interested in how we're fairing in this slow market:

It's by far the slowest month, but still profitable!!! earnings for the month are still above what 90% of nigerian workers make.

awesomeJ:
As it stands, the 10k rule will only affect 7 tickers should it come into effect, for most other stocks things would remain as is: AIRTELAFRI, ARADEL, GEREGU, NESTLE, OKOMUOIL, PRESCO, and SEPLAT.

Take out GEREGU, now just 6!

alezzy13:
But it's not good for my account oo.

I can Imagine.
Maybe a lesson here is to sometimes take profit. maybe bit by bit.

I have a relatively heavy crash on my NAHCO position, but I keep imagining the person Pa Emma mentioned as having 4 million units of the stock just 2 months ago when it was doind 250. If that person never sold, his holdings have gone from N1bn to now just around N560m in 2 months.

Market set to have its worst day in this slowest month of the year. 5200 points shaved off the index courtesy of 100k finally moving on the cement guys.

BUAFOODS, MTNN SEPLAT are all also on full offer, 100k on any of them would compound the fall. But the correction was needed, and it's good for our market.

Mpeace:
If that 10k units movement rules comes into play today ehhhh, NSE go fall like never before. See all the stocks on full offer. Hmmm
Is it the dang refinery ipo money being gathered or elections abi na wetin be the cause

As it stands, the 10k rule will only affect 7 tickers should it come into effect, for most other stocks things would remain as is: AIRTELAFRI, ARADEL, GEREGU, NESTLE, OKOMUOIL, PRESCO, and SEPLAT.

ogawisdom:
The market is still evolving, needs stability and investors confidence more than crazy volatility. I know traders will disagree with me because they make money with volatility but alot of people will be burnt and pull out. We need more participants in the market for it to boom.

i am not really confortable with that new 10k rule as an investor, i prefer 100k rule

You're right sir. We love it cos we're traders

ogawisdom:
on the positive side unless someone does 100k deal at once ARADEL wont go below 1575. 100K deal at once will need a HNI, Institutional Investor.

This is one thing i love about the 10% rule and 100k deal rule. i am hearing they want to change the 100k rule but they should not try that ooo these are protections from loses as the market evolves and frees it from manipulation.

True they're protections, but the 100k rule affects liquidity. If the 10k rule were in place already, we might be buying ARADEL at 1200 this week.

AIRTELAFRI's illiquidity will finally end this quarter. Especially if that 10k units rule goes live soon. 🎉🎉🎉

mikeapollo:
That means you are doing great; Dangote and Otedola should (or will) be seen as your colleagues very soon!
But there is a much larger chunk of the market that are not here in this forum at all

Amen oooo 😁

mikeapollo:
Shift focus beyond this forum! What we do here does not make up to 0.001% of NGX market activity!

Ahhhh.... Me that now does 100 times that volume you quoted nko?

opadiya:
His advice should naturally attract a question mark in a commercial transaction of this nature.

Since higher demands is linked to higher stock price and higher stock price is linked to profit, and that rational investor will seek to maximise profit:-

It is therefore important to question the fellow who wants to take profit while advising other not to buy, the reason he wants to take his profit at 'loss'.

Advising people to buy when a stock is overvalued (Monkey Hunting) is not the point here. The reason for advising when your interest will be adversely affected is the point here.

Like you rightly said, he's giving an advice even though he's poised to lose should people follow that advice and you're calling him out for putting the interestoif others over his own selfish interest Haba na.


What he has exhibited should be commended not at all condemned.

Even though he holds the stock, he doesn't mind saying that at 40x PE, it's overvalued, yet you prefer if he deceives people that the stock is a gold that should be pursued come on na. Obviously if you were chnaced you would rather prefer to lure people into buying.

It's your own stance that people should watch carefully.

opadiya:
This does not address my concern.

Someone who is so altruistic to advise unknown people in faceless forum not to buy and wants to sell should not be taken seriously.

Why does his advice seem contradictory to you? The advice is in line! If I hold a stock, and now current realities imply that it's overvalued, Me deciding to SELL and then telling people not to BUY is exactly an advice in good faith, I don't know if I'm missing something in your interpretation??

Me wanting to sell cos it's overvalued while advising people to buy is what's in bad faith and is called Monkey Hunting here.

KarlTom:
We have more people using calculators instead of keyboards...

The RED seems to be waning though

Waning kwa??
With the BUAs on full offer SEPLAT on full offer, MTNN and DANGCEM also bidding significantly below ref. Price?

We might still be heading below 230k.

