₦airaland Forum

RichYoungRuler: Bosses in the house, a quick one here; Do you think the banking sector forecasts and bottom-lines will be reviewed downwards with the said increase in CRR? if yes do you see this impacting negatively in the share prices now or by the time the full 2013 results are announced? Going forward,what will be your strategy if you have substantial percentage of your portfolio in this sector?

I don't think the banks will alter their forecasts as it will give a negative connotation to investors. Investors are already aware that increased CRR will lead to reduced liquidity and will affect bank's profitability. So there is no need for banks to make it sound like it's a big problem otherwise this can have negative effect on their share prices. Ordinarily investors expects competent banks, especially those that are not too exposed to public sector funds, to try and minimise the effect of increased CRR.

I have substantial amount of bankings stocks (Zenith, FBNH, GTB, Access and ETI) in my portfolio, most of which are for the long term. So if the increased CRR eventually leads to fall in share prices of banking stocks as perceived by investors (perhaps due to reduced profitability), my strategy will be to take advantage of the situation by increasing my holdings and waiting for them to get back to profitability. This is because the increase in CRR will only be temporal. So I don't think there is cause for alarm if you have good banking stocks.

RichYoungRuler: Hi Bosses in the house; My thoughts on the above is that if the number of outstanding shares in this said company is about the same with other insurance coys now, the price will soon nosedive to the 0.50k it was before the reconstruction and if things don't change in the insurance sector for good, one may find it difficult to sell after a while, reminds me of equity assurance.

Yes the intention is to reduce the number of outstanding shares which in turn improves the value of the company's shares in the market but this will not affect the total book value (at present) of those shares. However, share reconstruction in Nigeria can be very unfavourable. I have noticed that the increase in price of the stock after reconstruction is not always sustainable and the price falls steadily, maybe due to market condition. So even if the Directors of the company try to justify the action, investors still see it as a rip-off. In my opinion, share reconstruction of a failed company is a total waste of time and a ripoff to investors because there is already a negative perception of the stock. For example, in 2008 Ecobank did share reconstruction (1 for 3) and my holdings were drastically reduced and the new price could not be sustained. As if that was not enough, in 2011 the parent company (ETI) absorbed Ecobank and performed another share reconstruction (1 ETI share for every 5.16 Ecobank share). At the end, my 70,000 units of Ecobank turned to 4,641 units of ETI. The reconstruction was a failure and a rip-off.

So-brit:
how does this happen? Can u throw more light on this

It means that the holdings of IEI shareholders have been reduced by 80% due to the 1 for 5 reconstruction plan. However, share reconstruction is not supposed to reduce the value of an investor’s portfolio. In most cases there are usually adjustments in the share prices in such a way that the current value (after reconstruction) will be the same as or close to the previous value (before reconstruction). For example, if a company undergoes a 1-for-5 share split, an investor who holds 1000 units will now have 200 units (1000 divided by 5). Meanwhile, if the stock price was N1.00 before reconstruction, the price may be adjusted to N5.00 giving you the same value as your previous 1000 units. But this may not always be the case... Don't know if this was how IEI share reconstruction was done because I don't really know anything about the stock.

Desanta: My Bank (FBN) usually demand that I place my bid/ money a day (Tuesdays) before the auction. So I think the auction is on Wednesday and then by Thursday those who were successful will be informed.

manie: The next auction will take place tomorrow 7th August 2013.

Thanks a lot for the info.

fsb: Does anyone have any ideas as to when the next treasury bills would be auctioned. Meanwhile CBN has revoked licenses of some discount houses. Hope that doesn't translate to loss of investor funds...

My bank said the next auction will be tomorrow 07 Aug, but the T-bill issue program timetable for 2013 posted earlier on this thread by oga feelamong says it's 08 August. Don't know if there has been any recent changes. Please can someone confirm the next auction date...

[quote author=ihedioramma][/quote]When you register they will send your login and password to you by email. You can print your statement yourself when you log.

So-brit:
Pls someone eplain the effect of the international energy insurance share reconstruction

The share reconstruction formula is 1 share for every 5 shares held by investors. See details below.
http://blueprintng.com/new/2013/06/10/nse-suspends-shares-of-international-energy-insurance/

jp130: plz haus i dng complain 2 my stockbroker severally abt nt getti trade alert on transactions in my acct. Is dere a numba i cn call cscs directly? Hw does somone retrives bonus issued in secondary market? Tru stockbroker?

