BEST STOCKS TO BUY IN NIGERIAN STOCK EXCHANGE
According to Investopedia, stocks are fractional pieces of publicly traded companies. If you own a company’s stock, you own a piece of that company. Furthermore, Stock exchanges are strategic marketplaces for the trading of stocks. They enable investors to buy and sell company shares in a controlled physical or electronic environment. The exchange operates as an auction, with traders who feel a company will do well bidding up the price and those who believe it will do poorly bid down the price.
Stock refers to the total number of shares held by a single shareholder in the financial realm. The Nigerian Stock Exchange (NSE), presently known as the Nigerian Exchange Group, was established in 1961 as the Lagos Stock Exchange. The Securities and Exchange Commission of Nigeria regulates the stock exchange, and it is the only one in charge of it in Nigeria. The 176 listed companies registered within the NSE are open to both nationals and foreigners.
The Lagos Stock Exchange, the forerunner of the Nigerian Stock Exchange, was established on September 15, 1960. The London Stock Exchange (LSE) first opened for business on August 25, 1961, with 19 equities registered for trading. In June of that year, informal activities had begun a few months earlier.
Initially, the operations were carried out in the Central Bank Building on Lagos Island. The Stock Exchange had four market dealers at the time: Inlaks, John Holt, C.T. Bowring, and ICON (Investment Company of Nigeria). The volume for August 1961 was anticipated to be £80,500, rising to £250,000 later. The majority of these investments were made in government bonds.
The Lagos Stock Exchange was renamed the Nigerian Stock Exchange in December 1977, and several branches were established in the country’s major economic centers, the NSE now has thirteen branches in the states of Abuja, Kaduna, Port Harcourt, Kano, Onitsha, Ibadan, Yola, Benin, Uyo, Ilorin, Abeokuta, Owerri, and Bauchi.
The Securities and Exchange Commission regulates the NSE and is active in its surveillance to prevent market rule violations as well as to detect and prevent unfair manipulations and trading practices.
In general, data about the stock exchange’s listed companies’ performance is provided daily, weekly, monthly, quarterly, and annually.
This apotheosis of this article focuses on the best stocks to purchase in the Nigerian Stock Exchange. It was, therefore, important to proffer a brief history of the emergence of the Nigerian Stock Exchange. Below are a limited number of the best stocks to buy in the Nigerian Stock Exchange:
- GUINNESS NIGERIAN PLC
Guinness is a well-known alcoholic beverage brand in Nigeria. Orijin, Smirnoff, Snapp, Malta Guinness, and more brands are among its offerings. It belongs to the consumer non-durable goods category. It has a market capital of 93.091 billion naira, a volume of 222.078 thousand shares, and a stock price of 42.50 naira. According to technical evaluations, this is a good time to buy the stocks because they are at a 52-week high. There has never been a better time to invest in the stock than now.
- HONEYWELL FLOUR MILLS PLC
Honeywell is a company that works in the process industries. It sells processed foods to the general public. Honeywell semolina, noodles, macaroni, wheat meal, and other products are among the company’s offerings. Their stock price is 3.23 naira, with a market capitalization of 25.377 billion naira and a volume of 199.773 thousand shares. For investors, it is recommended that they sell rather than buy the stock based on its technical rating. Honeywell is among the top gainers, despite the fact that it is advised to sell.
- ROYAL EXCHANGE PLC
The Royal Exchange falls under the finance sector. It provides financial services, particularly in the area of insurance. It has a market capital of 4.219 billion Naira, a volume of 881.709 thousand shares, and a stock price of 0.82 naira.
Currently, Royal Exchange is a solid stock to buy. If you’re searching for a financial services company to invest in, this is an excellent choice because the stock price is also reasonable. This stock is currently recommended for purchase based on the technical rating.
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- MORISON INDUSTRIES PLC
Morison is now the best-performing stock in Nigeria. The consumer non-durables industry includes Morison. Their market capital is 1.968 billion naira, with a daily volume of 2.129 thousand and a stock price of 1.99 naira. Healthcare and cleaning items are among the company’s products. This is a great option for people looking to invest in consumer non-durable items because the stock price is low and the volume is high. According to the technical assessment, this is a good time to buy Morison stock rather than sell it.
- UNITED CAPITAL PLC
United Capital is in the financial services industry. It operates as a financial and investment firm. Investment banking, asset management, wealth management, Trusteeship, and Securities are among the services it provides. According to its technical rating, it is recommended to purchase rather than sell this stock, which has a stock price of 10.75NGN, a volume of 1.755M, and a market capital of 65.4B.
- UNIVERSITY PRESS PLC
University Press Plc is one of Nigeria’s most prestigious publishing establishments in Nigeria. It not only publishes books, but also prints them, distributes them, and markets them. With a stock price of 2.94, a volume of 1.021K, and a market capitalization of 1.268BN, technical ratings suggest that UPPLC stocks should be purchased right now. University Press is your best option right now if you’ve always wanted to invest in a publishing firm. It’s also been at an all-time high over the past 52 weeks.
The following list was compiled based on the current best-performing. As a potential investor, you should be aware that investing might be dangerous because stock prices are dynamic, meaning they alter over time. However, keep in mind that the bigger the danger, the larger the reward, and the smaller the risk, the lower the reward. Therefore, it is important to make prudent investments.
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