MarketWatch

[hispy99]

Originally Posted by hispy99

NSE blames capital market woes on banks

By Michael Eboh

The Nigerian Stock Exchange (NSE), has blamed the current crisis in the nation's capital market on the unethical and unprofessional conduct of banks who engage in activities that are capable of downgrading investors' confidence.

Blame everybody else...

[hispy99]

Originally Posted by hispy99

NSE blames capital market woes on banks

By Michael Eboh

"Most of the funds that left the market were through the banking sector, and, these funds found their way to the real estate sector among others. What we lacked in the market presently, is liquidity.

I guess the banks should have told people that wanted to withdraw their money and invest in real estate that it was a terrible decision

This woman needs help quickly

[hispy99]

Originally Posted by hispy99

NSE blames capital market woes on banks

By Michael Eboh


She added that NSE had scheduled a meeting of stakeholders in Abuja for tomorrow, and will be attended by the Governor of the Central Bank of Nigeria (CBN), Prof. Chukwuma Soludo.

She expressed optimism that after the meeting, the CBN governor would brainstorm with banks' chief executives on finding a lasting solution to the crisis in the market.

She added that to reduce the impact of the crisis on investors, NSE had put in place measures to ensure that the prices of companies listed on the exchange does not falls below their book value.

And another stakeholder's meeting?

[hispy99]

Proshare | Personal Finance Features and Tools

NSE: Companies not to trade below Book Value

-As Exchange set to review downward price movement

Peter OBIORA

Proshare NI

April 14, 2009 at 15:03 GMT

The Nigerian Stock Exchange (NSE) is expected to review the downward trend of share price movement in the Capital Market as companies are not suppose to trade below its book value.

Professor (Mrs.) Ndi Okereke-Onyiuke, Director General/ Group Chief Executive Officer (DG/GCEO) of the NSE confirmed this today in Lagos Nigeria at the Floor of the Stock Exchange; while briefing the Dealing Members of the NSE and Press on the outcome of the World Exchange congress recently held in Monaco France.

"Adjustments would be made, there is no Stock Exchange in the world; we were told at the congress and every Stock Exchange Executive there acknowledged it and we all have agreed that we would go back and look at the downward movements and ensure that no company listed on a regulated Market like the NSE; should trade below the Book Value" She said.

Following this proposal, a Market Analyst name (withheld) confirmed to Proshare NI that companies' not trading below Book Value as proposed by the NSE was a not too good idea.

"I do not know who gave such an idea to the DG, this will not work well; because some companies would just manipulate and fix their values at whatever price they chose, this trend would be dangerous to the Market" the Analyst said.

Proshare NI sought to find out more on Book Value, gathered from "investorsWord.com" that a company's common stockequityas it appears on a balance sheet, equal to total assetsminus liabilities, preferred stock, and intangible assetssuch as goodwill.

This is how much the companywould have left over in assetsif it went out of businessimmediately. Since companies are usually expected to grow and generate more profitsin the future, market capitalisationis higher than Book Valuefor most companies. Since Book Value is a more accuratemeasureof valuationfor companies which aren't growing quickly, Book Value is of more interestto value investorsthan growthinvestors.

In the same vein, Prof. (Mrs.) Okereke-Onyiuke also confirmed that Carbon Trading would also be introduced in the Nigerian Capital Market (NCM) in due time. "It is a cheap interesting way of increasing securities, activities and liquidity in the Market" the DG affirmed.

[hispy99]

Originally Posted by hispy99

Proshare | Personal Finance Features and Tools

NSE: Companies not to trade below Book Value

-As Exchange set to review downward price movement

Peter OBIORA

Proshare NI

April 14, 2009 at 15:03 GMT

"Adjustments would be made, there is no Stock Exchange in the world; we were told at the congress and every Stock Exchange Executive there acknowledged it and we all have agreed that we would go back and look at the downward movements and ensure that no company listed on a regulated Market like the NSE; should trade below the Book Value" She said.

Following this proposal, a Market Analyst name (withheld) confirmed to Proshare NI that companies' not trading below Book Value as proposed by the NSE was a not too good idea.

