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Stocks / Shares Investors Which Way Forward? As The Nse Is Crashing Gradually.

With the recent accusations and counter accusations by investors,CBN,banks,Nse, and others on who is the cause of the sudden CRASH in the stock market i wonder the way forward (if there will be any).

The sad thing is that you dont even know where the pendulum of facts wfinding will swing next. after soludo accusing the banks of fraudulent account statements and the banks blaming the regulatory agency i wonder what is the next HOPE for investors both old and new.

But one thing is certain most investors are selling off and returning into the real estate sector where the risk is not only minimal but the returns and trememdious. they said the best place to put your money and sleep with both eyes closed is in "bricks and water" (real estate).

Na GOD go help us for naija, where they always tend to block aveue where the average man can eat and also become rich from there.

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34 answers

Learn the tricks of how to recover your investment in a down market.

Find out on this site i discovered www.nigerianstockmarketsecrets.blogspot.com

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Investment is a risk meant only for the rich.  The poor wil always get poorer because they can't match the rich in terms of insider information. That's why they form the majority of speculators who fall to the gimmick of the rich.  The rich (investors) buy more when the market is down and sell when the market is upbeat. The opposite is true for the poor.

They dispose their wealth when they should have kept it. Real and Great wealth is really changing hands as the poor are dumping their future fortunes for rich who are well oiled in the business of manipulating events and the media. We are now experiencing the power of FEAR as a major determinant factor of where the market swings.

My advice is that any serious mind should adopt the attitude of Warren Buffet and invest like him at this period.

Stock investment wins all the time over long term. Let it crash. The law of cycles will ensure that it rises again.

Position yourself for potentially profitable listings showing up at the market this season.

You can check http://nigerianstockmarketsecrets.blogspot.com for details.

Cheers

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any serious busness person shuld hook me up on stock

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Anyone out here with news on equity assurance stocks and oceanic banks' too

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my dear friend advise ur client to buy in secondary market not public offer. and tell me more abt stock and d name of ur film.

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i am presently working in a stocbroking firm and based on my various research, this is the best time to buy. i will also like to advise investors to give a time frame of at least a year for them to recoup their investment. investors should also buy into stocks with good fundamentals such as firstbank, oceanic and dangote sugar. these stocks are currently undervalued. best of luck as you invest.

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Nse is a market it tende to go up and down but apply a law that involued moving your money out from the market when ever you make profit but keep your capital busy

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Warren Buffet once said: "It's only when the tide goes out that you learn who's been swimming Unclad". Share price should respond in relation to performance of a company, in this case response is elastic. Early this year share prices have been plastic. (yielding Point)

Obeying the simple law of physics We at the yield point for share prices we are expecting it to break. companies that have been swimming Unclad will go down the drain , while others will bounce back.

Our financial world today is based on counterfeit money ( Money not backed up) brought about by corrupt governments and politicians ,so as to deceive, rob and enslave its citizens. The counterfeit money was invested in equity. This created a bubble in price. The bubble will soon burst

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Its not a joke ooh!! I dont know too much about how the Stock Market works but i know i am losing money i cant even try and sell anything now or else i would lose so much

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U guys shld just kip ur cool as d mkt will soon maq a rbound.

Recovery Continues as Stock Market Gains N355bn

, NSE set to de-list inactive firms

By Goddy Egene, 08.29.2008

Investors continued to smile yesterday as share prices firmed up further, two days after the Federal Government and other stakeholders in the nation’s capital market intervened to stem the bear run that started last March.

As at the close of trading yesterday, the Nigerian Stock Exchange (NSE) market capitalisation added another N355 billion to close at N9.443 trillion, up from the previous day’s value of N9.088 trillion.

The gain, which translates to 3.9 per cent, brings to N635 billion the total value the intervention has added to the market. In all, the market has recovered by 7.2 per cent in two days, even as experts say further recovery is expected in the days ahead.

