Coolcash1:


What were the banks CEOs thinking when they agreed with the CBN to increase the CRR to 27.5% at the January MPC meeting. I presume they didn't think it through and thorough impact analysis was not done before signing off on the adjustment.

Bank management has explained that instead of lose money to NPLs, they prefer the CBN sterilize the funds and warehouse at zero deposit rate. It is better to have reduced profitability via reduction in net interest income (lower interest charges on deposit and loans) but still safeguarding depositors funds and company interest than to have increasing NPLs that will jeopardise the health of the bank.

I believe banks must have done their tusk analysis and seen that CBN sterilising the funds will be safer than having piling NPLs.

The negative in this is that the main street doesn't get support from the cheap loans from banks for increased productivity.

Godlylifeoneart:
https://nairametrics.com/2020/07/04/cbn-imposes-fresh-crr-debits-on-banks-to-the-tune-of-n118-billion/

Access Bank Plc: N3 billion
Guaranty Trust Bank Plc: N15 billion
First Bank of Nigeria Ltd: N12.4 billion
Ecobank Nigeria: N7 billion
Sterling Bank Plc: N5 billion
Fidelity Bank Plc: N11 billion
Union Bank of Nigeria Plc: N12.5 billion
First City Monument Bank Ltd: N10 billion
CitiBank Nigeria Ltd: N10.2 billion
Stanbic IBTC Bank: N15 billion
Zenith Bank Plc: N7 billion
Wema Bank Plc: N3 billion
Titan Trust Bank: N2.5 billion
Rand Merchant Bank Nigeria Ltd: N4 billion

These are huge amounts that are leaving the banking sector. It’s a squeeze on the banks. A bank like First Bank, for instance, has about N1.4 trillion in CRR with the Central Bank. And there is Zenith Bank with equally as much as N1.5 trillion. These are monies that banks can potentially put in loans at 52% at 30%, or even put in money market instruments at maybe 10%. So, for a shareholder of these banks, this CRR debits are impairing the banks’ ability to increase their earnings because now are not able to use the funds that are legitimately theirs to create money for their shareholders. And the question is that under what framework is the Central Bank choosing to take people’s money?”

Thanks for this.

The way you presented this is commendable unlike the previous ones you had posted. Kero it up.

It is a double edged sword.

You give out loans faster and you increase your NPLs if an unexpected event like this covid impacts the borrowers. Where you don't do this, CBN sterilize the funds.

Where NPLs mount, the life of the bank is on the line. The shareholders as well lose out (e.g Skye) . Where they give out funds faster, shareholders benefit.

The main point is for banks to carry out strict risk assessment and determine which companies benefit. I believe the management may have done these and would prefer CBN sterilize these funds and save depositors, shareholders and the bank.

BullBearMkt:

Let's keep it real! The top-down approach to analysis is looking at a bigger picture before you zoom in to the specific. So, in TA, apart from looking at general market breadth, sector analysis, the next line of action is to see the bigger picture of the stock you want to invest in. It is much more safer looking at the monthly first before going to the daily.

Your assertion about wire card is completely wrong! Had it been the bigger picture of the stock was checked, the so called "investors" would have seen the RISK earlier (I'm sure the real investors - smart monies have long dumped the stock)... What you don't know, you don't know!

Also, some smart monies could have also entered around March 2019 to ride the short term uptrend.

ojeysky:


What makes a stock mispriced? Is it when it's low or high?

When fundamentals deviates from price. It occurs at both high prices and low prices.

There are some fundamental parameters you should look out for. Once people start to bid senselessly in future (long term trend) , and it doesn't support those fundamentals, you will need to sell.

Hmmm, Zenith and Gtb board set to consider payment of
interim dividend for 1H 2020.

Closed period for Zenith is 6th July, 2020

Will others follow suit?


Time for the bears to temporarily chill?

I hope some took advantage already.

Thank you @bullbeatmkt, we do appreciate your originality and your technical views on the NSE. Kindly keep up the good work


quote author=BullBearMkt post=91390647]
@Northeastern, thank you for your comments. they are all great & indeed appreciate them! You said a lot, but let me quickly point out some of your erroneous assumptions:

- The list of stocks I presented above are the valued stock much more rated by the international investors. Any others, are less
- I intend to keep my videos short and focus oriented on TA & have no time talking about stock value, its sectors etc as you suggest.
- Yes, I am a money manager! And because of the climate I live, it is obligatory to make such disclosure
- I requested people to check only the video on sentiment to check current market breadth as I do not have the time to go through that in subsequent videos where I will be analyzing stocks. Market breadth provides the right time to enter the market.
- You will pardon my use of "uhhhh". I am just an amateur & I planned to remain so as that is not what put food on my table.
- Do I need followers on my YT channel? Uhhhh, yes I do, but I am not keen about it.

In summary, the videos are for information & education & just to help someone out there to make educative decision before investing his/her hard-earned money in the stock market.

