₦airaland Forum

RabbiDoracle:
The same is applicable in investing in Nigeria. Lots that may been successful will know it is buy low and sell high. But the science behind it is same but with lots of explanations on why you need to buy low and sell high. That is where value investing, contrarian investing, technical analysis, fundamental analysis etc all come in.

You open doors when you open books!!!

This is the crux of the matter. Those books don't have anything on strategy, stock selection, analysing company financials, understanding market trends etc. The beat you will get is for the author to tell you to say aside a fixed sum which you invest in the market every month come bear come bull. Nothing on how to select what to buy.

Coolcash1:
i get tired when people post books by foreign investors to understand our own local market. Is it that there is no Nigerian successful investor that have written a book on our own NSE? Sharing insightful nuggets on wealth creation through the Nigerian bourse..

#justThinking

Some years back during the stock market boom I read a few books authored by Nigerians on investing/making money in the Nigerian stock market. Truth be told they were poorly written and seemed more about motivational and hype than any other thing.

dipoolowoo:
Access Bank Board Meets to Approve 2017 FY Results, Dividend Payment
https://www.businesspost.ng/2017/12/29/access-bank-board-meets-approve-2017-fy-results-dividend-payment/

Nigerian Stocks Gain 0.66% on Last Trading Day of 2017
https://www.businesspost.ng/2017/12/29/nigerian-stocks-gain-0-66-last-trading-day-2017/

Earnings season about to commence.

fxuser:
-ve Div
Negative divergence happens when the price of a security is in an uptrend and a major indicator - such as the moving average convergence divergence (MACD), price rate of change (ROC) or relative strength index (RSI) - heads downward.

+ve Div
Is da opposite of above

Reading:
https://www.investopedia.com/terms/d/divergence.asp

It helps us to sense when d music is over, for now d dj is still playing
lolx

Thanks bro

rationalmind:
@all, I paid into Morgan but what I have is 50 naira less the amount I paid.

Any idea why this is so?

Its just stamp duty charges.

Hi @fxuser please can you explain what you mean when you say +ve divergence and -ve divergence and the general implications for both.

@BullBearMkt and other TA faithfuls can also put in a word.

Thank you.

https://twitter.com/TonyOElumelu/status/936531335220551682

Abeg who knows what is cooking in UBA. Tony Elumelu has been dropping hints for a while.

Expect these 2 new products from International Breweries in 2018

By
Onome Ohwovoriole
-
November 23, 2017

Managing Director, International Breweries Plc, Anabelle Degroot
The Managing Director (MD) of International Breweries Plc Anabelle Degroot yesterday had a press briefing with business editors of which Nairametrics attended. The MD designate discussed a wide variety of plans including the coming on stream of their Shagamu brewery, merger updates and new products

Shagamu Brewery

The Shagamu brewery which cost $250 million is expected to come on stream by the second quarter of 2018. The brewery is one of the company’s biggest in Africa, and was built in order to address a supply constraint issue that had limited sales of the company’s products to areas close to existing plants. The brewery is expected to produce a wide range of products including popular brands Hero and Trophy beer. The facility is AB Inbev’s fourth brewery in Nigeria.

Merger update

The enlarged entity is expected to be listed on the Nigerian Stock Exchange (NSE) by the end of 2017. The company’s current expansion plans will however lead to limited rationalization of jobs post merger. International Breweries will also undertake a name change next year to reflect the interest of the combined entities.

New products

The company also intends to introduce new products next year including Budweiser and Eagle beer.

Local content

About 70% of the company’s raw materials such as cassava, millet and sorghum as well as packaging materials are sourced locally.

Operational update

In response to a question posed by Nairametrics about a spike in bad debts. Degroof stated that International Breweries had taken more prudent provisions in line with standards set by parent company AB Inbev.

Competition

Degroot sounded confident about handling the competition, stating We know our competition.

International Breweries is a subsidiary of AB Inbev the world’s largest brewer. AB Inbev has over 500 beer brands sold in over 150 countries including popular brands Stella Artois and Budweiser, and employs over 200,000 people. The company was listed on the NSE in 1995.

fxuser:
Position Sizing
- attached is d calculation
- standard or advised risk exposure is 1% of account

#HappyTrading

Makes a whole lot of sense. Thanks for sharing.

currentprice:
hmmm, best released result so far,,,,better than DS interm of valuation in my own opinion

So what should be the current price

Cation:
OK thanks, suppose regency stock brokers have been suspended can he still transfer the shares to other active brokers?