The NSE All-Share Index moved the same northward direction yesterday, adding 1,739.42 points to close at 46,312.27. Before the recovery measures were announced on Tuesday, the market gauge was 43,199.47. But it rose on the waves of the palliative measures to close at 44,572.85 on Wednesday before inching up by another 3.9 per cent to close at 46,312.27 yesterday.

To show the dominance of the bulls in the market, 84 stocks recorded price appreciation of between five per cent and two per cent, while only four stocks lost value ranging from 0.9 to 0.8 per cent.

The government had to intervene after the market had lost about 30 per cent of its value within a period of five months. As part of the measures announced by the government, an Advisory Committee was set up that will meet regularly and review the performance of the market. There was also a reduction of market operators’ fees; introduction of a capital market stabilisation fund; review of the country’s liquidity situation; a review of trading rules and 20 per cent buy-back of shares by companies.

The National Coordinator of the Independent Shareholders Association of Nigeria (ISAN), Mr Sunny Nwosu, whose association had organised an international workshop on share buy-back in Abuja last June, commended the proposed rule to allow companies to buy back 20 per cent of their shares.

“This is a good development and has vindicated ISAN’s position. Share buy-back has many benefits of giving investors more value for their investments. We are willing to assist the government on its implementation because we have adequate information on how it can be done successfully given the experiences from other countries. Experts who came from all the world during that conference exposed us to how share buy-back can be handled. ISAN is willing to assist because the market must not be left to fall,” Nwosu said.

Meanwhile, the NSE is set to delist moribund companies from the market as part of measures to cleanse it and restore investors’ confidence.

The Director-General of the NSE, Prof. Ndi Okereke-Onyiuke, told the News Agency of Nigeria (NAN) that no fewer than 19 companies are likely to be affected by the delisting exercise.

The companies include 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 and 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.

While some of the companies have been inactive over time, Okereke-Onyiuke said that the NSE had to follow due process that is involved in de-listing all failed quoted companies.

"As an emerging market, we had quietly intervened by assisting some of the companies which accepted our calls, shared their problems with us and today are doing fine," she said.

She noted that Champion Breweries Plc, Impresit Bakalori and RT Briscoe are among companies that took advantage of the earlier interventions of the NSE and are today back in business and meeting their obligations to the investors.

Market operators had commented on the recovery measures put in place by the government. For instance, Mr. Jibola Odedina, of Marina Securities Limited, supports the one per cent limit on downward movement of share prices. He described it as a measure to forestall sudden price falls that could shock the market.

Odedina believes the package of measures is capable of restoring confidence in the market and suggested that a little investment in the stabilisation fund would help in delivering the desired results. He also believes that the market makers to reduce wild fluctuations in market prices could be found from among existing stockbrokers.

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i think stocks of the NSE market have been overbought.

what is currently happening is what is called retracement. it is a natural phenomenon.

prices will fall to stable point and then begin to rise gradually again. you can calculate that stable points by using fibonnaci series.

wait till prices fall to those points. then buy and see yourself become a kazillionaire.

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The market is correcting itself, basically. The wind of speculation (margin trading) that has been sustaining the bloated baloon that is our NSE could not be sustained for ever.

Those who are in for short term gains will panic but those who are in for the long term and can wait it out i.e. no emergency cash needs that obliges you to sell won't lose out.

Also, fundamentally the NSE was riding on hot air as the fundamentals of the Nigerian economy are not strong and solid enough. AN economy where a Minister says there is 80% unemployment, the Organised Private sector says factories are operating at less than 40% installed capacity and where income distribution is skewed to the very rich without a large and viable middle-class as well as Small Medium Enterprises is bound to end up in trouble sooner or later. That does not include factories that have been turned into churches that mostly depend on sent-downs from Europe and America that is not supported with local production/productivity. Ther eis just so much that we can do through buying & selling.

Moreover, for as long as we prefer imported goods including toothpicks rather than locally produced goods our economic fundamentals will remain in shambles. Add to that the leakage of politicians and corporate executives stashing money away abroad.

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Na The forces of Demand and Supply at work.

For all the price increases are as a result of broker's manipulation, never based on company's performance/ result.

The Govt. should allow the prices to fall to their real values.

