Tuesday, March 12, 2013

Looking at the Nigerian Stock Market up to Sectors and Stocks to watch in 2009


Think of year when Nigerians made obscene profits away from your Stock Market. It is 08. The same year qualified since these worst year investors suffered with. The power of greed was so great that it pushed the prices of Stock more than their true values.

Those that are well informed and experienced made maximum profits and exited the industry. Others who were moved out of your herd effect were to the contrary lucky. They were stranded in the event that prices came tumbling somewhere. It was a disheartening experience for speculators. Statistics reveal that investors has lost in opposition to 3. 9 billion naira.

Now Stock prices away from your Nigerian Stock Market look incredibly attractive but investors is extremely afraid to risk putting fresh funds you can get. The emotion of fear can be quite reigning now. Smart investors know that because of this , right time to find discount and acquire high total number. But on what premise an individual base your investment drive on this occasion?

There is widespread concern about the global recession, too cold of margin facilities by banks, devaluation of the naira and general slowdown connected with an economy. What criteria if you utilize to pick Stocks to our hard time as the forward looking investor?

That is the question I wish to provide answer to in buying it.

Factors To Consider

1. Historical Stability

Companies with good reputation for profitable performance year by year barring any unforeseen circumstances continue to keep improve of best practices to produce investors happy. Remember that First Bank way back when took a risk to acquire the emerging communications large grocery stores in Nigeria through INVALID. That deal went sour however , the key bank did not go under consequently. Years after, it continued to create favourable results and payed investors dividend and simply issues. Currently, this Stock is termed investors delight. First bank has been consistent year by year and has a powerful reserve base.

2. Competitive Advantage

Companies with premium performance you can get over its competitors stand a good chance of surviving this problem. Strong brands like Cadbury and UACN may continue to make waves in this market. Their products have been permanently registered of our own minds of consumers around Nigeria. These products may continue to sell. They are even restructuring and introducing services which consumers have most people have struggled buying. The more people patronize these, the more the profitability rich in management of human along with its material resources.

3. Strong Financial Base

Companies that have been building reserves over time from the profit full-face have something to select from in this bearish season to continue projects that will add value inside of markets and give good revisit investors. U. B. AN IDENTICAL. and G. T. Y. are reserve building financial climate power house. The strong reserve base is largely responsible for the entire expansion into foreign written over. You can see keep clean gold here. When those foreign limbs start yielding profits what do you think investors will enjoy? Good time and high roi of course especially on top of return of the bulls.

4. Highly Profitable

Not all companies definitely will manage resources well for maximum profit. Tax management of certain institutions is really so poor that it eat deep their own profit margin. In the banking industry, Oceanic bank stands out regarding prudent tax portfolio chief executive officer. Making profit is not all that matters. Having enough to keep is the skill that delight speculators.

5. Grossly Undervalued

Equities that are undervalued are the first to rebound in take advantage of the bullish market. You wouldn't make the profit towards the return of the bulls. Your gain is decided on the timing because of the investment. Taking the risk to invest when they will be undervalued guarantees your high returns when the market gets back. Unity Bank is reside enjoying agricultural facility regarding loan from the kingdom bank. At less than 3 naira the actual marketplace price, the Stock is very undervalued

Winning Attitude For Predictable Profits

* Are likely to be fully invested
* Invest around fundamentally strong equities
* Ignore economic forecast and grow determined to excel interior economy. The Stock Market always outperform on the long term and is the possibilities solution to inflation as far as your money is concerned
* Stick to acquire more financial on top of investment skills
* Be less emotional leftover decisions

Sectors And Stocks Over to Watch

1. Agriculture

This sector is beyond the upswing as in charge of the Nigerian gross region product and earnings. New frontiers in liveStock what cocoa processing are delivering positive results. Companies included e. g. FTN cocoa processor, LiveStock Feeds and Okomu Oil offer promises of good prospects.

2. Food And Beverages

Even possible recession people may continue to demand for food and the confectioneries. The logic why this sector will perform is simple. As recent as man lives, the requirement for food and beverages will always be. Coupled with good management, companies in this area e. g. Dangote Glucose, Tantalizer, Flour Mills and Honey Well may continue to delight investors in to buy dividend.

3. Banking

Nigerian banks have already become aggressive in their promotion drive to Africa and even beyond. The income and profit will soon start reflecting in extent sheet. Some banks e. g. First Bank, U. B. A., G. WATTS. B., Zenith and Bank PHB was successful well and may continue to reward investors while strategies bears reign.

4. Communications

Nigerian communication sector is one of fastest growing in everything. Despite all the infrastructural difficulties, companies operating in this sector immune making obscene profits and investors are in position to benefit more from their operations during the past year. Starcom is the only Stock indexed by this sector for now for the Nigerian Stock Market. Investing in it now do not a bad idea.

5. Conglomerates

History is in favour of this sector. They particularly definitely will restructure and remodel his or her self in trying times. A Stock like UACN may continue to delight investors

6. Transport

Talk who monopoly. ABC transport will be listed company in this sector beyond the exchange. It has been constant in paying dividend like it was listed in 2006.

7. Insurance

The insurance sector is enjoying goodwill and patronage as investors continue to keep position themselves for life-time profit taking. Companies like International Source of electricity Insurance and Cornerstone are quite attractive.

Learn to commit the most your available fund at the food and beverage sector to lower your risk. Thinking ordinary is a sure strategy to be able to guarantee yours success in '09 and beyond.

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