"I do not know who gave such an idea to the DG, this will not work well; because some companies would just manipulate and fix their values at whatever price they chose, this trend would be dangerous to the Market" the Analyst said.

Proshare NI sought to find out more on Book Value, gathered from "investorsWord.com" that a company's common stockequityas it appears on a balance sheet, equal to total assetsminus liabilities, preferred stock, and intangible assetssuch as goodwill.

This is how much the companywould have left over in assetsif it went out of businessimmediately. Since companies are usually expected to grow and generate more profitsin the future, market capitalisationis higher than Book Valuefor most companies. Since Book Value is a more accuratemeasureof valuationfor companies which aren't growing quickly, Book Value is of more interestto value investorsthan growthinvestors.

In the same vein, Prof. (Mrs.) Okereke-Onyiuke also confirmed that Carbon Trading would also be introduced in the Nigerian Capital Market (NCM) in due time. "It is a cheap interesting way of increasing securities, activities and liquidity in the Market" the DG affirmed.

First of all, she should tell us which Chief Executives of stock exchange(s) were present (drinking wine according to KoD) in Monaco and which exchange has a system of adjusting equity price to book value.

She has not created liquidity in the market, she wants to start carbon trading...my people, let us remember madam in our prayers, she really needs it.

[Pamelas]

Hi,

Prices can not go lower than the closing price of Friday.
In the 1929 market crash in America,many investors lost over 90% of their money and some committed suicide.
I hope the NSE reverses itself and let us have a free market.

Thanks.

[hispy99]

Maybe my eyes are deceiving me, but NSE is not even a member.

WFE - Member Exchanges

I am "shocked" that a body that would slam the temporary banning of short-selling would condone exchanges adjusting prices to "book value"

http://www.world-exchanges.org/files...2009%20(3).pdf

[hispy99]

NSE creates private placement emerging market department
By Moses Ebosele and Helen Oji

THE Nigerian Stock Exchange (NSE), has establish a private placement emerging market department.

The department, according to the Exchange, would serve as a guide to investors against being deceived by companies who administer private placement as public offering.

The Director-General of the NSE, Ndi Okereke Onyiuke, had earlier blamed some of the losses incurred by investors in the stock market on their involvement in the private placement.

It was against this backdrop that the Exchange creates the department to facilitate this segment of the market, as well as ensure that the interest of investors are protected.

Meanwhile, trading on the shares of some banks and insurance companies, yesterday enhanced the volume of shares traded, as a total of 263.1 million shares, valued at N1.4 billion changed hands in 6,145 deals yesterday, higher than 177.3 million units, worth N1.2 billion exchanged in 5,510 deals in the previous day.

However, the continued share price depreciation suffered by highly capitalised stocks on the equities sector, yesterday brought down the indices by 0.1 per cent, from 19,837.41 recorded on Tuesday to 19,814.92, while market capitalisation dipped by five points, from N4,487 trillion to N4,482 trillion.

The banking sub-sector maintained its dominance in volume terms with 181.7 million shares, worth N1 billion in 3,304 deals.

The insurance sub-sector followed with 33.7 million units, valued at N23 million in 408 deals.

Volume in the banking sub-sector was strengthened by activities in the shares of Wema Bank, which traded 69 million shares, valued at N206.4 million in nine deals, while Intercontinental Bank Plc followed with 23 million units, valued at N156 million in 343 deals.

The insurance sub-sector was energised by activities in the shares of Investment and Allied Insurance Plc with 16.9 million shares worth N8.4 million, while Aiico Insurance Plc followed with N7.6 million shares, worth N7.5 million in 150 deals.

Julius Berger Nigeria Plc emerged the day's highest price gainers' with 110 kobo, to close at N23.10 per share. UACN Nigeria Plc followed on the list with 100 kobo, to close at N30.01 per share. Zenith Bank Nigeria Plc also added 61 kobo, to close at N12.85 per share.

Other gainers' of the day include - Guinness Nigeria Plc, Cadbury Plc, Dangote Sugar Refinery Plc, CCNN Plc, Intercontinental Bank Plc and Nigeria Breweries Plc, adding 49 kobo, 48 kobo, 39 kobo, 35 kobo, 34 kobo and 31 kobo, to close at N88.99, N10.08, N14.70, N7.35, N7.19 and N36.97 per share.

