MarketWatch

[hispy99]

Originally Posted by BLUEMONEY

Maybe the D.G & Co have placed certain Targets that the market must Achieve before they finally declare that it has fully recovered. As for the Bear Run, I agree that it was Unnatural & Unrealistic.

Previous Bear Runs in the market at least respected Good Fundamental Results from companies when they are released sometimes from 3 days to like 1 week but this One was really Unusual Maybe due to some of the factors that we have Pointed as Agents of the Bear that where not there Years back.

When Prices where going up it would have been unfair to introduce 1% cap on upward movement because though some of the stocks were overvalued while others where seriously been manipulated, the market was still responding to Good Results from companies.

To Reduce the manipulation of stocks they introduced the 100,000 unit Rule that unfortunately has backfired and I was suprised it was not Reduced to like 50,000 in thier August meeting.

bros, I do not agree on this one. Why is it unfair to impose a 1% cap on stocks when prices were irrational but it's ok to impose a 1% floor on downward movements when stocks are priced "cheaply"? The reason is because everyone is happy when prices are going up even if prices reach unrealistic levels, so no one will support a price cap.

Just like there were some companies that had relatively good valuations in the go-go period, there are several companies that are still overpriced as of today.

[hispy99]

Originally Posted by ntom

the 1% maximum fall is not the cause, it is not needed in the first place, the trust that left the market is back, maybe u have not notice no body whats to sell, every stock is gaining 5%, the fear is gone, if u have money better buy now, if u are lucky to see a seller

the 1% might not be the sole reason, but it is part of the reason for the recent bull run because as an investor, i know that if i buy a stock, my downside risk is small compared to my upside return.

[hispy99]

NSE set to delist 19 companies
By Agency Reporter
Published: Friday, 29 Aug 2008
The Nigerian Stock Exchange is set to delist some moribund public quoted companies, the Director-General, Prof. Ndi Okereke-Onyiuke has said.

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Onyuike Okereke

Okereke-Onyiuke, who stated this in Lagos on Thursday, said that the proposed delisting was in line with the ongoing internal cleansing to strengthen and re-invigorate activities at the market.

The News Agency of Nigeria reports that no fewer than 19 companies are likely to be affected by the delisting exercise, which would have been carried out long time ago, but had to be delayed because of the continuous slide in the fortunes of the market.

Some of the affected companies are Onwuka Hi-Tek Industries, Tate Industries, Foremost Dairies Plc, Beverages (West Africa) Plc, Universal Trust Bank, Premier Breweries Plc, Udeofson Garment Factory, Intra Motors Plc, Albarka Air Plc, Aboseldehyde Laboratories Plc, Maureen Laboratories Plc and Christlieb Plc.

Others are Amicable Assurance Plc, Security Assurance Plc, Sun Insurance Plc, Nigeria Sewing Machinery Manufacturing Company Plc, Stokvis Nigeria Plc, Nigerian Textile Mills Plc and Enpee Industries Plc.

NAN recalls that a stakeholders meeting held in Abuja on August 26, under chairmanship of Vice -President Goodluck Jonathan, had agreed on some interim measures to check the persistent downward movement of prices of stocks at the market.

The measures, which took immediate effect, include a 50 per cent reduction in cost of transactions, strict enforcement of listing and post-listing requirements, zero tolerance for all market-based infractions and one per cent downward limit on daily pricing of equities.

[hispy99]

Firms raise N700 billion through private placements
By Gbenga Agbana

PRIVATE placements as a vehicle for raising funds from the capital market recorded significant transactions between October 2007 and this month, as about N700 billion was raised through 320 private placements by various companies.

Reviewing the current events in the market with financial journalists, the Managing Director of BGL Limited, an investment company and issuing house, Mr. Albert Okumagba said that a large chunk of the fund came from the secondary market segment of the capital market.

He, therefore, urged the regulators to the capital market to relax the rules governing the market, especially private placements to encourage companies which raise money through that means to come for listing on the stock exchange, so that the funds withdrawn from the secondary market could come back.

His words: "From October 2007 to date, about N700 billion has been raised through about 320 private placements. A significant amount of these monies actually came from the secondary market. This is a positive development since most companies will move to the official market after the private placements."

He continued: "About 50 per cent to 75 per cent of the 320 companies raising shares privately will become listed within 12 months. However, we have a situation whereby a large number of private placements are yet to be listed and as such the monies are yet to return to the secondary market.

"The NSE should endeavour to review its listing requirements and reduce costs considerably so as to attract all or most of the 320 companies to become listed on the Exchange. This will assist in the achievements of the target of 1,000 listed companies within the next 24 months.

"Accordingly, NSE should allow companies to list by introduction at prices that the companies (issues) and issuing houses/financial advisers professionally determine and allow market forces to accept or reject the price by their market actions."

On when the lull in the capital market would be over, Okumagba assured investors that the market would recover soon.

"We should expect a rebound soon. The market has assumed a new level after the long bearish period and many of the blue chip stocks are currently trading below their fair values. We expect the market to recover in the medium term given a renewed up-tick of real economic activities in the country.

"What can turn around the market is a change of the bandwagon "sell propensity" by investors into a "buy mentality." It is the collective action of investors buying that will market the rebound."

[Babs_O]

This Obama plan for Oil is dagerous for the NSE. That is less dependence on Oil and forging vigorously on renewables. If this his plan works out our NSE ASI may end up having the same trend like Japan Nikkei in the next 10 years. i.e. ASI may be 30,000 by year 2020. However with prayer they won't get alternative to Oil because of Nigeria's fragile economy. Amen.

