Top 5 best-performing stocks on the Nigerian Stock Exchange Market

            Top 5 best-performing stocks on the Nigerian Stock Exchange Market

Investing is a necessity if you want to maximize your money and keep up with inflation in Nigeria. Over time, inflation erodes the purchasing power of cash. As a result, unless you invest in a worthwhile asset, the value of your monthly salary savings will decrease with each passing day.

 

The Nigerian stock market has drawn a large number of local and international investors, with the Nigerian equity market yielding 5% so far in 2021, a long cry from the 50% it generated last year when Bloomberg placed the Nigerian stock market first in the world among the 93 markets it tracked.

The advancement of technology has made the process of investing in the Nigerian Stock Market easier and readily accessible for everyone.

 

What should you consider before making an investment in the Nigerian Stock Market:

-          Select an investment bank or stockbroker that is regulated. Stockbrokers are hired by investors to execute purchase and sell orders on their behalf because no matter how much technology has advanced, there’s a limit to how much you can do.

-          Create an investors account. It's usually opened in conjunction with a CSCS (Central Securities Clearing System) account, into which you'll move your stocks. A stock brokerage firm or broker can also open online options for you.

-          Set Trading Capital that is Safe. Your trading cash requirements should always be proportionate to the amount of risk you want to take or the volume you want to trade, in my opinion. Buy the rumors and sell the news. That adage is quite common among investors. To put it another way, never trade on emotion. Emotional trading is the riskiest type of trade. Always involve logic and reasoning.

-          Continue to educate yourself. Investing in Nigerian stocks is not an exact science. You should continue to learn about the market and trade as much as possible if you want to improve your trading skills. Long-term success hinges on the development of analytical abilities. To understand the history of the markets, it is best to read books and other financial news-related materials such as Nairametrics, Bloomberg, and InvestingPort.

 

Top 5 stocks to consider for investment in 2022

-          Dangote Cement: this is Africa's largest cement firm, valued at around N4.7 trillion ($11.6 billion) on the stock market. The cement behemoth's market valuation remained unchanged month over month, yet it continued to produce remarkable results. Revenue increased by 16.5 percent to N331.6 billion during the quarter, while pretax earnings increased by 13.9 percent to N124.2 billion.

-          MTN Nigeria: this is Nigeria's most profitable corporation (according to public records) and the Exchange's second-highest capitalized company. MTN is just shy of its all-time high of N3.67 trillion, or $8.7 billion, with a market value of N3.6 trillion. The company posted record third-quarter results, with revenue of N415 billion, up 23% from the previous year, and pre-tax profits of N106 billion, up 47.5 percent.

-          Airtel Africa: it is one of two telecommunications businesses featured in Nigeria's top five companies by market value. With a market capitalization of N2.9 trillion at the end of October 2021, the telco gained 9%. This is not, however, the company's greatest market value this year. Between February and June 2021, Airtel was valued at N3.4 trillion.

-          BUA Cement: is one of the country's leading cement companies, boosted its market capitalization by 9% in October, bringing its total value to N2.43 trillion. The strong results announced in the three months ended September 2021 contributed to the bullish emotions reported during the month.

-          Nestle: with a market capitalization of N1.17 trillion at the end of October, Nestle, Nigeria's top consumer products firm, is the least capitalized of the SWOOTs. By the end of October, the company's share price had dropped from N1,480 per share in September to N1,400 per share. The company's 2021 Q3 results, which showed pre-tax profits of N18.2 billion compared to N15.4 billion in the same time in 2020, were a primary factor for the dip.