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[billions]

NSE accused of price manipulation by House of Rep...

Proshare News

[Apache]

Originally Posted by billions

Thanks,i just placed an order for "TECHNICAL ANALYSIS OF FINANCIAL MARKETS by Murphy" about 3 minutes ago but i will check d one u recommended now.Cheers.

@ Billions, you can get free e-books like the one you mentioned above at esnips.com.
I have given the link at the "Book" thread. you don't need to register. Just type in the name of the book and author in the serch column on the top right side of the screen and you are good to go.
I have a lot of them but can't upload them since they are very heavy files

[tonidol]

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Proshare News and Analysis
Why stock indices crashed, by Okereke-Onyiuke
Posted Monday, June 16, 2008


The Director General, Nigeria Stock Exchange (NSE) Prof. Ndi Okereke-Onyiuke has said that the downward trend in the nation's capital market was due to a technical hitch on the trading engine.



The hitch, which according to her, was caused by a disengaged nut which connects the trading engine to that of Central Security Clearing System, which gave opportunity for indiscriminate sale of stocks, even below the expected prices.



She noted that the exchange cannot allow either upward or downward movement of stocks in the market within fundamental reason to justify it.



"There is no stock market in the world where the managers will sit down and watch the market crash. If we see something wrong going on in the market, we must intervene, no downward movement without explanation is allowed. We will be lacking in our regulatory theme if we allow such in the market with no reason.



"There is always regulatory intervention and the fact that market has been moving up for several years does not mean that the market is down, we got a call from market control that there is a technical hitch on the engine and brokers took advantage in selling stocks." She explained.



She warned that any stockbroker caught while trying to cause either upward or downward movement in price market explanation would be suspended from trading for two weeks.



She urged investors to diversify their investment in order not to lose much in a case of downward trend in the market.



"You should diversify your portfolio so that you cannot lose in all you invested in or you should buy bonds if you are not ready to take price downward trend. If there is no downward trend in the market, it is unnatural." - Guardian

[knightofdelta]

Originally Posted by tonidol

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Proshare News and Analysis
Why stock indices crashed, by Okereke-Onyiuke
Posted Monday, June 16, 2008


The Director General, Nigeria Stock Exchange (NSE) Prof. Ndi Okereke-Onyiuke has said that the downward trend in the nation's capital market was due to a technical hitch on the trading engine.



The hitch, which according to her, was caused by a disengaged nut which connects the trading engine to that of Central Security Clearing System, which gave opportunity for indiscriminate sale of stocks, even below the expected prices.



She noted that the exchange cannot allow either upward or downward movement of stocks in the market within fundamental reason to justify it.



"There is no stock market in the world where the managers will sit down and watch the market crash. If we see something wrong going on in the market, we must intervene, no downward movement without explanation is allowed. We will be lacking in our regulatory theme if we allow such in the market with no reason.



"There is always regulatory intervention and the fact that market has been moving up for several years does not mean that the market is down, we got a call from market control that there is a technical hitch on the engine and brokers took advantage in selling stocks." She explained.



She warned that any stockbroker caught while trying to cause either upward or downward movement in price market explanation would be suspended from trading for two weeks.



She urged investors to diversify their investment in order not to lose much in a case of downward trend in the market.



"You should diversify your portfolio so that you cannot lose in all you invested in or you should buy bonds if you are not ready to take price downward trend. If there is no downward trend in the market, it is unnatural." - Guardian

Am I hallucinating? What's with disengaged nuts again? Now, I know that everybody from SEC to CBN to NSE to Stockbrokers are all nuts. Or am I the one that is nuts? Maybe what they are doing is normal and I am the only person seeing normal things as abnormal. Or maybe what they are doing is abnormal and my senses are right in telling me that they are abnormal whereas everything is normal. Or which one is abnormal or normal?

Can someone please remind of what what I was saying?

[billions]

The Minister of Finance, Dr. Shamsuddeen Usman, has said that the practice of margin trading is capable of diluting the stability of the Nigerian capital market.



While delivering a paper titled, “Risk Management and Corporate Governance in the Nigerian Banking Sector”, at the quarterly forum of the Bank Directors’ Association of Nigeria in Lagos on Friday, Usman said margin trading had great attendant risks.



