₦airaland Forum

Some investors once held hundreds of thousands of Dunlop shares in their portfolios. When they passed away, suppose their heirs were unwavering believers in long-term holding, no matter what. How much would those shares be worth today? In fact, some didn’t even need to pass away—their paper profits evaporated to zero within their own lifetime.

That’s why I strongly advocate taking profits along the way: convert part of your holdings into tangible assets, allocate some into bonds if possible, and enjoy life with the rest. AwesomeJ is cruising in his machine, savouring real profit—not the paper gains that can disappear with a single announcement.

https://www.youtube.com/watch?v=lGnYFD_SFJc?si=seVzBTKsE3gpZyJa

Ngx midday update

If its true, great! Let them start right away

yMcy56:
BREAKING!!
NGX INTRODUCES NEW RULES FOR PRICE MOVEMENTS!!

* NGX going back to old rule of share price movements.....
* NGX is yet to make official announcement...

** This may change some things in the market........ Anything to stabilize and move the market forward...

*Nairametrics*

This is a good move if true.

yMcy56:
BREAKING!!
NGX INTRODUCES NEW RULES FOR PRICE MOVEMENTS!!

* NGX going back to old rule of share price movements.....
* NGX is yet to make official announcement...

** This may change some things in the market........ Anything to stabilize and move the market forward in preparation for Frontier Market entry......

*Nairametrics*

This will make a lot of sense. It will help with price discovery

yMcy56:
BREAKING!!
NGX INTRODUCES NEW RULES FOR PRICE MOVEMENTS!!

* NGX going back to old rule of share price movements.....
* NGX is yet to make official announcement...

** This may change some things in the market........ Anything to stabilize and move the market forward in preparation for Frontier Market entry......

*Nairametrics*

presiade:
This is a good move if true.

Let's see how far it could have positive impact....
Although it will come with its own disadvantages too......because price will be easily altered either positively or negatively... especially the big Caps.

Looks like the Rule was made for the big Cap stocks..... ARADEL, SEPLAT, AIRTEL, DANGCEM and the likes.. .
Especially SEPLAT and AIRTEL to enhance liquidity...

Hang in there. Live your values: The men are being separated from the boys (or whatever you said the other day).

Shalom428:
My eyes first blur when I saw my portfolio balance, 8 digits wiped out ... How come? I used water washed my face so I could see clearly, na so I see say, na DangCem be the culprit.... Make I go back to sleep.

Follow the Money

Yes, the downside is the ease of share price manipulation, which can be curtailed with good oversight by NGX; but overall, it’s a good move that should reflect the true (near real-time) prices of the assets being traded.

yMcy56:
Let's see how far it could have positive impact....
Although it will come with its own disadvantages too......because price will be easily altered either positively or negatively... especially the big Caps

presiade:
Yes, the downside is the ease of share price manipulation, which can be curtailed with good oversight by NGX; but overall, it’s a good move that should reflect the true (near real-time) prices of the assets being traded.

True
Market doesn't have to be relying only on MM or institutional investors to make moves in those stock....
Why are they listed then?

Lol ... No worries, I dey okay. My BP in DangCem is about N600. My July 2nd dividends is a solid 8 digits. The eyes blurring statement is just a mere comedy. My eyes don see all seasons for this game, nothing fit make am blur. And Yes! It's time to separate the boys from the men!

HesInMe:
Hang in there. Live your values: The men are being separated from the boys (or whatever you said the other day).

yMcy56:
BREAKING!!
NGX INTRODUCES NEW RULES FOR PRICE MOVEMENTS!!

* NGX going back to old rule of share price movements.....
* NGX is yet to make official announcement...

** This may change some things in the market........ Anything to stabilize and move the market forward in preparation for Frontier Market entry......

*Nairametrics*

Omo na blast off be dat o.. to the moon. Manipulation galore

Finally another of my suggestions to the market heeded. Whether my email was material or they decided entirely on their own, now my frustration with tickers like GEREGU and AIRTELAFRI will end.

