₦airaland Forum

Hope this will finally bring the bulls!!!!!!!

ABUJA, Sept 18 (Reuters) - Nigeria's central bank said on Thursday it injected about 150 billion naira (around $1.27 bln) into the financial markets and reduced the cash reserve requirement to 2 percent from 4 percent.

"In order to lubricate the system, (the Monetary Policy Committee) has decided to ensure that the financial system remains liquid," said Central Bank Governor Chukwuma Soludo.

The bank also lowered its liquidity ratio to 30 percent from 40 percent, and said it would allow repo transactions against eligible securities for 90 days, 180 days and 360 days. (Reporting by Camillus Eboh; Writing by Randy Fabi)

Iwerebor:
Heavy buying of oceanic bank's shares today. In the region of N4.07b. Number of deals also jumped 300% from the previous day's.

That shows some turn around soon.

2ND QUARTER ENDED JUNE 2008
BENUE CEMENT CO. PLC 2ND QUARTER ENDED 30/06/08. TURNOVER 08 N4.10B 07 N3.01B

PBT 08 N1.46B 07 N1.43B

EI 08 NIL 07 N128.7M

PAT&MI 08 N1.46B 07 N1.56B

ECOBANK SHARE RECONSTRUCTION:
Ecobank Nigeria Plc has informed The Exchange on its decision to reconstruct its shares in the ratio of 1 for 3 (i.e. one new share replacing every three previously held).

Acenins 9 OTHERS DELISTED:
THE FOLLOWING TEN COMPANIES HAVE TODAY BEEN DELISTED FROM THE OFFICIAL LIST FOR FAILURE TO MEET THE POST-LISTING REQUIREMENTS OF THE EXCHANGE:- ACEN INSURANCE PLC; AMICABLE ASSURANCE PLC; BAICO INSURANCE PLC; from ATLAS NIGERIA PLC; CERAMICS MANUFACTURING PLC; BEVERAGES (W.A.) NIGERIA PLC; ENPEE NIGERIA PLC; TATE INDUSTRIES PLC; MAUREEN LABORATORIES PLC AND RIETZCOT NIGERIA PLC

YEAR END 2008
LAW UNION AND ROCK INS. PLC. 2007 AUDITED ACCOUNT. TURNOVER 07 N2.50B 06 N107: .33B

PBT 07 N368.69M 06 N179.35M

TAXATION 07 (N57.4M) 06 (N14.7M)

PAT 07 N311.2M 06 N164.6M.

DIV - 6K C/DATE 26/09/08

P/DATE 17/10/08

2ND QUARTER ENDED JUNE 2008
JULIUS BERGER PLC. 2ND QUARTER ENDED 30/06/08. TURNOVER 08 N43.18B 07 N34.15B

PBT 08 N1.68B 07 N0.985B

TAXATION 08 (N750.0M) 07 (N295.0M)

PAT 08 N930.07: 0M 07 N690.0M

2ND QUARTER ENDED JUNE 2008
BERGER PAINTS PLC. 2ND QUARTER ENDED 30/06/08. TURNOVER 08 N1.29B 07 N1.06B

PBT 08 N117.95M 07 N90.68M

TAXATION 08 (N35.38M) 07 (N27.20M)

PAT 08 N82.56M 07 N63.48M

2ND QUARTER ENDED JUNE 2008
NIGERIAN BOTTLING CO. PLC. 2ND QUARTER ENDED 30/06/08.

TURNOVER 08 N39.4B 07 N34.1B

PBT 08 N2.22B 07 N2.0B

TAXATION 08 (N5M) 07 (N332.0M)

PAT 08 N2.21B 07 N1.68B

Guesss what? Skye bank gained today.Over 200 million units of oceanic sold today,I thought only 50 million were on offer.Could it be Ibru mopping back her shares or The bulls about to overcome the bears.Just waiting for my cash to land @ this current prices.Iam gonna strike the following stocks,DSR,SKYE,Unic and Oceanic.I will strike very hard like steven gerard.

@fatherof 2,
where art thou?

SEC issues new rules on share buy-back


Slashes fees

Raises panels to review corporate governance

By Gbenga Agbana and Mathias Okwe
FRESH initiatives to reposition the waning Nigerian Capital Market were yesterday adopted by the Securities and Exchange Commission (SEC), the apex-regulating agency of the market in Nigeria.

