₦airaland Forum

Private Sector to Bail Out Stock Market




Efforts to find a solution to the nation’s lingering stock market meltdown continue today as officials of the Nigerian Stock Exchange (NSE) and Securities and Exchange Commission (SEC) meet to work out a plan that will inject private funds to bail out the market.
The meeting to halt the nation’s plummeting global market came on a day stocks suffered sharp falls as worries about the extent of the global financial sector crisis deepened after finance ministers failed to reach a consensus on how to react.
The Director-General and Chief Executive Officer of the NSE, Prof. Ndi Okereke-Onyiuke, dropped the hint about the regulators’ meeting at the Annual General Meeting of the Central Securities Clearing Systems Limited (CSCS) in Lagos yesterday.
Worried by the persistent fall in the prices of shares, the Federal Government had last August introduced some recovery measures to stem the negative trend. However, almost two months after, there appears to be no respite in sight.
Okereke-Onyiuke said that the NSE and Board of SEC would meet today to map out a bail-out plan that would help stem the falling share prices.
Okekereke-Onyiuke, who was silent on the details of the bail-out, added that the plan would also involve the Central Bank of Nigeria (CBN) and market operators including banks.
She explained that the market regulators decided to use the internal mechanism to bail out the market because the Nigerian Government is not in a position to take the decision similar to that of the United States Government.
The US government is using $700 billion to mitigate the impact of its current financial crisis. The Nigerian government had recently shelved plans to set up a Stabilisation Fund meant to enhance liquidity in the stock market.
The Finance Minister, Dr. Shamsuddeen Usman, who announced the decision to shelve the stabilisation fund, had explained that the measures already introduced by the CBN and the Share Buy-Back were enough to address the liquidity problem.
But Okereke-Onyiuke said that US government agreed to inject $700 billion into the market because of the number of citizens that invest in their financial system.
Specifically, she said the ratio of Nigerians investing in the Nigerian stock market is very minimal compared to the entire population. This, she explained, informed the regulators’ decision to embark on an internal bail-out plan apart from other efforts by the government.
She said: “Our nation is not in a position to do what America did. If by October 2008, they have not passed the budget for 2007, is it the intervention fund that they will meet to approve? We went to the government in the first place to use moral suasion to allow the CBN take part in whatever measures we are going to take because they are an organ of the government. After the meeting tomorrow (today) you will see what will happen in the market. I tell you there is hope for this market.”
Okereke-Onyiuke called on well-meaning Nigerians to imbibe the American spirit of patriotism and not selfishness.
“Nigerians should develop the American spirit. You can see how they put aside political and personal interests to bail out their market. It is even now that we are even appreciating the fact that the capital market is the barometer with which you measure the economy,” she said.
The stock market has been depreciating since early March after two months of bull run. The market climbed to a historic level with the NSE All-Share Index peaking at 66,371.20 on March 5, 2008. The market capitalisation on that date was N12.6 trillion.
However, the bear run that set in afterwards has persisted and has caused the index to shed 31 per cent to close at 45,504.69 yesterday. Similarly, the market capitalisation of equities has dipped by N2.9 trillion as at close of trading yesterday.
In a related development, on Wall Street, the Dow Jones Industrial Average fell 4.3 per cent to 9,884.9, a drop of 445 points that took it under 10,000 mark for the first time since October 2004. The S&P 500 fell 4.8 per cent to 1,046.9.
London’s FTSE 100 closed 7.9 per cent lower at 4,589.2, a loss of 391 points. The sell-off was the UK benchmark index’s third biggest one-day drop on record, its largest since Black Monday in 1987 and took it to levels last seen in October 2004.
Meanwhile, crude oil prices fell to its lowest in eight months yesterday, trading below $90 a barrel on speculation that the financial crisis will exacerbate a global economic slowdown and cut demand for crude oil.
For most of 2008, oil had been well over $100 a barrel, causing pain at the pumps.
But amid the global financial crisis, light, sweet crude for November delivery fell $3.06 to $90.82 a barrel on the New York Mercantile Exchange, after earlier dipping to $88.89, the lowest level since February, 8. Last Friday, the November contract lost nine cents to close at $93.88 a barrel.
Oil prices have tumbled nearly 40 per cent since peaking in July. A significantly stronger dollar also weighed on prices.

Thisday

Newsflash Intercontinental Bank Rated A+ by Fitch

http://www.thisdayonline.com/nview.php?id=124486

dayokanu:
And your Inability to comprehend simple English is your major undoing. Slowly but surely means what to you?

You guys are the major reason why Nigerian education are treated as Rubbish outside.

Could you please translate the above highlighted into English

Hold on,was that an error or that's how you speak normally

dayokanu:
And Sauron.

We all know you dropped out of school even understanding simple ratio is a major challenge for you

Even though I know ratios aren't that simple,I fail to see the connection between Fab4,Arsenal ,Barca ,your post as well as Chac's response and ratios.

DK hope you're OK

@ Debz
And who's David Agbonlahor

Oh I remember,he's the dude that wrote that famous story in the Bible about Gabriel and Goliath

@ Debz,

Why your interest in the Hertha Berliner
Are you thinking of a replacement for Gallas already,well you might want to think of how to first get rid of WG

Arsene's got a lot to do to inspire more confidence in this team though

~Sauron~:
Unfortunately, Arsenal is not great.