On the other hand, African Petroleum Plc topped the losers' chart yesterday, shedding 403 kobo, to close at N76.71 per share, while Benue Cement Company Plc followed with 116 kobo, to close at N22.80 per share.

UBN Plc, Flourmill Nigeria Plc, Dangote Flourmill Plc, Presco Plc and Constain West Africa Plc also loss 56 kob, 34 kobo, 33 kobo, 26 kobo and 24 kobo, to close at N10.84, N14.65, N6.94, N5.07 and N4.67 per share.

Guardian Newspapers

[hispy99]

NSE to sustain quality of shares listed on day of introduction
By Moses Ebosele and Helen Oji

THE Nigeria Stock Exchange (NSE) has expressed its willingness to determine the quality of shares that should be offered in the stock market on the day of listing by introduction.

This is coming on the heels of the report of the National Committee on Reviews of Capital Market Structure and Processes.

The Committee, chaired by Mr. Adetotun Sulaiman, who is the chairman of Accenture and Cornerstone Insurance Company Plc, was set up by the Securities and Exchange Commission (SEC) late last year with the mandate to come up with solutions that will transform the market into world class status.

The Exchange, in a statement maintained that the recommendation of a downward adjustment of the volume of shares required for trading on the day of listing by introduction overlook the basics of insisting on ten per-cent which the council required the exchange to reduce for companies at the time of listing by introduction.

The Exchange said, "scarcity of shares on the day of listing could lead to arbitrary pricing and market manipulation.

"In any case, the council of the Exchange should be trusted to determine from time to time the quality of shares that should be offered on the day of listing by introduction based on prevailing market conditions," said the Exchange.

The committee had recommended a reduction in the mandatory requirement of the percentage of a company's issued capital made available on the floor of the Exchange at the time of a listing by introduction from 10 per cent to not more than 5 per cent, provided a company had met the minimum requirement on shareholder numbers.

"A well-functioning market ensures liquidity no matter what the issued capital percentage is made available for the first day of trading.

"The price at which recently concluded private placement instruments are listed in the market should be determined by market forces, with the understanding that the market will re-price the securities appropriately once listed," said the committee.

But the Exchange argue that one of the problems with the private placement market in Nigeria today is the fact that issues are administered as public offerings.

"Consequently, the Exchange resolved that the primary market price becomes the ruling price for the purpose of listing as in the tradition for listed companies.

Guardian Newspapers

[hispy99]

SEC Rejects Recommendation for Executive Chairman
By Goddy Egene, 04.15.2009

THISDAY ONLINE / Nigeria news / African views on global news

The Securities and Exchange Commission (SEC) has rejected the recommendation that its Board be led by an Executive Chairman, saying it will negate SEC’s determination to instil good corporate governance in nation’s capital market.

The National Committee set up by the Commission last September to reform capital market had among its 32 key recommendations said that SEC should have an Executive Chairman as opposed to the current disposition where the chairman is leading in non-executive capacity.

Responding to THISDAY’s enquiries that some stakeholders have kicked against that recommendation, SEC’s Head of Media, Mr. Lanre Oloyi, said that the Board of the Commission had actually rejected that recommendation.

He said that in stating its commitment to the implementation of the Committee’s report, the Commission would only implement the recommendations that were approved by the Board. “The recommendation that SEC should have an Executive Chairman, for instance, was rejected and will not be part of the implementation exercise.

SEC has been advocating good corporate governance in the market. We cannot, therefore, implement any recommendation that is inconsistent with the Commission’s goals. We have been advocating that the position of chairman and chief executive of quoted companies should be separated and we stand by that,” he said. Oloyi said that another recommendation that will not be implemented is the further reduction in market fees. He said the fees in the market have witnessed reduction between April 2007 and last August.

The Nigerian Stock Exchange (NSE), had also kicked against any further reduction in charges in the market. Oloyi noted that the NSE had already made its position on the issue known, adding :“We are surprised that The Exchange still went to press despite making its position on the recommendations known to the Commission already.”

