6 Best Shares to Buy on the Nigerian Stock Exchange

The 6 Best Shares to Buy on the Nigerian Stock Exchange revealed. To find the top stocks trading on the NGX, we conducted in-depth fundamental and technical studies. This is a complete guide to 6 Best Shares to Buy on the Nigerian Stock Exchange.

In this in-depth guide you’ll learn:

• How investors can gauge the performance of NGX stocks
• 6 Best Shares to Buy on the Nigerian Stock Exchange
• How to choose the Right Share Broker in Nigeria
• The Best Share Brokers in Nigeria

How investors can gauge the performance of NGX stocks

Any given investor will use their own set of criteria to evaluate a stock’s success. The most popular method of calculating a company’s value is the price-earnings (P/E) ratio.

Divide the stock price by the company’s trailing 12-month earnings per share to get the P/E ratio (EPS). Most investors aim for total returns, which include dividend and interest payments.

Additionally, you need to look at the stock’s performance during the last 52 weeks and to date this year (YTD).

Guinness Nigeria Plc (NGX: GUINNESS)

Ikeja in central Lagos is home to Guinness Nigeria, a subsidiary of the British company Diageo Plc.

In November 1963, three years after Nigeria’s independence, Guinness Nigeria produced its first bottle of Guinness Foreign Extra Stout, making it the first Guinness brewery outside of the United Kingdom. Two years later, the company was listed on the Nigerian Stock Exchange.

Guinness Nigeria is the sole business in Nigeria that offers a varied range of alcoholic and non-alcoholic beverages, such as spirits, lagers and ales, and non-alcoholic drinks.

Guinness Nigeria is the seventeenth most valuable stock on the NGX with a market value of NGN 198 billion, which represents about 0.74% of the Nigerian Stock Exchange’s equities market.

Presco Plc (NGX: PRESCO)

Agro-industrial company Presco Plc cultivates oil palm plantations, manufactures palm oil, processes palm kernels, and refines vegetable oils. The company also processes palm kernels.

Its products include crude and refined palm kernel oil as well as palm kernel cake, palm olein, palm stearin, palm fatty acid distillate, and refined palm kernel oil. Additionally, its refined palm oil has been bleached and deodorized.

With a market value of NGN 158 billion, Presco Plc is now the 20th most valuable stock that is traded on the NGX. This represents about 0.591% of the total equity market that is traded on the Nigerian Stock Exchange.

Ecobank Transnational, Inc. (NGX: ETI)

Formerly known as Ecobank Transnational Incorporated (ETI), Ecobank Transnational Incorporated SA (ETI) is a bank holding company that provides banking and financial services via its affiliates.

ETI provides a full spectrum of wholesale, retail, investment, and transaction banking services and products to clients throughout Africa and beyond. The bank has an excellent financial position, a proven record of accomplishment of performance, and rapid profit expansion.

Ecobank Transnational Inc. is the 19th most valuable stock on the NGX, with a market value of NGN 182 billion, and represents around 0.678% of the equity market on the NGX.

FCMB Group Plc (NGX: FCMB)

FCMB Group Plc offers a wide variety of financial services. Financial services such as commercial and retail banking, investment banking, brokerage, wealth management, and trustee services are the company’s main operations.

With a market value of NGN 61.4 billion, FCMB Group Plc is now the 30th most valuable company on the NGX and accounts for around 0.229% of the equities market on the exchange.

MTN Nigeria Ltd (NGX: MTNN)

MTN Nigeria Communications PLC provides mobile banking, fixed wireless internet access, and communications services in Nigeria. Current sources of revenue include Voice, Data, Digital, and Fintech, among others.

MTN Nigeria has spearheaded the expansion of the telecom sector to become the largest mobile provider in West Africa since its establishment.

In 2007, it was upgraded to 3G from a 900/1800MHz second-generation digital mobile service. MTN Nigeria delivers cellular network services and technological solutions to millions of Nigerians via 15 service centers, 144 Connect Stores, and 247 Connect Points situated in every state of Nigeria.

MTN Nigeria has over 55 million members. MTN Nigeria is owned by MTN International (Mauritius) Limited (75.81%), Nigerian shareholders (18.7%), Mobile Telephone Networks NIC B.V (2.78%), and Public Investment Corporation SOC Limited (1.76%).

MTN Nigeria is currently the third most valuable stock on the NGX, with a market value of NGN 3.87 trillion, accounting for about 14.4% of the overall Nigerian Stock Exchange equities market.

