Strategic investors may have shown hunger for valued penny stocks following recent disappointment in the prices of large-cap stocks, which spurred over N400 billion in losses from the stock market last week.
Penny stocks, also known as cent stocks in some market jurisdictions, are common shares of listed companies that trade at low prices per share.
Research and investment analysts believe that most of these stocks have recently outperformed the broad market index and heavyweight stocks.
“The 2014 first-half earnings season just ended and the market generally was not impressed by the set of earnings result from the heavyweights while few stocks that are considered as low caps were able to deliver good results,” said Abiodun Keripe, research analyst at Elixir Investment Partners Limited, a Lagos-based investment company.
