Whats the happeninig in the market?

[emeka]

The market looks very bearish, even first bank has slowed down it chase of zenith. What is happpening? Can the gurus in the house explain.

By the way, am new here pls welcome me.

[Survival2006]

Emeka, Welcome,

Nothing unusual is really happening. On a very simple note. Most companies have their final year end in December February, March and April. Many have released their end of year result and quarterly results are coming in gradually. And so expectations are being met one way or the other and so the market reacts same way to these. The Primary market too is churning more and more offers and some have to sell from the Secondary market to take position in these offers. This bearish trend may continue till December. This is a good time to take position in any stock with good fundamentals! For me the NSE is behaving properly. Again you are welcome.

[emeka]

Thanks Survival for that insight. Which stocks (say banking stocks) will you take position in. I want to learn from the gurus.

[udus]

Emeka thanks for thread, i am also worried about First Bank i bought alot from the secondary market at N40.14 during their hybrid offer thinking i would make some gain before the closure date,FBN posted good results but has been losing steam since Friday the 3rd, GURUS advise should i still hold till next week or bail out.

[c kenneths]

I feel happy when graet minds join us in this happy forum, cause potentially this forum is the meeting point of future world leaders, let's coninue to rub minds as to how to lift this nation through enriching our people with ideas, that's our own quota.


As to why the market is heading downn you are all on target since most of the reasons suggested above are correct, the offer are meant to deepen the market, and our people had made millions this year are turning around to buy the offers.

I think this is normal, just look for good stocks and buy, no cause for alarm.

[oseitutu]

Originally Posted by udus

Emeka thanks for thread, i am also worried about First Bank i bought alot from the secondary market at N40.14 during their hybrid offer thinking i would make some gain before the closure date,FBN posted good results but has been losing steam since Friday the 3rd, GURUS advise should i still hold till next week or bail out.

Nice to see you made that move. If I may ask, how much do you want to make before the books close? 40 naira to 50 naira is 25%! If you make that in two months is it not enough? Taking more risk on the market could end you up closer to where you started. I would have exited at 30% if I were you: that would have been 52 naira. Anyway if you can wait longer, the price may get back to closure price after the 1 for six is issued in say 3 additional weeks. Then you can bail out. Otherwise, set sell instruction and move once it hits that price. A lot of speculators use 25% traditionally for this kind of ding-dong rapid move. Then additional 5% transaction costs. that comes to 30%.
Like c kenneths said, the trend in the market is normal. seek what you want and buy, or wait for closure date and buy. That market is NOT heading down. t is only simmering for momentum on the next run. Once again, START YOUR ENGINES!

[Bigboy]

Originally Posted by Survival2006

Emeka, Welcome,

Nothing unusual is really happening. On a very simple note. Most companies have their final year end in December February, March and April. Many have released their end of year result and quarterly results are coming in gradually. And so expectations are being met one way or the other and so the market reacts same way to these. The Primary market too is churning more and more offers and some have to sell from the Secondary market to take position in these offers. This bearish trend may continue till December. This is a good time to take position in any stock with good fundamentals! For me the NSE is behaving properly. Again you are welcome.

Thanks a lot guys. Just joined the site yesterday. Impressive stuff is going on here i tell you. Seems there are a lot of Gurus on this site. I have to confess i am completyely illiterate in the matters of stock buying. My very first experience at stock buying was with the recently concluded First Bank IPO (which my cousin forced me to buy). He is on the ground in Nigeria I am here in Europe; he seems very convinced that the Shares in the banking sector are a good buy. Now he is pesttering me about the Access bank offer. What's you guys' take on this.