How to Start Investing in Nigerian Stocks with N5,000 or $3
More than half of Nigerians don’t know the road to stock market –online or offline. Many seems not to be interested. There are other class of people that may be interested but they don’t have information.
Surprisingly, many career oriented Nigerians in public or private sector don’t do stock, the question is how are they planning ahead for the future?
They are hoping their pension fund administrators will do better. Exactly, buy keeping their monies in gilt edge would not do except it is bulky enough – I mean many high networth individuals who just want to protect their wealth are comfortable with investment securities.
Fixed income securities investment can’t give you an optimsed return on money. There is no risk, then no premium. It simply means, you can’t reap Banana when you sow orange.
If you are a Nigerian, the only way to survive the current economic condition is to be an investor. You are an investors once you put your money somewhere, in anything genuine, in anticipation that it will yield more.
On the other hand, you are a consumer if you continually wait for salary to drop before you do whatever that you need to do. Investing is now however a gambling but they shared the same feature: win or lose. It happens all the time that you fall on hear or tail.
If you chose, or anticipate to buy stocks as banks are in the market to raise fund by giving you a slice of the pie, you might want to check on how a brand is shared and controlled.
You are investing stocks for two things: capital appreciation and dividend. You must know that you don’t have weight to force the board of directors in any company that you invest to declare dividend,
For example, it takes decade for Transnational Incorporation to give their shareholders dividend. The thing is, companies that pay dividend are also likely to see positive price surge as market price in its dividend paying history.
Go for stock that has record of gain. Unfortunately, you may not know or have the ability to predict this ahead. But there is a guide.
Don’t go near any stocks with key man risk. If you see all those gloried listed stocks where their owners control significant shareholdings, don’t do it.
Most of the stocks that are closely held don’t jump and the thing is, they are pricey. Your thin trading on the stock will rarely make a different. Pattern however showed that they are most likely dividend payers to ward off bad press.
If a stock is above N50, don’t do it. It won’t fit into your portfolio eventually. This is however relative, it depends on how much you are planning to invest. Do you really know you can start investing in the stock market with as low as N5,000?
ABC Transport is 77 Kobo
Caverton is N1.50
Universal Insurance is 33 Kobo
Royal Exchange is 65 kobo
Livestock Feed is N2.39
Sunu Assurance is N1.35
May and Baker is N5.90
Veritas Kapital is 98 kobo
Honeywell Flour is N3.10
Champion Breweries is N3.30
Cornerstone Insurance is N1.98
AXA Mansard is N4.66
Etranzact is N5
Jaiz Bank is N2.16
Sterling Bank is N4
UPDC is N1.28
WAPIC Insurance is 86 kobo
Mutual Benefit Assurance is 61 kobo
Chams Holdings Plc is N2.12
There are a lot of cheap stocks you can buy to test the water. Instead of beer, make up, or anything else that catches your fantasy, try and put something in stock. It will not hurt, you will thank me later.
Talk to your stockbrokers or request for address or contacts from us.
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