United Capital Plc (NGX: UCAP)

Nigerian financial institution United Capital Plc provides investment banking, asset management, trusteeship, securities trading, and insurance.

Nigeria is the company’s core market, although it also solicits business from governments, organizations, and affluent individuals around the continent.

United Capital Plc is the thirty-first most valuable stock on the NGX, having a market value of NGN 60,6 billion, which represents about 0.226% of the Nigerian Stock Exchange equity market.

How to choose the Right Share Broker in Nigeria

Traders could not have picked a more favorable time to enter the investment market than the present. Competition among online brokers is high, which means costs are dropping down and features are being boosted.

Those interested in trading global financial instruments could choose from a wide variety of online forex and CFD brokers. However, there are several factors to consider when choosing a broker and we will go through them here.

Commission Charges

Individual stocks, options, mutual funds, exchange-traded funds, and bonds are the main investment types offered by brokers. Some will also provide exposure to the forex market, futures trading, and cryptocurrency exchanges.

Both the suitability of the broker’s offerings to your investment requirements and the fees you must pay is dependent on the investments the broker has available. You should pay close attention to the commissions that are involved with the investments you like.

Overall Reliability

There is a diverse selection of brokers available. Several have been popular for many years, while others have just recently emerged.

That does not imply they cannot be trusted, but if they are managing transactions for clients, they are members of a self-regulatory organization like the Financial Industry Regulatory Authority (FINRA), the Financial Conduct Authority (FCA), and other regulators, or subject to additional oversight.

Account Fees

While it could be impossible to eliminate account fees, they may be kept to a minimum. To withdraw funds or investments, or to close your account, most brokers will assess a fee.

If a broker does not charge them, or if you do not use their optional services, you could avoid paying most additional costs.

Pricing and Execution on Trades

Cost is less of a factor today, leading to commission-free transactions becoming the norm at most brokerages.

However, you should consider the brokerage’s position on the controversial practice of paying for order flow and how much it costs before making a final decision.

This is especially true if you are an active trader who wants their deal completed at the best price possible, even if it means a difference of a few cents.

Additional Tools, Educational Materials, and Features

Look for a brokerage that provides free educational tools like live webinars, detailed how-to instructions, video tutorials, glossaries, and more if you are just starting in the investment world.

You should also look at the broker’s commitment to educating its customers about the inherent hazards of more complex trading tactics like options.

The Best Share Brokers in Nigeria

In this article, we have listed the best brokers which offer share trading to traders. We have further identified the brokers that offer additional services and solutions to traders.

Best MetaTrader 4 / MT4 Share Broker in Nigeria

Overall, XM is the best MT4 Share Broker in Nigeria. The XM Group, more often referred to simply as XM, is a global online trading firm.

The three million traders and investors who use XM have access to a variety of innovative trading solutions that are ideal for Nigerian professionals. Trading tools, charts, and other resources are all available to Nigerians through MetaTrader 4.

Best MetaTrader 5 / MT5 Share Broker in Nigeria

Overall, FP Markets is the best MetaTrader 5 Share Broker in Nigeria. To provide more value to its customers, FP Markets makes advantage of the electronic bridges provided by ECN.

Without requiring dealer participation, FP Markets gives traders the ability to access liquidity sources via the utilization of the Equinix NY4 Data Centers and MetaTrader 5.

Best Share Broker for beginners in Nigeria

Overall, MTrading is the best Share Broker for beginners in Nigeria. Since 2012, MTrading has expanded to provide its services to more than 250,000 traders and 5,000 partners across 10 or more locations.

MTrading provides new traders with educational opportunities in the form of classes and seminars.

Best Low Minimum Deposit Share Broker in Nigeria

Overall, HFM is the best Low Minimum Deposit Share Broker in Nigeria. Over one thousand different trading items are made available to Nigerians via HFM, which requires a minimum investment of 400 Naira.

Nigerians have untethered access to a wide variety of share CFDs, any of which can be traded using either MT4 or MT5.

Best ECN Share Broker in Nigeria

Overall, Tickmill is the best ECN Share Broker in Nigeria. By providing a variety of useful recommendations and tools, Tickmill hopes to facilitate the financial success of traders of varying experience levels.

Tickmill gives Nigerian traders access to ECN and STP trade execution, as well as zero-pip spreads, minimum slippage, and affordable fee rates.

Best Islamic / Swap-Free Share Broker in Nigeria

Overall, SuperForex is the best Islamic / Swap-Free Share Broker in Nigeria. In addition to accounts denominated in NGN, Muslim Nigerians can open swap-free accounts with SuperForex. Nigerians can expect dedicated Swap-Free accounts with competitive conditions for 400 instruments.