For security reasons, you should register online with CSCS and worry less about trade alert. It will cost you just N2,500 per annum for "individual account". There seems to be no current solution on this. I know a lot of investors, including me, who have complained to CSCS concerning this issue but they keep saying the same thing. The bad stockbrokers MAY use this opportunity to perform some magics in investors account knowing fully well that they're most probably not going to receive trade alert any time soon. I expect investors to keep close to their portfolios by monitoring their stocks online while this problem last...

I think your share bonuses should be automatically credited to your CSCS.

Tassembly: I went to a firstbank branch in lagos and got to know they offer all,91days,180days,and 365days.infact my next bid is 365days. Though they gave a paper and wrote 91days,if you don't ask them,they won't tell you. The lady i met just told to to cross the 91 and put whatever days and they will bid. Always ask .

Please which particular branch did you go to? Did they also allow you specify your preferred bid rate? Thanks for the info.

ihedioramma: Hello my good people in the house happy new month in JESUS NAME AMEN . pls am not getting trade alert any more why ? what is the problem? and what do i need to do now?.

I think CSCS has a problem with their trade alert system. I also have not been receiving alerts for a long time now and have complained to them severally.

9free: Diamond Bank don share all the money to themselves ooohhhh.....
We the shareholders go continue to the chop Garri while these guys go dey buy private Jets.
We dey watch. One day go be one day....

Oga 9free, where u dey since na... We don miss u small... I hope the 100 workers wey diamond bank sack follow chop this money.

Tassembly: @ elai, infact you've been so helpful, is it the first connect mail you send message to, kindly drop email you send message to, also do they offer 24hours customer service like gtb,how long do they close account,i have nt use the bank since 8months now,coz i was thinking of doing online transfer to it but my fear of inactive account error i might get is much .thanks

Yes it's FirstContact and they offer 24/7 service. Email is firstcontact@firstbanknigeria.com . You can give them a try.

Mubz: Hello evrybs, Pls how do one transfer the share certificates ownership of a deceased person?

I think you should contact CSCS. They should be able to provide you with the requirements.

fsb: I don tire for GTB. I left my town to travel to another town to find out about how they can buy treasury bills on my behalf from the primary market and after spending about 1 hour being tossed up and down the guy I meet tells me they have not done any treasury bills transactions recently so he doesn't know much about it but that it is common in lagos.

Which kain thing be this?

Why don't you send them an email instead of wasting your time in the branch. Since I started T-bill investment I have never visited any branch (First bank & Keystone) for its purpose. I always send my instructions via email to them and they carry out the instructions (response time is usually within 24/48 hours). I only send my instructions to their head office and the head office in turn forward my request to my local branch). Sending your instructions directly to the head office makes the response time quicker. Stop stressing yourself going to a branch office because most of the people that will attend to you may not even know about T-bill dealings and may end up giving you wrong information on rates and others. There are specific bank workers that handles Treasury Bills in a bank- not all the workers can help you with the information you require.

[quote author=Tassembly][/quote]Yes, I am using savings. Actually the interest rates varies for each auction and is usually at CBN's discretion. Using a recent stop rate of 11.60% for a 91-day T-bill, the interest on a N250k investment would be roughly about N7,000. To answer your last question, T-bill is usually enjoyable when huge (or reasonable) capital is involved. The bigger your investment capital, the more interest you earn.

stockbull: it has been long. hope every thing is still rocking..................................... working on some investment..

Welcome back Sir. It's been a while. Any news on ABCTRANS? Markdown date, Stock direction after markdown, etc.

So-brit:
Pls house, is there a way of knowing how much your shares were actually sold or one takes whatever the brokers reel out as the sale? For example, i'd instructed my broker to sell off my fo tday at a price not less than #42 should the market head south. Today, fo dipped to #39. How do i determine the actual price. Oga Elai plss!

If you have registered for trade alert, CSCS may send you details of the transaction but I don't understand what is currently wrong with their trade alert system as I have not been receiving trade alert on my transactions lately. Alternatively, you can view details of your transactions online if you have CSCS online access.

