«Home

NSE Share Prices Are Routinely Manipulated By Insiders?

Insiders Routinely Manipulate Share Prices On Exchange

Insiders routinely manipulate share prices on exchange

[B][I]NEXT Editorial[/I][/B]

[QUOTE]Ndidi Okereke-Onyiuke is not fit and proper to be in charge of our stock exchange, a market that requires transparency and integrity for it to function properly as an engine for economic growth.

But some people can't take a hint.

On Wednesday the Securities and Exchange Commission decided it was no longer going to be a lapdog for Mrs. Okereke-Onyiuke, the long-entrenched director general of the Nigerian Stock Exchange. The SEC, seeking to be the watchdog agency it was always supposed to be, met in Abuja and issued a few directives. One effectively took away from Cash Madam the power to suspend trading in the shares of particular companies, something that had been widely used to manipulate stock prices to the advantage of insiders.

The SEC also pointedly directed that Mrs. Okereke-Onyiuke explain why a company of which she is chairman, the odious and thoroughly disreputable Transcorp, is freighted with non-performing loans to the tune of N75 billion. Quite rightly, the SEC sees this directive as necessary, "given the sensitivity of her position as the chief executive officer of the NSE."

Of course, we have seen no evidence so far that Madam is sensitive to anything. Even as several others who were originally part of the Transcorp misadventure bailed out one by one-- the billionaire businessman Aliko Dangote was one early example-- Okereke-Onyiuke has hung grimly one. She did so even after the top executives of the company, including the chief executive, the jericurled Tom Iseghohi, were detained for several weeks and are now being tried for fraud.

No deal or conduct, however much it fails the smell test, appears unattractive to the stock exchange chief. With no contact or permission from the campaign of then US presidential candidate Barrack Obama, the stock exchange chief rallied her usual self-serving suspects ostensibly to raise money for the Obama campaign, under false pretenses. So embarrassed was our government that Okereke-Onyiuke soon found herself arrested and detained by anti-graft authorities.

It is a measure of how thoroughly compromised our capital market has become that even the arrest of its chief on suspicion of larceny was not enough for the stock exchange council or the SEC to nudge her aside. In Nigeria, no behaviour, however crass or borderline criminal, is unacceptable.

Under Okereke-Onyiuke, our stock exchange has gained justifiable notoriety for gaming the system. It is a place where insiders rule, where ordinary investors have no hope of a fair shake, and where large blocs of shares change hands in smoke-filled rooms without being immediately recorded in the bourse ledgers.

So pervasive is all manner of insider dealing that most foreign investors have thrown up their hands and exited our opaque market. Ordinary investors have been left carrying the can, their pensions decimated, their life savings rendered nearly worthless. To all this Mrs. Okereke-Onyiuke responded with a dismissive wave of her bejewelled hand: no investor has lost money in our stock market!

Not even all those layers of mascara can hide the face of a woman whose time has passed, whose continuing presence in her job has become utterly indefensible, and whose sole redeeming act now would be to spare everyone the trouble of having to fire her.

If Mrs. Okereke-Onyiuke, as we suspect, is too far gone to recognise that her time is up, the SEC must summon the courage to do the right thing.

We are confident that Udoma Udo Udoma, the SEC chairman and a distinguished former senator, will rally the organisation to fulfil its mandate of guaranteeing the market's integrity.

That will not be possible for as long as this woman remains in charge.[/QUOTE]

http://www.234next.com/csp/cms/sites/Next/Home/5446812-182/story.csp

Avatar
Newbie
10 answers

Sorry about that , i have never trusted shares in nigeria from the word go.

1. I did the cost analysis of owning a share and realised that making money from shares is either by becoming an active trader or by owning millions of shares and then depending on the dividends at the end of each business year.

Either i realised that only the rich actually benefit from owning shares, cus shares are not a short term investement but rather a longterm investment that is not advisable unless the person as another source of income for living expenses.

Nigeria is too corrupt for a true stock market, even the so called west fixes shares e.g. Internet bubble, Great Depression, Recent Citigroup/Goldman's Sachs wall street bubble.

As they say: nothing happens by chance , hence in reality price increase is orchestrated by some people and price reduction is also orchestrated by other people, meaning that its only the outsider that suffers cus those who control the market would also make money from being able to manipulate prices. Fortunately for those people price manipulation is considered legal for them but illegal for other people.

I would rather invest in commodities that actually have real intrinsic values rather than make other people rich.

0
Avatar
Newbie

The Stock Exchange Commision are accessory to the fraud. They failed in their duties to provide oversight as gatekeepers of the activities of the NSE. And, occasionally when they do, as in using executive fiat to place technical suspension of the trading of shares of the five beleaguered banks, they are not allowing market forces free rein to dictate the pricing of the shares in the stock exchange market. The stock market is information driven and interference by SEC rubbishes the market the reputation of being a "perfect" market.

0
Avatar
Newbie

That woman is shameless.

0
Avatar
Newbie

no one to regulate the regulators. any oversight committee for the NSE?

just some bunch of thieving folks who call themselves entrepreneurs stealing Nigerians blind.

i do hope she swells and burst one of these days from all those corrupt moneys she's stuffing into her already bloated belly!

0
Avatar
Newbie

hollandis

can't you see the source there already? it was posted there http://www.234next.com/csp/cms/sites/Next/Home/5446812-182/story.csp

0
Avatar
Newbie

The entire thing is manipulated by a cabal that includes the DG,DDG and others

0
Avatar
Newbie

What do u expect from a corrupt Nation and citizens . Every single fibre that makes up Nigeria is corrupted

0
Avatar
Newbie

This is  incompetence, how is this happening under these woman's nose, isn't she supposed to be in charge so as to prevent stuff like this. A lot of companies on the exchange have very very shaky fundamentals that's why they always massively inflate there earnings because they have no strong internal controls?

0
Avatar
Newbie

The issue is that NSE is non existent in Nigeria. We do not yet have a stock market. I wish i knew this before giving them my 500k last year. Pity i didnt realise this on time.

0
Avatar
Newbie
Your answer
Add image

By posting your answer, you agree to the privacy policy and terms of service.