5 Best Shares for Beginners on the Nigerian Stock Exchange

Which Nigerian shares are the best for Beginners?

While there is no fool-proof method for selecting the ideal stock, while you are still learning about investing, it is the best idea to stay with defensive companies that have less volatility and pay a dividend.

Although there are few certainties in the stock market, huge firms in defensive industries like utilities, consumer staples (such as food, drinks, or toiletries), or healthcare are often the safest stocks for novices.

Thus, beginners have a decent chance of being shielded from excessive risk by these stocks.

5 Best Shares for Beginners on the Nigerian Stock Exchange

Lafarge Africa Plc (NGX: WAPCO)

Cement producer Lafarge Africa Plc is listed on the Nigerian Stock Exchange and has its headquarters in Lagos.

The Holcim Group has considerable influence. Following the merger between Lafarge and Holcim and the subsequent consolidation of Lafarge's holdings in Nigeria and South Africa, the company is now known as Lafarge Africa and will no longer use the Lafarge Wapco Plc brand.

With a market value of NGN 419 billion or around 1.49% of the NGX equity market, Lafarge Wapco is the tenth most valuable company there is right now. Lafarge Wapco's share price and recent performance place it 47^th on the NGX year-to-date performance rankings.

MTN Nigeria Communications Plc (NGX: MTNN)

MTN Nigeria Communications Plc is the Nigerian affiliate of the MTN Group, which is a multinational telecommunications corporation with operations in 22 countries spanning Africa and the Middle East. The company was created in February 2001.

Since the company's foundation, MTN Nigeria has been at the forefront of the expansion of the telecommunications sector, eventually becoming the largest mobile operator across the whole of West Africa.

MTN Nigeria is the second most valuable stock on the NGX with a market value of NGN 4.66 trillion, representing about 16.6% of the whole Nigerian Stock Exchange equities market.

MTN's share price started the year at 197.00 NGN and has since increased by 16.2%, placing it in the 39th position on the NGX in terms of year-to-date performance.

Zenith Bank Plc (NGX: ZENITHBANK)

Zenith Bank Plc is a commercial bank located in Nigeria that caters to the banking needs of corporate, commercial, and individual clients.

After a remarkably successful initial public offering (IPO), Zenith Bank became a public limited company in June of 2004, and it was subsequently listed on the Nigerian Stock Exchange in October of the same year.

The bank is now the largest in Nigeria in terms of tier-1 capital and has a shareholder base of around one million people.

Zenith Bank has around 500 branches and business offices located in commercial hubs throughout all states of the federation, as well as the Federal Capital Territory.

The bank's headquarters are in Lagos, and with a market value of NGN 689 billion, Zenith Bank Plc is now the ninth most valuable company traded on the NGX. This represents around 2.45% of the total equity market traded on the Nigerian Stock Exchange.

Julius Berger Nigeria Plc (NGX: JBERGER)

Julius Berger Plc is a Nigerian industrial enterprise that provides integrated construction solutions and allied contractual services via its subsidiaries.

Julius Berger's activities date back to 1965, when the Eko Bridge, a significant infrastructural project in the megacity of Lagos, was constructed.

This pioneering project was followed by years of consistent expansion, during which Julius Berger Plc used innovative construction techniques to emphasize innovation and quality for the benefit of customers in several sectors throughout the nation.

Julius Berger Nigeria Plc is the thirty-fourth most valuable stock on the NGX, with a market value of NGN 43,4 billion, or around 0.154% of the Nigerian Stock Exchange equity market.

Julius Berger started the year with a share price of 22.35 NGN, which has since increased by 21.3%, placing it in the 30th position on the NGX in terms of year-to-date performance.

Seplat Energy Plc (NGX: SEPLAT)

Formerly known as Seplat Petroleum Development Business Plc, Seplat Energy Plc is a Nigerian oil and gas exploration company with a portfolio of properties in the Niger Delta Region.

Seplat Energy is now the sixth most valuable company on the NGX, with a market value of NGN 842 billion, or around 2.99% of the NGX equity market.

Seplat Energy’s share price started the year at 650.00 NGN and has since increased by 120%, placing it sixth on the NGX in terms of year-to-date performance.

Conclusion

Even if you are just starting and have a limited budget, you can invest. It is more complex than simply choosing the best investment, which is a challenging enough task in and of itself. You also need to be aware of the limitations that apply to you as a novice investor.

Therefore, we have provided a comprehensive list of the five best shares listed on the NGX for beginners in Nigeria.