Investing in stocks in Nigerian companies seem like a pretty amazing idea.The Nigeria stock market as of last year did extremely well, it was reported to be one of the best performing and top grossing ones in the world as the Nigeria Stock Exchange (NSE) returned a whooping 42% in 2017.
Although the NSE has promised that this trend will continue in 2018. We strictly recommend you to be wary of the kind of stocks you plan to buy. Try to invest wisely by choosing the winners while removing interest in the ones that look too risky when the year began.
It is known that portfolio losses is associated with the volatility of the stock price in the stock market, so experts advice investors who are interested in making money from investing in stocks should have a projected long-term view.
A recent research conducted by the FDSH (First Discount House) has revealed that “investors could make good returns in the equity market if they invest in stocks that have strong fundamentals and maintain a long-term view”.
Furthermore, the FDSH stocks analysts further stated in the research that investors who tend to maintain a long-term strategy will earn a lot of capital appreciation, cash dividend and bonus over investment horizon. So if I were you I will keep an eye out for these stocks and buy them as soon as possible.
3 STOCKS YOU NEED TO BUY IN 2018
The stock of Eterna oil is presently trading at a price earnings ratio of 3.96 which shows that there will a significant uprise in the value. At the end of the third quarter in the year 2017 the company had already exceeded it FY (full year) 2016 earnings and revenue per share targets. As at September 2017 the revenue of Eterna Oil was N125 million compared to the N106 million they earned in December,2016. Comparing their profit after Tax in 2016 and 2017 is a significant increase from N1.4 billion to N2 billion.
In a quest to maintain petrol prices the Federal Government is considering the chance of a special foreign exchange for petrol marketers as well as tax incentives. Provided all this measures are put in place it will surely lead to a rebound in profits.
GUARANTY TRUST BANK
According to findings made by the FDSH, The Guaranty Trust Bank has been singled out as the top-most investment highly rewarding its investors through price gain, dividend and bonus ever since 2008 till 2017.
In 10 years GT Bank has recorded a return of 1,100 percent, their highest so far. Averaging return of about 110 percent per annum, when you put into consideration the price movement gains, dividends and bonuses.
After a huge downfall on their stock in 2016 this company has bounced back on its feet and are looking gallant as ever. Caverton had a very pleasant year in 2017 as results from their stocks show a massive turn over,an increase from N14.4 billion in 2016 to N14.8 billion in 2017. Their profit before tax also increased from a damaging loss of N955 million in 2016 to N1.8 billion in 2017. As at last year the managers of Caverton met with Chevron Nigeria Limited to provide medical services.
Presently with the way the equities market is currently appreciating a lot of stock analysts are certain that 2018 will be a better year than 2017. So if I were you I will seize this amazing opportunity and invest in any of these company stocks because the earlier the better.