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Poll: Stock market rebound
Do you believe the Nigerian stock market which has recently been on the downward trend rebound?
N1bn benchmark for stockbrokers, not against small investors -Olayemi
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Price movement in the New Year
Movement of stock prices has been on the positive trend. It is moving in tandem with the development and the awareness already created in the market. The movement is as expected because, demand and supply justify the movement of price of stocks on the floor. The movement will be sustained quite alright because many have moved fairly well. More than 85 percent of them would be sustained.
Indicators of confidence
It is all about demand and supply. The demand is continuously increasing and when there is demand for shares and less quantity being supplied, the price is bound to go up. The companies are sound because they are performing at maximum rating. If you follow any trend especially the market, you will be in a position to predict what to expect in times to come, all things being equal.
Sectors to watch
Stock market is often difficult to predict. This is because a sector may not be doing well in the first month but by the third month; it may start to do well. So it all depends on the market, or the initiative the management is taking. Some of them have been making research into some key areas. If such has not materialized, it could materialize any time. Since we are not part and parcel of their management, we may not know what they are planning. So, it is only when the results come out that their plans are seen. it could be any body’s favour, any time. Presently, it may be true that Banks, Insurance and may be the Food Industry as well as Petroleum Industry are still good and are doing very fine. If you have investment in these areas, you can go to sleep because the investment will do well.
Prospects of 2nd and 3rd Tier Markets
They are good especially the third-tier market. It is something to be encouraged in the sense that we have a lot of companies in Nigeria to be listed on the 3rd Tier. So we, as stockbrokers have a lot of responsibilities actually, to talk to those companies and persuade them to come to the floor. If they do, it will be to the advantage of the economy in the long run.
Market slide speculation (American economy)
The problem with them over there is that they don’t have the type of market control we have here. Something like, Securities and Exchange Commission (SEC) five percent margin mark up, up or down and daily rating. They do not have it up there. These are the meticulous way we do our analysis before making prices here, but nobody does it there. They do their own more emotionally. Because we are very meticulous, you can be rest assured that the result is usually given. So, what I am saying is that, for our prices to crash over night, the way theirs crashes, it is not possible in Nigeria. You will see the trend and the trend will justify that something is happening. In this way, you can decide to pull out or decide not to go into a company at a given time. So, for prices to fall so drastically in Nigeria , it could have taken the whole month or even three months. In this way, there would be enough time to prepare for it.
Effects of speculation on market growth
Speculation or hearsay, or whatever it is called is part of information that drives the market. There is nothing wrong about that. In as much as you know the genuineness of the speculation. The market is information driven and any information that you can collect that is useful for price movement, should be adopted and used effectively. This kind of information is normally what attracts us. That is gathering information ,either from the company, visiting the company, reading newspapers, looking at government trend, looking at the world economy trend; also by looking at the demand and supply of product services, those companies arrange. Those are the things we need to formulate the price model. That is what we do and when we do it religiously, you can be rest assured the bang cannot happen. You cannot have it overnight banging down. No, it is not possible here in Nigeria.
Is induced or due to market growth?
It is obviously due to market growth. If you look at volume of transaction, if you look at the number of people now coming to the stock market, if you look at the publicity being given even internationally on the Nigerian Stock Exchange (NSE), you will know that the NSE is developing, growing rapidly too.
Decentralisation of the trading floor
To decentralize the trading floor would be very good because it will allow the market to spread more. It will also bring new development. The floors have been there but the issue of having more is an encouraging thing. It will provide jobs, and allow more and more people to know more about the NSE, know what the Exchange is doing, and participate in what is happening in the market. Through that also, more and more companies from those villages would come for listing, even on the third-tier market. It is a good development and should be encouraged and allowed to continue.
Stockbrokers trading from their offices
Why not, it is already working. Many of us trade from our offices and still trade on the trading floor. But the remote trading system here allows us to trade from our offices. Time will even come when we should even trade along the streets, that time, one could trade from anywhere. That time, we may be trading for more than three hours. One could trade for the whole day. I think that it is a welcome development and very soon we shall get there.
States not having trading floor
To me, it does not have to be compulsory that all states must have a trading floor. It is not a political matter. Any state that can afford, let them put it, but if they cannot afford the infrastructure, let them use the one close to them. It is not when you have the Exchange in your bedroom that you can perform. You can reach stockbrokers anywhere in the federation from anywhere you find yourself. If they can maintain it, it is good but if they cannot, they don’t need to lose sleep over it because, it does not necessarily change situation as such. At least politically, but economically, it may make their indigenes to participate more effectively, especially the indigenes that are still locally back home.
Listing IT companies on the Exchange
They are not in the market because they can still provide the money they need themselves. They are still raising equities and loans from banks and other financial institutions. I believe that is why they are not coming. When they get to the position when they cannot finance their projects anymore, obviously they will come to the market. We are expecting them.
Stockbrokers not accepting less than N0.5 million from investors
It is the part of development in the capital market. Since they decided to raise capital benchmark of stockbrokers to N1 billion, nobody will have that sum of money and leave it in a current account in the bank. You will not deposit such money in the bank. You will have to trade with it and one of the best places to do it is in the Stock Exchange. So if I have N1 billion to trade with, why should I be wasting time with people disturbing myself with their N1000,000.00 or their N1 billion. I would rather trade with my money. I don’t think there is anything wrong about it.
