₦airaland Forum

emmanuelewumi:
You pay at least the interest every quarter, United Capital is semi annual

Okay, i think i prefer the ucap own

emmanuelewumi:

I am surprised that you have been trading for years and you don't know how margin loans operate.

You can trade the stocks, but you can't pull money out, you can use the money made from trading to buy more shares, you can only pull money out of you have a robust margin cover.

That is what GTB can give based on your monthly cash flow, and you know that the loan was not secured.

If you pay every month, my 27% loan will be around 21%.

You make it sound like it's such a a common offering in this market, I think it isn't. I was at MCSE's office in 2021 to discuss this specifically, the response I got was that as much as they were willing to do it, the SEC had suspended it.

So there's nothing wrong if I don't understand the exact terms of the facility you have with your bankers. Since I haven't signed any such contracts, I've only been a trader. The two aren't pari passu.

lexy2lexy:
Do you mind disclosing how much you bought on the floor?

Less than a thousand

awesomeJ:
You make it sound like it's such a a common offering in this market, I think it isn't. I was at MCSE's office in 2021 to discuss this specifically, the response I got was that as much as they were willing to do it, the SEC had suspended it.

So there's nothing wrong if I don't understand the exact terms of the facility you have with your bankers. Since I haven't signed any such contracts, I've only been a trader. The two aren't pari passu.

Reason why you should shop around

Cardinal Stone, Meristem, United Capital, FSDH are some of the Stockbrokers that offer margin loans at reasonable rate.

Investment One is as high as 36%.

I also make sure my total dividends does not exceed 2.5 times my expected dividend for the year.

If I am expecting a dividend of N20 million in 2026 my maximum margin loans will be maximum of N50 million

SonofElElyonRet:
Wow. 27% per annum interest. You na strong man o.
Think current Ellah shareholders would've preferred discounted price via rights issue which Chuka Mordi refused to accede to.. you shareholders at Presco got rights issue

Perhaps the seller is the one buying. Or it’s a swap between a buyer and seller. Or a mix. Have you thought of that. All good for those of us in front row seats. In fact excellent. Time will tell.

emmaodet:
Okay, i think i prefer the ucap own

FSDH is cheaper at 27%, while United Capital is 27.5%.

FSDH does not charge 1% rollover fees, whereas United Capital charges 1% rollover fees for the outstanding loan balance twice in a year

awesomeJ:
This is brilliant.
The only catch is the 1% brokerage fees.
Maybe if I trade up to N500m monthly I could negotiate 0.5% with them.

Cos otherwise at 1% , I would be paying extra N2.5m in trading fees monthly, N30m yearly, whereas the loan I take itself would be less than N30m.

Someone here mentioned the possibility of getting concessions from one of my brokers, I tried, and I got it. Maybe it'll be possible with UCAP too.

Why just 30% loan when the trading turnover is N500 million?

Getting the loan will also depend on the stocks in your portfolio and the stocks to buy.

United Capital and Meristem have stocks you can buy. With them you can get N100 million loan from a N100 million portfolio.

FSDH does not care about what you buy with your loan, but with them your N100 million portfolio of acceptable stocks can only get you a loan of N40 million

emmanuelewumi:
Reason why you should shop around

Yes. Thanks for the help sir.
I'll make more calls to see where I can get a balance: Margin loan offer with reasonable brokerage fees.

I spoke with someone from UCEE MFB this morning, she gave the impression that if I had N30m of my own money and took a N10m facility from them, I would only be able to trade on N30m rather than N40m, I was like what then is the essence of the loan? she said she would ask and get back 😁.

emmanuelewumi:
Why just 30% loan when the trading turnover is N500 million?

Why just N30m you mean?

I don't need N500m portfolio To trade N500m monthly.

I can do over 7x my portfolio size monthly.

So with a N70m or slightly less I'll do N500m (N250m, N250m sell)

If the market isn't sluggish I could even do it with a N50m portfolio.

awesomeJ:
Yes. Thanks for the help sir.
I'll make more calls to see where I can get a balance: Margin loan offer with reasonable brokerage fees.

