A cross deal on the shares of First Inland Bank Plc on Tuesday revved up activity at the Nigeria Stock Exchange (NSE). With a total turnover of 502.526 million shares valued at N2.661 billion in 7,099 deals, Finbank accounted for 135.083 million shares worth N83.9 million in 163 deals, representing 26.9 percent of total turnover.

Yesterday’s turnover rose by 26.5 percent above preceding day’s turnover which stood at 369.476 million worth N1.606 billion in 7,183 deals. In spite the high turnover it recorded, the stock did not experience price movement as the share price remained stable at 63 kobo at which it had opened. It had gained 1 kobo previous day.

An impeccable source disclosed to Daily Sun that it should not be ruled out investors interested in buying key stakeholding were mopping up the shares of the bank whose share price has since fallen below book value. According to the stockbroker, the shares mop up would continue in the weeks ahead until the required volume is secured. However, it could not be ascertained whether the investors are likely to buy shares enough to become core investors with more than 50 percent stake.

If this happens, it will put to rest speculations that the eight rescued banks would be acquired by some powerful interests in hostile takeover. Only recently, it was reported in a national daily (not Daily Sun) that the Managing Director of one the rescued banks had been using fronts to mop up shares of the bank where the boss is charge, fuelling speculations that what concerned stakeholders of the industry feared had chanced.

Meanwhile, the bear rush on Tuesday threatened the long dominance of the bulls as the gap between share price gainers and losers narrowed down significantly. A total of 32 stocks gained prices compared to 31 that traded at losses, suggesting that the bears might soon overrun the trading floor.

However, market twin performance indicators of All-Share Index and market capitalisation edged up by 0.21 percent. Market capitalisation gained N11.46 billion to close at N5.325 trillion, up from N5.314 trillion while All-Share Index rose 47.86 basis points to close at 22,231. 66, up from 22,183.80 points.
The NSE-30 Index appreciated marginally closing at 885.72 up from 883.19 previo9us day. Apart from the NSE Insurance Index which dropped to 230.54 from 234.04 recorded the previous day, other two sectorial indices of NSE Food/Beverage Index and NSE Banking Index appreciated marginally closing at 557.96 and 363.64 up from 556.21 and 361.40 respectively, while NSE Oil/Gas remained stable at 299.26.

The Banking sub-sector remained the most active with investors grabbing a total of 339.390 million shares worth N2.024 billion in 3,932 deals. Finbank Plc was the active stock accounting for over 39.8 percent of the sub-sector’s turnover.
Top on the gainers’ table were Ashaka Cement and Cement Company of Northern Nigeria which tied at 65 kobo gain apiece to close at N13.67 and N14.15 per share while Cadbury Nigeria Plc gained 64 kobo to close at N13.44 per share.
On the loseres’ table, Alumaco, Julius Berger, and Glaxo Smithkline were chief losers dropping 138 kobo, 110 kobo, and 99 kobo in that order to close at N26.33, N28.50, and N22.01 per share respectively

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Successful investing requires more than just a little bit of know how and a dash of luck. It requires a cool head, an analytical mind, and the ability to make quick money decisions. This is always true when investing in the stock market. Investing naturally comes with a level of risk. The market’s activity fluctuates on a daily basis during the opening and closing bells.
Generally the stock market is supposed to grow in value over a period of time. This growth is actually an average of all of the stocks included on the market. While some may have increased in value throughout the day, other stocks will have fallen in value. In some cases growth can affect whole sectors. A sector is a block of companies involved in a specific type of business.

Movement in the market is affected by a number of different factors. News reports affecting a specific industry can cause investors to want to increase their holdings, or negative news can cause investors to exit as quickly as possible. These however, are not hard and fast rules. In some cases, favorable news can result in lower stock prices as more investors try and sell their shares. Once the stock price falls, it can rise quickly again as even more investors are interested in “buying low”.

According to analysts, the erratic movements of the stock market can sometimes be attributed to the large number of inexperienced and amateur investors. This can cause the irrational behavior as sometimes seen. Mass panic has been blamed, more than a few times, for making the market move in directions that completely contradict normal rules of behavior for the stock market.

Amateur investors have a tendency to make decisions based on press releases or rumors that is sometimes not even related to the value of a stock itself. Other causes could be the activity of day traders. Day traders usually trade in such large volumes that they can affect a stock’s price either negatively or positively.

Still other ways the stock market can be swayed is by a country’s attempt at correcting inflation. Usually raising or lowering the interest rate does this. These rates are an indicator of the financial situation for a country. If rates are either raised or lowered, the market activity will usually be influenced.

Some companies are able to increase their individual stock prices by releasing quarterly reports showing they have met or exceeded their profit forecasts. Also releasing information about new products or technology that can increase that particular sector’s value.

Conversely, if a company reports that they fell short of profit projections, the value of that companies stock will usually go down as investors sell off some or all of their stocks. Large shifts are usually due to overreaction to changes in risk.