Yes he can. Just talk to a broker

Good afternoon,
MSCI retains Nigeria in the frontier index on improved FX liquidity - Late yesterday, Morgan Stanley Capital International (MSCI) announced that Nigeria stocks will remain part of its frontier index and are no longer under review for a possible demotion to a standalone status given improved FX liquidity in the Nigeria market. For context, MSCI had previously announced in June 2016 that it was considering Nigeria for a possible downgrade to stand-alone status, highlighting deteriorating FX liquidity as well as FX restrictions as key concerns. This development led to a massive outflow of capital from the Nigeria equities market - Market capitalization declined by 17.14%. Until now, the decision whether or not to retain Nigeria in its Frontier Market Index has been a recurring theme in the Nigerian equity market space among both local and foreign institutional investors. The Central Bank of Nigeria (CBN) in April, 2017 established the "Investors and Exporters (IE) window" that allowed for FX transactions at market determined rates in a bid to ease the concerns of foreign investors. Consequently, the MSCI decision on whether to retain Nigeria in its Frontier market indexes in June, 2017, was postponed to ascertain the effectiveness of the IE window. Unequivocally, the MSCI's decision to retain Nigeria in the Frontier index reflects the success and effectiveness of the IE window.
Positives hovering on the horizon - Sequel to the implementation of the window, foreign sentiments improved significantly towards Nigerian equities. Despite the uptick in foreign interest, a handful of foreign fund managers waited on the side-lines in anticipation of the final MSCI announcement. We believe this potential demand from these foreign investors as well as tactical local market participants will spur positive sentiments in the short term. With the reassurance that investors can complete their transactions at a market determined exchange rate, we expect to see further influx of capital into the equities market. Currently, foreign portfolio managers tracking the MSCI Frontier Market index allocates weights varying from 3.98% to 4.99% compared to the 7.96% benchmark weight of the MSCI frontier index. This implies that these fund managers are still significantly underweight. Thus, we expect underweighted fund managers to rebalance their portfolios in favour of the Nigeria market. This will consequently improve sentiments and demand for Nigerian equities.

monopolistic:
But why only me ? when everyone r getting there dividend without issue?

Ogas in the house help.

Did you submit your e-dividend form with bankers confirmation of signature letter? If you didn't maybe that is why they need you to sign the transfer form.

monopolistic:
Your e-mandate has been processed

However, we do not have the transfer form you used in the purchase of the shares to process

your request Shareholders Attention is Required at Ajose Adeogun, VI, Lagos/Shareholder is to process transfer form



why do i need a transfer form when i bought on the floor? anyone in this position as am not in lagos for now.

Not sure but I think the transfer form is to capture your signature. When you buy on the floor the registrars don't get to capture your signature unlike when you buy from the primary market.

I may be wrong though. The brokers I. The house will be able to advise better.

My personal lesson from the injuries sustained in the Oando debacle is " Never again will I buy into a promise. I will only buy based on facts and figures.

It was that that illusion of a promise that kept me in the stock despite all the facts saying I should exit. Thank God I received sense December last year and I sold.

No more emotional attachment to any stock.

nio68:
Grossly over valued IMO.. some people are busy sucking the juice out of the coy under the guise of cost of sales and marketing, looks like they are almost done ...

Current Price please what should be the current price of Nigerian Breweries

rebekah2011:
Q3 was indeed terrible for this company.

Terrible is an understatement

Does anybody have contact details (email and phone numbers) for Pace Registrars the registrars for Continental Reinsurance?

The email listed on their e-dividend form is not functional and calls put through to their listed phone numbers do not get picked up.

robobo:
Oga Fxuser and BullbearMkt

Wld appr8 if u favour me with the technicals on UBA and Zenith

thank you

Interested in that of UBA too.

To each his/her own. Like BullBearMkt will say PLAN YOUR TRADE, TRADE YOUR PLAN.

Use whatever investment strategy and selection criteria that works for you as long as it is based on facts/information/data/patterns etc and not on wishful thinking or sentiment.

We all have different investment goals, temperaments, trading psychology, experience, financial knowledge and risk appetites. All these will shape your trading style.

