The Nigerian Stock Market is currently exhibiting all the twists and turns of a good Nigerian Nollywood movie. With a squeal of tires, investors roar up a one Way Street, the NSE follows in quick pursuit, lights blazing and blocks off the road behind them in the hope that there is no other exit. In the films there is always another way out, not quite so sure if that is the case in a falling stock market. Sell your stocks and you go out in a blaze of gunfire, your blood splattered all over the walls as you sink to the floor, very dead. Anyway, enough film analogies, let’s focus on the facts…
Following discussions yesterday, stocks will no longer be allowed to fall below a maximum of 1%. Historically stocks were allowed to fall by 5% but this is set to change. This should prevent stocks from entering into free fall but will not prevent them from opening limit down every day for the next 100 days.
The second resolution to address the falling market is that companies will now be allowed to purchase their own stocks. Presumably this had been dis-allowed to prevent rampant market manipulation by companies seeking to ensure that their stock price held out at least till the next capital raise or AGM (Nigeria is not the wild west for nothing).
The market has been in free fall over the last 6 months and as long as the fundamentals are biased towards falls in the price of company valuations, share prices will continue to fall, whether 1% or 5% limits are in place. Allowing companies to purchase their own shares is a practice that is in place in more mature markets and appears to make sense, the NSE should however do all in its power to ensure that they have monitoring structures in place that can penalize companies or individuals that use share purchases as a tool to manipulate the market. Easier said than done.
Wednesday, 27 August 2008
Monday, 25 August 2008
Afrinvest Equity Fund
A new fund on the market as the title above suggests. I have had colleagues at Afrinvest from at least 5 years ago from when they were based in London – Ike, Philip, Andrew and more recently Godwin and Mabel in Nigeria. They are a professional company with strong governance and compliance structures in place.
While based in the UK they were pioneers in introducing foreign companies into the Nigerian markets (this was before the days when hedge fund managers started flying directly into Lagos and forming very long queues while my fellow Nigerians abroad were still swearing against their country) Their research capacity and due dilligence must be pretty thorough considering the hurdles they must have crossed in shepherding foreign money into Nigeria in the days when Nigeria was still considered the wild wild west (rather than the currently tame “wild west” )
Afrinvest has an initial offering into their new Afrinvest Equity Fund. Minimum investment N50,000 (min 500 units) and at N100 per unit thereafter. Opening date August 11th, closing date September 17th.
Investment Objective (I quote): The primary objective of the fund is to achieve long-term capital appreciation of its assets, through investments in a portfolio of equity securities quoted on the NSE and other investments approved by the Commission. The fund will invest primarily in stocks listed on the NSE and it is expected that a minimum of 90% of the fund’s assets will be invested in mid to large cap companies under normal market conditions.
Considering the current bear state of the Nigerian stock market, now would be a good time to do some bottom fishing and pick out some bargains to place money in. Unless you are in that line of business and are able to do this bottom fishing yourself, Afrinvest’s new equity fund would be a good proxy to start with.
Unfortunately their site appears to be down otherwise I would have directed you here for further information. I trust it is a temporary glitch.
While based in the UK they were pioneers in introducing foreign companies into the Nigerian markets (this was before the days when hedge fund managers started flying directly into Lagos and forming very long queues while my fellow Nigerians abroad were still swearing against their country) Their research capacity and due dilligence must be pretty thorough considering the hurdles they must have crossed in shepherding foreign money into Nigeria in the days when Nigeria was still considered the wild wild west (rather than the currently tame “wild west” )
Afrinvest has an initial offering into their new Afrinvest Equity Fund. Minimum investment N50,000 (min 500 units) and at N100 per unit thereafter. Opening date August 11th, closing date September 17th.
Investment Objective (I quote): The primary objective of the fund is to achieve long-term capital appreciation of its assets, through investments in a portfolio of equity securities quoted on the NSE and other investments approved by the Commission. The fund will invest primarily in stocks listed on the NSE and it is expected that a minimum of 90% of the fund’s assets will be invested in mid to large cap companies under normal market conditions.
