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SPRINGFIELD — Uncertainty is the enemy of the stock market, and right now the country's economy is facing its fair share. That is creating volatility in the market, according to financial analyst Steve Stroud.

During the first quarter of 2008, local stocks were not immune to the uncertainty.

The country is facing skyrocketing oil prices, the mortgage crisis and the presidential election in November.

"Rising oil prices, which hit $115 per barrel, have made everything more expensive," Stroud said, "and the election will cause vacillation in the market for the next few months."

Stocks for WesBanco, Fastenal Co. and Park National Corp. saw the biggest gains while National City Corp., American Home Patient and Huntington Bancshares Inc. lost.

After recently issuing its year-end earnings, Huntington is doing well, said Jay Gould, the senior vice president of investor relations.

"The fact that we raised capital and cut dividends was expected. We have no immediate plans for that capital, but it makes our business stronger," he said.

The financial sector overall continues to be affected by uncertainty in the housing market and overall economic weakness.

"I have 30 years experience and I don't remember a time when we have seen daily swings of 2 to 4 percent," Gould said about the volatility in bank stocks.

Huntington has experienced good loan growth, mostly in the commercial retail area. The bank also has experienced consumer loan growth as adjustable-rate mortgages are being refinanced.

Huntington made sure it secured its position in the mortgage market by writing strong mortgages initially, so the company saw less impact from foreclosures.

"We have been proactive, calling our borrowers to let them know their ARMs will be adjusting, working to get them into a fixed-rate loan," Gould said.

From the corporate to the customer level, Gould said, "Our underlying core businesses are going well."

Stock of Robbins and Myers, Inc. split 2-for-1 and saw its price drop 56.43 percent from Jan. 2 to March 31 to $32.65.

The company reported sales in the first three months of the year of $185 million, which is 14 percent higher than the same period last year. Orders were $216 million or 18 percent higher than in the same span last year.

"Market conditions remain favorable in our key end markets with notable sales growth in global energy and chemical sectors," Peter Wallace, president and chief executive officer, said in a release.

The company's reported increased sales and orders in its process solutions and Romaco segments and increased sales in its fluid management segment.

Even though the short-term outlook seems bleak, Stroud said the market is fairly valued or even undervalued, which is a good place to be right now.

While there are never certainties in the stock market, one potential bright spot may be that interest rate cuts made by the Federal Reserve historically result in double-digit returns after a year or so, Stroud said.

"They make it cheaper to do business," he added.

The key for individual investors is to be diversified and refrain from chasing trends.

"Proper asset management and allocation will help to manage volatility ... because there will always be tough times," Stroud said. "Diversify so you can stomach the tough times."

Contact this reporter at (937) 328-0371 or elroberts@coxohio.com.

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