Bottom line is do what works for you.

@paulcr7 feel free but you will get a lot more if you ask questions here. We have such a diverse membership here that there is virtually nothing you will ask pertaining to the Nigerian Stock Exchange here that you won't get some solid responses. Me I still be learner, many ogas dey here.

paulcr7:
Good afternoon all. I have learnt a lot about investing by Robert Kiyosaki and Warren Buffet. But my problem has been applying the things I have learnt in the local Nigeria context. I have been unable to get good historical information (like what you have on MSN money) that will help in making good investment decisions.

I also wish to know the good stock brokers available here and if registration and investment can be done solely online. Thanks

There are a lot of brokers now who offer online trading services and yes you can open accounts with them online. Some of them include but not limited to:

Morgan Capital
ARM Securities
Meristem Securities
Greenwich

As for the historical data it depends on what you are looking for and how far back in time. You can get historical data on the websites of some stockbrokers. The Nigerian Stock Exchange also has historical daily price list for sale. You can also find past company results of quoted companies, just check the Nigerian Stock Exchange official website.

Dangote to sell N200b shares in block divestment

Posted By: Taofik Salako On: August 16, 2017 In: Business
0
Dangote Industries Limited (DIL), the majority core investor in Dangote Cement Plc, plans to sell shares valued at more than N200 billion in a partial divestment that will widen the float for Dangote Cement.

DIL is owned by Africa’s richest man, Alhaji Aliko Dangote, with over 90 per cent majority equity in Dangote Cement, Nigeria’s most capitalised company.

A document obtained by The Nation showed that Dangote Cement has secured regulatory approval for block divestment of 852.03 million ordinary shares of 50 kobo each. Dangote Cement opened yesterday at N235 per share at the Nigerian Stock Exchange (NSE). The block divestment represents 5.0 per cent of the issued share capital of Dangote Cement.

Dangote Cement’s issued share capital consists of 17.041 billion ordinary shares, which were valued at N4.004 trillion at the opening of the stock market yesterday. Dangote Cement accounts for more than 30 per cent of the total market capitalisation of quoted equities.



A source in the know said the DIL plans to undertake the block sale in tranches and the recent sale of 416 million ordinary shares was the first tranche of the N200 billion divestment. About 2.44 per cent equity stake in Dangote Cement was swapped under pre-arranged transactions earlier this month. A report on the transactions indicated that six deals were struck for the transfer of 416 million ordinary shares of 50 kobo each at a below-the-market price of N210.

The deals, according to the report, were done through the off-market, negotiated cross deals window of the Exchange and as such was not subjected to the dynamics of price discovery for the particular period. Off-market trade implied that the deal was sealed outside the floor of the NSE.

The negotiated cross deal platform of the Exchange is a special-purpose trading platform that is meant for voluminous transaction. By the cross deal, it implies that the buyer and the seller had been prearranged and the transfer at the stock market was a mere perfection of the agreement between the two. The negotiated cross deal allows the parties to the deal to close the deal at reduced cost.

While the details of the new major investor are still unknown, Meristem Stockbrokers Ltd sold the shares to Stanbic IBTC Stockbrokers Ltd, both stockbroking firms obviously acting on behalf of third party investors.

Stanbic IBTC Stockbrokers is a subsidiary of Stanbic IBTC Holdings, a member of South Africa’s Standard Bank Group. Stanbic IBTC is known to act on behalf of foreign portfolio investors.

South African government had in June 2013 bought into Dangote Cement. The South Africa’s government, through its wholly owned investment company, Public Investment Corporation of South Africa (PIC), had acquired 1.5 per cent equity stake in the Nigerian cement group to emerge the second largest equity investor.

A reliable source said the block divestment might not be unconnected with a regulatory requirement to free more shares of the cement company for ownership and trading by minority investors.

All companies listed on the NSE are required to have a certain minimum percentage of their shares in the hand of the general investing public, otherwise known as free float or public float.

Free float refers to the number of shares of a quoted company held by ordinary shareholders other than those directly or indirectly held by its parent, subsidiary or associate companies or any subsidiaries or associates of its parent company; its directors who are holding office as directors of the entity and their close family members and any single individual or institutional shareholder holding a statutorily significant stake, which is 5.0 per cent and above in Nigeria.