When Nigerian fixed-income instruments offer very attractive yields, institutional investors often rotate money out of equities and into:

Treasury bills
FGN bonds
Money market instruments

Analysts have specifically highlighted elevated fixed-income yields as a factor pulling capital away from equities

presiade:
Well, even every MAGAt knows that if it were that easy to “arrange” his conviction in multiple jurisdictions (including his home state—Florida), he would’ve arranged some counter convictions on notable democrats, especially Obama. Saying that he was victimized is like blaming every photographic evidence of someone’s wrongdoings on AI nowadays. Enough said on this topic. Trump is guilty and was only lucky to have gotten an unconditional discharge due to the office he holds!

It came to a point the Kpakus Governor went about begging other business men not to flee from Yorkistan, that the Soviet-style prosecution of Trump was designed for Trump only.

Imagine the dystopian level of (in)Justice System weaponization.

I have nothing against Mega and he is surely one of our real buddies on this forum, and one of the influencial members, unlike me who doesn't do analysis of stocks before buying, because I only buy popular stocks with a history of performance.
It would surprise you to hear that Access is not even one of my actual holdings even though I decided to throw something like a 700k in there as a gamble. And I know it's a worthy investment, jokes apart, you can't go wrong by investing in Access Bank.

Seriously, what I was saying in earnest is that people should say their prayers aside quietly instead of coming to the forum to say it. For instance, if you say such prayers in church, like Access should come down to #5, your church members would say 'amen'. Then why are you wishing such happenstance in a place where your co-forumite bought the same stuff at #25 ?

I beg no be fight o. I'm just a learner still trying to adjust to your idiosyncrasies in the forum. Mega, abeg no vex. I know same you dey joke self; true. But if it really happens, I know you would buy millions of units. One love 💕

follow up in January:

That's why I called it AUDIO WEALTH na

Shalom428:
He should liquidate a portion of his stock holdings—say, $10 billion—and make the transaction public. Only then will we see the true impact on his net worth within 24 hours. After all, paper profits remain hypothetical until they are converted into cash and tangible assets. The perceived value of wealth tied solely to stock holdings is often overstated...

A stock deciding to be illiquid when other stocks are moving is not the NGX's busines, afterall Seplat was moving. Trying to solve the issue on a case by case basis would be costly, political and counter to the goal of involving foreign investors. I am also sure the smart ones among us would learn to quickly game the system. It should be one rule for everyone

awesomeJ:
follow up in January:

The market is about to see some volatility. It's time for astute traders to make some fast cash.
Some fingers will be burnt too.

yMcy56:
Let's see how far it could have positive impact....
Although it will come with its own disadvantages too......because price will be easily altered either positively or negatively... especially the big Caps.

Looks like the Rule was made for the big Cap stocks..... ARADEL, SEPLAT, AIRTEL, DANGCEM and the likes.. .
Especially SEPLAT and AIRTEL to enhance liquidity...

Shalom428:
He should liquidate a portion of his stock holdings—say, $10 billion—and make the transaction public. Only then will we see the true impact on his net worth within 24 hours. After all, paper profits remain hypothetical until they are converted into cash and tangible assets. The perceived value of wealth tied solely to stock holdings is often overstated...

But he can use his stock position to borrow $50bn sef

deathwing:
A stock deciding to be illiquid when other stocks are moving is not the NGX's busines, afterall Seplat was moving. Trying to solve the issue on a case by case basis would be costly, political and counter to the goal of involving foreign investors. I am also sure the smart ones among us would learn to quickly game the system. It should be one rule for everyone

This is your uninformed opinion. I don't think you should be advertising the ignorance.


SEPLAT was also once affected for nearly 6 months, but your history of the stock is apparently short and limited.


It's not up to companies to decide whether 1 unit of trade in their shares will move price or whether it'd be 100k units. It's exactly the responsibility of the market, you not knowing that is funny.