So-brit:
God bless this house. Pls born to b rich or any other one in the house, how do i get the e-dividend form. Eti sent theirs with their last dividend to me. Ntn yet from fidelity.
Again does it mean fo, dang flour, oando have never paid dividend since 2010?

As advised by Richyoungruler, you can get most E-dividend forms from google. If you are having difficulty getting any particular E-dividend form, just ask the house and I'm sure someone will help you.

For past and present dividend payments, you may check the following link:
http://www.cashcraft.com/index.php?option=com_wrapper&view=wrapper&Itemid=125%EF%BB%BF

Tassembly: I read here that firstbank accept 100k minimum to bid, and 1000 after, will they accept 250k in one transaction. I also read fcmb accept minimum of 250k, advice,which is better for those who use both.

Yes First bank will accept 250k. I do not use FCMB. For First bank, the only disadvantage is that they only offer 91 days T-bills and usually debit your account with the face value of the bill which means you will have to wait for them to credit you with the interest after the purchase. Also, I don't think you can specify your preferred bid rate with First bank (they give you at their best market bidding rate). So you may want to check with FCMB and if they don't have these disadvantages then you can go with FCMB.

collinsobinna: Really enjoying passive income from t bills and FD,really helps one grow with compound interest.

@oga elai and feel among:my banks FD rate is now 13percent possibly due to the CRR implementation,so I m hoping and asking,can T bills possibly hit 20percent.
Cos liquidity seems to be the governments problem at the moment?need Your opinions sirs.

Hope to retire soon from active work.just trading my cash.

The recent increase in CRR by the CBN is a clear signal to a hiking interest rate scenario which is likely going to have a sustained effect on bond and money markets, for as long as the new measures last. I think T-bill rate will go up as investors will definitely ask for higher interest rates on the money they are lending to the government but I don't think it can get to 20%.

Mpeace :
Bros are you sure? Cos no bank goes beyond CBN's MPR rate fixed at 12% as announced by Sanusi himself some wks bck, lest they run a loss. Personally if a bank offers me 13% on fd presently, I'll take my money and run. Someone is trying to cover a bad loan and balance the books.

I am not surprised if his bank is offering him up to 13% or more. Banks will desperately need to encourage savings in order to improve liquidity by increasing deposit rates. A Bank manager was giving me 15% on fixed deposit some time ago even when the official rate was no where close to 15%. During that period, the bank usually credit me with the official interest rate (less than 15%) while the bank manager pays me the balance to make it 15%. When I asked why the interest payments were not being paid at once, he told me that the official rate was not up to 15% and that the balance was coming from his own pocket. Perhaps he was desperate to meet up with a target or so.

fsb: So it's to go to another branch be that. He offered 6% per month for 30 day tenor which sounded like he wasn't sure so I asked is that per annum or per month. Anyway seems I should get to a different branch.

Yes go to another branch or a different bank but don't ask them if they have T-bills for sale. Just tell them to buy for you from the next market auction. Make sure you send your request to them at least 24 hours before the auction date. Try not to bid too high or too low. To be on the safer side, you can avoid specifying a bid by allowing your bank buy your T-bill at the best prevailing money market rate. This way, they will most probably purchase your T-bills at a good bid rate- not too low and not too high.

fsb: Progressives, good morning. I went to Gtb to inquire about treasury bills of 91 day tenor and the guy said they only have for 30 day tenor at the rate of 6% per month according to him.

The guy must be a crook. He probably wanted you to buy from their own T-bill holdings which is not a bad idea but the rate he offered was not worth it. He should have told you when the next auction date is scheduled for so that you can send in your bid request prior to the next auction. Next time, tell them that you are only interested in buying from the primary market auction.

chegson: You do not need to beg or complain for your interesr to be paid because it is only the net
value of the investment your bank ought to have deducted, leaving the interest in your account. At maturity, your account is now credited with the face value of your Investment. This is the standard practise in all the banks as regards treasury bills investment.
only the n
et value of the investment that should be de

That's supposed to be the normal procedure but First bank usually debit the face value from your account and later credit you with the interest. Their ways are always different and difficult.

val_dubem: Good morning great men and women! May this new week bring us good luck, great earnings and High Returns on ALL our Investments; Amin/Amen.

Have a lovely week!

