What Is The Best Company To Buy Shares In Nigeria?
What Is The Best Company To Buy Shares In Nigeria; Worthy to take note of, is the fact that important rules and regulations govern the affairs of every area of life. Business inclusive. And until you take this into cognizance, put into consideration what needs to be, and factor out what should be applied in the course of dealings, it is highly unlikely that you will succeed. As it concerns buying shares in Nigeria, there are certain requirements that a company must meet before business-wise, it can be appropriate to be deemed an ideal company.
This article takes you not just down the lane of the best companies to buy shares in Nigeria, but also how to weigh the necessities involved to give you a healthy dose of business reality. Let’s take a deep dive into it.
Buying Shares In Nigerian Companies; Factors To Consider
1. Company size
One of the important areas to look at when it comes to buying shares in any Nigerian company is the size. This subject lies at the heart of this cause and plays an important role in determining the extent of loss or profit that’d likely be incurred by the turnout of market events. One way to sort this out is to analyze the company’s market capitalization. This way, you can settle out your risk tolerance as you would have known what you’re most certainly in for.
2. Stock track record
It is important to check the stock track record of the Nigerian company you intend to buy shares. The right question here is “How good has it been performing compared to its peers?” GoogleFinance would serve as a perfect tool for this analysis.
Except if you intend to dive in as a venture capitalist, then it’d just be fine, as part of a venture capitalist’s job is to shoulder the research and implementation of strategies that should help a company to grow.
3. Volatility level
The volatility level of the company in which you intend to buy shares must be looked at. This way, you can align it with your investment strategy; if records show that the company is highly volatile, especially if usually influenced by certain market trends, then you want to take profit and exit the market if such trends show signs of surfacing.
On the other hand, a low volatile company is suitable for long-term investment. So, the questions are: “What’s your intended investment pattern? Does it prove to be compatible with the volatility level of the company in which you intend to buy shares?” These conditions must be satisfied.
Buying Shares In Nigeria; Companies To Look At
The best companies to buy shares from in Nigeria are companies with good growth stock; shares bought in such companies are more likely to have a growth pace that is quite above the market average.
Nigerian companies that fall in this class are;
- Unilever Nigeria
- International Breweries
- Dangote sugar refinery
1. Unilever Nigeria
Unilever Nigeria is a good company to buy shares in Niger. The first thing you want to look at here is the company’s size. In the Nigerian equity stock market, this firm holds 0.291%, making it one of the market’s whales with #77.6 billion worth. Unilever Nigeria is not volatile and has a good track record.
2. International Breweries Plc
In the Nigerian stock exchange equity market, the Nigerian International breweries company accounts for 0.505%. This tells huge of the company’s size. And with a market value of #134 billion naira, this company occupies 52nd place in the NGX, judging from the year-to-date performance. A portfolio like this makes it one of the best firms to buy stocks in Nigeria.
3. Dangote sugar refinery
Dangote as a person, has proven to be a juggernaut in the market. So, it is less likely that investing in his firm would lead to loss. The track record of this company has it that it’s been on a steady worth increase over the years; this directly increases the worth of investors’ shares. The Dangote sugar refinery accounts for 0.755% of the Nigerian equity stock market and has a current valuation of #201 billion.
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