Daily Independent (Lagos)
Kingsley Ighomwenghian
30 June 2009
(Page 2 of 2)
OTC Market
There was increased patronage of the FGN Bonds at the secondary (OTC) market, where investors exchanged a total of 328.45 million units valued at N334.352 billion in 1,927 deals, compared with the 250.8 million units exchanged for N257.482 billion crossed in 1,396 deals during the previous week's session. The 6th FGN Bond 2012 Series 1, was the most active of the 27 traded out of the 42 available FGN Bonds during the week (measured by turnover volume), accounting for 46.4 million units valued at N48.345 billion in 447 deals, followed by the 4th FGN Bond 2010 Series 4, which accounted for 24 million units valued at N22.092 billion in just four deals.
Some Still Posted Returns
According to information available on Cashcraft Asset Management's website, Premier Paints followed on the top 25 best companies in terms of returns, with 107.58 per cent; while Northern Nigerian Flour Mills recorded 77.30 per cent. PZ Cussons closed year-to-date better by 64.77 per cent; Smurfit, 37.97 per cent; May & Baker, 36.63 per cent; GTBank, 35.89 per cent; Northern Nigerian Flour Mills, 33.33 per cent; Glaxosmithkline Consumer, 27.38 per cent; Nigerian Breweries, 26.81 per cent; Access Bank, 26.03 per cent; Guinness Nigeria, 25.63 per cent; Oando, 11.09 per cent; Dangote Sugar Refinery, 7.10 per cent; and Union Bank, 6.97 per cent, among others.
Conclusion
Amidst the share price declines, analysts advise that investors stick to stocks with good quality blue-chip stocks only for a short-term, while booking profits as soon as the market recovers from the oversold state.
At a time of bear run like this, analysts at FSDH want investors to take advantage of "select opportunities in some stocks that have good fundamentals and that are marginally affected by the banks' exposure in the capital market and oil & gas. We advise investors to take a medium to long term position in the following stocks that have good fundamentals and that have prospects for growth in the medium to long term."
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