Considering the current bear state of the Nigerian stock market, now would be a good time to do some bottom fishing and pick out some bargains to place money in. Unless you are in that line of business and are able to do this bottom fishing yourself, Afrinvest’s new equity fund would be a good proxy to start with.
Unfortunately their site appears to be down otherwise I would have directed you here for further information. I trust it is a temporary glitch.
In Persuit of Happiness
While jogging this Saturday morning and thinking deeper thoughts than I usually do, it occurred to me that if I can be grateful to God for being alive and having a good relationship with him and if this is enough for me, then I have every chance of being happy considering all the other blessings that continue to pop up in my life (love, health, family, friends, food, shelter etc.)
that is my deep thinking quota for the month of August
that is my deep thinking quota for the month of August
Monday, 18 August 2008
You Gotta Love Lagos (Courtesy NYTimes)
thanks to Emeka & Chioma Okoye for bringing this to my attention. Lagos is now in the NYTimes... read here
Tuesday, 12 August 2008
Please let me stay humble
Monday 11/08/08
Dear God, may I never become an arrogant twat. It’s very easy to become an arrogant twat in Nigeria because there are so so many people who are not as well off as you and it’s easy to stamp all over them. One of the reasons I came back home was to do some good for my country and for some of the people in it. I still have to go back to my company and ask them that apart from us seeking killer strategies to making money, what are we doing about social responsibility. What kind of person will I become if I become so one sided as to only seek to make money and not seek to apply it to do some good? I’ll become a one dimensional arrogant twat that’s what. Thinking that all my good fortune was down to me and then you know the saying about pride and falling…
Dear God, may I never become an arrogant twat. It’s very easy to become an arrogant twat in Nigeria because there are so so many people who are not as well off as you and it’s easy to stamp all over them. One of the reasons I came back home was to do some good for my country and for some of the people in it. I still have to go back to my company and ask them that apart from us seeking killer strategies to making money, what are we doing about social responsibility. What kind of person will I become if I become so one sided as to only seek to make money and not seek to apply it to do some good? I’ll become a one dimensional arrogant twat that’s what. Thinking that all my good fortune was down to me and then you know the saying about pride and falling…
Things That STILL Amaze Me About Nigeria (please look away if you are squeamish)
Monday 11/08/08
I am back home from work before 9pm and I feel I am early. Anyway….
Things That Still Amaze Me About Nigeria
I have been back home for 3 months (seems like a lifetime) but some things still amaze me about Nigeria
1. The proliferation of Living Things
You are repeatedly reminded that the land you stand on was once thick jungle and swamp and the creatures that lived here have not quite left, they are only biding their time, asleep in the dark corners of your house – cockroaches (they obvious drink fumigant for tea) from the big daddy kane size to the very little disgusting size (all cockroaches are disgusting, I hate them, no sorry I don’t hate them, they might hear me), mosquitoes, dragonflies as big as a bird (in my bedroom yesterday, just because I opened the door), gnats, ants in my labtop that only leave bcos it gets too hot when I switch it on, tiny flies that appear on my banana skin, horrible looking black little worms under the plate drainer (that one really freaked me out, but nothing that boiling hot water couldn’t cure), little lizards on the walls with their cute lizard droppings, mildew on my very nice suit jacket etc etc etc etc. Just see them as family pets and you won’t run from the house screaming and pulling out your hair just bcos there is a roach in it….
2. Naija Man’s Inhumanity to his fellow Man on the Road
I am constantly amazed about the total total lack of compassion while driving. The will to take the very last last line of attack, the total massacre of the victim who dares indicate or pulls out of his or her lane, the ability of the danfo bus driver to sense the slightest weakness and barge in with his beaten up bus to within millimeters of your fresh paint car, the willingness to test your mettle right right up to the last ounce. Lagos driving is a microcosm of Lagos itself. Take no prisoners, Kick their head in when they are down, rejoice when they are down and out cos tomorrow it could be you so celebrate the downfall of the other guy while you can. kill, dismember and decapitate the victim so that he learns a lesson and next time stays in line…It’s civilization, yes, but the type you see in the Roman Amphitheatre where the gladiators tear each other apart. Look and learn Tsun Tsu…
3. Hermetically Sealed Houses 3 metres away from the Waterfront
The next thing I am amazed and saddened by is our addiction to the airconditioner and our total refusal to smell the fresh sea breeze wafting in. This is especially in my area, Lekki where the water is nearby and the winds are coming in from the Sea so are not polluted by 140m Nigerians. How can you be so fortunate as to live by a lovely breeze blowing off the Sea and instead you choose to spend the night at -12C with frigid recycled air blowing on you all night, and a blanket to warm you up again, not to talk about all the global warming you are contributing to by using all that power and the fact that you first of all l make It really cold and then wrap blanket around you to keep snug – blanket in Nigeria????
