Sunday, June 29, 2008

Beginners guide to Nigerian stock market 1

Beginners guide to Nigerian stock market
The idea didn’t just pop out or the moon. You must have been accosted by a stock broker, or from the unceasing adverts of share offers. But at last you’ve decided to invest. Good choice. Nigeria is still currently named among developing countries, but people say this like it’s a taboo. Well for the smart ones, it simply tells you that thee are a lot of untapped market niches available the country’s economy. To invest into the Nigerian stock market or other securities is quite a very critical decision every investor should look well, to leap high. The stock market is the only business transaction that its resource is over 70% untapped. But remember you stand a great chance of profiting unlimitedly in trading in Nigerian stocks, as well as losing every thing you have worked for all your life into the Nigerian stock market just in a twinkle of eye.
This is the main reason why Nigerian stock market is not meant for everybody. People who cant stand market pressure or calculated risk. Success and progress comes with its own price. And the solemn price needed to succeed in the Nigerian stock market is money and information. Neither can be ignored. Therefore before you start investing in the Nigeria stock market, you should re-evaluate you financial status to give you and idea of investment benchmarks you will strive towards.
But with all the cash in the world and the wrong information, you wont go far before your banker starts knocking at your door. So get both and get rich

Treasure Map
For every beginner, before rushing to close your account because of some public offers you heard on the radio, first think of the best way you intend to invest in the Nigerian stock market. By buying equities, mutual funds, bonds. This depends on your knowledge of the trade and the amount of time you are willing to sacrifice for the venture. Secondly, look at visit your banker and determine how much you’re willing to risk in this venture. Yes, you heard me right, “RISK”. I’m yet to see a business with high yield and 100% guarantee returns. After checking your financial status, be sure to start with as little as you can afford, so that you wont loose of your life earnings in one swoop.
To be Continued

Nigerian Stocks, Nigerian Stock News, Investing in Nigeria

Friday, June 20, 2008

FG approves Nipco to operate natural gas filling stations

The Federal Government has granted approval to Nipco Plc to operate natural gas filling stations as fuel for cars in Nigeria. The innovation by the company has finally boost the  campaign by the Nigerian National Petroleum Corporation (NNPC) that private investors should invest in downstream gas utilisation projects especially the construction of natural gas filling stations which has failed to attract investment by major marketers.
Mr. Girish Sanadhya managing director, Nipco Plc confirmed that the approval granted by the government to improve the utilisation of compressed natural gas (CNG) will assist the company to embark on the construction of natural gas filling stations in Benin, Edo State during the pilot scheme. The project, according to him is expected to commence at the sites acquired by the company on completion of feasibility studies and approval of capital required to finance the construction. “As part of our contribution to the nation’s economy, we have decided to launch the project so that the dependence on fuel importation will become a thing of the past and annual expenditure of fuel subsidy would be used to finance viable development projects in the country by the government to make Nigeria one of the leading 20 economies by 2020 in line with Vision 2020 goals,” he said.
Sanadhya noted that the company is expected to spend   N7.02 billion on all its downstream gas projects being executed in the country. In this case, he disclosed that $50 million (about N5.85 billion ) out of the budget would be committed to implementation of its liquefied petroleum gas (LPG) project and  N120 million on the  natural gas filling stations. “On completion of the pilot scheme in Benin, we have carried out studies that would enable us to introduce the use of natural gas as fuel for cars in Port Harcourt, Ibadan, Kano and  Abuja before coming to Lagos”, he noted.
According to Sanadhya “the success of natural gas as fuel for city bus in Delhi India could be replicated in Nigeria if necessary support is provided in line with the commitment of the Federal Government to earn the same level of income from natural gas as in crude oil by 2010. “It is possible that the initial cost of conversion of a car engine to dual fuel consumption system may be high as N120,000,. but the spread of the cost over a given period of the life of the car engine shows that it is better to  utilise natural gas as fuel instead of premium motor spirit (PMS) and diesel”.
He added that filling stations of independent marketers have also been identified as distribution points of LPG so as to improve its utilisation in rural areas. He noted that four workshops are expected for completion so as to assist in reducing cost of conversion and carry out maintenance of dual engines to use natural gas.
The introduction of gas filling stations in Nigeria implies that environmental pollution from burning of liquid fuel will reduce and it will assist the federal government to comply with the Kyoto treaty aimed at reducing global warming. Besides, the introduction of natural gas as fuel for cars will improve the fortunes of independent marketers operating in the country as drivers of the project and also encourage investment in gas gathering projects by multinational oil producing firms so as to bring an end to flaring on their oil fields. 