I spoke with someone from UCEE MFB this morning, she gave the impression that if I had N30m of my own money and took a N10m facility from them, I would only be able to trade on N30m rather than N40m, I was like what then is the essence of the loan? she said she would ask and get back 😁.

You did not understand her


If you have N30 million worth of acceptable stocks Ucee Microfinance Bank a subsidiary of United Capital will give a loan of N10 million.

You can only trade with N10 million, a lien will be placed on your N30 million portfolio.

It is not a margin loan but a retail asset backed loan

Agbalowomeri:
Me edit ke?

he wrote dividend of N90 in 2026 but you changed it to N90m

emmaodet:
@ bolded...why are you scared of 27%?
In real sense, you are not paying back 27% because your collateral which is your invested capital is still giving you an average interest of 15-16% per annum. It is not as if your invested capital is not working for you.
So minus 16 from 27 leaves you with 11% loan interest per year. I don't know where you can get a cheaper loan in Nigeria than this except Cooperative society which i am in but the loan and repayment is very rigid - paying back monthly, need a guarantor among cooperators etc
If you reduce the loan you are collecting to 50% of your capital with them, you are literarily getting a loan with zero interest.

Ok.. I'll pass though

unite4real:
he wrote dividend of N90 in 2026 but you changed it to N90m

I only helped him to add the unit that he forgot. Abi you think that he meant ninety naira Lol?

@Awesomej

Why are you looking for unsecured loan at this time stocks are almost at the climax?

Anyway if you bank with Moniepoint,it's done at 34% per anum.With your average monthly turnover,you get the funds quickly after verifications.

I will advice you stay clear from loans.
Afterall you have made it clear to us you trade with above N1B.
What's the essence of loan at this level?

To ask of unsecured loan means you don't have a tangible collateral to sustain your loan.

I would have helped if I know you in person for this loan at 20-25% (personal loan)

Good morning.
Market is looking up.
You have today and tomorrow to rebalance your portfolio.

Market will greet T+2 on Friday.Ofcourse we are looking forward for a green day on Friday.
This will usher in the Santa bull from next week

Buy this week at support
Become a winner next week.

Run away from loan ooooo.
Manage what you have to enjoy this Xmas without HBP

Market to welcome T+2 as Nov 28 approaches.

ASI likely to gain +5% to +12% between late Nov and December.

T+2 will

1. Improve liquidity more than expected

2. Foreign portfolio investors will return because settlement now aligns with global standards

3. Brokers will increase trading volumes

4. Year-end optimism (“Santa rally”) kicks in

5. No major negative policy or FX shock as the year ends.


What you will see:

Banking stocks jump first (Zenith, GTCO, UBA, Access)

Insurance stocks pick up volume

Big-cap industrials (BUA, Dangote, MTN) benefit from foreign inflow

Penny stocks will become liquid and rally due to sentiments


👉 Finally Japaulgold and Royalex will bounce back.

Happy weekend to you all.
We will be back in the market from next week for our Xmas Ram.

Locotrader:
@Awesomej

Why are you looking for unsecured loan at this time stocks are almost at the climax?

Anyway if you bank with Moniepoint,it's done at 34% per anum.With your average monthly turnover,you get the funds quickly after verifications.

I will advice you stay clear from loans.
Afterall you have made it clear to us you trade with above N1B.
What's the essence of loan at this level?

To ask of unsecured loan means you don't have a tangible collateral to sustain your loan.

Turnover is different from his trading capital.


You can have a monthly turnover of N1 billion and the trading capital is less than N200 million.


Leverage amplifies the investment outcome, it might be positive or negative.

Dangote sef still uses leverage, so it has nothing to do with your turnover or capital.

The most important thing is to be careful and disciplined when using leverage

https://www.youtube.com/watch?v=93d4IlOypNA

A few stocks I'd be watching closely in today's trading session.

Pidgin English version below

https://open.spotify.com/episode/1Ij1sl9vohn7hhF3CNSlAZ

BabsO2:
Perhaps the seller is the one buying. Or it’s a swap between a buyer and seller. Or a mix. Have you thought of that. All good for those of us in front row seats. In fact excellent. Time will tell.

My bet is Ellah public offer will be fully subscribed !!! Good for those of us in front row seats
The one I cannot bet on yet, is when they'll start churning good profits and dividends to shareholders.