Thank you once again for your comments.


[/quote]

On NGN

https://www.bloomberg.com/news/articles/2020-07-04/nigerian-central-bank-devalues-naira-by-5-3-at-currency-auction

RabbiDoracle:


When fundamentals deviates from price. It occurs at both high prices and low prices.

There are some fundamental parameters you should look out for. Once people start to bid senselessly in future (long term trend) , and it doesn't support those fundamentals, you will need to sell.

This might not hold true for TESLA bro. depending on the parameters used to refer "Fundamentals"

I'm so sorry to interrupt honourable traders...

Please I will like to know how I learn how to trade in the Nigerian Stock Market.


Any books or something?

And yes-- I trade Synthetic Indices and FX on MT platforms strictly using Technical Analysis and Price Action.

Thanks in anticipation.

Justcul:


This might not hold true for TESLA bro. depending on the parameters used to refer "Fundamentals"

Don't worry. When it is time, you will see that Tesla's last low of 350 will be shattered again. What will cause it, I don't know.

sophy17:
Hmmm, Zenith and Gtb board set to consider payment of
interim dividend for 1H 2020.

Closed period for Zenith is 6th July, 2020

Will others follow suit?


Time for the bears to temporarily chill?

I hope some took advantage already.

Others like UBA and Access that can follow will do that. We know them it's their culture. From 25kobo to 30kobo. However we don't know may be Covid-19 will bring it back to 25kobo. We hope for the best.

Bjrokenhear003:
I’m in deep thought atm, why is the bank holding emergency meeting.

Any idea

TOE is building a new N12 billion mansion in Ikoyi, with JB as contractors. He has a lot of Dollar loans, and you know how things have been going. I hope UBA is well.

The temperature of the country is abysmally high, There is mass lay-off in the organized private sector across all boards of the economy, Citizens in state capital now work every other day............ Its not easy........ Seriously those that compute GDP numbers probably dont realise the effects of their numbers.........Worst of all the Government is transferring all the burden on the masses by introducing all forms of phony taxes ................I can say that Income to most families and firms have dropped significantly and the market should expect a reverberating effect...............Most friends that have collected loans from micro finance banks have defaulted on their loan payments for the month of june and me as a Guarantor is really feeling the heat what more for full fledged Banks



I believe the current prices in the market might just be the highs for this market at least for the next 18 months

emmasoft:


Others like UBA and Access that can follow will do that. We know them it's their culture. From 25kobo to 30kobo. However we don't know may be Covid-19 will bring it back to 25kobo. We hope for the best.

In this game, one cannot be too sure.
UBA is scheduled to have an emergence meeting for what we don't know, but they do. Time will unravel everything. Like you said, we hope for the best but prepare for the worst.

emmasoft:


Others like UBA and Access that can follow will do that. We know them it's their culture. From 25kobo to 30kobo. However we don't know may be Covid-19 will bring it back to 25kobo. We hope for the best.

So true

maishai:
The temperature of the country is abysmally high, There is mass lay-off in the organized private sector across all boards of the economy, Citizens in state capital now work every other day............ Its not easy........ Seriously those that compute GDP numbers probably dont realise the effects of their numbers.........Worst of all the Government is transferring all the burden on the masses by introducing all forms of phony taxes ................I can say that Income to most families and firms have dropped significantly and the market should expect a reverberating effect...............Most friends that have collected loans from micro finance banks have defaulted on their loan payments for the month of june and me as a Guarantor is really feeling the heat what more for full fledged Banks



I believe the current prices in the market might just be the highs for this market at least for the next 18 months

I pray you come out of this unhurt, microfinance banks no get joy at all. Please don't make the mistake of standing as a loan guarantor again. People lost their shirts doing this

RabbiDoracle:


When fundamentals deviates from price. It occurs at both high prices and low prices.

There are some fundamental parameters you should look out for. Once people start to bid senselessly in future (long term trend) , and it doesn't support those fundamentals, you will need to sell.

Thanks for this

RabbiDoracle:


Don't worry. When it is time, you will see that Tesla's last low of 350 will be shattered again. What will cause it, I don't know.

I said it that even ford and ge that do electric cars went down this week by 2-4% and this are well known brands.

Lion123:


TOE is building a new N12 billion mansion in Ikoyi, with JB as contractors. He has a lot of Dollar loans, and you know how things have been going. I hope UBA is well.

It’s well let me start getting ready to monitor UBA wit one eyes

Mustafa Chike-Obi appointed Fidelity Bank chairman

Former CEO of the Asset Management Corporation of Nigeria.

Lion123:


TOE is building a new N12 billion mansion in Ikoyi, with JB as contractors. He has a lot of Dollar loans, and you know how things have been going. I hope UBA is well.

