Investing in the Nigerian Stock Market – Sectors and Stocks to Watch in 2009

Think of the year when Nigerians made obscene profits in the stock market. It is 2008. The same year qualified as the worst year investors ever had. The power of greed was so great that it pushed up the prices of stock beyond their true values.

Those who are well informed and experienced made maximum profits and exited the market. Others who were moved by the herd effect were not so lucky. They were stranded when the prices came tumbling down. It was a painful experience for speculators. Statistics reveal that investors has lost close to 3.9 billion naira.

Now stock prices in the Nigerian stock market look very attractive but investors are so afraid to risk putting fresh funds in the market. The emotion of fear is really reigning now. Smart investors know that this is the right time to buy cheap and acquire high volume. But on what premise would you base your investment drive this time around?

There is widespread concern about the global recession, freezing of margin facilities by banks, devaluation of the naira and general slowdown of the economy. What criteria should you use to pick stocks in this hard time as a forward looking investor?

That is the question I wish to provide answer to in this article.

Factors To Consider

1. Historical Stability

Companies with history of profitable performance over the years barring any unforeseen circumstances will continue to improve of best practices to make investors happy. Remember that First Bank sometime ago … Read more