The stock exchange opened the new year with tons of expectations, brokers, exchange houses and all players in the industry expect darker times ahead for the overall performance of the market. The Nigerian stock exchange was largely in the red for the greater part of 2022, with the bears taking the lead to the last part of the year.
Nonetheless, despite the losses recorded in 2022, some stocks showed promising gains that placed investors on a shift of how the market traditionally functioned. This article offers the top 10 stocks to look out for in the year.
Meaning of stocks and insight into the NGX?
The term “stock” is used in the financial industry to describe the total number of shares that a single shareholder owns.
The Nigerian Stock Exchange (NGX), which was founded in 1961 and used to be known as the Lagos Stock Exchange, is now a part of the Nigerian Exchange group in Nigeria. It is overseen by the Nigerian Securities and Exchange Commission, which is the sole authority over Nigeria’s stock exchange. There are 176 companies listed on the Nigerian stock exchange and these 176 listed businesses welcome foreign and domestic investments.
We recommend purchasing the stocks of the following companies in 2023 on the Nigeria Stock Exchange based on their current performance.
10 Best stocks to buy on the Nigerian stock exchange
1. Juli Plc (JULI)
Juli Plc has emerged as the best-performing stock on the Nigerian Exchange in 2024, delivering an outstanding return of 1,646%. The company’s share price surged from N0.59 at the beginning of 2024 to N10.30 by December 16, 2024. This remarkable growth is attributed to strategic business decisions and a strong financial performance.
Juli Plc’s growth in sales has positioned it as a notable contender in its industry, making it a strong candidate for investors looking to diversify into pharmaceuticals and consumer goods. With a focus on expanding its product range and market presence, Juli Plc offers a promising opportunity for long-term investment.
2. Honeywell Flour Mills Plc (HONYFLOUR
Honeywell is in the industry of process consumables industries under the Nigerian stock exchange. It sells processed foods for consumption to customers at Honeywell Flour Mills plc. Products like semolina, noodles, macaroni, wheat meal, and others are available from Honeywell.
The company offers stocks for 3.23 Naira, a volume of 199.773 thousand shares, and a market capitalization of 25.377 billion Naira. Due to its technical rating, selling Honeywell stocks is preferable to purchasing for investors. Despite the recommendation to sell, Honeywell is one of the top gainers.
3. Vitafoam Nigeria Plc (VITAFOAM)
Vitafoam is a business in the process industry. It is an established furniture and bedding manufacturer. Its market capitalization is 37.769B Naira, its stock price is 22.20 Naira, and its volume is 159.72 thousand.
Instead of selling the stocks immediately, the technical rating suggests buying them for future reference. Furthermore, it is one of the most profitable stocks in Nigeria today.
4. Guinness Nigeria Plc (GUINNESS)
Guinness is a well-known brand of alcoholic beverage maker in the Nigerian market. The company produces alcoholic drinks from Orijin, Smirnoff, Snapp, Malta Guinness, and other brands.
Guinness is a product of the consumer non-durable market. It has a stock price of 42.50 Naira, a volume of 222.078 million, and a market capitalization of 93.091 billion Naira. Following the company’s stock price reaching a 52-week high, technical ratings suggest that the stocks should be purchased right away. There is no better time to buy the Guinness stock than right now.
5. Sunu Assurances Plc (SUNUASSUR)
Sunu Assurances Nigeria Plc operates in the financial services sector, specializing in insurance products. The company started 2024 with a share price of N1.10 and closed at N6.09 on December 16, representing a 454% appreciation.
This remarkable growth is attributed to strong sector-wide performance and a significant year-on-year increase in pre-tax profit to N5.4 billion for the nine months ending September 30, 2024.
6. Seplat Energy Plc (SEPLAT)
Seplat Energy Plc operates in the oil and gas sector on the Nigerian Stock Exchange. It is a leading indigenous oil and gas company that explores, develops, and produces oil and gas resources in Nigeria.
The company’s market capitalisation is 1.218 trillion Naira, its stock price is 1,200 Naira, and its volume is 3.456 million. The stocks are currently highly recommended in the market due to Seplat’s robust financial performance and strategic position in Nigeria’s energy sector. The stock’s solid fundamentals and growth prospects make it a worthwhile investment for those looking to enter the energy market.
7. University Press Plc (UPL)
University Press Plc is a well-known publishing house in Nigeria. University Press falls under the category of consumer services. It also prints, sells, and distributes books, in addition to providing publishing services.
With a stock price of 2.94 Naira, a volume of 1.021 thousand shares, and a market capitalization of 1.268 billion. The technical ratings indicate that UPPLC stocks should be purchased immediately. If you’ve always wanted to invest in a publishing house, University Press is the right choice right now. For the past 52 weeks, the dollar-to-naira exchange rate has also been high.
8. Cutix Plc (CUTIX)
Cutix plc is part of the product manufacturing industry. It is a Nigerian company that makes aluminium cables, cables for appliances, cables for cars, and so on. Investors should sell rather than buy right now because the company has a market capitalization of 8.454 billion, a stock price of 2.40, 235.2 thousand shares traded, and technical ratings that recommend selling rather than buying.
9. United Capital Plc (UCAP)
United Capital operates in the financial services sector. It is a financial and investment company. It offers services in investment banking, asset management, wealth management, trusteeship, and securities. This stock, which has a market capitalization of 65.4 billion, a stock price of 10.75 NGN, a volume of 1.755 million, and a technical rating of “buy” rather than “sell,” is recommended.
10. Skyway aviation handling company Plc (SKYAVN)
The transportation sector is where Skyway Aviation operates. Aviation and airport services are provided by Skyway Aviation Handling Company PLC (SHACO plc).
The technical rating recommends purchasing the stock at the current price of 5.83 Naira, with a volume of 2.6 thousand and a market capitalization of 7 851 billion. The stocks on the preceding list were chosen based on their current performance. Due to the volatile nature of stock prices, which can change at any time, investing can be risky for potential investors. However, keep in mind that risk is inversely proportional to return, and return is inversely proportional to risk. Therefore, invest with caution.
Conclusion
There are over 170 public limited liability companies listed on the Nigerian stock exchange market. The market offers both companies and investors generally the opportunity to increase profits in the long run.
You describe yourself as “a brilliant legal content writer who doubles as a finance lawyer”, yet on 7th December, 2024, you are still including Courteville Investments Plc, that was delisted from the Stock Market on 11th November, 2023? And in case you forgot, it was actually called Courteville Business Solutions Plc, and not that thing you wrote there.