NEWS

Stock Exchange Recorded 945 New Investors Last Year

The review highlighted that Port Denarau Marina Limited (PDM) was the main contributor to the increased new investor statistics, exclusively attracting 504 new investors, out of which 467 new investors were recorded on the day of listing itself.
14 Jan 2020 12:58
Stock Exchange Recorded 945 New Investors Last Year

A total of 945 new investors entered the Fijian stock market in 2019.

This is a significant increase of 352.15 per cent in comparison to 2018.

This was revealed in the South Pacific Stock Exchange Stock Market Review which was released yesterday.

The review highlighted that Port Denarau Marina Limited (PDM) was the main contributor to the increased new investor statistics, exclusively attracting 504 new investors, out of which 467 new investors were recorded on the day of listing itself.

“Second in queue to contribute significantly to the new investor statistics was Fijian Holdings Limited (FHL) accounting for 333 new investors.

“These new investors yielded 1,561 trades and contributed 7,545,848 shares in volume traded and garnered $13,005,378 in value traded.”

Overall, the new investors demonstrated an impressive contribution towards the overall trading statistics for 2019 accounting for:

  • 43.96 per cent of the overall number of trades,
  • 27.03 per cent of the overall volume traded
  • and 23.38 percent of the overall value traded.

“Majority of the new shareholders that invested in the listed entities during 2019 were individuals and represented 78.84 per cent of the overall new investment by investor type.

“These individuals are public servants, private sector employees, domestic workers, retirees, students, farmers and investors who are self-employed,” the report said.

An analysis of the new investors by type of employment indicated that majority of the new investors recorded in 2019 were those employed in the private sector followed by those employed.

The year 2019 started on an optimistic note as an active pattern of trading was witnessed in Fijian Holdings Limited (FHL) boosting the overall trading statistics for the month.

This was revealed in the South Pacific Stock Exchange Stock Market Review which was released yesterday.

Main highlights from the SPX review are:

The hype in trading activities for FHL was consequent to the completion of the share split process into a ratio of 1:10 and the adjustment of the last traded price to $0.85.

From an investor viewpoint, the readjusted share price for FHL made the stock more affordable to potential investors thus creating greater demand for FHL shares.

Whilst trading activities in other listed stocks remained low during the month of February, active trading continued in FHL shares due to its affordability with the readjusted share price.

This resulted in a greater demand for FHL shares resulting in further appreciation in FHL’s share price as well as attraction of multiple new investors given the prevailing circumstances.

This trend continued during the month of March with FHL shares still highly sought-after and continued to post further capital gains for the shareholders.

Trading picked pace in April arising from the execution of a special crossing transaction recorded in FMF Foods Limited (FMF) between two institutional investors.

The month of May saw the partial execution of FHL’s market-based bi-annual dividend reinvestment transactions which resulted in an increase in the number of trades, however, volume and value traded remained at usual levels.

ATH

The month of June recorded a special crossing transaction in Amalgamated Telecom Holdings Limited (ATH) which combined with the full execution of FHL’s remaining dividend reinvestment transactions boosting the overall trading statistics for the month.

Port Denarau Marina Limited

Market activities during July remained slow, however, picked pace during August consequent to the listing of Port Denarau Marina Limited (PDM).

The official listing of PDM was enthusiastically welcomed by the SPX as PDM added a new sector to the Exchange’s portfolio of investment, namely from the Tourism sector.

The listing also offered savers and prospective investors an opportunity to gain access to a competitive tax-free rate of return through PDM shares and this was highlighted by a high number of retail investor participation in PDM shares.

Trading for September picked pace due to the execution of one special crossing transaction respectively in Vision Investments Limited (VIL) and FHL.

Crossing transactions

The two special crossing transactions recorded in VIL and FHL were executed between high net worth individuals and institutional investors.

Secondly, certain high-volume trades executed between two institutional investors in Kinetic Growth Fund Limited (KGF) also boosted trading volumes.

Trading in FHL shares were dominant in October due to the execution of FHL’s market-based dividend reinvestment trades originating out of the second interim dividend declared in September 2019.

Adding to the radiance of trading activities were some other listed entities, such as; Kontiki Finance Limited (KFL) and Port Denarau.

These two listed stocks witnessed execution of some high quantities during the month under review, attracting a couple of first-time stock market investors as well.

November recorded multiple notable activities with the overall market capitalisation reaching the $4 billion mark for the first time ever.

The month also witnessed completion of the Share Split process for RB Patel Group Limited (RBG) into a ratio of 1:5 and the adjustment of the last traded price to $1.90.

Similar to FHL’s share split and RBG historically being a highly sought-after stock, the readjusted share price made the entity’s shares more affordable to potential investors thus creating greater demand for RBG shares.

This increased investor demand rallied well for the shareholders posting substantial capital gains in RBG shares.

The remaining shares as part of FHL’s market-based dividend reinvestment were fully executed during the month of November as well.

The month of December in concluding the year 2019 witnessed two special crossing transactions in Vision Investments Limited which subsequently resulted in increased volume and value of transactions.

December also witnessed a further growth in aggregate market capitalisation reaching an all-time high of $4.13 billion, however, dipped slightly to end the year at $4.12 billion.

Additionally, despite the festive season setting in, many retail investors remained active during the month which is a welcome change noted by the SPX over the past years and indicates that individuals are now balancing their consumption and saving/investment priorities.

Feedback: maraia.vula@fijisun.com.fj

Fiji Sun Instagram
Fiji Plus
Subscribe-to-Newspaper
error: