Wednesday, February 23, 2011

The NSE-ASI closed at 26,639.35 -0.17% (-0.3% in the previous week) [14-18 Feb. 2011]

It was "V' Shaped week for the NSE-ASI Again volume for the week remained below 2 billion, following a declining trend in the last few weeks. This appears to be more confirmation that 26,000 maybe a consolidation point, at least till the end of the first quarter.The market could be waiting for a significant change.

Company focus: Cadbury Nigeria PLC

Cadbury Nigeria PLC was incorporated on 9 January, 1965. Cadbury Nigeria Plc is principally engaged in the manufacture and sale of branded fast moving consumer goods mostly to the Nigerian market, but increasingly for exports as well.

Friday, February 18, 2011

What is Equity?

Ownership interest in a corporation in the form of common stock or preferred stock. It also refers to total assets minus total liabilities, in which case it is also referred to as shareholder's equity or net worth or book value.
In the context of a futures trading account, it is the value of the securities in the account, assuming that the account is liquidated at the going price.

Company Focus: 7UP

Seven-up is listed in the Food and Beverages Sector of the NSE.  The company was incorporated as private limited liability company on 25th June 1959 under the name Seven-Up Ltd. On 16th May, 1960, the name was changed to Seven-Up Bottling Company Ltd. and in 1978 it became a Public Company.

Thursday, February 17, 2011

The NSE-ASI closed at 26,684.49-.0.3% (-2.2%in the previous week) with a cumulative volume of 1.31 billion shares [7-11 Feb, 2011]

Another choppy week leaves the NSE-ASI essentially flat. Volume for the week remained below 2 billion, following last week’s trend. The choppy nature seems to confirm last week’s observation that 26,000 maybe a consolidation point, at least till the end of the first quarter.

Tuesday, February 8, 2011

What is Index Arbitrage?

 Index arbitrage is a subset of statistical arbitrage focusing on index components. The idea is that an index (such as S&P 500 or NSE-ASI) is made up of several components (in the example, the Top 500 US biggest firms by market capitalization) that influence the index price in a different manner. For instance, there are leaders (components that react first to market impact) and laggers (the opposite).

The NSE-ASI finally dipped below 27,000 for the first time this year [31 Jan -4 Feb., 2011]

It was a choppy week without a doubt, as the NSE-ASI finally dipped below 27,000. Volume for the week also dropped below 2 billion for the first time this year. If you look at the NSE-ASIs 3 month chart there may be ample reason to believe that 26,000 is the floor for this trading cycle, at least till the end of the first quarter.

Wednesday, February 2, 2011

What is a Stock Market Index??

A stock market index is a method of measuring a section of the stock market. Many indices are cited by news or financial services firms and are used as benchmarks, to measure the performance of portfolios such as mutual funds. An index may also be classified according to the method used to determine its price.

For 9 trading sessions, the NSE-ASI has remained above 27,000 [24-28 Jan, 2011]

This week the market confirmed its current infatuation with 27,000. For 9 trading sessions the NSE-ASI has remained above 27,000 without an apparent interest in breaching it either at the high or low end. The NSE-ASI closed at 27,356.59 -.012% (+1.5%in the previous week). 

Who is a Broker-Dealer

A broker-dealer is a company or other organization that trades securities for its own account or on behalf of its customers. Although many broker-dealers are "independent" firms solely involved in broker-dealer services, many others are

57 Nigerian Stock Brokers Suspended for not Meeting the Minimum Capital Requirement of N70m [17-21 Jan, 2011]

To give you a little historical perspective in 2001 the NSE traded 6 billion shares for the full year. In the first three weeks of this New Year we have already exceeded that number at 7.9 billion shares. Unfortunately the positive tone of the market was dulled by the suspension of 57 broker/dealers for not meeting the minimum capital requirement of N70m.

Who is Goodluck Jonathan??

Born in 1957 in the oil-rich Niger Delta region, Dr Goodluck Jonathan is a Christian from the Ijaw ethnic group. His family's trade was canoe-making, but he studied zoology at university. He worked as an education inspector, lecturer and environmental protection officer before going into politics in 1998.

The Nigerian President, Dr Goodluck Ebele Jonathan Secures his party’s mandate to run in the April 2011 elections [10-14 Jan, 2011]

Last weeks bang in the market became even louder this week. The Nigerian President, Dr Goodluck Ebele Jonathan, secured his party's mandate to run in the April 2011 elections winning 31 states over his closest rivals 5 states. The NSE-ASI appeared to preempt this by breaching another significant milestone closing above 27,000 and staying there.

What is Arbitrage??

In economics and finance, arbitrage is the practice of taking advantage of a price difference between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices.

NSE-ASI closes above 25,000 for the first time since Nov 18, 2010 [3-7 Jan, 2011]

The market started the year with a bang. Not only was it the first close above 25,000 since Nov 18, 2010 it also found its way above 26,000 and stayed there. Although it was a 4 day trading week, it rung in the new year with some promise. The NSE-ASI closed at 26,169.86 +5.64%  (+0.33% in the previous week).

There is every chance the NSE-ASI will be a strong performer in 2011 [27-31 Dec, 2010]

It was easy to predict this weeks market. It stayed below 25,000, transactions and volume levels were low, possibly because not too many people were paying attention. Those who paid attention gained. The NSE-ASI closed at 24,770.52 +0.33% (1.00 % in the previous week). Volume was low at 0.684 billion shares (2.0 billion shares in the previous week). There is every chance the NSE-ASI will be a strong performer this year. This week we review 2010 and what it might mean for 2011.

What is Market Capitulation??

Market capitulation refers to the threshold reached after a severe fall in the market, when large numbers of investors can no longer tolerate the financial losses incurred.

The NSE-ASI will see its first positive year in 2010 since 2008 [20-24 Dec, 2010]

If you focused on the NSE-ASI still trading below 25,000 you would have missed what appears to be a relatively active week. The NSE-ASI closed at 24,689.16 +1.0% (0.00 % in the previous week).

The Nigerian Bottling Company (NBC) is commencing efforts to delist its shares from the NSE [13-17 Dec, 2010]

For those of us who missed us last week, apologies. The holiday season putting multiple pressures on work and play has been overwhelming. The market was barely changed this week as the overall mood shifts towards the political in anticipation of elections early next year. The NSE-ASI closed at 24,444.28 -0.78% (+1.46% in the previous week). Volume was up to 1.953 billion shares (1.353 billion shares in the previous week).