[hispy99]

Originally Posted by Babs_O

This Obama plan for Oil is dagerous for the NSE. That is less dependence on Oil and forging vigorously on renewables. If this his plan works out our NSE ASI may end up having the same trend like Japan Nikkei in the next 10 years. i.e. ASI may be 30,000 by year 2020. However with prayer they won't get alternative to Oil because of Nigeria's fragile economy. Amen.

Alternative energy has been a topic since time immemorial . Alternative energy is loved by democrats who are envirnonment friendly, but don't worry, nothing will happen anytime soon...oil still reigns supreme

[dannynoko]

Originally Posted by Babs_O

This Obama plan for Oil is dagerous for the NSE. That is less dependence on Oil and forging vigorously on renewables. If this his plan works out our NSE ASI may end up having the same trend like Japan Nikkei in the next 10 years. i.e. ASI may be 30,000 by year 2020. However with prayer they won't get alternative to Oil because of Nigeria's fragile economy. Amen.

Babs_O- I don't think you need to be afraid of Obama and his plans. Is a political promise and we will see how far he can go with it, which I don't doubt his sincererity. Also, actually,that is what it means to have a vision by its leaders. If I may ask, what has your Naija Govt been able to do with the money they realized from oil, given what the prices of oil are before and right now?. If we are sincere with ourselves, we should not jitter when another country seek ways to better their lots. Do you know what Obama and his people are going through with the reliance in oil when prices peak?.........Well, I think we need to start thinking of how to make good use of the oil money and diversifying our economy incase other countries sneezes, than reliance solely on oil.It wouldn't be a bad thing if Naija leader think ahead like the Americans? Just my kobo opinion.

[donchisel]

Originally Posted by BLUEMONEY

XXCASH will have to sign the check because dimeji_777 wants the money in Pound Sterling. if I sign it, then he will have to manage 50 Naira because that is the only BLUEMONEY in Nigeria.

Permit me to solicite for XXCASH. XXCASh cannot provide the funds b'cos dimeji_777 wants cheque not cash.

I know XXCASH as the kind of guy that pay with Briefcase . Meanwhile many congrats to dimeji.

[riskreturn]

Originally Posted by Babs_O

This Obama plan for Oil is dagerous for the NSE. That is less dependence on Oil and forging vigorously on renewables. If this his plan works out our NSE ASI may end up having the same trend like Japan Nikkei in the next 10 years. i.e. ASI may be 30,000 by year 2020. However with prayer they won't get alternative to Oil because of Nigeria's fragile economy. Amen.

The premise of your comment and prayer is that Nigeria has been and will continue to be better off with oil, which I hardly agree with. Without oil, would Nigeria have been a failed state it is today (variously classified in international policy discussion as a fragile state; a LICUS, i.e. low-income country under stress; and other euphemisms for failed state)? Can we ever envisage a worse situation for Nigeria without oil? Is it in our long-term interest for oil prices to be high? As a saying goes, a maiden is happy to see her breast growing, not knowing that she is rather inappropriately excited (instead of being sober), as that (i.e.e advenmt of puberty) is what would soon send her packing from her parents' house. We seem to be excited by what has and may continue to ruin us, viewed from a longer-term perspective.

[olusolakemmy]

Originally Posted by saidone technology limit

please where is zainaib, she said that market will be better this week, by the time she returns from her exam !

Maybe she has more to say to us.

Zainab, I boiw 4 u ohhhhhhhhh

she said she hope that by the time she finished her exam, the market would have regain it sanity.

she does not have any inside info, although am not her speaker but what i think she utilise is her long standing trading experience in the capital market.

right now, we cant say categorically that market has regain it sanity, the measures seems to work margic, but what about sustainabilty?

people are raising question in the house already that when all the prices hit roof top, will stagnation not set it? cause of the 1% downward peg.

well, we shall see

[hispy99]

does anyone know how trading is going today? Is it still all demand and no supply?

[olusolakemmy]

Originally Posted by ntom

the 1% maximum fall is not the cause, it is not needed in the first place, the trust that left the market is back, maybe u have not notice no body whats to sell, every stock is gaining 5%, the fear is gone, if u have money better buy now, if u are lucky to see a seller

it is normal to want to believe that the postulation of laws of gravity is false anytime there is a bull.

i dont want to believe that trust is back, what simply change the market is their wedsday meeting.

for how long this is going to be effective is what i dont know.

if the 1% is an interim arrangement, hmmmmm, i hope by the time it is remove, the -ve effect wont be more than the +ve effect.

in any case, your portfolio is going up by 5% today because of the several measures they put in place on wedsday.

and the fact that people now know that, when there is crisis, the regulators will gather themself in abuja and reverse the course of event even if it will take changing of goal post all the time.

[Apache]

See IBTC's view on the intervention

[ntom]

my fear about this intervention is if we succeed in pushing this prices up who will have the confidence to buy it, know it is not by demand and supply, or will the continue to buy it when we decide to flood the market with supply, i for see people losing money big time and the big man smiling to the bank

[hispy99]

Originally Posted by ntom

my fear about this intervention is if we succeed in pushing this prices up who will have the confidence to buy it, know it is not by demand and supply, or will the continue to buy it when we decide to flood the market with supply, i for see people losing money big time and the big man smiling to the bank

There is the danger of this happening, which is why it is advisable to be careful and steer clear of illiquid stocks. This current rule makes it impossible for prices to fall below 99kobo(as shown by a member on the sister site). So all stocks priced below will either be on permanent TS, or join the bill wagon and move up.

The 100k rule that was implemented at the height of the last bill run has led to some overvalued illiquid stocks being on permanent TS. If you must trade now, be careful with illiquid stocks.