MarketWatch

[hispy99]

Originally Posted by billions

I am considering 2 things:

Sell half of my shares tomorrow morning or wait to c how d market will do tomorrow then make a decision after.

If you had fundamentaless stocks in your portfolio, then I might say you should consider this step, but it seems as if that is not the case with you.

Market timing is difficult, if not impossible. You might sell half your portfolio on Wednesday and the market reverses on Thursday. Remember, you need to hope that your stocks fall by around 5% (buy and sell commission) when you sell for this strategy to be worth it.

Even if you successfully time the market and exit at the appropriate time, when do you get back in? It is possible that before your broker will be able to buy back your positions, the market will be up 15%

[billions]

Investors heaved a deep sigh of relief as the authorities of The Nigerian Stock Exchange intervened to regulate the unending price free-fall in the market. Apparently bothered by the development that persisted for about 3 weeks, the regulatory authorities effected a market correction through what participants call ‘regulatory intervention’ by freezing prices of equities at their previous days’ close prices except for those that closed higher due to market forces of bid and offer (demand & supply). This intervention has helped to augment the market performance as The NSE ASI closed higher by 704 basis points to 60,191.83 points while total market capitalisation of 222 quoted equities rose by 7.04 percent to stand at N11.72trn against N10.95 trn reported in previous week. Some market commentators argue that the practice is not only peculiar to Nigeria but also obtainable in other developed economies as part of the statutory functions of the authorities of any Exchange.



There are indications that this regulatory intervention may last till when the issue of margin loans from banks to investors/stock brokerage firms is resolved amongst all regulators involved. However, market is rife with the news on suspension of the ban on margin trading accounts pending when the special committee set up comprising representatives of the Central Bank of Nigeria (CBN); Nigeria Deposit Insurance Corporation (NDIC), Securities & Exchange Commission (SEC), and The Nigerian Stock Exchange (NSE) meet to come up with a workable process. Market participants and regulators attribute the prolonged lull largely to the margin calls by banks following the directive from the Central Bank of Nigeria to put a halt to margin loans to capital market operators, an allegation that has been denied by the CBN authority at several fora.



Similarly, the recent publication by The NSE in respect of Private Placement has also spurred reactions from market commentators and participants. The authorities of The NSE have come up with a pronouncement putting a caveat on Private Placements which may somewhat make them unattractive to the investing Public. The NSE maintains that henceforth companies seeking listing on The Exchange by way of Introduction shall have such shares listed at the Private Placement price and will also meet the Listing Requirements, Rules and Regulations governing Initial Public Offerings (IPO) all in an attempt to protect investors’ interest.



We believe this pronouncement will bring some level of sanity to the market and substantially checkmate the flurry of Private Placements and its attendant effects on the secondary market activities.



Notwithstanding the regulatory issues that overshadowed the market during the week ended Friday June 13, 2008, a few stocks still made investors rich. Fidson closed the week at N9.55k to post 27.3 percent in capital appreciation Prestige Assurance also went on bid apparently due to its impressive full year results and lip smacking twin benefits of 20k dividend and 1 for 4 bonus.



No sooner had the authorities of The NSE made the pronouncement than the market re-adjusted with all performance indicators pointing northwards. We anticipate increase in activities in coming weeks following the suspension of ban on margin trading as investors re-position themselves in response to the latest developments. Also in response to these developments, market sources reveal that banks have started to approach their customers for margin facilities. This re-affirms our position of possible resurgence in coming weeks. - Meristem

[billions]

Originally Posted by hispy99

If you had fundamentaless stocks in your portfolio, then I might say you should consider this step, but it seems as if that is not the case with you.

Market timing is difficult, if not impossible. You might sell half your portfolio on Wednesday and the market reverses on Thursday. Remember, you need to hope that your stocks fall by around 5% (buy and sell commission) when you sell for this strategy to be worth it.

Even if you successfully time the market and exit at the appropriate time, when do you get back in? It is possible that before your broker will be able to buy back your positions, the market will be up 15%

You are right...thanks.I will wait!

