Saturday, November 21, 2009

Reading Market Reports


As a stock trader, you will begin to pay more interest to the business section of your local newspaper. Most feature a section that deals with Stock Market prices at close of the previous day. In this section, you will come across the following descriptions:
Year’s High - the highest price for a particular stock for the year.
Year’s Low - the lowest price for a particular stock for the year.
Stock Code - a unique numbering system to identify a particular stock.
Stock Counter - the stocks listed on Bursa Malaysia.
Cls’ng (Closing) - the closing price for a particular stock for that particular trading day.
+/- - the symbol for the increase or decrease in the stock price for that particular day.
+/-% - the symbol for the percentage increase or decrease in the stock price.
Lots Traded


- stocks are normally traded in board lots of 100 units; lots traded will tell you the number of lots traded on a particular day.
Day’s High - the highest price for a stock in that trading day.
Day’s Low - the lowest price for a stock in that particular day.
Div Yield




- a dividend yield is a method of valuing stocks; it is calculated as

Cash Dividend per Stock = Dividend Yield
Market Stock Price
P/E Ratio(Price/Earnings Ratio)




- the information obtained from this will enable you to make a performance comparison of a company with that of the industry, and from one period to another. The formula is:

Current Market Price = P/E Ratio
Earnings Per Stock
Earning per stock - amount of a company’s earnings attributable to each ordinary stock of that company.
M Cap(Market Capitalisation)




- this shows the total value of a listed company’s stocks based on the current market price; calculated as:

Stock’s Market Price x Number of Stocks Issued
NTA per Stock




- this indicates the value of assets backing the stock of a company; calculated by:

Net assets of a company
Number of ordinary stocks in it

Reading the stock market performance section of the newspaper is an easy thing to do. You just need to do it a few times until you begin to feel comfortable with it.

top

Top Right Gradient
Bottom left Gradient Bottom Gradient

No comments:

Post a Comment