Nigerian Financial News

Nigerian Stock Quote

Thursday, June 19, 2008

Stock losses take toll on NSE

The Nigerian stock market witnessed share price depreciation for the second consecutive day in the week as bears take toll.
The negative outlook was attributed to the low performance of the banking sub-sector which is one of the most highly capitalized stocks on the exchange.
The volume traded in the banking sub-sector rallied down yesterday bringing the total volume at 142.11 million ordinary shares worth N3.16 billion in 6,865 deals compared with 295 million shares valued at N5.39 billion exchanged in 7,935 deals on Monday.
The market capitalization of the equities opened at N11.416 trillion, dropped by N297 to close at N11.119 trillion, representing about 2.60 per cent.
In the same vein, the All-share index equally depreciated by 2.60 per cent to close at 57,101.72 index points.
Sixty-seven stocks depreciated in price led by Oando Plc with N10.60 to close at N201.40, Benue Cement Company followed with a loss of N2.47 to close at N46.93, Flour Mills shed N2.36 to close at N87.49and Ashaka Cement lost N2.22 to close at N42.37.
Other losers’ on the chart include Zenith Bank with N2.20 to close at N42.30. Intercontinental Bank fell by N2.13 to close at N40.62, Lafarge Wapco depreciated by N2.00 to close at N51.00, First Bank of Nigeria (FBN) slipped by N1.85 to close at N38.10, Ecobank Transnational Incorporated (ETI) lost N1.76 to close at N47.92 while Dangote Sugar Refinery depreciated by N1.58 to close at N30.41.
Also, Union Bank of Nigeria (UBN) dropped by N1.48 to close at N35.32, Platinum Habib shed N1.39 to close at N26.46, Costain (WA) fell by N1.36 to close at N25.92 while Guaranty Trust Bank (GTBank) and Oceanic Bank lost N1.28 per share to close at N24.41 respectively.
On the other hand, eighteen stocks appreciated in price with Mobil Oil Nigeria gained N9.37 to close at N196.87. Guinness Nigeria came second with a gain of N1.80 to close at N130.00, Eterna Plc added N1.66 to close at N34.92 and Presco Plc grew by N1.39 to close at N29.39.
Also, Dangote Flour was up by N1.36 to close at N29.05, Longman Nigeria gained N1.20 to close at 25.20, Afribank Nigeria appreciated by N1.10 to close at N25.30, Access Bank rose by 89 kobo to close at N18.69 while Berger Paints climbed up by 67 kobo to close at N14.08.
Analysis of transactions on the Nigerian Stock Exchange (NSE) showed the insurance sub-sector as the most active leading with a total turnover of 724.15 million shares valued at N1.47 billion in 3,357deals, banking sub-sector came second with a turnover 142.11 million shares worth N3.16 billion exchanged in 6,865 transactions, construction sub-sector followed with a turnover of 10.59 million shares valued at N290.35 million in 701deals and conglomerates sub-sector ranked fourth with a turnover of 7.80 million shares worth N68.68 million 439deals.
Food/beverages and tobacco sub-sector recorded a turnover of 7.18 million shares valued at N170.77 million in 970 transactions, airline services sub-sector had a turnover of 5.99 million shares worth N25.80 million in 271 deals while agriculture/agro-allied sub-sector came behind with a turnover of 3.56million shares valued at N86.60million in 187 deals.