SEPLAT, SKYAVN and JBERGER dividends all received today. Dividends are always pleasant surpises for me cos I rarely expect them

isaacosas01:
Why does the NGX gate price formation on volume? Why can’t we run like the NYSE and LSE where any genuine trade updates the last price immediately?

Someone asked this in a webinar, NGX's response was that they need to put hedging instruments like options in place before allowing wild volatility like that. Same with the 10% rule.

AngelSlay:
For long-term investors, this is likely a positive development. The people most affected may be short-term traders who rely on low-volume price swings to generate quick profits.

Are you sure it's not AI you're using to interprete this new rule?

Your AI doesn't have context that that the existing rule requires 100k for all price levels. That's why it's misinterpreting.

deathwing:
Noted. You obviously have more experience so would gladly defer to you. Does this new rule throw up any problems in your view?

Yes, It brings back the exact issue about index distortion they tried to curb in 2019.

You only now need N100m to move DANGCEM and distort the index massively as opposed to N1bn previoulsy.

Those quick swings are good for us traders though.

deathwing:
I meant deciding it for each stocks in the way you recommendd, after a number of months of stagnancy etc, would not be very efficient, because they would be intervening on a case-by-case basis. It's better if the rule is the same for the market. Your point also makes my point...if Seplat was stuck for six months and finally got out of the fugue, why intervene in another that was only stuck for three months? But this is all academic anyway, since it was likely not under consideration, I was just opposing that particular suggestion you had.

The main issue was that the market needed to do something to end the annoying illiquidity. The easiest way would be for them to revert to the tiered volume requirement they had in place, but that would then bring back the original issues that made them amend the rule in the first place, hence my suggestion.

I do not know what your interpretation of my suggestion is exactly, but it wouldn't at all imply a case by case intervention. Just a genral rule in their code like so would suffice:

bool price_moves = volume_traded >= 100, 000 || calendar_days_since_last_price_change >= 90
if price_moves == true
set_new_price
simple algorithm that's that one patch and would work every time for every stock.

They probably just chose to go with an algorithm they already previously had in place.

As a matter of fact, SEPLAT is currently being affected.

It trades at £5 in London (about 9300), but NGX quoting it at 11363 cos of their 100k rule.

It's why there are lots of offers at 10k with no buyer.

If this rule had been in effect today, seplat would have dropped to 10200, then tomorrow, bids would show up at 9k.

It's just basic market knowledge, but I don't believe you trade full time @d..wing

deathwing:
A stock deciding to be illiquid when other stocks are moving is not the NGX's busines, afterall Seplat was moving. Trying to solve the issue on a case by case basis would be costly, political and counter to the goal of involving foreign investors. I am also sure the smart ones among us would learn to quickly game the system. It should be one rule for everyone

This is your uninformed opinion. I don't think you should be advertising the ignorance.


SEPLAT was also once affected for nearly 6 months, but your history of the stock is apparently short and limited.


It's not up to companies to decide whether 1 unit of trade in their shares will move price or whether it'd be 100k units. It's exactly the responsibility of the market, you not knowing that is funny.

follow up in January:

Finally another of my suggestions to the market heeded. Whether my email was material or they decided entirely on their own, now my frustration with tickers like GEREGU and AIRTELAFRI will end.

megawealth01:
Less go below 200k first

haaa... if 14k dip feels this way to most folks, imagine another 40k off?.

I'm good either way though

240K support now broken.

pluto09:
Na awesomej people, na them dey sell and they buy at the same time

KarlTom:
Yeah. I anticipate a daily rebound tomorrow

That'll be sweet!

KarlTom:
ARADEL lost the brave fight by ₦183.90

Market on track for the worst week of the year at c. 5% down WoW.

jckgroup1:
@AwesomeJ

Have you checked out DLM brokers, likely lowest fees and their annual 10℅ rebate can fund your Christmas giveaway.

Brokerage commission is 0.45%. Also to get 10% of annual commission as rebate.

Yes, I opened an account with them a while back, but their platform isn't as smooth, that's the only downside. I've only used it for 1 or 2 days.

I'm already discussing a concession with my current brokers with guaranteed quarterly volumes to start by Q4, once that's approved, I should be able to save over N2m monthly in brokerage commissions.

thanks for mentioning.

If possible DLM should consider the platform built by Caladata.

Odunharry:
Congrats. More wins

Thank you

Buchika:
congratulations!! More wins for you bro.

Thank you boss

chimex38:
OK.
I think say na some magical concortion.
I dey eye Methuselah 👀

Magic would have been an illusion, this is reality.