The Nigerian stock market closed on a high of 14.27% in November, the best month to date return since January 2018, when the market closed at 16%.
One of the major challenges of the Nigerian stock exchange is the lack of liquidity and its status as a very shallow market. There are about 166 stocks in the market, out of which less than 100 are tradeable daily.
Included in this 100 are about 50 odd stocks that often deliver on profits and dividends, which is why some retail investors in Nigeria have started investing in stocks in the United States.
The New York Stock Exchange (NYSE) has about 2,800 companies listed, while the NASDAQ has about 3,300 stocks listed. This gives investors in this market numerous options where they can put their money. It is also why the US economy attracts billions of dollars in portfolio investments annually.
The London Stock Exchange in the United Kingdom lists about 2,600 companies from 60 different countries including Nigeria. It is one of the most recognized exchanges in the world, with trades worth trillions of dollars worth passing through it daily.
For information on how to invest in stocks listed on the NYSE and NASDAQ, with a summary profile of some of the popular applications to use like Trove, Bamboo, and Chaka, and how to register and trade with these applications are explained in this week’s SSN.
Also, the list of some stocks Ugodre Obi-Chukwu has purchased recently and why he bought the stocks are all in this week’s SSN.
For details, subscribe to Nairametrics Stock Select Newsletter. Every week we recommend stocks with solid fundamentals with the potential to deliver great returns.