Beware initial euphoria over headline-grabbing deals

OVER the course of what has been a largely unimpressive year for the local stock market, many second-line firms have at one time or the other been in the focus because they announced deals with large, headline-grabbing numbers.

These plays have injected much-needed interest into a largely lethargic market whilst benefiting the shareholders of the firms concerned. Furthermore, day and short-term traders would have welcomed these announcements as they produce tradeable volatility.

The problem, however, is that very few, if any, tend to have a lasting impact. So, it's worth noting that the window of opportunity is not big.