Tips - August 16, 2022

5 Best Stocks to Buy in Nigeria in August

Oyetoun Olabisi August 16, 2022

6 min read

Stock investment in Nigeria can be a daunting experience for investors who aren’t experienced. To solve this challenge, the Nigerian stock exchange, a trading platform, consistently releases lists of the publicly listed companies with the best stocks to invest in Nigeria.

Investors use the data to make predictions about the upward and downward trajectory of the available stocks. On the Nigerian stock market, the month of August started with a N227 billion loss and 14 losers.

Despite this setback, which was due to a sell-off of blue-chips stocks, the market recorded 21 gainers. Here are some stocks you can consider if you are considering investing.

Dangote Cement is one of the best stocks in Nigeria, with a Market cap worth trillions

Dangote Cement is the leading cement manufacturer in Nigeria and Africa. It has a market capitalisation of N4.41 trillion. The company produces about 48.6 million tons of cement per year. It contributes 16.5% to the Nigerian Stock Exchange equity market.

Currently, it sells at N258.80 per share. This is a 2.3% reduction from its initial price of N265.00. In the last three months, it is the 81st most traded stock.

Julius Berger plc is one of the best stocks in Nigeria, ranked 35th on the NGX

Julius Berger is a household name and the 65th most traded stock on the Nigerian Stock Exchange over the last three months. Yesterday, its share price closed at N25.90 per share on the Nigerian Stock Exchange (NGX).

In the first quarter of the year, its share was at N22.35. It gained 15.9% on price valuation, making it 38th on the NGX year-to-date performance.

In 2020, the company generated N74.04 billion, with shareholders receiving N634 million in profit. The company has a market capitalisation of N41.4 billion. This is 0.154% of the Nigerian Stock Exchange equity market.

5 Best Companies to Invest in Nigeria

MTN Nigeria, the best telecom company and stocks in Nigeria

MTN is a subsidiary of the MTN Group, a telecommunications group with a presence in 22 countries across Africa and the Middle East. Its wide coverage makes it the third most valuable stock on the NGX.

It has a market capitalisation of N4.07 trillion. This consists of 15.1% of the NGX equity market. As of yesterday, the shares sell at N200 per share.

From the second quarter of 2022 to date, MTN Nigeria has been the 19th most traded stock on the Nigerian Stock Exchange.

In the oil and gas sector, Seplat is one of the best stocks to consider in Nigeria

Seplat Petroleum Development is the 7th most valuable stock on the NGX with a market capitalisation of N842 billion. This is 3.12% of the NGX equity market. Its current share price is N1,430.50 per share on the Nigerian Stock Exchange (NGX).

The shares rank 5th on the NGX for year-to-date performance. For the last three months, it is the 90th most traded stock on the Nigerian Stock Exchange.

Zenith Bank Plc is one of the best stocks in Nigeria, with the largest market capitalisation

Zenith Bank is one of the leading Nigerian banks and the largest by market capitalisation. It is the 8th most valuable stock with a market capitalisation of N789. 62 billion. This is 2.49% of the Nigerian Stock Exchange equity market.

As of today, its shares sell for N21.25 per share. This is a drop from the 25.15% the company started within the year. It lost 15.5% and ranked 127th on the NGX in year-to-date performance.

In the last three months, it is the 7th most traded stock on the NGX. For the full year 2020 result, Zenith Bank’s gross earnings increased by 5% to N696.5 billion; its non-interest revenue rose to N251.7 billion, and interest income by 1% to N420.8 billion.