4. This is a positive one
Every now and then, I come across a person that is so courteous and so out to ensure you get good service that I am really touched. Perhaps I have read Nigerians wrong, but I find this particularly touching here in Nigeria. I become suspicious and think that it cannot last. I have come across a few people at work that blow me away with their courteous behavior and willingness to be of service. My driver, the guy that looks after my account, the other guy that sorted out my computer issues, their good service was very touching. I salute una. I hope I can be equally as good but I’m not sure, I am learning to fast how to be a true Nigerian and always scheme to get my own way – sad, now that I have seen there is an alternative, maybe I can change…
I am back home from work before 9pm and I feel I am early. Anyway….
Things That Still Amaze Me About Nigeria
I have been back home for 3 months (seems like a lifetime) but some things still amaze me about Nigeria
1. The proliferation of Living Things
You are repeatedly reminded that the land you stand on was once thick jungle and swamp and the creatures that lived here have not quite left, they are only biding their time, asleep in the dark corners of your house – cockroaches (they obvious drink fumigant for tea) from the big daddy kane size to the very little disgusting size (all cockroaches are disgusting, I hate them, no sorry I don’t hate them, they might hear me), mosquitoes, dragonflies as big as a bird (in my bedroom yesterday, just because I opened the door), gnats, ants in my labtop that only leave bcos it gets too hot when I switch it on, tiny flies that appear on my banana skin, horrible looking black little worms under the plate drainer (that one really freaked me out, but nothing that boiling hot water couldn’t cure), little lizards on the walls with their cute lizard droppings, mildew on my very nice suit jacket etc etc etc etc. Just see them as family pets and you won’t run from the house screaming and pulling out your hair just bcos there is a roach in it….
2. Naija Man’s Inhumanity to his fellow Man on the Road
I am constantly amazed about the total total lack of compassion while driving. The will to take the very last last line of attack, the total massacre of the victim who dares indicate or pulls out of his or her lane, the ability of the danfo bus driver to sense the slightest weakness and barge in with his beaten up bus to within millimeters of your fresh paint car, the willingness to test your mettle right right up to the last ounce. Lagos driving is a microcosm of Lagos itself. Take no prisoners, Kick their head in when they are down, rejoice when they are down and out cos tomorrow it could be you so celebrate the downfall of the other guy while you can. kill, dismember and decapitate the victim so that he learns a lesson and next time stays in line…It’s civilization, yes, but the type you see in the Roman Amphitheatre where the gladiators tear each other apart. Look and learn Tsun Tsu…
3. Hermetically Sealed Houses 3 metres away from the Waterfront
The next thing I am amazed and saddened by is our addiction to the airconditioner and our total refusal to smell the fresh sea breeze wafting in. This is especially in my area, Lekki where the water is nearby and the winds are coming in from the Sea so are not polluted by 140m Nigerians. How can you be so fortunate as to live by a lovely breeze blowing off the Sea and instead you choose to spend the night at -12C with frigid recycled air blowing on you all night, and a blanket to warm you up again, not to talk about all the global warming you are contributing to by using all that power and the fact that you first of all l make It really cold and then wrap blanket around you to keep snug – blanket in Nigeria????
