These 5 stock markets are still the best in Nigeria
The task of making choices on where and what to invest on can be daunting.
Having a lot of opportunities out there makes it even more difficult to decide on what to invest in.
But the truth is, as a good businessman, you can't live your money to just lie dormant without multiplying it. Even Warren Buffet will agree with me.
Although there are reasons why investors are scared of taking the risk to invest. It's either because of the fraudulent investment opportunities out there or because of the high risk and uncertainties involved.
Yes, we can't Shy away from the fact that investment opportunities are very risky. But, must take risks, If you must make it.
As frightening and discouraging as that might sound, there are opportunities of investment that have higher guarantees and pays off well at the end of the day.
Stock market is one of such opportunities.
For the benefit of some people who are new into business, I am going to take a little review on the stock market.
What is this stock market?
A stock market, equity, or share market is the aggregation of buyers and sellers of stocks or what we call shares, which represent ownership claims or what I would like to call fractional ownership of businesses.
Stocks may include securities listed on a public stock exchange, as well as stock that is only traded privately, such as shares of private companies which are sold to investors through equity crowdfunding platform (Wikipedia).
As long as you have bought into the stock of any company, you automatically become a fractional owner of the company and as such a benefactor of the profits based on the agreed commissions and percentages.
The benefits are not far from the reasons why the great business magnate Warren Buffet has bought more than 8 shares which includes shares of Abbvie(ABBV), T-Mobile, Chevron(Cvx), Kroger(KR), and the rest. As a matter of fact, he has bought more than ten shares of great companies.
As long as you are investing into a good and reputable company, you are not alone as it won't fail you.
In this article, we shall be reviewing 5 known companies following the naira metrics list. These 5 are guaranteed.
But before that, let's look at the structure of the stock market.
How the stock market works
The stock operates through a network of exchanges.
Companies who have shares for sale, list out their shares on an exchange through initial public offering (IPO).
When companies have listed out shares that they are willing to sell, investors now go ahead to purchase these shares.
For investors to buy, they make a "bid". A bid therefore refers to the amount investors are willing to pay for somes shares of a company.
For a successful transaction to have taken place, then there must have been agreement in price between the buyer and the seller of shares.
This difference between the bid and sellers ask -price is what we refer to as " the bid- ask spread".
Why do I need stock investment?
Investing in stock does a great benefit to your wallet. Below are underlined benefits of investing in stock.
1.Expansion of savings
Your savings can never be too much. Investment in stock is another way of saving which eventually expands your wallet.
Honestly, we always advise that when you do not know where to put your money, invest it in the stock market.
Stock investment is one top secret of successful businessmen even though they won't tell you.
2. Maximization of income.
It is a norm for most companies to pay dividends on special distributions. The payment can in turn provide you with steady income for investment, this helps in maximization of profit.
5 best stock market for 2021
Note: This is a review of the naira metrics best five of 2020. They prove to be great opportunities still in 2021.
It is not new information that stock investment is a mouth watering opportunity, therefore, let's look at the 5 best markets.
Nestle Nigeria Plc
Nestle is better seen as a top household brand. Their products ranges from cereals, chocolate and confectionery, dairy, drinks, water, coffea, culinary and frozen foods, infact, everything edible.
The activities of the company in Nigeria, kicked off in 1961, and got listed 18 years later in April 1979, trading as NESTLE.
Nestle is usually considered one of the top stocks to look out for. Ugodre Obi-Chukwu, Nairametrics founder has this to say“It is an incredible brand and they sell great products”.
The current share price of Nestle Nigeria (NESTLE) is NGN 1,420.00. The NESTLE stock closed its last trading day (Friday, May 21, 2021) at 1,420.00 NGN per share on the Nigerian Stock Exchange. Source; afx.kwayisi.org>nseng>nestle
Emmanuel Abara express his confidence in the stocks and he has this to say– “That company never fails. Fundamentals have always been good – strong brands and positive financials”.
Aside from these people who have said great things about NESTLE. In our entrepreneur choice, it remains the first on the list.
Dangote Sugar Refinery
Sugar is an inevitable product. We can hardly count the number of foods we can consume without sugar. This makes the product a big market.
The company was listed in the NSE in 2007, and has been trading under the name DANGSUGAR since then, making sure to stay top of the chart. (Naira metrics).
The current share price of Dangote Sugar Refinery (DANGSUGAR) is NGN 17.20. The DANGSUGAR stock closed its last trading day (Friday, May 21, 2021) at 17.20 NGN per share on the Nigerian Stock Exchange, recording a 0.58% gain over its previous closing price of 17.10 NGN. DANGSUGAR began the year with a share price of 17.60 NGN but has since lost 2.27% off that price valuation, ranking it 102nd on the NSE in terms of year-to-date performance.(https://afx.kwayisi.org/nseng/dangsugar.html).
According to Abiola Odutola, Managing Editor of Nairametrics, Dangote Sugar stocks would always be a good bet in anyone’s portfolio. Apart from its good financials and adherence to corporate governance, the stocks are highly liquid making it suitable for even short-term investors— This is obviously a great deal. If you are wise, find your way to invest in their stocks.
Nigerian Breweries Plc
The Nigerian brewery is a drink manufacturing company. It is known for its varieties in drinks and consequently makes fantastic sales every now and then.
Ofcourse, you and I know that a lot of Nigerians can never have enough alcohol and drinks.
The Nigeria breweries closed its shares at the price of N56.00 per share on may 21, 2021.
A good entrepreneur should be able to say yes to their stock without a second thought.
Flour Mills of Nigeria Plc
Flour Mills makes one of the largest contributions to COVID-19 relief fund
Flour Mills of Nigeria Plc has been trading on the NSE main board as FLOUR MILL since it was listed in 1978, and its business operations run across food manufacturing, agro-allied feeds, to logistics and support. ( Nairametrics)
The current share price of Flour Mills Nigeria (FLOURMILL) is NGN 29.50. The FLOURMILL stock closed its last trading day (Friday, May 21, 2021) at 29.50 NGN per share on the Nigerian Stock Exchange. FLOURMILL began the year with a share price of 26.00 NGN and has since gained 13.46% on that price valuation, ranking it 29th on the NSE in terms of year-to-date performance. The table below details the last 10 trading days of activity of Flour Mills Nigeria on the Nigerian Stock Exchange.(https://afx.kwayisi.org/nseng/flourmill.html)
Nairametrics Market Analyst, Olumide Adesina recommends this stock for medium to long-term investors.
Cadbury Nigeria Plc
Cadbury Nigeria is already a household name providing consumers with much-loved brands.
With a lot of products from this great company supports the positive increase in their sales.
So, investing in Cadbury Nigeria is a great investment plan, just go ahead to invest.