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Nigeria Stock Tips

Wednesday, June 18, 2008

Fate of Nigerian Stock Broking Firms

As the December deadline of the one billion naira capitalization stipulated by the Nigerian stock exchange commission draws near, many Nigerian stock broking firms are embarking private placement to source additional funds from specific members of the public. The Nigerian stock exchange has foreclosed listing of any dealing members as a quoted company on the Nigerian exchange.
This is raising chills over and fears that many of the Nigerian stock broking firms might get booted out of business due to their inability to meet up with the given deadline date. Already the Nigerian federal ministry of finance is insisting that there is no going back on the recapitalization and the deadline given. The Director-General of Nigerian Stock Exchange Director General, Ndi okereke Onyuikethe Nigerian Stock Exchange, Prof. Ndi Okereke Onyuike, has criticized  the move, saying that it wont be proper for Nigerian broking firms who trade on stocks to get listed and also trade on their shares. She went on to suggest that rather, these firms should raise money from the public and establish corporate establishments using different names that would be forwarded to Nigerian stock exchange for council. She also disclosed her fear on the fate of brokerage firms that deal on small investors, as this will cause their closure since the Nigerian federal ministry of finance has an aim of reducing the about 208 brokerage firms to 100. The Director-General noted that no company will be forced by the Nigerian stock exchange to merge or acquire another company as was the case in the banking sector. But she warned that companies that does not meet the deadline as stipulated by the ministry of finance will have her license revoked.

Nigerian Stock News, Nigerian Daily Stock quote

Tuesday, June 17, 2008

CBN lists conditions for foreign investors in banking industry

The Central Bank of Nigeria (CBN), has emphasized that foreign investors will not be exempted from complying with the Federal Government’s policy on N25 billion minimum capital for any bank operating in Nigeria.
Mr. Festus Odoko, head of corporate affairs, CBN, said yesterday that foreign investors are fully permitted to invest in existing Nigerian banks provided they meet the minimum capital requirement and other regulatory conditions for procuring a banking licence as stipulated by the apex bank.
According to the CBN, any foreign individuals or institutional investors could also invest in existing Nigerian banks.
However, Odoko noted that there is a condition that no single foreign individual or institutional investor should acquire more than the share of the single largest Nigerian individual/institutional investor in any bank. The condition remains, provided the aggregate shareholding of the foreign investors do not exceed 10 per cent of the total capital of the bank.
Mr. Alderman Lewis, the Lord Mayor of London, was quoted during his recent visit to Nigeria, as saying that the Nigerian government is not opening up its banking system to foreign competition.
The CBN said there is need to explain the position of government following the comments credited to the United Kingdom representative. Under the present condition for operation in the country’s banking system, the apex bank states that foreign banks could acquire or merge with a local bank existing in Nigeria.
Such a foreign bank, according to CBN’s policy, however, must have operated in Nigeria for at least five years and established branches in at least 2/3 of states of Nigeria excluding the state capital.
The CBN equally stipulates that the foreign bank or investors’ shareholding arising from the merger or acquisition of a local bank does not exceed 40 percent of the total capital of the resultant entity.
The apex bank clarified that existing shareholding structure of Nigerian banks in which there are foreign interests in excess of 10 per cent might subsist but such foreign interest should not exceed the current level.

Nigeria Stock News
Nigeria Stock Exchange Daily Quotation

Sunday, June 15, 2008


Penny stocks are low priced speculative securities of small companies regardless of market capitalization. Penny stocks are also referred to as microcap stocks, small stocks or nano stocks. Most new securities currently in the Nigerian stock exchange were one time penny stocks before market capitalization changed all that.
Several Nigerian investors get attracted to penny stocks since these stocks are priced low. However, financial experts consider penny stocks as high risk investments. They can create enormous amount of wealth within short time and can also result in heavy losses within days. But isn’t that what business is all about, the higher the risk the more the profit. Penny stocks have the potential to get doubled or tripled within days or weeks. And since they are in low denominations, with a few thousands, you can turn to a millionaire. But remember, apart from this, there are other risks involved including limited liquidity, high degree of volatility, lack of reporting and increased vulnerability to manipulation by management and market makers.
So if you want to try out you 2008 blessing you got since 1st jan that you haven’t seem to experience yet. Check out these little meager stock at our updated stock quotation. But remember, they are quite risky. So be mindful of how much you put in, don’t let the get rich quick syndrome get the better part of you.