The initiatives, coming on the heels of recent similar action by the Nigerian Stock Exchange (NSE), include the slashing of fees charged by SEC for investment in the market by 50 per cent, the release of new rules on share buy - back and the setting up of two new committees on the review of the code of corporate governance for public companies and the review of capital market structure and processes.

The fees slash by SEC would mean more value for investors who, before now, were charged about five per cent of the value of their investment by SEC whether they are buying or selling. Now, they would have to pay half of that, which is two and half per cent. The move is aimed at encouraging activities in the market by investors.

Also under the new regime of incentives, SEC has reviewed the rules relating to shares buy-back (acquisition of own shares by companies) to allow firms to buy back up to 15 per cent of their existing issued and paid - up equity capital in any given financial year, while market markers shall now be eligible to operate in the market only after fulfilling the condition of a minimum paid - up capital of N2 billion including liquid assets at all times to cover its current indebtedness.

The Chairman of the SEC Board, Senator Udo Udoma Udo, who announced the new incentives while performing the inauguration of the two committee members in Abuja yesterday, said the initiatives were in line with the Federal Government's action in stabilising the Nigerian Capital Market as was outlined by the stakeholders' meeting last August 26 with the Vice President, Dr. Goodluck Jonathan at the Aso Villa.

Senator Udoma said: " It would be recalled that on Tuesday, August 26, at a meeting the Vice President held with stakeholders towards stabilising the Nigerian Capital Market, a number of recommendations were made. Some of the recommendations were to be implemented by the Central Bank of Nigeria (CBN); some by the NSE and some by SEC."

According to him, SEC was required to give consideration to "the reduction of its fees by 50 per cent; issuing rules for share buy - back by quoted companies and issuing guidelines for the operation of market markers."

"Immediately after the meeting, the management of SEC was directed to begin extensive consultations for the purpose of bringing forward proposals for the consideration of the board at its next scheduled meeting for Thursday, September 11, 2008. Notwithstanding the extremely tight schedule given management for these consultations, they were given and were able to present proposals on all the three issues for the consideration of the Board.

"At this meeting therefore, the board was able to consider and approve proposals for the following: immediate across-board reduction of all SEC fees by 50 per cent; rules for share buy-back by quoted companies in accordance with the Law as set out in the Companies and Allied Matters act and Operational guidelines for the registration of market markers.

"These new rules have since been approved by the Hon. Minister of Finance and the Director-General of SEC will be releasing them today (yesterday) and there are with immediate effect, Senator Udoma stressed.

He pledged the SEC board's commitment to checking market abuse and improving the efficiency of the capital market processes as well as the quality of the products.

As a first step of realising this vision, he disclosed that the board was retaining consultants to do a complete diagnostics of SEC to identify the Commission's weaknesses in order to strengthen and fortify its institution capacity.

He also explained that the setting up of the two Review committees on the market was in line with the objective as they would identify weaknesses in and constraints to good corporate governance in public companies in Nigeria and review the capital market structure and processes so as to make recommendations to SEC for measures that can be taken to improve its operational efficiency, international profile and transparency.

The Technical Committee on Corporate Governance is headed by a lawyer, Mr. A.B Mahmoud (SAN), while that on review of Capital Market Structure and Processes is headed by an accountant, Mr. Dotun Sulaiman.

The two committees have eight weeks to submit their reports and they are among other things, to examine in the light of recent experiences the quality of corporate governance; identify weaknesses and constraints to good corporate governance in public companies and recommend ways of effecting greater compliance by them.

They are to also identify the strengths, weaknesses, opportunities and challenges of the Nigerian Capital Market with a view to positioning it to meet immediate and future developmental aspirations in Nigeria and review the current market structure and processes as well as the regulatory and institutional framework and make recommendations for the improvement of the operational efficiency and transparency of the market, including any suggested amendments of existing legislation.

Dunlop,Ecobank and Afribank still heading north.DSR showing some resistance,Who knows when others will join.

FatherOF2:
ha na wa, oceanic is not going right again. which kind tin be this. 1% is just a whole new ball game.

@father of2,
the offer positions in oceanic are dropping down,from 137 to 54million in one day.I Belief felas has started withdrawing their mandates.