Movement of stock prices has been on the positive trend. It is moving in tandem with the development and the awareness already created in the market. The movement is as expected because, demand and supply justify the movement of price of stocks on the floor. The movement will be sustained quite alright because many have moved fairly well. More than 85 percent of them would be sustained.
Indicators of confidence
It is all about demand and supply. The demand is continuously increasing and when there is demand for shares and less quantity being supplied, the price is bound to go up. The companies are sound because they are performing at maximum rating. If you follow any trend especially the market, you will be in a position to predict what to expect in times to come, all things being equal.
Sectors to watch
Stock market is often difficult to predict. This is because a sector may not be doing well in the first month but by the third month; it may start to do well. So it all depends on the market, or the initiative the management is taking. Some of them have been making research into some key areas. If such has not materialized, it could materialize any time. Since we are not part and parcel of their management, we may not know what they are planning. So, it is only when the results come out that their plans are seen. it could be any body’s favour, any time. Presently, it may be true that Banks, Insurance and may be the Food Industry as well as Petroleum Industry are still good and are doing very fine. If you have investment in these areas, you can go to sleep because the investment will do well.
Prospects of 2nd and 3rd Tier Markets
They are good especially the third-tier market. It is something to be encouraged in the sense that we have a lot of companies in Nigeria to be listed on the 3rd Tier. So we, as stockbrokers have a lot of responsibilities actually, to talk to those companies and persuade them to come to the floor. If they do, it will be to the advantage of the economy in the long run.
Market slide speculation (American economy)
The problem with them over there is that they don’t have the type of market control we have here. Something like, Securities and Exchange Commission (SEC) five percent margin mark up, up or down and daily rating. They do not have it up there. These are the meticulous way we do our analysis before making prices here, but nobody does it there. They do their own more emotionally. Because we are very meticulous, you can be rest assured that the result is usually given. So, what I am saying is that, for our prices to crash over night, the way theirs crashes, it is not possible in Nigeria. You will see the trend and the trend will justify that something is happening. In this way, you can decide to pull out or decide not to go into a company at a given time. So, for prices to fall so drastically in Nigeria , it could have taken the whole month or even three months. In this way, there would be enough time to prepare for it.
Effects of speculation on market growth
Speculation or hearsay, or whatever it is called is part of information that drives the market. There is nothing wrong about that. In as much as you know the genuineness of the speculation. The market is information driven and any information that you can collect that is useful for price movement, should be adopted and used effectively. This kind of information is normally what attracts us. That is gathering information ,either from the company, visiting the company, reading newspapers, looking at government trend, looking at the world economy trend; also by looking at the demand and supply of product services, those companies arrange. Those are the things we need to formulate the price model. That is what we do and when we do it religiously, you can be rest assured the bang cannot happen. You cannot have it overnight banging down. No, it is not possible here in Nigeria.
Is induced or due to market growth?
It is obviously due to market growth. If you look at volume of transaction, if you look at the number of people now coming to the stock market, if you look at the publicity being given even internationally on the Nigerian Stock Exchange (NSE), you will know that the NSE is developing, growing rapidly too.
Decentralisation of the trading floor
To decentralize the trading floor would be very good because it will allow the market to spread more. It will also bring new development. The floors have been there but the issue of having more is an encouraging thing. It will provide jobs, and allow more and more people to know more about the NSE, know what the Exchange is doing, and participate in what is happening in the market. Through that also, more and more companies from those villages would come for listing, even on the third-tier market. It is a good development and should be encouraged and allowed to continue.
Stockbrokers trading from their offices
Why not, it is already working. Many of us trade from our offices and still trade on the trading floor. But the remote trading system here allows us to trade from our offices. Time will even come when we should even trade along the streets, that time, one could trade from anywhere. That time, we may be trading for more than three hours. One could trade for the whole day. I think that it is a welcome development and very soon we shall get there.
States not having trading floor
To me, it does not have to be compulsory that all states must have a trading floor. It is not a political matter. Any state that can afford, let them put it, but if they cannot afford the infrastructure, let them use the one close to them. It is not when you have the Exchange in your bedroom that you can perform. You can reach stockbrokers anywhere in the federation from anywhere you find yourself. If they can maintain it, it is good but if they cannot, they don’t need to lose sleep over it because, it does not necessarily change situation as such. At least politically, but economically, it may make their indigenes to participate more effectively, especially the indigenes that are still locally back home.
Listing IT companies on the Exchange
They are not in the market because they can still provide the money they need themselves. They are still raising equities and loans from banks and other financial institutions. I believe that is why they are not coming. When they get to the position when they cannot finance their projects anymore, obviously they will come to the market. We are expecting them.
Stockbrokers not accepting less than N0.5 million from investors
It is the part of development in the capital market. Since they decided to raise capital benchmark of stockbrokers to N1 billion, nobody will have that sum of money and leave it in a current account in the bank. You will not deposit such money in the bank. You will have to trade with it and one of the best places to do it is in the Stock Exchange. So if I have N1 billion to trade with, why should I be wasting time with people disturbing myself with their N1000,000.00 or their N1 billion. I would rather trade with my money. I don’t think there is anything wrong about it.
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