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Wednesday, June 11, 2008

Kinds of Nigerian Stocks

Blue Chip Stocks:
Consists of the oldest continuously profitable companies that are more than 100 years old. They have the lowest risk and lowest gains.
Growth Stocks:
They are those stocks that are expected to have superior earnings. They usually don’t pay dividends because they reinvest their earnings for growth. Their share price can increase dramatically while in their growth stage. When they have a setback for some reason, their price can also go down dramatically. You must be ready for these possible price fluctuations.
Speculative Stocks:
A stock is considered speculative when the chance of losing you money is small. And at the same time the chances of making a fortune is equally small. This happens when a company that has little or no financial history comes to the open market. There are no available data analyze them

Tuesday, June 10, 2008

Nigeria stock exchange investing

Nigeria Stock Exchange Investing

Have you ever heard of sit down and earn, even while almost everybody isn’t, yes it still works. Well since the inception of Nigerian Stock Exchange, you can do that here in Nigeria. With a little cash and the right knowledge, your financial future can be guaranteed.

Stock marketing in Nigeria can be a great source of confusion for so many people. But be patient, I will explain all the secret details of the Nigerian Stock Exchange.

Business is the cornerstone of every economy. Almost every large corporation in Nigeria started out as a small, side job operation and through growth, became financial giants. These so called fortune 500 companies didn’t start as giants, they simply grew. How did these small companies grow from tiny, hometown enterprises to members of the largest businesses in the Nigerian economy? They raised capital by selling stock in themselves in the floors of the Nigerian Stock Exchange.

We will show you the secrets of stock marketing in Nigeria, the risks involved in Nigerian stock marketing and the unbelievable gains of Nigerian stock marketing.

Every business has its hurdles, so does stock marketing. We won’t promise you a gold mine, but we assure you of a mine, dig well and you will find gold. The type of gold only stock marketing can guarantee.

Why Invest

Tune in to any Nigerian radio or Television station, all we hear is the voice of our pensioners demonstrating and threatening the Nigerian government for their long outstanding unpaid gratuities. Many have died during the long course of wait for your gratuity. But unfortunately, poverty does not have respect for your intellectual capabilities that is not featured towards financial security.

Those who could gaze into the future before now rather than grow up as sacked staff employees depending on trade union to fight their cause are attending Annual General Meetings (AGM) of reputable Nigerian companies where they sowed for their financial freedom.

The best option is to save for the future, but it is not good enough for financial empowerment until your savings are multiplied at a rate above inflationary growth of the Nigerian economy.

Monday, June 9, 2008

Nigeria Stock Exchange : Investment


Are you tired of living from paycheck to paycheck and would like to start investing. Are you still wondering since you only have a tiny amount of money to start, what will be the best way to get our feet wet.Then you can continue to read on because you are already on the right track.
The need for investment can be triggered by so many factors.Investment, spending or setting aside money for future financial gain. For an individual, investment might include the purchase of financial assets, such as stocks, bonds, mutual funds, or life insurance. Investment can also include the purchase of durable goods, such as housing or a car. For an economist, investment refers to the increase in real capital in an economy, such as an increase in factories and machinery, or in its human capital—that is, a skilled and educated labor force.
But always have something in mind, there’s no risk free investment. No. no such thing, because even the safest investments, such as bank savings accounts, come with the risk of bank failure or the risk of not earning enough interest to keep up with the rate of inflation. But some investments are much safer than others. FDIC-insured bank savings accounts and bank certificates of deposit (known as CDs) are protected up to $100,000. Mutual fund money market accounts, although not insured, are also safe and pay higher rates than bank accounts.

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