Keyword "Borrow". My main point is that the perceived value of wealth tied exclusively to stock holdings is often overstated. Paper profits can evaporate with a single announcement or unexpected event.

Itzlinda:
But he can use his stock position to borrow $50bn sef

As a matter of fact, SEPLAT is currently being affected.

It trades at £5 in London (about 9300), but NGX quoting it at 11363 cos of their 100k rule.

It's why there are lots of offers at 10k with no buyer.

If this rule had been in effect today, seplat would have dropped to 10200, then tomorrow, bids would show up at 9k.

It's just basic market knowledge, but I don't believe you trade full time @d..wing

I meant deciding it for each stocks in the way you recommendd, after a number of months of stagnancy etc, would not be very efficient, because they would be intervening on a case-by-case basis. It's better if the rule is the same for the market. Your point also makes my point...if Seplat was stuck for six months and finally got out of the fugue, why intervene in another that was only stuck for three months? But this is all academic anyway, since it was likely not under consideration, I was just opposing that particular suggestion you had.

awesomeJ:
This is your uninformed opinion. I don't think you should be advertising the ignorance.


SEPLAT was also once affected for nearly 6 months, but your history of the stock is apparently short and limited.


It's not up to companies to decide whether 1 unit of trade in their shares will move price or whether it'd be 100k units. It's exactly the responsibility of the market, you not knowing that is funny.

No vex sir. We never even reach to buy car from profits but we shall get there and then I no go gree for you again

awesomeJ:
As a matter of fact, SEPLAT is currently being affected.

It trades at £5 in London (about 9300), but NGX quoting it at 11363 cos of their 100k rule.

It's why there are lots of offers at 10k with no buyer.

If this rule had been in effect today, seplat would have dropped to 10200, then tomorrow, bids would show up at 9k.

It's just basic market knowledge, but I don't believe you trade full time @d..wing

Should I still wait for Zenith sub 100 or I should start taking small small

Heavy bleeding everywhere , Buyers will soon dry up giving way for full offer to happen

deathwing:
I meant deciding it for each stocks in the way you recommendd, after a number of months of stagnancy etc, would not be very efficient, because they would be intervening on a case-by-case basis. It's better if the rule is the same for the market. Your point also makes my point...if Seplat was stuck for six months and finally got out of the fugue, why intervene in another that was only stuck for three months? But this is all academic anyway, since it was likely not under consideration, I was just opposing that particular suggestion you had.

The main issue was that the market needed to do something to end the annoying illiquidity. The easiest way would be for them to revert to the tiered volume requirement they had in place, but that would then bring back the original issues that made them amend the rule in the first place, hence my suggestion.

I do not know what your interpretation of my suggestion is exactly, but it wouldn't at all imply a case by case intervention. Just a genral rule in their code like so would suffice:

bool price_moves = volume_traded >= 100, 000 || calendar_days_since_last_price_change >= 90
if price_moves == true
set_new_price
simple algorithm that's that one patch and would work every time for every stock.

They probably just chose to go with an algorithm they already previously had in place.

Noted. You obviously have more experience so would gladly defer to you. Does this new rule throw up any problems in your view?

awesomeJ:
The main issue was that the market needed to do something to end the annoying illiquidity. The easiest way would be for them to revert to the tiered volume requirement they had in place, but that would then bring back the original issues that made them amend the rule in the first place, hence my suggestion.

I do not know what your interpretation of my suggestion is exactly, but it wouldn't at all imply a case by case intervention. Just a genral rule in their code like so would suffice:

bool price_moves = volume_traded >= 100, 000 || calendar_days_since_last_price_change >= 90
if price_moves == true
set_new_price
simple algorithm that's that one patch and would work every time for every stock.

They probably just chose to go with an algorithm they already previously had in place.

deathwing:
Noted. You obviously have more experience so would gladly defer to you. Does this new rule throw up any problems in your view?

Yes, It brings back the exact issue about index distortion they tried to curb in 2019.