AFRIBANK Shares Remain on High Demand

Selling pressure mounted in the stock market seemed to hold ground with the bears. IAINSURE (690m units), LASACO (104m units), TRANSCORP (80m, units), OCEANIC (54m units), ACCESS (52m units) and GUARANTY (44m units) topped the offer list. A rally for the shares of AFRIBANK as the closure date of shareholder’s register for its twin benefit (Divd= 50kobo & bonus issue 1 for 3) approaches made it to close on bid of over 20m units. SPRINBANK (63m units), DUNLOP (1.18m units), CONOIL (637m units) and ADSWITCH (464m units) were also on high demand at the end of trading session.

Term of the Day

Sinful Stock

This refers to stocks from companies that are associated with (or are directly involved in) activities that are widely considered to be unethical or immoral. It is also known as "sin stock".

Examples of activities some people may consider sinful include the distribution or production of alcohol, tobacco, weapons and sex-related products.

Offer and Bid Status

The selling pandemonium continued today as investors continued to exit their positions. ACCESS (61m units), OCEANIC (131m units), TRANSCORP (86m, units) IAINSURE (783m units) and LASACO (107m units) topped the offer list. However, DUNLOP (1.38m units), SPRINBANK (66m units), CONOIL (843m units) and OANDO (108m units) continued their bullish stroll which left them closing on bid.


Term of the Day

Skin in the Game

A term coined by renowned investor Warren Buffett referring to a situation in which high-ranking insiders use their own money to buy stock in the company they are running.

The idea behind creating this situation is to ensure that corporations are managed by like-minded individuals who share a stake in the company. Executives can talk all they want, but the best vote of confidence is putting one's own money on the line just like outside investors!

FatherOF2:
Buyers dey look for the right conditions to arise before they reappear. When them reappear, all those 50million traders when wan sell [b]garri [/b]go start to dey hoard am make price go up.

I think some of these stocks will begin to defy gravity upwards small small just like afribank has just done.Remember the buy back.

Myself2:
Banks shun CBN’s order on margin accounts
Posted Tuesday, September 9, 2008

With the recent Federal Government intervention in the capital market meltdown, depreciation in the prices of stocks in the market may not stop soon as banks have continued to shun the Central Bank of Nigeria’s (CBN’s) advice for a waiver to be extended to expired margin accounts to allow the market recover fully.



Signs from the market indicate that operators’ morale is still very low, despite the intervention of the government about two weeks ago. It was revealed that the banks have continued to defy the CBN’s advice which was agreed at a meeting with chief executive of banks, convened to seek solution to the persistent slide of share capital.



Market sources said the downward trends in the market might still remain because the banks had continued to sell off shares bought through margin facilities, which could not be redeemed by investors who got the loans to mitigate the loss incurred in the long period of the trend in the market.



Specifically, sources said the credit management units of the banks had persistently put pressure on their assets management units to recover loans given through margin accounts, thereby making the market to witness more divestment rather than purchase briefs from investors.



The sources disclosed that while the CBN advised banks to restructure loans from margin accounts to allow customers to continue to service the facilities as fresh loans in the interest of the market, the banks had discountenanced the agreement, forcing investors to forfeit their investments.



Margin facilities entail the bank to provide 70 per cent while the borrower bears 30 per cent of the cost towards facilitating shares purchase by corporate institutions and individuals in the capital market.



In a bid to stem the meltdown (persistent fall in the shares) in the capital market, the Federal Government had intervened through a parley with the management of the Nigerian Stock Exchange (NSE) and other stakeholders at a meeting in Abuja.



At the meeting, all stakeholders had adopted a number of measures aimed at stopping the slide of share prices, which lasted over five months, with a loss of over N3 trillion.



Some of the measures include the power of the office of the Attorney General of the Federation to issue an exemption to the provisions of the relevant sections of CAMA, to permit quoted companies to buy back up to 20 per cent of their shares to curb the spate of bearish trading in the market.



The CBN was also directed to take appropriate measures to ensure adequate liquidity within the system to oil operations in the capital market, while a capital market stabilisation fund is to be established, as an intervention instrument to stem the meltdown in the market.



Also, the commercial banks were advised to restructure existing facilities to aid operations of licensed stockbrokers, institutional and individual investors on longer repayment terms.