He receives dividends and salary. So what stops him from using his dividends to build a mansion?

sophy17:



In this game, one cannot be too sure.
UBA is scheduled to have an emergence meeting for what we don't know, but they do. Time will unravel everything. Like you said, we hope for the best but prepare for the worst.

I want to believe it is to share the details of the early redemption of the 7 year bond that was meant to mature in 2021. The early redemption was slated for 30th of June 2020 and also to discuss half year result.

If Unity bank can still be operational, then everything is OK with the big banks in Nigeria.

Justcul:


This might not hold true for TESLA bro. depending on the parameters used to refer "Fundamentals"

Tesla is still a company that has debt and can fail if push comes to shove. There is a reason Warren Buffet is still there and people like “Masayoshi Son“ of Soft Bank is now seen as a pariah.

Why? Look at his recent calls especially the problems with WeWork.

Ignore basic accounting principles at your own peril. Tesla has a P/E ratio of over 7,000 at it’s current price. I don’t need to talk about anything else...

Apple has a P/E ratio of 28.

Also majority who invest in Tesla, many of them invest in crypt0 too, majorly retail investors who are geeks and like cool things and to them an Electric car is a cool thing, but the accounting of it is not. I like Elon Musk, but Tesla stock has a high chance of ending in tears for many.

RabbiDoracle:


Don't worry. When it is time, you will see that Tesla's last low of 350 will be shattered again. What will cause it, I don't know.

Hahahahahahahahaha

When e happen, it will be like magic.

maishai:
The temperature of the country is abysmally high, There is mass lay-off in the organized private sector across all boards of the economy, Citizens in state capital now work every other day............ Its not easy........ Seriously those that compute GDP numbers probably dont realise the effects of their numbers.........Worst of all the Government is transferring all the burden on the masses by introducing all forms of phony taxes ................I can say that Income to most families and firms have dropped significantly and the market should expect a reverberating effect...............Most friends that have collected loans from micro finance banks have defaulted on their loan payments for the month of june and me as a Guarantor is really feeling the heat what more for full fledged Banks



I believe the current prices in the market might just be the highs for this market at least for the next 18 months

Yes. It is the masses that will suffer more. People should prepare for more taxes during period of recession.

Many countries are taxing hell out of their citizens. So Nigeria will not be different.

I read about Scotland wanting to increase council tax by 50%. Saudi triples VAT to support economy. So Nigeria is not alone.

Una never begin pay telecommunication taxes o. You heard me right Taxes for using phones and browsing.

In France you pay property tax as a tenant. Which is different from property taxes as a house owner. Though this is old sha. Not newly introduced.

So they have plenty of ways to squeeze the citizens. But humans are resilient and will always survive every hardship.

RabbiDoracle:


I want to believe it is to share the details of the early redemption of the 7 year bond that was meant to mature in 2021. The early redemption was slated for 30th of June 2020 and also to discuss half year result.

If Unity bank can still be operational, then everything is OK with the big banks in Nigeria.

Hahaha..... You wan kill Unity by force??

vegasleo:
Contact me to discuss favourable interest rate deals.

Why earn 1% on your saving when you save with your bank, wouldn't you rather earn 10% on your investments.

Stephaine
Trust Banc Rep
08057312585

Your information is incomplete.
Is it 10% per day/week/month/year?

sincerelymine:
Nsempa, red spillage everywhere......blind followers of the almighty oracle are crying.

SincereObserver

all man for himself here,nothing like "blind followers"these guys advocates due diligence whenever they contributed..."Mr Market ' they say has its own mind....stop these Nsempa pettiness so we don't lose valuable contributors,after all this forum is for 'Grown ups' !

RabbiDoracle:


I want to believe it is to share the details of the early redemption of the 7 year bond that was meant to mature in 2021. The early redemption was slated for 30th of June 2020 and also to discuss half year result.

If Unity bank can still be operational, then everything is OK with the big banks in Nigeria.

Your information is always on point and logical.

Some people like creating unnecessary tension.

Amaru04:

all man for himself here,nothing like "blind followers"these guys advocates due diligence whenever they contributed..."Mr Market ' they say has its own mind....stop these Nsempa pettiness so we don't lose valuable contributors,after all this forum is for 'Grown ups' !

Bro why did quote that annoying post again.

I thought he has apologised.

Una funny for this place no be small, na on top Tesla head una come now.

Last time I checked, having a high or low P/E is to classify a stock as either growth or stable. So the higher the more explosive growth potential.

Tesla just needs to report a profit in q2 and it would be eligible for s&p addition. They'll meet it because they beat their q2 delivery estimate. Even if they miss, there is still q3 to report a profit. Anything that will make Tesla fall will sink the whole market. Institutions and insiders hold about 80% of the stock, expect the current holders to increase their holdings and more institution to join once it joins the s&p.

I beg make una go look the list of holders, those ones don't sell no matter what. Uncle say na crypto investors invest for Tesla.

If una sure, make una put una money where una mouth dey by short-selling na.