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Stock market update for 19-01-2009.

At the close of market today key market index plunged further. The all share index dropped from 27,108.54 points which was recorded on Friday last week to 26,667 points. 7,987 deals were carried out involving a volume of 247,720,959 share valued at N1,714,330,115. Market capitalization closed lower from N6 trillion on Friday to N5.93 trillion.

On the gainers side Guinness led the chart as it gained N1.25 kobo to close at N74.25 kobo, BOCGAS added N0.90 kobo to close at N19.05, AIRSERVICE gained N0.68 kobo to close at N13.72 while UNIONDICON gained N0.44 kobo to close at N8.81 kobo.

Nestle led the losers chart lossing N9.09 kobo to close at N172.78 kobo, followed by Oando which lost N2.91 kobo to close at N72.00 kobo, NBC lost N1.40 kobo to close at N26.68 kobo while UACN closed at N8.81 kobo losing N1.35 kobo.

Investment myths to avoid in 2009 and beyond
Posted: 19 Jan 2009 05:48 AM PST
Few people living today base and live their lives on facts and the truth. A greater number however live their lives based on myths, thereby achieving very little tangible results. This is also prevalent in the investment world. Investors in the majority take decisions based on ideas and philosophies that have not stood the test of time. As expected, the result is always known ahead of time-LOSS OF CAPITAL.

Below are some myths about investment that should be avoided if your fortune in the stock market is to change in 2009 and beyond.

1.Anyone that invests in the stock market is bound to make a killing. Contrary to what most people believe which has pushed them into making stock investments, the market does not guaranty a bountiful harvest for everyone. People who invest based on this myth end up staring at the screen every day to see if stocks are in the green or the red. They don’t get a good night sleep because their anticipated profit comes by the action or inaction of other market participants. They don’t look inside a business before investing.

2. Stock investment is too complicated. Investing is simple and can be easy. Simple only if you play based on time tested rules and principles. Always research companies before you invest in them. Read annual reports of companies and understand what is being detailed out. Ask questions from those close to or directly involved in the business.

3. Initial public offers are the best. Always remember that new public offers come out at the most favorable time for the promoters of the stock. Instead of going for IPO’s, why not go for the already traded stocks that have being in circulation over the years. According to Warren Buffet, “great wealth does not flow to those who were early in an investment, but rather to those who saw the long term value of their investment.

4.When stocks decline, they will always move back up. This is what some people base their investment decisions on. They think and convince themselves that even though the price of the stock is declining, it will eventually return to its previous high. Instead, why not buy stocks that have had and will continue to have an increase in value.

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