Locotrader:
Market to welcome T+2 as Nov 28 approaches.

ASI likely to gain +5% to +12% between late Nov and December.

T+2 will

1. Improve liquidity more than expected

2. Foreign portfolio investors will return because settlement now aligns with global standards

3. Brokers will increase trading volumes

4. Year-end optimism[b] (“Santa rally”) kicks in

5. No major negative policy or FX shock as the year ends.


What you will see:

Banking stocks jump first (Zenith, GTCO, UBA, Access)

Insurance stocks pick up volume

Big-cap industrials (BUA, Dangote, MTN) benefit from foreign inflow

Penny stocks will become liquid and rally due to sentiments


👉 Finally Japaulgold and Royalex will bounce back.

Happy weekend to you all.
We will be back in the market from next week for our Xmas Ram.

The CGT would destroy all the highlighted items if it is not explicitly scrapped by Jan1. Nothing good would happen in the NGX until the public is satisfied with the CGT issue.

NIGERIA STOCK MARKET UPDATE - 26 NOV 2025
- Extract Target Technical Analysis Daily Messages

MARKET VIEW: NEUTRAL TO SLIGHTLY BULLISH

The market is sending mixed signals. The overall picture is cautious, but strong opportunities exist in specific sectors. We are in a two-speed market: some sectors are weakening while others show significant strength.

LIKELY MARKET DIRECTION:
The short-term outlook is Neutral to Slightly Bullish, favoring sector-specific plays. The overall market, is likely to remain range-bound.

KEY DRIVERS:

· The move to T+2 settlement this week should improve trading efficiency and could boost sentiment.
· High interest rates continue to pull money away from stocks into fixed income.
· Naira volatility and regulatory uncertainty create headwinds.

SECTOR SCORECARD (0-100):

STRONG PERFORMERS (Focus Here):
XXXXX(Oil/Gas): Score 100 - Strong uptrend supported by firm crude prices.
XXXXX(Consumer Goods): Score 100 - Defensive play with steady demand.
XXXXX(Growth): Score 100 - Best momentum for short-term trades.
XXXXX(Small Companies): Score 100 - Showing great potential.

CAUTION AREAS (Avoid/Reduce):
XXXXX(Insurance): Score 0 - Worst performing sector.
XXXXX(Banking): Score 25 - Struggling with Naira volatility.
Overall Market:Score 25 - In risky zone, trading sideways.

TODAY'S OBSERVATION:
The market gained slightly despite lower trading volume,indicating lack of broad conviction. Money is rotating from large caps into smaller, technically attractive stocks. This is a sector-specific market - stock selection is crucial.

TRADING PLAN:

· Concentrate investments in sectors scoring above 75
· Avoid or reduce exposure to sectors scoring below 25
· Monitor banking and insurance for signs of recovery before re-entering

KEY RISKS:

· Further Naira depreciation
· Sustained high interest rates
· Global economic pressures
· Choppy trading conditions due to reduced liquidity

STOCK PICKS
Top Stocks
XXXXXXXX XXXXXX XXXXXXXX XXXXXX

Speculative Picks
XXXXXXXX XXXXXX XXXXXXXX XXXXXX

Full Bid Candidates
XXXXXXXX XXXXXX XXXXXXXX EUNISEL

RESEARCH REPORTS/FORUM PICKS
XXXXXXXX XXXXXX XXXXXXXX ACCESS
XXXXXXXX XXXXXX XXXXXXXX XXXXXX

CORPORATE NEWS:
JAIZ reported strong profit growth of 25%
CHAMPION announced a rights issue to raise capital
UACN directors purchased shares,showing confidence

GLOBAL CONTEXT:
Brent crude recovery supporting oil stocks.Naira depreciation helping exporters. T-bill yields still attractive versus equities for some investors.

Remember: This is a stock picker's market. Focus on the strong sectors and avoid the weak ones until conditions improve.

Disclaimer: As Individuals/Entities, We are responsible for our trades.

emmanuelewumi:
Turnover is different from his trading capital.


You can have a monthly turnover of N1 billion and the trading capital is less than N200 million.