You only now need N100m to move DANGCEM and distort the index massively as opposed to N1bn previoulsy.

Those quick swings are good for us traders though.

The proposed NGX rule, if implemented as reported, could be one of the most important market structure reforms in recent years. While some traders may dislike it, there are strong arguments in support of the move.

### Why the Rule Makes Sense

**1. It Reduces Price Manipulation**

One of the long-standing complaints in the Nigerian stock market is that a relatively small trade can sometimes move the price of a stock significantly, especially in low-liquidity counters.

Under the proposed framework:

* Stocks below ₦500 would require at least 100,000 shares to trade before the price moves.
* Stocks between ₦500 and ₦1,000 would require 50,000 shares.
* Stocks above ₦1,000 would require 10,000 shares.

This means a trader can no longer use a small transaction to create the impression of strong demand or panic selling. Price movements would be backed by more meaningful trading activity.

### 2. It Improves Price Discovery

The true value of a stock should be determined by substantial buying and selling interest, not by a few isolated transactions.

If a stock moves only after a significant volume has been traded:

* Prices become more reliable.
* Investors gain greater confidence.
* The market reflects genuine sentiment rather than short-term noise.

### 3. It Protects Retail Investors

Many retail investors make decisions based on daily price movements.

When a stock rises 10% because of a tiny transaction, inexperienced investors may rush in, believing demand is increasing.

By requiring higher trading volumes before prices change:

* Artificial spikes are reduced.
* Retail investors are less likely to be misled.
* Investment decisions become more data-driven.

### 4. It Encourages Institutional Participation

Large institutional investors prefer markets that are:

* Transparent
* Liquid
* Difficult to manipulate

When prices become more stable and volume-driven, pension funds, mutual funds, and foreign investors may have greater confidence in the market.

This can increase liquidity over the long term.

### 5. It Aligns With Market Maturity

As the Nigerian capital market grows, regulators are expected to introduce mechanisms that improve:

* Market integrity
* Fairness
* Transparency

The proposed thresholds suggest NGX is attempting to move toward a more sophisticated market structure where volume matters as much as price.

---

## Addressing the Criticism

Critics argue that the rule could reduce price responsiveness, particularly for less liquid stocks.

That concern is valid.

If a stock rarely trades large volumes:

* It may take longer for new information to be reflected in the price.
* Smaller companies could experience reduced trading activity.
* Price discovery may become slower in certain counters.

However, supporters would argue that a slower but more reliable market is preferable to one where prices can be moved by a handful of trades.

---

## Bottom Line

The key question is:

**Should stock prices move because a few shares changed hands, or because a meaningful number of investors are actively buying and selling?**

The proposed NGX framework appears to favor the second approach.

If properly implemented, it could:

* Reduce manipulation,
* Improve investor confidence,
* Strengthen market integrity,
* Create more stable and credible pricing.

For long-term investors, this is likely a positive development. The people most affected may be short-term traders who rely on low-volume price swings to generate quick profits.

yMcy56:
BREAKING!!
NGX INTRODUCES NEW RULES FOR PRICE MOVEMENTS!!

* NGX going back to old rule of share price movements.....
* NGX is yet to make official announcement...

** This may change some things in the market........ Anything to stabilize and move the market forward in preparation for Frontier Market entry......

*Nairametrics*

For long-term investors, this is likely a positive development. The people most affected may be short-term traders who rely on low-volume price swings to generate quick profits.

awesomeJ:
Yes, It brings back the exact issue about index distortion they tried to curb in 2019.

You only now need N100m to move DANGCEM and distort the index massively as opposed to N1bn previoulsy.

Those quick swings are good for us traders though.

AngelSlay:
For long-term investors, this is likely a positive development. The people most affected may be short-term traders who rely on low-volume price swings to generate quick profits.

Are you sure it's not AI you're using to interprete this new rule?

Your AI doesn't have context that that the existing rule requires 100k for all price levels. That's why it's misinterpreting.