Without the assistance of a professional, the market can be an unforgiving venture for the casual investor. This trend has begun to change due to better resources being available to investors on all levels. Research is a must for any investment.

I want to show you how to participate in the global market. It’s pity that many of us don’t participate in the global economy and as such are losing out on many goodies happening everyday in the stock market. But a good exposition on the happenings in the international stocks market will show you how to fully participate in it.

What is  global  stock?

Global stocks is simply having access to the shares of various companies worldwide. Trading global stocks gives you access to the biggest stock exchanges that cut across the globe such as the New York Stock Exchange (NYSE), London Stock Exchange (LSE), NASDAQ and even stocks traded on the Asia Stocks Exchanges. The opportunities are just limitless on the global stock platform because of your ability to buy the shares of companies operating in over 57 different countries of the world.

Differences  between  Global  Stocks  and  Forex.

1. Global stocks are basically driven by fundamentals: i.e., major news of the company makes the share prices of stocks respond to buying and selling. Though the technical aspect also play a major role, it is more fundamental than it is technical.
2. With global stocks, you don’t need to sit behind your system all day watching trends of the markets as in forex which makes it less stressful.
3. To make a good buy decision in global stocks, all you need is a good knowledge of the company you are buying into and just put your money to grow and work for you.

HOW  TO  ACCESS  THE MARKET.

You only need two major things to start trading; they include:

• Internet Connection.

All you need to get stared is internet connection. With global stocks, there is no need to leave the shores of Nigeria before you can be a shareholders of any company of your choice all over the world because everything is done real time online.

• Broker

You will also need a broker to handle your buy and sell. The beauty of it is that all your orders are carried out online, at the click of the mouse, and they are instantly executed.

Two  Types  Of  Brokers

1.    Full services Stock brokers

They give you more personalized attention. The broker understands what your investment goals are and can offer recommendations on what and when to buy and sell. However, because their commissions can run as high as $100/trade, this type of account works best for those with net-worth and minimal trading activity. Most full service brokers are not a good fit if you want to trade in penny stocks (these are stocks that trade between $1 – $5). The high commission fees involved could take a huge bite out of  your potentials profits. Instead, most online traders use a  discount brokage firm.

2.    Discount Brokage Firm

Discount brokers do not offer the same level of service but they are still available to answer your questions. They execute trades for as low 50c to $10, with commission that are low, there by leaving you with more money to work with.

I also use the discount stock brokers because of their flexibility and I really enjoy using them.

Brokers and contact Online

There are many brokers online that give you this access but I will like to recommend two reliable ones:

1        pectstocts.com: This is a discount brokage firm which is based in the USA. The beauty of this platform is that they now have a representative here in Nigeria which makes them more accessible. The commission they charge range from $0.01 to $15. The parent company in the U.S is listed on the New York Stock Exchange.

2        The second brokerage firm I will recommend is edameritrade.com. They are also based in U.S, but they don’t have any representative here in Nigeria. They are also listed on the New York Stock Exchange.

How to Buy and Sell

Buying and selling of shares on global stocks is about the simplest thing I have seen. There is no need to call a broker to do it for you but you simply do it yourself by clicking the buy button anytime you need to buy and the sell button anytime you need to sell. Once you have set your account with any broker of your choice (Preferably pectstocks.com) you can buy and sell at will.

What you need to know before you buy or sell

Basically, what you need to know are the fundamentals of the company you intend to invest in. This is about the simplest part of global stocks because of the numerous research organizations that are available online.

These research organization simply tell you companies with good fundamentals which in turn inform your decision to buy or sell. Some of them include: cnnmoney.com, googlefinance.com, yahoofinance.com, forbes.com and a whole lot more.

Categories of stocks traded on the global stocks market.

We have three different categories of stocks traded on the global platform and they include:

1:   Small cap stock: these categories of stocks are traded for cents and they go with high risk because of the volatility they carry.

1. Penny Stock:  these are stocks that are traded between $1 and $5. They attract medium risk because they are more stable than small cap stocks.

3        Blue Chip: these are stocks that are trade above $5. These are standard stocks that are traded on major stock exchange like the NYSE. These are less risky to trade because they have very sound fundamentals. They include companies like Microsoft, Google, yahoo etc.

Advantage of global stocks

In global stocks, you have access to leverage or margin. Simply put, we can call it loan or borrowed money which is given to you by your broker. Leverage simply increases your buying power. For example, if your capital is $100 and you choose a leverage of 1:100, then you buying automatically turns to $200. This simply means you can trade more shares than you actually have.

The advantage of global stocks over local stocks trading are numerous and I tell you, there is no better way to turn over your investment than this because of its flexibility.

This year alone, I have made over 100% on my investment. But not to worry, I am here to take you by hand and teach you all you need to know to be successful in trading global stocks like me.

Futher reading:  How to know when the stock market is at the top