4. This is a positive one
Every now and then, I come across a person that is so courteous and so out to ensure you get good service that I am really touched. Perhaps I have read Nigerians wrong, but I find this particularly touching here in Nigeria. I become suspicious and think that it cannot last. I have come across a few people at work that blow me away with their courteous behavior and willingness to be of service. My driver, the guy that looks after my account, the other guy that sorted out my computer issues, their good service was very touching. I salute una. I hope I can be equally as good but I’m not sure, I am learning to fast how to be a true Nigerian and always scheme to get my own way – sad, now that I have seen there is an alternative, maybe I can change…
There may be hope afterall
Sunday 10/08/08
There may be hope afterall
Just got back from Onitsha, Eastern Nigeria. I went for the wedding of a colleague in Benin yesterday. I went with the family and stopped off in Benin while the driver took them on to Onitsha to spend a week with my parents so that everybody can be relaxed and happy until our household belongings are delivered next week.
By the time the driver got back from Onitsha to meet me at Benin, it was already getting late so we went back to Onitsha to spend the night and travel back to Lagos early this Sunday morning. Now, if you had asked me to tick a number of boxes as to why I wanted to return home, spending more time with my parents and my parents spending more time with their grandchildren would be high up on the list. So the fact that I could send the whole family to be with my parents and liven things up a little for them and get my two year old boy with a lovely smile to go practice hugging his Grandma and Grandpa makes me feel very good inside.
I am back in Lagos now, and it actually feels like home. The weather is fine, I am sitting in the upstairs verandah writing my blog with a cool breeze blowing, eating a sweet banana with groundnut nut and actually feeling quite good and relaxed. Probably the most satisfied feeling I have felt since I came back to Nigeria.
I think there may be hope after all.
There may be hope afterall
Just got back from Onitsha, Eastern Nigeria. I went for the wedding of a colleague in Benin yesterday. I went with the family and stopped off in Benin while the driver took them on to Onitsha to spend a week with my parents so that everybody can be relaxed and happy until our household belongings are delivered next week.
By the time the driver got back from Onitsha to meet me at Benin, it was already getting late so we went back to Onitsha to spend the night and travel back to Lagos early this Sunday morning. Now, if you had asked me to tick a number of boxes as to why I wanted to return home, spending more time with my parents and my parents spending more time with their grandchildren would be high up on the list. So the fact that I could send the whole family to be with my parents and liven things up a little for them and get my two year old boy with a lovely smile to go practice hugging his Grandma and Grandpa makes me feel very good inside.
I am back in Lagos now, and it actually feels like home. The weather is fine, I am sitting in the upstairs verandah writing my blog with a cool breeze blowing, eating a sweet banana with groundnut nut and actually feeling quite good and relaxed. Probably the most satisfied feeling I have felt since I came back to Nigeria.
I think there may be hope after all.
Oga Alert!!!
08/08/08
Please join me and wish my brother a happy Bday today.
Friday evening and I was having a chat with my Oga. We are seeking people with local knowledge and an international outlook and people who have strong financial skills (hard to find people). I had put some CV’s in front of him for us to talk through and the next thing he was asking me was where a particular CV came from. The CV came through a reader of my blog, and before I knew it, the questions went from how I publish on my blog to how do the readers know the blog is there to finally him turning to his computer and saying, OK what’s the blog address!!!!*&£%^@### OH S**T!!!!.
I had never in my wildest dreams thought that my Oga was going to read my blog. Once your Oga reads your blog, he gets to know your inner secrets, thoughts and actions and can catch you unawares with an intimate comment gleaned from a recent reading of your blog. It means I can’t say anything against my company (not that I would of course) otherwise in passing he may just say something along the lines of “oh, I was reading your blog, you never mentioned that to me”.
Hmmmm, well, just to let you all know that you may now have an Oga in your midst as one of your readers. A wolf amongst us. Feel free to impress him with your deep comments on the current state of the market, he just may hire you as the rising new star in our outfit after firing me for gross insubordination. Veeeeeryy interesting.
Please join me and wish my brother a happy Bday today.
