Rising prices provide huge capital gains at NSE

However, market watchers disclosed that there are two great ways to make money as the market cruises in the New Year.

First, investors are advised to look out for short weak companies. "It’s easy to find them. Just look for companies that are doing worse than the competition. And if that company also is rated favorably amongst analysts, then you’ve got a great short candidate".

Secondly, they are to stay out of small, speculative companies that rely on loans to keep afloat. When the economy slows and lending tightens, smaller companies will have a harder time getting financing. If that company isn’t turning a profit, that means they are only one year away from bankruptcy.

"If you can follow these two rules and combine them with sound investing principles (like stop losses), then you should do well this year".

Further review showed that the banking sub-sector was the most active during the week, measured by turnover volume with 1, 32 billion shares worth N39.5 billion exchanged by investors in 19,704 deals. Volume in the sub-sector was driven by activity in the shares of Intercontinental bank Plc, Access Bank plc, Unity Bank Plc and Oceanic Bank International Plc.

Trading in the shares of the four banks accounted for 667.91 million shares representing 50.45 percent of the sub-sector’s turnover. As in the preceding week, the Insurance sub-sector, boosted by activity in the shares of LASACO Assurance Plc and NEM Insurance Plc, followed on the week’s activity chart with a turnover of 1.23 billion shares valued at N5.6 billion in 8,122 deals.

The all-share index rose by 3.5 percent to close on Friday at 58,850.58 while the market capitalization of the 212 listed equities closed higher at N10.33 trillion. The All-Share index had on Thursday January 3, 2008 recorded an historic highest value of 59,257.16 before dropping to the Friday’s position.

A total of 101 stocks appreciated in price during the week, higher than the eighty-seven in the preceding week. Four petroleum (marketing) stocks occupied the top four positions on the gainers table.

As in the preceding week, African Petroleum Plc led with a gain of N21.86 to close at N219.01 per share while Conoil Plc followed with N8.82 to close at N89.00 per share.

Other price gainers in the top five categories are Oando Plc, Chevron and Cappa& D"Alberto Plc they appreciated by N8.18, N18.01 and N6.90 respectively.

Conversely, 21 stocks depreciated in price during the week, same as in the preceding week. Ecobank Transnational Incorporated led on the week’s price losers’ table, dropping by N9.00 to close at 209.00 per share while Nestle Nigeria Plc followed with a loss of N3.55 to close at N260.00 per share. Total lost N2.55, Mobil, N1.15 and Guinness N0.99.

Throw out all the biased and manipulated economic reports. And tell the market prognosticators to take a hike. It’s all pretty much guesswork anyway.