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66 New Investors Enter Our Fijian Stock Market

The South Pacific Stock Exchange saw 66 new investors entering the Fijian stock market, according to statistics recorded. These were retail investors who targeted securities with high current yields as
11 Jan 2016 10:03
66 New Investors Enter Our Fijian Stock Market
South Pacific Stock Exchnage CEO Latileta Qoro.

The South Pacific Stock Exchange saw 66 new investors entering the Fijian stock market, according to statistics recorded.

These were retail investors who targeted securities with high current yields as well as those showing potential for future capital gains.

SPSE chief executive, Latileta Qoro, highlighted this in the SPSE Stock Market Review 2015.

Ms Qoro said many of these investors also demonstrated intelligent investment techniques by forming an investment portfolio.

“This was through diversification across the market and investing in multiple listed stocks,” she said.

New order flow into the market had been buoyant with a weekly average consideration of $102,663, led primarily by buying interests, which averaged at 51.70 per cent of new order flow consideration.

Ms Qoro said: “Together with retail investors, participation from various institutional investors was also recorded throughout 2015 resulting in healthy trading statistics.

“The average buy to sell ratio concluded at 1:0.8, a shift in market trend from the past indicating the strong presence of investors that are looking for suitable securities at an agreeable price.

“For the same period in 2014, the average buy to sell ratio stood at 1:2 showing the dominance of sellers for various listed shares.”

 

High demand

The report indicated that 2015 was characterised by high demand for and strong ‘Hold’ and/or ‘Accumulate’ investor preferences for listed securities, particularly high yield securities.

Ms Qoro said excess demand for listed securities underpinned capital gains as investors were willing to pay more to purchase high yield stocks relative to domestic alternatives.

“Whilst investors remained relatively yield-driven, 2015 also saw an increase in retail investors acquiring securities for capital growth,” she said.

“With the prevailing strong ‘Hold’ preference, unexecuted orders were relatively large this year with delays noted in dividend reinvestment trades relative to timing in previous years.

“For potential issuers, following from year 2015 the current environment is conducive for public floatation and dual listing, particularly for companies in other exchanges that are looking for buy-side investors.

Edited by: RACHNA LAL

Feedback:  rachnal@fijisun.com.fj

 



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