Best Forex Trading App in Nigeria

Overall, FBS is the best forex trading app in Nigeria. FBS provides its services in 150 countries, and the company reports that hundreds of new accounts are created each day.

FBS offers residents of Nigeria two different incentives that do not need a deposit, allowing users to build up their trading funds without risking their own money.

Best NGN Trading Account Share Broker in Nigeria

Overall, Exness is the best NGN trading account Share Broker in Nigeria. Exness excels as a CFD and Share Broker for Nigerian customers because of the availability of micro-lot trading and multiple currency accounts. Nigerian traders have access to MetaTrader 4 and 5, courtesy of Exness.

Best Lowest Spread Share Broker in Nigeria

Overall, InstaForex is the best lowest spread Share Broker in Nigeria. Over 7 million traders are enrolled on the InstaForex platform. Nigerians can benefit from InstaForex’s $1,000 no-deposit offer as well as their other trading options.

Accounts with InstaForex are available with a minimal spread and no commission. Trading in micro-lots is allowed, which is beneficial for Nigerian traders who are just starting as well as those who are trying various trading tactics.

Best Nasdaq 100 Share Broker in Nigeria

Overall, Scope Markets is the best Nasdaq 100 Share Broker. Scope Markets is a regulated company in a few different areas across the globe and offers MetaTrader 4 and 5 on all devices.

This gives people in Nigeria the ability to trade Nasdaq 100 assets and other indices without having to pay a fee.

Best Volatility 75 / VIX 75 Share Broker in Nigeria

Overall, AvaTrade is the best Volatility 75 / VIX 75 Share Broker in Nigeria. The index CFDs offered by AvaTrade have attractive fixed spreads and do not charge any fees for deposits or withdrawals.

AvaTrade, the leading VIX broker in Nigeria, offers market research and trading tools to traders of all trading styles and with a variety of trading approaches, regardless of how unique those approaches might be.

Best NDD Share Broker in Nigeria

Overall, FXTM is the best NDD Share Broker in Nigeria. Because of its support and educational resources, FXTM is regarded as one of the best NDD brokers.

FXTM is also well-known for its trustworthy transaction execution, which features small spreads, zero slippage, and no requotes.

Best STP Share Broker in Nigeria

Overall, Pepperstone is the best STP Share Broker in Nigeria. Pepperstone offers interbank execution in addition to competitive spreads. Spreads on Pepperstone’s MetaTrader 4 platform start at 0.6 pips and are available in STP, ECN, and STP formats.

Best Sign-up Bonus Broker in Nigeria

Overall, RoboForex is the best sign-up bonus broker in Nigeria. RoboForex provides Nigerian customers with some of the most flexible trading alternatives available, which are then grouped into a variety of dynamic account kinds.

When citizens of Nigeria sign up for an account with RoboForex, they get the opportunity to receive a $30 welcome bonus.

Conclusion

If you are looking for the top stocks now trading on the NGX, you will find them on the list we supplied. Any prospective investor, however, must remember that there is always some degree of risk involved with investing and that stock values are never fixed.

Traders in Nigeria should not base their decisions just on a stock’s price but should do a thorough fundamental and technical study of the firm.

Frequently asked questions

Where can I view the stocks that I have purchased?

The Nigerian Securities Exchange Commission has a section labeled “non-Mandated” where you can view your holdings.

Is it dangerous to invest in stocks in Nigeria?

Indeed, every single investing strategy has some degree of danger attached to it.

When Nigerians buy stocks, they face a few risks, including the potential loss of initial investment funds, the danger of price fluctuations, and other market risks.

Which Nigerian firm do you think is the most valuable?

At the end of June, the most valuable company listed on the Nigerian Exchange was Airtel Africa, a telecommunications giant in Africa, with a market value was N6.51 trillion.

After Airtel Africa, Dangote Cement has a value of N4.69 trillion and MTN Nigeria has a value of N4.69 trillion.

How and where can I start investing in Nigerian stocks?

You need to open an account with a stockbroker who is licensed by the Nigerian Stock Exchange (NGX) before you can buy shares in any company listed on the exchange.

Foreign brokers may assist the trade of shares not registered on the Nigerian Stock Exchange (NGX), even though they provide CFD trading and individual shares to Nigerians.

Exactly where can I go to get started purchasing stocks in Nigeria?

When trading on the Nigerian Stock Exchange (NGX), it is mandatory to use the services of a stockbroker who has been granted NGX membership.