He said that SEC decided to make the report public so that stakeholders can make “constructive contributions” before commencing the implementation. “The setting up of the Committee is part of efforts to improve the operational efficiency and transparency of the market. Therefore, all the recommendations cannot just be implemented without weighing their impact on the market and all stakeholders. The recommendation the Board of SEC has approved for implementation will be in the best interest of the entire market,” Oloyi said.

[hispy99]

Originally Posted by citizen

Recommendation 25:
Prevention of manipulation

The SEC should have the power to appoint managers to restructure ailing

Thanks for posting the recommendations

[knightofdelta]

Originally Posted by hispy99

I would like to meet your generous friends. 5% of capital a month? ur own pass hedge fund

It is structured like a hedge fund...

[pegheneji]

Originally Posted by zainabusman

The Index recorded a new 52 week low today when it closed at 19,815. The previous low established on March 30th was 19,825. The Index is now down 37% for the year.

And from the way Madam is hell bent on further undermining investor confidence, the short term direction of the Index is not very promising.

The Insurance sector is on the verge of collapse with 17 out of the 25 stocks trading at their 52 week lows. Is there an opportunity in Insurance? I doubt as there are just too many of them with large number of shares outstanding. Additionally, i see them reporting not so stellar earnings due to their exposure to the stock market and stiff competition from bank owned insurance companies.

FBN is close to its year low closing at N14.02. Maybe there is opportunity there given the recent rise of Zenith after it breached its previous low.

even if she does not carry out her market fixing, the comment alone worse than discouraging and i sincerly hope she did not make that comment. i wish she could bring in some damage control now by probably saying she was quoted out of context, because i will rather dig the ground and put my money in it than this her price upgrade.
it is the worse decition taken so far since the melt down over year ago. because if at N15.00 enough people are not buying first bank to move the price upward by the time you put the price at say N19 then only her and Obe Otudeko will go and buy and peobably put another wedge from falling below that price. when her 1% rule did not work what actually make her think near her present thinking? i am sad.

[waaan5]

Originally Posted by Michael

[/B]You disappoint me to imagine that Madam needs to be misquoted. She can make more than enough gooofs on her own, she really does not need to be misquoted. She has already told you that No exchange allows their stock prices fall below Book Value. You need more faith in madam!

Yea, It is one of those hopeless hopes. Akin to wanting reality to turn out a bad dream. But do you think madam would be allowed to wreck the market that way? I know in Nigeria, anything is possible, but I am counting on maybe just one sane individual who would pointout that moving stock prices up arbitriraily would serve the final death knell on the NSE.

[muranay@yahoo.com]

Originally Posted by waaan5

Yea, It is one of those hopeless hopes. Akin to wanting reality to turn out a bad dream. But do you think madam would be allowed to wreck the market that way? I know in Nigeria, anything is possible, but I am counting on maybe just one sane individual who would pointout that moving stock prices up arbitriraily would serve the final death knell on the NSE.

That her decision on the issue will not see the light of the day.

Her days are numbered in that office.

[knightofdelta]

The current volumes traded on Wema Bank over the past few days have been scary. What exactly is going on here? Does anyone have information that can shed some light on this?

[lordgbengss]

How can everybody here be talking abt the professor like that,mama herself,pls be careful o,well what do you expect to hear when you are given an honorary professorship?......... arrant nonsense.

[muranay@yahoo.com]

Originally Posted by knightofdelta

The current volumes traded on Wema Bank over the past few days have been scary. What exactly is going on here? Does anyone have information that can shed some light on this?

I don't just understand, WEMA BANK has traded over 2billion volume valued at over 6billion as at this moment.

Can somebody please put more light

[lordgbengss]

Originally Posted by knightofdelta

The current volumes traded on Wema Bank over the past few days have been scary. What exactly is going on here? Does anyone have information that can shed some light on this?

Its really crazy,the volume at present is wow! sth is definitely going on as u said.

[pegheneji]

Originally Posted by knightofdelta

The current volumes traded on Wema Bank over the past few days have been scary. What exactly is going on here? Does anyone have information that can shed some light on this?

i learnt from one of the tv programme on MITV on tuesday that an institutuinal investor has accuired about 20% in the process.