By trying to prevent the fall, the Govt is being elitist in her thinking.

No be dem they talk of free market economy.

Na sooooooo.

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lt is really not funny, l'm watching my inestment crumble

My hard-earned money,

Hope FOREX will not also crash like this one day

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NSE MARKET UPDATE

DG NSE, Ndidi OkerekeThe Federal Government’s intervention on Tuesday in the capital market impacted positively yesterday as market capitalisation gained N280 billion on the first day after the new measures.

The nine-point measures were announced after an emergency meeting of the stakeholders and government officials in Abuja on Tuesday. The meeting, among other things, allowed quoted companies to buy-back 20 per cent of their shares and reduce transaction cost by 50 per cent.

A 16-man presidential advisory team was also constituted to stem continuous depreciation of prices of equities on the exchange. The Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE) were also asked to take administrative steps to stem the rate of new listings until the market stabilises. The NSE was also asked to review its rules and regulations and peg maximum downward limit on daily price movement at one per cent.

The intervention came after the stock market lost more than N3.43 trillion from March. The market yesterday appreciated by 3.2 per cent . At the end of the day’s trading, market capitalisation grew by N280 billion to close at N9.089 trillion from N8.809 trillion recorded on Tuesday. The All-share index also grew by 1,373.38 points to close at 44,572.85 from 43,199.47 recorded on Tuesday.

Chevron led the gainers chart, chalking up N20 to close at N420 per share. Oando gained N5.77 to close at N121.30 per share while the Nigerian Breweries share price appreciated by N2.15 to close at N45.16. Mobil Oil led the price losers pack, shedding N3.62 to close at N359.28 per share. RTBriscoe share price depreciated by 19k to close at N19.29 while Berger Paints lost 11k to close at N11.49 per share. The Banking sub-sector was the most active with 682.84 million shares worth N12.72 billion traded in 4,476 deals. Afribank accounted for the bulk of the transactions in the sub-sector with 358.65 million shares valued at N8.07 trillion traded in 131 deals.

The Insurance sub-sector followed with 191.33 million shares valued at N240.83 milion traded in 1,146 deals while the Mortgage sub-sector had N117.47 million invested on 42.95 million shares in 157 deals. In all, investors bought 1.05 billion shares worth N14.87 billion in 8,672 deals. Briefing stockbrokers yesterday on the outcome of the stakeholders’ meeting held Tuesday in Abuja, Director-General of the Nigeria Stock Exchange Prof Ndi Okereke-Onyiuke urged them to cut transaction costs.

"Everybody have to come down as a sacrifice for the survival of the market. Even on our part, it is a painful decision because from this percentage we will pay salary. We have even cut down our fee on secondary market to 0.5 per cent last year, all in a bid to stabilize the market," she said. She said the problems in the market were caused by "alien policies. I can tell you categorically that all the fundamentals and parameters of the capital market are still very strong. But I want to tell Nigeria investors that the response of the market to decision taken in Abuja on Tuesday will be gradual.

Price will go up but Nigerians should not expect a miracle on the upward movement of price and again it not likely that all the stocks will rise." Meanwhile brokers who spoke to Daily Trust on the development in the market hailed the decision of the federal government to intervene. According to Ahmed Musawe of the African Capital Management, the intervention would rekindle investors’ hope in the sector and that fresh investment would come to the market. He said a lot of people were scared because of persistent declining in share price.

Also, John Osuoha of Bringforth Investment Limited said what government did was right. "Government intervention in situation like this is not new. It happens around the world. People get scared because this is the first time investors will experience share drop in Nigeria," he said.

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MY FELLOW NAIRALANDERS,

THIS IS THE BEST TIME TO BUY.

PLS DONT DUMP UR STOCKS, INSTEAD, U BUY MORE.

CHEERS

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i say it all the time, and i will say it again,

stock market is supposed to be for the players who have the mind.

its a risk investment,

u win some, u loose too.

now and i repeat, that now is the right time for long term investors.

when the market picks, ur profit margin within a short period will be unbelievable.

take it from me. its my profession.