Leverage amplifies the investment outcome, it might be positive or negative.

Dangote sef still uses leverage, so it has nothing to do with your turnover or capital.

The most important thing is to be careful and disciplined when using leverage

Okay,I forgot he is a trader.
I still mentain that loan is dangerous.
I know how many people I seized their landed property because of inability to repay.

Loan is only good for business people not for stocks.I am a business man.I depend much on my importation than stocks.

If you must take loan for stocks,take it when stocks are on 52wks low or forget it.

Pa Emma,you have been in the game and it's working for you.
You don't expect it to work for others as well.

Go and ask Dangote what he is going through in leveraging

mikeapollo:
The CGT would destroy all the highlighted items if it is not explicitly scrapped by Jan1. Nothing good would happen in the NGX until the public is satisfied with the CGT issue.

Don't allow CGT to deprive you from making money.
There will be aggressive bull before Jan.
Visit the volumes done by GTb and other banking stocks in the last 3 months.

I am sure CGT is under control.
Insiders are taking advantage of low price stocks

emmanuelewumi:
Turnover is different from his trading capital.


You can have a monthly turnover of N1 billion and the trading capital is less than N200 million.


Leverage amplifies the investment outcome, it might be positive or negative.

Dangote sef still uses leverage, so it has nothing to do with your turnover or capital.

The most important thing is to be careful and disciplined when using leverage

Lol, so now trading is acceptable in your book? We had long arguments on this subject, and you insisted that fundamental investing was the only way. I’m glad to see your views have evolved.

Ding !!!!

Ding

Everyone's eye on the market
'Ding'

Locotrader:
Okay,I forgot he is a trader.
I still mentain that loan is dangerous.
I know how many people I seized their landed property because of inability to repay.

Loan is only good for business people not for stocks.I am a business man.I depend much on my importation than stocks.

If you must take loan for stocks,take it when stocks are on 52wks low or forget it.

Pa Emma,you have been in the game and it's working for you.
You don't expect it to work for others as well.

Go and ask Dangote what he is going through in leveraging

It is dangerous when you hope to use capital appreciation to service the loan


Not dangerous if you are using your cash flow to service the loan.



My total loans is just 16% of my portfolio value and about twice the expected dividend for the year .


Yet to see any bank that has called out Dangote for debts.

Japaulgold technicals is bearish.
Support is 2.03-2.08
Resistance 2.15-2.25.
If it eventually close on or above 2.25 on strong demand,next support will be 2.50-2.75.

Trade your plan and plan your trade.
Money is lurking here

emmanuelewumi:
It is dangerous when you hope to use capital appreciation to service the loan


Not dangerous if you are using your cash flow to service the loan.



My total loans is just 16% of my portfolio value and about twice the expected dividend for the year .


Yet to see any bank that has called out Dangote for debts.

We are saying the same thing.
You can see you have other cash flows to service loan.

Ask the borrower where he is expecting money to service his loan.

He made it clear he is a trader.
His average turn over which is in billions made it clear that's his profession.

Anyway,why am I drinking Panadol on another person's headache.

For Dongote,do you know why he considers selling stakes from time to time?

FBNH
Huge cross deals of 60M units @N31 again today....
Valued @N1.8bn
Something seems to be brewing here..
I don't think it's the RI alone, the RI price may be higher than we'd expected.....
Huge bids on queue too......
45M bids Vs. 3.7M offers.....

** They're deliberately keeping the price down for now......possibly to get their fill complete...

CHAMPION BREWERIES
Needs to move the floor price above the RI price of N16...
We see how they achieve this in coming days...

GT
Huge cross deals.....
N3.5bn spent so far on transactions.....within 30mins of market's opening....

Locotrader:
We are saying the same thing.
You can see you have other cash flows to service loan.

Ask the borrower where he is expecting money to service his loan.

He made it clear he is a trader.
His average turn over which is in billions made it clear that's his profession.

Anyway,why am I drinking Panadol on another person's headache.

For Dongote,do you know why he considers selling stakes from time to time?

What Awesome is doing is extremely dangerous.

I think he should use part of his trading profits to beef up his trading capital and also create other sources of income apart from capital appreciation from stocks