@Yodiyokun

Great response, thank you!

No need for anymore responses to that dude.

SGN:

Tmoni,

wanaj0 option2 looks good, but I think you need to take another look at it.

1. Wema constitutes 9% of your portfolio, so you are not going burst by any means.

2. The rush to sell does not necessarily reflect the scale of the problem. People who are buying will wait until the price becomes really juicy, and that's why the net offer will keep piling up and the price keep dropping 5% as long as more and more people are selling. for some people it makes perfect sense to sell now, may be they got in at a good price.

3. Take a step back, do you think Wema can recover from this in the short term, say six months? And do you think the price can rise above what it is today eventually?

4. Also remember, they are already six months into the new account year, may be the worst is over, and the next few weeks we will have some good news from Wema which will douse the tension. Also remember, the people at Wema will know the full implication of this result and they are not going to sit down and do nothing.

So in summary, I think you can get it sold eventually, but at a big cut say 25-30%, but if next three months can reverse the trend, will you take another route? NSE,

@SGN
Nice Post.
I have some exposure to Wema. I can sell tomorrow at a profit otherwise it is downhill from there. From what I see it will be impossible to sell now anyway so by the time one sells, meaning the price is attractive enough for others to buy, the price will be on its way back up. So selling to reenter at that lower price is a win win for the Brokers. I will hold until all the details and the plans for the bank are out. If they are promising I will pick up a bit more to lower my average cost otherwise will be informed enough to sell. My profile of being a long term investor is being tested. No shaking.

Panadol:

@Mr. Cee.

Very good!

@Panadol,

Do you use the Nominee Account? I am trying to find out more about it, sure sounds like a good deal for NRN's.

Etin:

From UK standard that's too long any ideas what the average Nigeria time scales are? how much longer do you expect to wait?

Yup, I agree. Don't know how much longer, still keeping my fingers crossed.

Mr. Cee:

@NBA,

If you wire money to Diamond bank how is the bank exchange convertion? I noticed that the difference with the parallel market is more than 5 naira please what is your experience? For the diamond reach account how would I start?

@ Mr Cee,

They have always used the bank rate which is close to the parallel market. I have never bothered about the difference.

@ Etin

Thanks for the update. I think we are now in the same phase of the account opening. I got an email stating the same on September 18 - ATM card, Cheque Book, and login details will be sent by courier. I am still waiting.

Panadol:

@NBA

That is about $100 via DHL to mail the original application form from the States. That is not acceptable. I just scan the form and email it to them. I'm sure you can do the same.

@Panadol

Thanks for the heads-up. I agree with you, it doesn't make sense. I will push back again and see what they say, especially as they may be allowing some customers to do so.

By the way, the post office will send Priority Mail to Naija for $11! This is what I have always used, it is a 5 to 10 business days service but they have always received it in a week. That is why I mail the forms early to make sure it gets there on time.

netotse:

p.s. no one's answered my question about whether u can open an acct at cashcraft with 100k

@netotse
Yes, Cashcraft will open an account for you for N100k. See their website for more.

http://cashcraft.com/register.asp

@ Panadol

Really? Vetiva has always insisted I mail a copy for PO/IPO's. Below are parts of a conversation I had with them regarding this:

NBA: Can I scan and email the PO application form or do I have to mail the original form to you?
Vetiva: The original has to be sent to us.
NBA:   Will that be the case for all IPO's/PO's?
Vetiva: The same applies for all PO’s and IPO’s.

·         Vetiva Nominee Account – is an account that we set up for Non-Resident investors in the Nigerian Capital Market. The Nominee Account essentially empowers us to act and sign on behalf of clients in matters regarding the sale and purchase of equities and any other administrative paperwork on your account e.g. verification of Bonus share certificates, administration of dividend warrants and applications for Public Offers.

X-2-X:

@all Thanks for you response. Well Appreciated.

I will explore your suggestions. The reason why I wanted UBA is because VETIVA has an account with them. If I use Diamond, I don't know any reliable Stockbroker who banks with them, so it will (or might) be another hassle transfering from Diamond to my stockbroker account in another bank. Or does anyone know a cool stockbroker taht banks with diamond?

Another quick question: Anyone in the diaspora who has participated in the ongoing FCMB offer should please guide us on the way and manner to go about it.