Amen!

soloniger: Thanks Elai147, Any gist Of The Board Meeting, The Stock (CUTIX PLC) Lost In 2 Previous Trading Days.

No, I don't have any update on the outcome of the board meeting.

[quote author=soloniger][/quote]http://www.nse.com.ng/Lists/Financial_News/AllItems.aspx

CBN Revokes EDL's Licence over Non-recapitlisation

The Central Bank of Nigeria (CBN) Friday announced the revocation of the operating licence of Express Discount Limited over alleged sharp practices and failure to recapitalise. CBN Director, Banking Supervision, Mrs. Tokunbo Martins told journalists in Abuja that the discount house had maintained false and misleading books of account and had huge exposure to margin loans.

Read more... http://www.thisdaylive.com/articles/cbn-revokes-edls-licence-over-non-recapitlisation-graft/154603/

Mpeace :
I recently invested in shares through a stockbroking firm in Abuja. On the 6th of june, I placed an order for some of my shares to be sold. They were sold that very day but the firm keep telling me one story or the other each time I request for my money, the latest is that they don't even reply my requests. They just use one's money to run thier business. Prior to this investment, I had a portfolio account with a state government owned stockbroking firm, I had to leave them because it took an average of 2months to recover any sum in my account(proceeds of share sales)

Most of these stockbrokers are thieves. Not even SEC can vouch for their sincerity. Threaten them that you will report them to Security and Exchange Commission (SEC) if they fail to provide your money. I am sure that will scare them and make them return your money asap.

Mpeace :
I don't trust stockbrokers and discount houses. Its easy for them to collect your money, but very very hard for them to pay back to you.

Discount houses are regulated by the CBN and SEC so I don't think they can disappear with your money. I heard they are owned by financial institutions and insurance companies (don't know how true). However, I buy my T-bills via reliable banks because I no fit shout! Buying through stockbrokers, if possible, is not an option for me.

9free: I neva hear anything from FBNH oohh.... My broda, na only Speculative 2K units I fit get as Oga Elai don nearly mop up all their shares for floor....
BTW: E still dey surprise me say I buy Oando oooo

Me too bros but I go dey on full guard in case of anything. I am just having the feeling that Oando will survive their current crisis and if they do, the stock will perform magic but if they don't, I go take off like kawasaki.

distinct00: I once had an account with supra commercial trust brokers before they were suspended. pls hw do I transfer my shares to another broker.

INTER-MEMBER TRANSFER PROCESS/REQUIREMENTS

To transfer your shares from an in-active stock broking firm, you need to contact your target stockbrokers and ask them to carry out the transfer of these shares from the in-active firm to their custody. For the target stockbroker to be able carry out this transfer, you need to provide them with the following;
- Your current statement from CSCS (if you have CSCS online access, you can print your statement yourself)
- A copy of your ID card ( International passport, or Drivers license)
- Photocopy of evidence of share ownership such as- Receipt of share purchase, dividend warrant stub, or contract note)
- Bankers confirmation from your bank (the account must be in existence for 6 months and above alternatively, you can provide your target broking firm with your bank details and a passport photograph which would be forwarded to CSCS on a letter headed paper with the company seal affixed)

Note: Your target stock broking firm must initiate your request to CSCS on-line, process an indemnity and submit along with your KYC (know your client) document and the above listed physical document before your account can be transferred. So tell your target stockbroker to give you a KYC form to complete.

So-brit:
Tnx oga Elai,,, i have made some bucks wth that fo appreciation though my stake there is unfortunately small. Little abv 100% hmm. Shld i dspose by monday prolly to re enter later on?,, count on you pls

In my opinion, you should wait for bearish confirmation before you offload. If the stock record a loss in the next one or two trading day(s), it means that the price has changed direction and you can sell. But PLEASE know that things don't always go smoothly with technical analysis and that my decision can be wrong. So do it at your own risk. Wish you luck.

godello: Pls pals i am still yet to understand this Tbill stuff. Especially the dividing by four aspect. For intance if i invest 1million for 90 days @ 10% i guess my interest will be 100k after 90
days or will the 100k be further devided by 4 thereby giving me 25k after a 90 days investment of 1m at 10% ?

You are correct. It is divided by 4 because the 100k interest is per annum.