Market witnessed some level of profit–taking today leading to a slight dip in quite a number of stocks’ prices. A cumulative turnover of 464.44 million shares traded in 11,743 deals worth N5.881 billion compared to 475.715 million shares valued at N6.299 billion transacted yesterday in 9,966 deals.
Moreover, the
Total market return dipped today by 1.65% as The NSE
All -Share Index closed lower at 40,033.53 points while
Total market
Value of listed equities slumped by same margin (1.65%) to close at N5.415 trillion.
SECTORAL PERFORMANCE:
The banking sub-sector maintained is dominance with over 69% of the market turnover/share worth about 61% of the aggregate
Value of
Securities traded in the market today. The Conglomerate sub-sector ranked second with ~12% of the
Total market
share (by turnover) valued at ~11% of the cumulative market
Value while
Insurance sub-sector came third with ~9% of the market
share (by volume traded) of
Securities traded today.
MARKET MOVERS:
The top ten (10) trades (by volume of traded on the
Exchange ) in the market today were
Access ,
Cornerstone ,
Fidelity ,
IBTC ,
Intercontinental ,
Oceanic , PLATINUM,
Sterling Bank ,
Transcorp &
Wema Bank . They
All accounted for about 68% of the
Total volume traded worth approximately 46% of the market
Value .
PRICE MOVEMENTS:
NAHCO led the gainers’ camp today (measured in absolute term) with a
Capital appreciation of N1.50k to close at N31.63k while
CHEVRON shed N6.00k, closing at N150.00k to emerge leader on the losers’ table. (See our attached Market Update for a comprehensive
Price list).
TERM OF THE DAY:
VALUE INVESTING:
This refers to a strategy of selecting stocks that trade for less than their intrinsic
Value .
Value Investors actively seek stocks of
Companies that they believe the market has undervalued. They believe the market overreacts to good and bad news, causing
Stock Price movements that do not correspond with the
Company \'s
Long-term fundamentals.
The result is of this is an opportunity for
Value Investors to profit by buying when the
Price is deflated.
Typically,
Value Investors select stocks with lower-than-average
Price-to-book or
Price-to-earnings ratios and/or high dividend yields.
Meanwhile, the big problem is estimating the intrinsic
Value . Without mincing words, there is no \"correct\" intrinsic
Value . Two
Investors can be given the exact same
Information and place a different
Value on a
Company .
For this reason, another
Central Concept to
Value investing is “margin of safety\". This just means that you buy at a big enough
Discounts to allow some room for error in your estimation of
Value .
One should also keep in mind that the very definition of
Value investing is subjective. Some
Value Investors only look at present
Assets /earnings and donot place any
Value on future growth. Other
Value Investors base strategies completely around the estimation of future growth and cash flows.
By and large, despite the different methodologies, it
All comes back to trying to buy something for less than its worth.
MARKET UPDATE: REFERRALS
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Thank you for taking time
Out to
Read our market update. Should you wish that your friends, acquaintances and
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Daily Stock update, kindly forward their contacts (Names, e-mail addresses & GSM numbers) to our contact email address: info@meristemng.com. Such contacts would be added to our mailing list.
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Please click below for the FULL MARKET UPDATE.
-----------------------------------------------------
Attachment : MARKET UPDATE FEBRUARY 8, 2007.xls
--------------------------------------------------------------------------------
MERISTEM
Securities Ltd .
124 Norman
Williams Street,
South
West, Ikoyi,
Lagos .
P.O Box 51585
Falomo, Ikoyi,
Lagos .
Phone:234-1-2717350-5; Fax: 234-1-2717356, 2690118.
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