Cheers!

@ X-2-X

Vetiva uses Diamond Bank, not UBA. Check with them again. I recently opened an account with Diamond Bank and that was one of my reasons too.

For FCMB, I will mail the completed application form to Vetiva (they do not accept scans or faxes for PO/IPOs) and then wire the money to them. What I have done recently with some offers is to mail the completed form as soon as I get it without the number of units, if I wasn't sure yet. This way I avoid paying expensive courier charges each time. When I am sure of how much I want, I email instructions before the offer closes.

tonyjon:

Hi NBA,

You must be a professional when it comes to stock business. Thank you very much for all your good advise. I have really gained a lot from you and other contributors

Now, I have some questions for you.
1. I recently opened an account with a stockbroking firm and they assisted me to open a CSCS ACCOUNT and I also bought some shares through them (IPO). I am still expecting my shares to be credited to my CSCS ACCOUNT.

This is the question: Is it possible for me to change to another stock broker now?. I want to change because I want a stock broker with good track record.

2. If you have all these stock broking firms on your list, 1. ZENITH SECURITIES, 2. ESL(ECOBANK) SECURITIES, 3. UBA SECURITIES, 4. VETIVA CAPITAL , 5. LEAD CAPITAL AND 6. FUTURE VIEW. Which one will you choose or select, I mean the one you will use as your broker?.

Waiting to hear from you.

tonyjon.

Thanks @TonyJon.

I actually only got interested in all this stuff this year and I am still learning a lot from a lot of the threads here on Nairaland and StockMarketNigeria.com.

I agree with Panadol, I will recommend Vetiva  because I use them and have been satisfied with their service to date. Others with the mentioned brokers please share your experiences.

Zenith requires N5 mil to open an account so that may rule out a lot of people. Vetiva, FutureView, and Lead Capital require N1 mil, while UBA is N250 K but no online access yet.

I will not recommend you try to change brokers now since the PO shares are not in your account, better to keep things simple. I have heard it is difficult to change brokers so I suggest you open a new account with a new broker of your choice and start to fund only the new account. When your PO shares have been credited to your current CSCS account you may then try to transfer to your new broker. The old broker has to sign a release form and some will stall indefinitely to get you to stay. If that happens, leave the account open till you sell those shares and get your money back.

I currently have the same situation with CashCraft though I did not attempt to transfer, I just stopped funding the account until I sell the units with them. Luckily for Cashcraft though, I recently bought the Union Diagnostics Private Placement through them so I guess I am not dumping them anytime soon!

Hope this helps.

Hi @X-2-X

For a notary public, you can go to any branch of your bank in the US, there is usually one there. Don't know if it is the same in the UK, you should call to ask. All my communication with the NRN staff has been via email.

Mr. Cee:

@NBA,

Did you find out from vetiva about the Nominee account?

No response on that from them yet.

@ Etin,

Thanks that was helpful, I went through similar steps. I will try again next week.

@Etin,

Have you heard from Diamond bank? I am still waiting for my account documents. My last 2 emails were ignored.

@All

If anyone is using the Diamond Reach account please share your experience with us.

Thanks!

They accepted scanned copies for the account application though for POs/IPOs they need you to mail the hard copy.

Mr Cee,

I compared Vetiva to UBA but chose Vetiva because they had a very good online precence while UBA Stockbroking had none. It was important for me. Others were Vetiva seemed to be seasoned in this area than UBA Stockbroking (Not sure how long UBA Stockbroking have been in business). On the flip side, UBA Stockbroking required N250K to open an account versus N1 mil for Vetiva, and they are backed by a major bank.

I did look at Afrinvest and it was on my shortlist. They seem like a solid broker and I think it is N500K to open an account. I read on the Stock Market Tips for Nigerians thread that they are good but not currently providing online access for new customers until they complete their system upgrade. Temporary situation though.

I chose Vetiva and I have been very satisfied with them. I do not have a Call Nominee account, I wasn't aware of it but will ask.

I was referred myself but do not know if it is a requirement. Did you contact them?