Margin trading involves banks lending to customers and other stock market operators to acquire shares, principally for speculative purposes.



The minister said where margin trading was practised, as the stock prices declined, the value of the stocks pledged as collateral also declined leaving no effective cover. He pointed out that the security used, usually shares, as well as depositors’ funds, also stood the risk of being lost if the market crashed.



He noted that margin trading was believed to be largely responsible for the United States’ stock market crash in year 2000.



He said, “The practice of margin lending is very risky as it has direct impacts on the capital market. The stability of the capital market is impacted by economic trends where margin trading is practiced.



“This is often so because any downward trend in the economy will impact the capital market negatively, causing the prices of stocks to decline. Panic sellers and customers, who often form a major portfolio of this practice, may also spell trouble for the banks.”



Some analysts’ reports have estimated that about 18 per cent or over N2.5tn of depositors’ funds are used for margin trading and are a significant factor in driving prices in the Nigerian stock market.



The minister warned that banks should be more cautious of the sub-prime lending situation in the United States. He said due to poor risk management and identification strategies, the sub-prime crises, which started as a credit problem in the US mortgage market, with a delinquency rate of five per cent in January 2005, rose to 20 per cent in 2007.



He said total reported financial write-downs for major financial firms now totaled $161bn and were estimated to reach $200bn this quarter because of inadequate risk management.



Usman added that the underlying cause of poor risk management was inadequate corporate governance structure, saying that this had since been the root cause of most episodes of financial system distress across the globe.



He warned banks in Nigeria to be cautious of a spill over by avoiding decisions that would lead to financial instability and poor corporate governance. - Punch


With dis type of lecture delivered on friday,...i dont know what will happen to stock prices on Monday(today).

[billions]

Originally Posted by Apache

@ Billions, you can get free e-books like the one you mentioned above at esnips.com.
I have given the link at the "Book" thread. you don't need to register. Just type in the name of the book and author in the serch column on the top right side of the screen and you are good to go.
I have a lot of them but can't upload them since they are very heavy files

Thanks for the information...i will check d site immediately.

[zainabusman]

Originally Posted by Michael

I thought you stuck to Fundamentals. Here you are recommending a book on Technical Analysis. Where do you order your books from?

Yes i concern myself with fundamentals. However, there is no harm in knowing the other side. Billions wanted a book on Technical Analysis, and this one is a goodn one.

I order my books mainly from Amazon.com and Amazon.co.uk.

[hispy99]

Are there losers so far in the market today? I can only see gainers on the NSE's website

[billions]

Originally Posted by hispy99

Are there losers so far in the market today? I can only see gainers on the NSE's website

Is it not too early?

[hispy99]

Originally Posted by hispy99

Are there losers so far in the market today? I can only see gainers on the NSE's website

Nevermind, I can see losers now

[Michael]

Originally Posted by knightofdelta

Am I hallucinating? What's with disengaged nuts again? Now, I know that everybody from SEC to CBN to NSE to Stockbrokers are all nuts. Or am I the one that is nuts? Maybe what they are doing is normal and I am the only person seeing normal things as abnormal. Or maybe what they are doing is abnormal and my senses are right in telling me that they are abnormal whereas everything is normal. Or which one is abnormal or normal?

Can someone please remind of what what I was saying?

KOD, now we have cause to be scared. These People are dangerous.

[Michael]

Originally Posted by hispy99

Are there losers so far in the market today? I can only see gainers on the NSE's website

I am seeing that there are bids below Fridays price

[hispy99]

Originally Posted by billions

Is it not too early?

Maybe...I could see gainers but no losers, so I was a little bit concerned. Don't want to be surprised with another freeze.

[billions]

WAOH!!! Stock prices are falling again..............

whats d most rational action 2 take?

[zainabusman]

Originally Posted by billions

WAOH!!! Stock prices are falling again..............

whats d most rational action 2 take?

Yes. UBA, Zenith, Skye, Dangote Sugar etc have taken a fall. Bank PHB and Costain continue to go up.

I cant understnd why PHB is going up . They just said they will be doing a PP at N17.

The best action right now is wait and see. There is no need to panic. If the stocks fall to a level where dividend yield is 5% or more i will definetely move in. In the meantime i am sitting still.