[billions]

I called my broker/dealer...he said i shd not sell.

He is of d opinion dat d market will recover fully in 2-3 weeks.

[knightofdelta]

Originally Posted by billions

I called my broker/dealer...he said i shd not sell.

He is of d opinion dat d market will recover fully in 2-3 weeks.

Relax man... you dont get advice from your broker dealer. You sound a lil bit flustered. It happens. Once you have made your decision to buy fundamentally strong securities, you go to sleep and forget about weekly price swings. Hmm? Dont go and give your heart too much work to do.

[fredski]

Originally Posted by hispy99

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

Not quite to. Lots of REDS on end of day prices

[billions]

Originally Posted by knightofdelta

Relax man... you dont get advice from your broker dealer. You sound a lil bit flustered. It happens. Once you have made your decision to buy fundamentally strong securities, you go to sleep and forget about weekly price swings. Hmm? Dont go and give your heart too much work to do.

Thanks KOD,...enjoy.

[kenebobo]

Originally Posted by billions

I called my broker/dealer...he said i shd not sell.

He is of d opinion dat d market will recover fully in 2-3 weeks.

I agree with your broker. It would take about 2 to 3 weeks for brokers to finalise margin trade agreement with banks after which share price would shoot up as a result of more cash inflow. I wouldnt be entering any position yet until after this week in order to judge the market.

[zainabusman]

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

Apache,

U are right this book is available free of charge. I am downloading it. t would have cost me $54 plus postage. Thanks.

[Michael]

Originally Posted by knightofdelta

Relax man... you dont get advice from your broker dealer. You sound a lil bit flustered. It happens. Once you have made your decision to buy fundamentally strong securities, you go to sleep and forget about weekly price swings. Hmm? Dont go and give your heart too much work to do.

"Where your Money is there your heart is also"

[hispy99]

Originally Posted by fredski

Not quite to. Lots of REDS on end of day prices

yeah, I saw the bloodshed

[knightofdelta]

Originally Posted by hispy99

yeah, I saw the bloodshed

I sincerely hope that Madam will allow nature to take its course this time around. The bears are shouting it loud and clear that their time is not yet over. Only the gladiators will be able to see this through to the end. Now that we are back to square one...

... it is time to hold on tight to whatever is good in the portfolio and let the bad take a roll.

[Michael]

Originally Posted by knightofdelta

I sincerely hope that Madam will allow nature to take its course this time around. The bears are shouting it loud and clear that their time is not yet over. Only the gladiators will be able to see this through to the end. Now that we are back to square one...

... it is time to hold on tight to whatever is good in the portfolio and let the bad take a roll.

Which banks have the best terms for margin, i heard UBA has quite attractive terms. After the bloodletting one would need some margin to assist recovery.

[knightofdelta]

Originally Posted by Michael

Which banks have the best terms for margin, i heard UBA has quite attractive terms. After the bloodletting one would need some margin to assist recovery.

Margin ke? I can't touch margin with a long pole. They give a restricted list of stocks from which you have to choose and then use the same restricted list from which they draw their collateral.

Well, but I believe that UBA has the best margin facilities in town. You can trust them to really deliver the goods in a timely and professional manner.
I think you should just go ahead and use UBA... because some of the interest you will pay will end up as part of my dividends in the long run

[Michael]

Originally Posted by knightofdelta

Margin ke? I can't touch margin with a long pole. They give a restricted list of stocks from which you have to choose and then use the same restricted list from which they draw their collateral.

Well, but I believe that UBA has the best margin facilities in town. You can trust them to really deliver the goods in a timely and professional manner.
I think you should just go ahead and use UBA... because some of the interest you will pay will end up as part of my dividends in the long run

You will be surprised how cheap some of those stocks are on their list. I am sure GTB, Oceanic fall on most lists and one should be able to find a list with sterling and skye bank. And remember Prices are still falling. If there is anytime to use margin, it is now.