Proshare News and Analysis
Afribank engages the Diaspora on funds transfer
Posted Wednesday, October 10, 2007

Mr. Chinedu Onyia, Executive Director, Afribank Nigeria Plc, has invited Nigerians, abroad, to get set for MoneyGram services at Afribank which would be embedded with multiple benefits.

The Executive Director, while addressing Nigerians in the United States of America last weekend, stated that MoneyGram at Afribank would be a unique experience for both the remitters and recipients as the Bank has introduced innovations to MoneyGram money transfer operations in Nigeria.

Mr. Onyia, who was in the US on a marketing trip abroad, said that Afribank has put up structures that would enable it offer investment options for the senders and receivers of MoneyGram funds transfer at Afribank. According to him “Afribank is ready to carry out instructions from recipients to purchase shares, invest in real estates, invest in high yield instruments, Afribank target Savings Account, and also pay third parties.

He added that recipients of MoneyGram funds transfer in any of the Afribank’s 250 branches are assured of the most convenient and quick service. “The Bank has set a minimum level of efficiency and turn around time obtainable in all its branches for MoneyGram services. MoneyGram desks would be created in all the branches with a backup facility. A 24-hour customer care line will also be established to ensure that enquiries, monitoring of funds and comments on the Afribank MoneyGram services are attended to promptly while Saturday banking services of the bank will complement the flexibility of MoneyGram in Afribank”, he added.

Recipients of funds through Afribank will also enjoy complementary banking services such as Afribank mobile banking service, Afribank e-courier, e-passport, Afribank private banking and regular availability of forex for recipients among others.

He assured Nigerians that the Bank would offer excellent MoneyGram services through convenience, prompt response, accessibility and solid platform that would make the process of receiving money sent from Afribank a delightful experience.

“We have provided sound structures and personnel that will drive MoneyGram international money transfer market efficiently and excellently. The Bank has installed robust information technology platform, engaged skilled and experienced staff, re-engineered its internal operations and branches for optimum service delivery 24/7”, Mr. Onyia stressed.

BIGBOYLARY:

@NBA,
I call Vetiva on Friday 4617521 and it was always busy i beg you get another fast line to reach them.

@BIGBOYLARY

Try these - 2700657-8

Funny, I have never called them as they have always been responsive to emails.

About sending money from Nigeria abroad, below is a conversation I had a while back with my relationship manager. I have not had to do this yet though.

Question to UBA: What options do I have to remit money back to myself in the US?

Response: To effect transfers to your US address, kindly give us a duly signed instruction to transfer to your account in US stating your bank’s SWIFT details. It typically takes two days to reflect in beneficiary account.

Question to UBA: That's good, how much does this transfer cost?

Response: Its 0.5% of amount transferred plus VAT (5%) and a telex charge of USD 25.

Etin:

Hi NBA,

I have not been able to access Diamond Banks website, are you having the same situation or is it just me?

Hi Etin,
I am able to connect, try again as it may have been unavailable when you tried.

BIGBOYLARY:

@ ALL

Kindly let me know if u are a member of VETIVA CAPITAL MANAGENT LIMITED members in the house?

I am a client of Vetiva. ?

Please does anyone know of any account options with any of the banks that for Nigerians abroad?

@done4real

UBA, Diamond Bank, Oceanic, Skye, Bank PBH, and Fidelity all have Diaspora offerings. We have had some discussions on the thread Nigerian Banks, Stockbrokers, and Services for Nigerians Abroad
https://www.nairaland.com/nigeria/topic-79353.0.html

Thanks CBANJ.

I meant another stockbroker with a UBA account. I considered the UBA Stockbroking account but they did not have an online facility at the time and that was a requirement for me. I am guessing since you are still going through your relationship manager they do not have it yet, hope the arrangement is working for you though.

Proshare News and Analysis
Court halts new capital base for insurance firms
Posted Friday, October 5, 2007

A federal High Court in Abuja yesterday ordered the Federal Government to halt on-going moves to re-capitalise insurance industry.

The order by Justice Anwuri Chikere also bars the National Insurance Commission of Nigeria (NAICOM) from "unilaterally" upgrading the capital base of insurance firms from the N350 million to N5 billion.

