Today's Market report: Stock Performance and Share Dealing Strategies

 

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TODAY'S ONLINE REPORT: STOCK PERFORMANCE AND SHARE DEALING STRATEGIES

 

The Today's Market Report contains information most useful to both the long term distant runners (long term investors) as well as sprinters (active short term share dealers) desiring timely news for profitable navigation within the market in search of opportunity to improve their networth.Fundamental here are suggestions on entry and exits (timing), commentaries and analysis and unique investment education on the Nigerian domestic market.

 

NOTABLE REPORTS

 

ú         On-line Report

ú         ACM Monthly

ú         ACM Bi-Weekly

COMPANY REPORT

 

Information on company operational history, say for five years, is always a very important investment decision making tool as it helps in appreciating the consistency or otherwise of performance aside from serving as microscope with which the future can be viewed.It is for this reason that all pains had been taken in providing record of all companies listed on the Nigerian Stock Exchange which encompasses:

 

ú         Five years financial summary

ú         List of Directors

ú         Incorporation History

ú         Listing History

ú         Nature of Business

ú         Auditors, etc

STOCK MARKET HOLIDAYS

 

Experience has shown that extensive holidays, especially festive periods, provide investment opportunities in the capital market.This comes in the form of either self positioning by discerning investors or taking advantage of low presence of authorized dealers which makes a true and fair view of things impossible.This could either be negatively or positively skewed.A key example is Christmas/year end period when many stockbrokers close up.ÿThus some equities that would have been stable decline due to absence of their movers while others that may have either climbed up or down the chart go clockwise for the same reason.

 

This section will therefore serve to remind of federal holidays for the year 2003 as scheduled below.

 

QUOTED/LISTED COMPANIES YEAR-END RECORD

 

Year-end record of quoted/listed companies provide a veritable information for growth-seeking investors since it allows them appreciate when interest will be at peak level given individual performance.

 

Within the financial year of any company, there are flat, low and high periods.ÿ This is why a buy into the best stock at the wrong time can make an investor a next day loser. Thus, to guarantee maximum information and avert this pitfall, we have scheduled below year-end records of all companies listed on the Nigerian Stock Exchange.

 

COMPANY	SECTOR	YEAR-END

MARKET COMMENTARY

 

The Nigerian capital market, which took off in principle through the establishment of the Lagos Stock Exchange in 1960 but started actual trading in 1961 with only 19 securities, had witnessed series of transformations to date.

 

It has grown from this modest beginning to an exchange which deals on over two hundred and fifty securities encompassing Government development loan stocks, Corporate Debenture stocks and equities from six different branches each with trading floors.In 1993, market capitalization had got to 46.9 billion Naira with market index 1,543.8.However, as at end of May, 2003, market capitalization had risen to 877.342 billion Naira with the index as 14,086.25!ÿ

 

The market was mainly an elitist affair at the initial stage with most investors seeing themselves as helping to develop their domestic economy.Thus emphasis was predominantly on buying and holding.

 

However, with increased enlightenment about the last ten years or so, many have become aware of the capital market's capability of guaranteeing immense financial benefit.The result of this is improved turnover due from strong presence of short-term investors.

 

The introduction of the Central Securities Clearing System (CSCS) in 1997 helped further in heightening turnover with near-immediate transfer of transaction powers at purchase of shares.Also, the Nigerian Investment Promotion Commission Decree of 1995 which sought to encourage foreign direct fund inflow for investment thus removing all standing inhibitions further deregulated the Nigerian investment market thus internationalizing the capital market.

 

Nigeria therefore has a capital market that is highly receptive to foreign participation as inflow of fund for investment or repatriation of investment income are no problems.

 

Opportunities available in the Nigerian capital market are enormous.Aside from the reckoning as being among those with highest record of income payment of emerging markets, Nigeria's economy has the rare advantage of compactness as international events often have limited effect.The huge market prevalent given that Nigeria has a population of well over 120 million is responsible for the high income profile traceable to good corporate performance.

 

In modernization to meet international standard especially in the area of minimization of transfer timing to make for ease of entry/exit, the introduction of the CSCS in April, 1997 saw to that effectively.ÿThe Nigerian Stock Exchange is working tirelessly on seeing to the take-off of remote trading in no distant time as part of modernization program that had been in process close to ten years back.

 

The question of security is one that had been hyperbolically presented by some international media.ÿAs the most populous black habitation in the world with statistics showing that one out of every five blacks globally is a Nigerian, its size has been a check on conflicts.ÿThe 30-month conflict between 1967 and 1970 was fought in a relatively smaller Nigeria.ÿThe enormity of loss and misery of that conflict has taught Nigerians to manage their differences.

 

Concern had equally been expressed by many about security of investment in an environment like Nigeria's given its fraud record.ÿAgain my candid opinion here is that this is another negative area where the country had been hyperbolically celebrated by some foreign media.ÿThe Nigerian Stock Exchange has a website from which authorized dealers' list can be sought and obtained and other information on the capital market can be accessed.ÿ

 

Aside all of the above, Nigeria's is a developing economy with lot of potential and hence among the very few countries where corporate profitability can move up 120% relative to previous year and dividend pay-out doubled.

 

This lies the attraction of the Nigerian capital market which has made it a bride amongst emerging markets of our time.

 

ANNOUNCED STOCK SPLITS

 

Stock splits are major share price drivers up the chart (given the interest/demand it oftentimes invokes) especially when complemented by good money supply in the larger economy.ÿIt is for this reason that stock analysts never rest on their oars in seeking to study stock behaviours with a view to sifting out split candidates from year to year and positioning in a number of these in search of where it is greenest.

Thus, we have scheduled below list of companies that have so far announced splits for current financial year.

 

COMPANY	YEAR-END	SPLIT DECLARED	CLOSURE OF REGISTER DATE

 

 

REAL-TIME CHARTS

 

Our Charts are pictorial presentation of events over specified time limit.Many investors, especially those within the high networth strata, find charts most useful since they provide a snapshot of proceedings though serving as major decision making tool upon which huge fund can be voted/employed.A look at the chart of a stock that has been on the decline in its pricing due from slight decline in profitability can cause an investor to immediately opt to buy-in on the perception that the decline in performance does not justify the depth of decline in pricing.

 

Cautious effort was thus exercised in generating stocks weekly pricing data for graphical presentation through the chart.