Friday evening and I was having a chat with my Oga. We are seeking people with local knowledge and an international outlook and people who have strong financial skills (hard to find people). I had put some CV’s in front of him for us to talk through and the next thing he was asking me was where a particular CV came from. The CV came through a reader of my blog, and before I knew it, the questions went from how I publish on my blog to how do the readers know the blog is there to finally him turning to his computer and saying, OK what’s the blog address!!!!*&£%^@### OH S**T!!!!.
I had never in my wildest dreams thought that my Oga was going to read my blog. Once your Oga reads your blog, he gets to know your inner secrets, thoughts and actions and can catch you unawares with an intimate comment gleaned from a recent reading of your blog. It means I can’t say anything against my company (not that I would of course) otherwise in passing he may just say something along the lines of “oh, I was reading your blog, you never mentioned that to me”.
Hmmmm, well, just to let you all know that you may now have an Oga in your midst as one of your readers. A wolf amongst us. Feel free to impress him with your deep comments on the current state of the market, he just may hire you as the rising new star in our outfit after firing me for gross insubordination. Veeeeeryy interesting.
Going Home
07/08/08 7.43pm
I am actually writing this on the way home. I told my wife I would be back early. 7.19pm is now early for me.
The road is dark, no street lights. Slow moving traffic on my side and a free road on the other side. Young men selling plantain chips, MTN charge cards and other bits and pieces. Okada drivers weaving through the traffic, roaring past at high speed. Just about missing the car side mirrors. That’s my Lagos.
I think I may be taking a bit of a risk with the bright screen of my lap-top shining in the darkness of the car. I have been told about the smash and grab area boys that operate in slow moving traffic, but it’s a lot more productive use of my time than staring through the window watching the world go by, so I’ll take the risk for the moment.
Money insulates in this country. I would like a big, high up 4x4 with blacked out windows and a big interior that can double as a mobile living room where l can spend the hours I spend on the way home being productive. For the moment I’ll just cradle the lab top in my lap and keep on my guard.
I was asked by my wife before she came over whether I regretted coming over to Nigeria. I compare my life now to the nice comfortable life I had in North London and the answer is not for one moment do I regret coming over. Through being bitten by mosquitoes, living in an empty house with no fridge, working every hour including 7am Saturday morning meetings, leaving the house before the family wakes up and coming home after the kids have gone to bed. No, there are challenging moments but no regrets.
Why? I smell the potential to live the life I want. In the middle of the traffic, I still smell it. The potential is there to craft the life you want. A lot less restrictions than where I was coming from. A lot more potential to build things up. Not perfect, definitely not perfect, but the upside is a lot higher. And that’s what we all want in life, the opportunity to expand our lives as far as we want, without limitation, without restriction.
I am actually writing this on the way home. I told my wife I would be back early. 7.19pm is now early for me.
The road is dark, no street lights. Slow moving traffic on my side and a free road on the other side. Young men selling plantain chips, MTN charge cards and other bits and pieces. Okada drivers weaving through the traffic, roaring past at high speed. Just about missing the car side mirrors. That’s my Lagos.
I think I may be taking a bit of a risk with the bright screen of my lap-top shining in the darkness of the car. I have been told about the smash and grab area boys that operate in slow moving traffic, but it’s a lot more productive use of my time than staring through the window watching the world go by, so I’ll take the risk for the moment.
Money insulates in this country. I would like a big, high up 4x4 with blacked out windows and a big interior that can double as a mobile living room where l can spend the hours I spend on the way home being productive. For the moment I’ll just cradle the lab top in my lap and keep on my guard.
I was asked by my wife before she came over whether I regretted coming over to Nigeria. I compare my life now to the nice comfortable life I had in North London and the answer is not for one moment do I regret coming over. Through being bitten by mosquitoes, living in an empty house with no fridge, working every hour including 7am Saturday morning meetings, leaving the house before the family wakes up and coming home after the kids have gone to bed. No, there are challenging moments but no regrets.
Why? I smell the potential to live the life I want. In the middle of the traffic, I still smell it. The potential is there to craft the life you want. A lot less restrictions than where I was coming from. A lot more potential to build things up. Not perfect, definitely not perfect, but the upside is a lot higher. And that’s what we all want in life, the opportunity to expand our lives as far as we want, without limitation, without restriction.
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