Business man and core investor in NICON Insurance Plc and Nigerian - Re, Mr. Jimoh Ibrahim had approached the court to stop the exercise on behalf of the two companies and two others namely: Alliance and General Insurance Plc, that he has interest in. He argued before the court that the Federal Government lacked the powers to undertake the exercise because the statues on the operations of insurance firms had not been reviewed by the National Assembly.

More on the Proshare website.
---------------------------------------

Folks,

What's up with this news?

You are welcome Etin.

I just looked through my savings account statements and the only charges to date are N100 per month which is labeled as "LOGIN CHG". I have transferred large sums of money from my savings to my stockbroker as well as to my sister’s UBA savings in the last few months and haven't incurred additional charges neither has she.

Here is a quote from my relationship officer:
"Charges do not apply when you make account to account transfer via u-direct, however a charge of N200 will apply if it is to a named beneficiary. The only charges that apply with cheques are COT charges just like when you make normal withdrawal."

The other convenience is I have UBA Remit so I can do a transfer of up to $4999 for $25, pulled directly from my checking/current account to my UBA savings account at the official exchange rate (much better than western unions). I then transfer the amount to my sister’s account or stockbroker broker, all this online. It usually says the remit transfer will take up to 4 business days but my experience has been 2 business days. Very convenient. Below is the UBA Remit fee schedule.
Fee Schedule
Transaction Between: Transaction Fee
USD 0 and USD 500                 Flat fee of USD 10.00
USD 501 and USD 1000 Flat fee of USD 12.00
USD 1001 and USD 1500 Flat fee of USD 15.00
USD 1501 and USD 2000 Flat fee of USD 20.00
USD 2001 and USD 4999 Flat fee of USD 25.00
USD 5000 and USD 6000 Flat fee of USD 30.00
USD 6001 and USD 7500 Flat fee of USD 35.00

https://www.ubaremit.com/cust_main.php

Hi Etin,

The application process for Diamond bank was smooth. They have emailed the account numbers but I am still waiting for the internet access ID and Password, cheque book, and Debit card which they say will be sent by courier.

The UBA charges are something else but I have limited my use to the Savings account and so far it seems reasonable. You can transfer to other UBA accounts online from your Savings. I haven't seen the stated charges for N5 on every N1000 for balances above N50,000 in the Savings and I moved over 1 mil in September, will let you all know if it occurs. There was a thread here on Nairaland about UBA charges and my goodness people were venting!

@wanaj0

Great price for Dangote Sugar at 30.62, how did you pull that one off? Did you place a price limit? I got some at 31.68.

What do you guys think about IBTC, suspension just got lifted and it started its climb.

.

Proshare News and Analysis
Firms can only absorb 25% on oversubscription on POs - SEC
Posted Friday, September 28, 2007

A new guideline on the oversubscribed portion of public offerings and rights issues was yesterday released by the Securities and Exchange Commission (SEC).

Under the new arrangement, only 25 per cent of oversubscribed portion of public offerings and/or right issues could be absorbed by the issuers - the public companies.

The new rule according to the Head, Media Relations of SEC, Lanre Oloyi, is in line with certain provisions of the Investments and Securities Act (ISA).

He explained that the rule was relaxed during the banking consolidation exercise, but had to be revised to ensure compliance with it by all the issuing companies.

"Henceforth, only 25 per cent of oversubscribed portion of any offer could be absorbed by issues. This is in line with our existing rules Section 64 subsection 2 of SEC rules and regulation made pursuance to the Investment and Securities Act (ISA), which SEC has the mandate to implement.

"A situation whereby excess monies are absorbed without the need for it will no longer be tolerated.

"Only 25 per cent of oversubscribed portion would be allowed by the commission. It is not automate because the coy will have to come with supplementary offer, which has to be approved by the commission.

SEC expects you only come to the market to raise the actual fund that you need. Excess monies may not be really needed.

We are going to strictly enforce our rules on absorption of oversubscribed portion of public offers. In other words, any excess monies outside the 25 per cent allowed and approved by the commission must be returned to investors.

"Hitherto SEC had relaxed its rules on the oversubscribed portion of public offers to give support to the banking consolidation exercise. Now that the exercise is over, we must go back to our rules and start enforcing it."

The enforcement according to the commission takes immediate effect and might affect all the on-going public offers and the ones that have just been concluded and yet to be cleared by the commission." – Guardian