Nigerian stock exchange bounces back as more results pour in
May 9th, 2008 Ogbuotobo Chuks || chuks@stockmarketnigeria.com
By Ogbuotobo Chuks
After recording a loss of over N1 trillion in the last 2 months, the Nigerian stock exchange has experienced a sharp rally in the last two trading days. This is evident as major market indicators such as the All Share Index (ASI), market capitalization and others have all started to move in the northward direction.
It would seem that investors are now taking positions with respect to some stocks now that most stock prices have dropped, ahead of quarterly results to be released. Talking about results, the market in the last week has witnessed the release of some quarterly as well as full year results of some companies. Companies from the banking sub-sector to conglomerates without forgetting health care sub-sector have released and are still expected to release impressive results in the weeks ahead. Below is the just released 3rd quarter result for Morison Industries Plc which has just been released on the floor of the exchange.
In the highlights of the result released, turnover for the period increased by 156 percent, from N0.04 billion in 2007 to N0.10 billion in 2008. Profit before tax increased by 300 percent from N0.003 billion in 2007 to N0.012 billion in the corresponding period of 2008. After tax profit was sustained on a similar level, from N0.002 billion in 2007 to N0.008 billion in 2008,also a 300 percent increase.
Most of the results released in the last week has witnessed some impressive profit levels and significant improvements by companies quoted on the exchange. We only hope that investors be rational in the purchase of stocks during and after this period. Proper analysis should be carried out before purchasing any stock. Do not be caught in the bandwagon effect that has caused many investors money.
If you ask me,i still believe that the Nigerian market holds a lot of aces for intelligent and wise investors. Act like one today and you will have a smile on your face for a long time to come.
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