Both the Securities and Exchange Commission (SEC) and the NSE, all capital market operators, also agreed jointly to reduce the burden on investors by cutting fees significantly.



Already, the NSE, with effect from yesterday, cut its fees by 50 per cent. One per cent maximum downward limit on daily price movement would be allowed, while the current five per cent limit on upward movement is retained.



The NSE has also embarked on the review of its trading rules and regulations, particularly regarding listing of new issues of companies wishing to list their shares from private placements. - Tribune

I thought representatives from the debt management office were at the meeting.CBN can put something in place to checkmate this.Banks are stylishly killing the NSE.

FatherOF2:
Finally now we're getting a clearer picture of behavioural patterns.
I'm ready to buy some more Oceanic by this friday at lowest price, sacrifice loosing 1% by monday next week, logic of this is that by Tuesday next week, Oceanic should start reversing. Volumes are thinning out, there may be non available to buy by next monday, best bet will be this friday to get some more.

@fatherof2,
remember 50million units of oceanic on offer, only 4.8million sold so far. that means few buyers.Remember no patterns right now on the NSE.But anything can happen.Any person buying or selling anything now is gambling.Oceanic can be #40.00 or #15 in the next 2months.Lets pray things may normalize soon.

FatherOF2:
E be like na those ones you buy. But unilever is still pulling weight. That's a good stock to keep oh.Same with UACN.

But right now my Oceanic, DSR and SKYE are defying gravity. I'll pull out by last trading day of this week.
Make i take another man money run comot.

@father of2,
that oceanic na #30.00 stock oo!!. no just rush out like that and rush in later @ #35.00. likewise DSR,cause this 1% downward stuff go affect cicoers like you badly.meanwhile Oceanic year end has been changed to december,which made it more interesting.Just my thoughts.

@fatherof2,
Why unilever and uacn dey struggle in thIs bullish market now??.Thought they should be in the same form with oceanic Skye,UBA,GTB and DSR.

Only 4.7million units of oceanic sold today out of 38million bid,chei!!!.people ne wan sell at all. 1 million skye sold!!Long live NSE.These bull go last oo!!

market never close.

@rasputin,

FatherOF2:
PEOPLE UNA DON SEE MARKET NOW NOW.

"  E STILL DEY HAPPEN OH".

If you no buy last week, you don miss oh. Na so so Black black full market now,
all the women when dey market don throway wrapper.

u mean buyers no fit buy now?.I no understand that black black.only know of green and reds.Abi to buy shares now na black market?.UP NSE!!!.I may start gaining in the next three days

FatherOF2:
PEOPLE UNA DON LOOK MARKET TODAY?.

  " E DON HAPPEN OH".

@father of 2,
people wey get money go dey strike,people wey no get go sit down dey watch till they recover from their losses.God dey!!!. Fidelity no join at all. Even PHB showing some week signs.I think the bull will last. UP NSE!!!!!!!!!!

rasputinn:
I'm really dissappointed with the N1.70 dividend declared by Zenith,with all the bloated profit,no bonus @ all
Well I guess there're just being cautious due to the hammering being generally meted to share prices on the NSE

Zenith did not declare 1.70k.They ve changed their year end to sept. may declare 1.70k when their year ends.

adewaleafolabi:
Does anyone know that investment and allied assurance is paying dividend of 0.8K per share ? Does anyone know the closure date

they are paying .008k not .08k.Hope its clear.

i wish i sold everything around march, But God dey sha!!!

@father of 2,
water don pass garri, im in serious shit.The worst are dunlop,dsr and now aiico don joint the chorus.will the bulls ever come this year?

FatherOF2:
I don wear swimming trunk take enter water. I think oceanic na water bank.(Ocean). Just for diving.Make shark no bite me sha oh.
You fit hold on today or tomorrow for Dsr, e no dey as cyclical as Oceanic, or you put small tin there.
Not comfortable with GSK as it is now.

@father of 2,
True true you be winch,oceanic closed on strong bid today,skye about to make a doji today against tommorrow. DSR why

@father of 2,
Wetin happen now,Forget the bears,just show up.Meanwhile at this point,Oceanic@19,skye@13,DSR@25, should i strike with my last cash Blood.Still thinking sha.