Thus, free float’s shares do not include shares held directly or indirectly by any officer, director, controlling shareholder or other concentrated, affiliated or family holdings.

Stock markets maintain minimum public float to prevent undue concentration of securities in the hands of the core investors and related interests, a situation that can make the stock to be susceptible to price manipulation. Besides, it provides the general investing public with opportunity to reasonably partake in the wealth creation by private enterprises.

Companies listed on the Exchange are required to maintain a minimum free float for the set standards under which they are listed in order to ensure that there is an orderly and liquid market in their securities. The free float requirement for companies on the premium and main boards is 20 per cent while companies on the third tier board, otherwise known as Alternative Securities Market (ASEM) are required to have 15 per cent free float. Dangote Cement is listed on the premium board of the Exchange. Meanwhile, the NSE allows a minimum free float valued at N40 billion for large-cap companies on the premium board.

Failure by any company under free float deficiency to restructure its share capital at the expiration of the deadline usually issued by the Exchange or secure extension of the deadline may lead to delisting of its shares from the NSE.


http://thenationonlineng.net/dangote-sell-n200b-shares-block-divestment/

OakPearl:
I realise most of the clash of personalities here is simply a result of differences in investment principles.
A short term profit taker (trader) arguing endlessly with a long termer (investor).

If only everyone understands and respects each other's principles there would not be most of the e-fights on here.

Couldn't have said it better. To each his/her own.

Plan your trade and trade your plan. And like what somebody said earlier... allow others to trade theirs.

There are no secrets to anticipating price movement, but there are signals that you can find and use. It is your abil- ity to interpret those signals effectively that will ultimately define the degree of success you experi- ence as a technician and trader. Too many investors are overly focused on charting in isolation and, as a consequence, they overlook the value of other sources of information, including aspects of funda- mental analysis and economic or market news. To the degree that other non-technical analysis is included in a comprehensive program, your ability to interpret data will improve. No one system is going to work in every case.


Source: Support and Resistance Simplified

While Fundamental Analysis answers the question why there is movement in the market, Technical Analysis answers the question when through the use of chart formations and S&R analysis.

Source: Support and Resistance Simplified

sellydion:
How to use a Margin of Safety when Investing

A fundamental part of value investing is to ensure that there is a margin of safety with your investments.

Hi Sellydion please what is the name of this book you quoted from and do you have the toolkit mentionef ?

Guinness Nigeria targets volume market to revive profits
By Chijioke Ohuocha
LAGOS, Aug 2 (Reuters) - Brewer Guinness Nigeria is shifting its focus from premium brands to the "lower end" volume market in order to boost sales and revive profits, it said in its rights issue share offer prospectus.

The Nigerian subsidiary of Diageo is looking to raise 39.7 billion naira ($109 mln) to help reduce its now expensive dollar-denominated debt and to support its volume growth strategy in the face of a recession in Africa's biggest economy.

Diageo, which owns 54 percent of the company, is supporting the cash call by converting into equity part of a dollar-denominated loan which it granted Guinness Nigeria at the peak of Nigeria's currency crisis.

The company said shareholders can buy five new shares for every 11 held at 58 naira a share, a 17 percent discount on Wednesday's market price of 69.87 naira.

"Given the economic recession in Nigeria ... the company plans to deepen its participation in the value beer segment and increase beer product offerings in the lower end of the market," Guinness Nigeria said in the share sale prospectus.

Africa's second largest beer market after South Africa is dominated by multinational brewers, with Guinness saying the market was growing at 7 percent a year in 2015 when 22 million hectolitres of beer was consumed.

But it said market growth has slowed over the last two years as a result of the weak economy and declining consumer income with growth now forecast to be running at 5.6 percent a year.

Guinnness, which hitherto has concentrated on the premium beer and malt sector of the market, reported in April that it made a loss of 2.46 billion naira in the nine months to end-March.

As a result it now wants to increase local sourcing of raw materials, boost its distribution network and has made significant investments to increase its brewing capacity.

It will also explore exports to Britain and South Africa.

"In order to reverse the recent losses by Guinness Nigeria ... the company has reduced prices to grow volumes and ... broadened its product portfolio to meet shifting consumer preferences," it said in the prospectus.

Guinness Nigeria's share price is down nearly 20 percent this year after falling 31 percent last year. ($1 = 364.50 naira) (Editing by Greg Mahlich)