Even you don't believe that.All the sarcasm is because we lost against hull and drew against your former midfielder.I won't comment on your point on AW(that is sth I'd do on my own terms or on the terms of a fellow gooner)

May I remind you that no team has won the league as yet

There's a reason I want us to put an end to the lazy antics(not that I blame them) of the smaller teams,it's kuz I'm more confident of getting points against manscum,liver pull and chelshit as they would not condescend to playing any 9-1-1 formation

~Sauron~:
Rule changes needed:

You can't defend against Arsenal.
You're not allowed to score against them.
Bend over and take a 4-0 up the arse, and in post-match interview, praise their 'kids'!!!!

Buncha pathetic losers.

What's your point chac?

HNIC:
@ rasputinn
The sense of urgency shown in the last few minutes should be shown in the first 30 minutes.
The first goal always matter a lot and disrupts the opposing team's pattern.
Watch the Porto game again, they set out to play defensive,

At least we agree on the need to be more decisive in front of goal and exhibit a sense of urgency from the blast of the whistle.

However,I don't think Porto set out to play defensive per se,forget the match formation on screen,they actually played 4-5-1 initially,which they abandoned after the first goal.

Now you and I know a 4-5-1 formation is totally different from a 9-1-1 formation which hull and sunderland played.My argument is that even if they had adopted a 10-0-0 formation,with the sense of urgency we're talking about and greater decisiveness,goals are bound to come from errors,infringements,deflections e.t.c

Now this is really serious
To show how slowly things are moving in the market,I just realised that in 10days,we're still on the same thread page

@ Edoyad

Just like as it is in boxing,if an opponent does not want the ref and judges to shortchange him,he goes for a TKO,we ought to have been more decisive and shown more character in those games.

If you doubt that it could be done,tell me where our players got the sense of urgency to turn the screw against sunderland immediately after they scored.That is what they should have done for the whole of 90minutes in all of the 3 games concerned,that way we'd care less about the officiating in liver pull and manscum games

Hmm,we are now truly left to rue our failure to clinch max.points from our Fulham,Hull and Sunderland games.

Like I told Myself2 and a certain commisioner in Fashola's govt (who's also mad as hell @ our performance thus far),it becomes more worrisome when you realise that Chelshit and Liverpull are churning out impressive 3-point performances against more formidable opposition week in week out

Things that make me go hmmmmmmmmmmmmm

A-40:
we can't be losing and drawing games we are supposed to be winning and still hope to be Champions

Point blank.I really am worried sick about our faltering start to the season

HNIC:
Sunderland came out to play 4-5-1,leaving Cisse isolated upfront.

I think Sunderland's formation was 9-1-1

cheyi:
5th

Welcome
Your birthday mates are Radiant,Sizmo,Fab509 and Rugina

magentam:
Bla! Bla!! Bla!!! Everyone is talking, Dan this, Dan that. Cool Fm made Dan, not the other way around and I promise you, it is not going to crash. Sometimes in life, we need the older ones to leave for fresh new talents to surface. I believe in new talents and I believe in Cool Fm. Check out Oprah and Tyra, tyra isn't doing badly at all. So will come a new and better presenter than Dan Foster.

You have a point but the fact still remains that with Dan's departure after such long years of winning numerous listeners to cool fm,a gaping vacuum has been created in cool fm

magentam:
As for Olisa he is just a peacock who frustrates the lives of fellow presenters with his I AM TOO MUCH egotistical attitude which I feel is a symptom of a well disguised PERSONALITY COMPLEX issue. He wasn't missed at all at Cool Fm.

I agree 100% with you on this.I still recall he used to present a certain programme on cool fm,viz MTN Y'ELLO TOP 10,supposedly aimed @ ranking the top 10 songs in the land,now this same fellow was once asked on another programme to name his favourite musicians and he went on and on naming American musicians and no single Nigerian act made the list.

Is it the storm thingy you wanna talk about,pllllllllease someone should please tell this dude that he's quietly aquiring a notorious status

@ Myself, pls show some mercy @ Muki,so na so u be?I hear say u share ram & u no let am reach ma side,I go collect am in arrears @ Debo,wytch levels man.Big ups bro

ikamefa:
tank you oh!

Anytime dear

jideakin1:
John, please reach me through sales@ace2ice.net I can get you up and running with you@yourcompanyname.com in 48hrs.

Jide man,the response since three days now from the above email addy has been an auto response

Silly question from a confused mind
The OP started by saying ;in all his years(and to still be asking this dumb question,I submit he really has wasted soooo many years of his life)

Sad thing no one saw it coming,not even Mr Buffet

IBEXY:
Guess who is faster: Theo Walcott or Usain Bolt?

Nah,the bullet from my gun(which could be aiming @ Eboue's legs if care is not taken)

debosky:
The press will be creaming themselves over Arsenal tomorrow as usual

Why not,let 'em knock themselves out man,at least they now have something else to "smoke over" 

Finally before I go to sleep,let me remind myself that it ended ARSENAL 4 -porto 0 

I really don't like the way we squandered clear goal-scoring chances.Would it have been bad if we beat porto by 8-0 ?? (that would have been truly historic)

My annoyance stems from the observation that most of the players that missed the chances,instead of rueing the misses,were actually laughing

Those stupid step-overs by Eboue were meant to achieve what exactly  

Juv 2 -Bate 2
Manu 2- Aal O
Bay 1-Lyn1
Villareal 1 -  Celtic 0
Fen 0-Dyn 0
Fio 0 - Ste 0

wonderful goal Ade(sent the keeper the wrong way)

More live scores

Arsenal 3 - Porto 0