reccession lessons

the economic recession has brought some lessons with it and we need to keep them to mind. We can see the good news from the market first by cashcraft

Market closed today on a positive note as all market indicators soared. Banking sectors recorded
the most impressive outlook with a record of no losers and only three stocks had their prices un-
changed. This impressive performance of the banking sector accounted more for the continued
rise in the market indicators performance. All-Share Index gained by 529.42 basis points to gain
2.35% as against 1.959% gain recorded on Friday. Market capitalization appreciated further by
N123.094 billion as against N100.51 billion gain of Friday transactions. Out of the total number of127 stocks traded today, 56 securities advanced, 12 stocks declined and 59 stocks traded at theirprevious trading prices.


With the trend of the market at the moment, it seems confidence is gradually coming back to the market. The ongoing turnaround may last for some time since there is not likely to be any major
shake up in the financial sector that could create panic in the system. Intercontinental bank plc, UBA, Afribank plc, Diamond bank plc and Cornerstone Insurance plc traded 31.673 million units, 23.988 million units, 22.571 million units, 19.132 million units and 17.163 million units respectively to make the top five trades for the day. Of all the stocks in the top five trades category for the day, only Cornerstone Insurance plc was on offer, other top four which were banking sectors enjoyed strong investors’ bid. This further corroborated renewed investors’ interest in the banking stocks.

Trends in Food and Beverages sector, Breweries sector, Building sector and Insurance sector are also improving. These stocks may look more attractive to discerning investors. Investors that can afford to take postions now for medium to long term view will definitely get better returns as it seems the worst is over in the financial sector. Some stocks that are trading at their nominal value are likely to be onthe upward price movement soon, most especially now that tranquility is gradually coming to thebanking sector coupled with some steps the regulatory authorities are taking to salvage the system.
Cadbury Nigeria Plc rights issue of 2,568,628,106 ordinary shares of 50k at N8.65 per share payable in full on acceptance was opened on 16th September, 2009 and closed on Friday the 23rd October, 2009. The rights being offered are tradeable on the floors of the Nigerian Stock Exchange during the issue.


ONE LESSON FROM THE RECESSION IS THAT WE MUST NOT LOSE SIGHT OF THE FUNDAMENTALS. WE MUST KNOW OUR RISK TOLERANCE AND THEN WE MUST ALWAYS KNOW THAT EVERY PROBLEM HAS A SOLUTION.