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the stock market will only crash if the government want to stop functioning.

the market remains the back bone of the economy so the normal oscilatary movement will remain.

those that had the mind to buy few days ago might exit tomorrow with about 25 to 35% returns.

hope you all are buying big time.

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What do u xpect to happen to d market wen the DG-NSE was bizy gallivanting, sourcin 4 money for frivolous pursuits instead of tacklin the real issues.

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The stock market has been in alot of boom for a while, its stands to reason that there will be a period of falling prices. Why should anyone panic? Precautions just have to be taken to prevent it from going beyond control.

I like what the minister Shamsudeen Usman said as per not allowing the market price of a share to fall by more than 1% in a day. That's a good move by the government & a quick one at that.

In fact, this is the best time to buy shares, when the prices are low. So investors take advantage of this period & ask for professional advice before buying any shares.

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My advise is to invest in business not shares. Shares should be a secondary investment. Making shares your main investment is like driving a car without steering. you are not in control!

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The NSE at the moment is a bad dream to investors and a nightmare for that tribe of wise men called margin traders who borrow huge sums at considerable interest to trade.

I have often heard people say the downturn is an opportunity and a good time to buy, I say not this one. Take your money and run.The confidence the market has especially with foreign investors is at an all time low.

When the ill wind changes direction we will know and peeps will be on time. Meanwhile time to siddon look. Someone set his benchmark at 39000.Great guide.

There is no doubt that the market will rise again. But what u have to note is that when you have these crashes it is people, individuals, persons who bear the brunt. There can be serious social consequences.

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Its called the CREDIT CRUNCH. It is happening all around the world. In the UK at the moment everything is expensive, the real estate is crashing fast in the UK and all around the world. It would not settle anytime soon but it will surely settle down later. KEEP FAITH.

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Has someone read Nigerian newspapers today?

Maybe you need to check this out and see what is happening with stocks presently.

http://www.punchng.com/Articl.aspx?theartic=Art200808282524365

Hope this will bring a new turnaround!

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there have been 4 great depressions to the american stock market,

the japanese stock market also experienced its share.

just to mention a few.

the nigerian stock market is goint through a face alot of other markets have experienced.

come to think of it, the nigerian market have been able to weather the storm for a long time now,

and beliv me alot of professionals have anticipated this long ago.

the market will surely bounce back, and it wud be stronger and better.

this my dear is the right time for long term investments.

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Moderation in everything we do is the key! Even in the stock market!

Make una dey buy anything wey una see small small!

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i believe it will definitely bounce back.

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it all depends on ur motive for investing in the stock market, if u are a speculative investor,it's not a good place for u.however,if u are investing for long-term,it's the place.pple have the notion that the STOCK MARKET is a place to go if u want to become millionaire overnight.VERY WRONG.

there is nothing that goes up that will not come down.the stock market has been very bullish in recent years,so it must have its downward trend.It's a global issue.NSE is not the only market that experiences these challenges.

Comparing real estate with stock market is not that much of a comparison because they are different sectors.Real estate investment is not liquid investment.If u need money urgently,u cant get it through real estate{u probably wait for like 1 month] and that might undo ur plans.however,stock market is very liquid.

So friends,NSE will surely bounce back.it's just a good time to buy if u have money as the prices will start rallying pretty soon.I have personally lost about 10m,so have i made about 25m in the past.HAKUNA MATATA,

DONT RUSH OUT AS U MIGHT NOT HAVE THE OPPORTUNITY OF ENTERING AGAIN.

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NSE is doing the elliot wave, We've not seen d worse yet take itfrom me.

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hahaha crashing or crashed?

Abeg I guess the NSE is recovering the upward trend  noticed this week is sustained

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Wait until the NSE reaches 39,000. If it reaches that and then begins a real uptrend, then you can say the crash is over.

Until then, anything you see is a worthless bounce, a suckers' rally.

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i believe the crash in the NSE wont last for too long.

Dont be too quick in bailing out.

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i want to ask this question? is this the good time for buying stocks

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