How I Made A Million Naira In One Day!

You can say i am one of the few lucky ones. I have always been a good advocate of the great returns on investment(ROI) in nigeria stock market.

I bought 110000 units of firstbank @ N33 three months ago and i have just sold all yesterday at N46. my profit on this is more than a million excluding brokerage fee. while it is true that you can lose a fortune in the stock market, you must be ready to study the market and identify good company to invest in at the RIGHT price.

This is not a flash of the pan thing. the truth is you stand to gain a lot if you study the markets. it is a level playing ground for both expert and newbie alike.

I am a bit perplexed as to whether it will be advisable to invest in the Nigerian Stock Market untill after 2007 .The political uncertainty can be a drag on the market and if anything  now will be the best time to sell.
The best time to buy will, depending on  the political situation, be after the elections in 2007.By then the banking and insurance sector will be particularly attractive.

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I am both a speculator as well as a long-term investor.i change my method according to the market trend. it is true the political situation may be detrimental to investments, you still have a fairly long term (9) months to invest and make ur gain.

Guys, in my opinion, if you want to invest and you have the cash,pls go ahead and do so and now.Nigeria is a very unpredictable country.Things that shake other country don't shake Nigeria.After 2007 you'll regret you did not invest early.i still have shares of UBA, GTBank and Zenith.i ntend to hold on to it.I'm not selling just yet.

Great tip! This means i will have to start acquiring shares from reputable companies right away!

Lucky You!!

how does dis concern us, ur win kip to ur self

After 2007 you'll regret you did not invest early.i still have shares of UBA, GTBank and Zenith.i ntend to hold on to it.I'm not selling just yet.

depending on the way things go, you might be the one regretting that you did not sell early.

The stock market is a zero-sum game. You cannot win 1 million naira unless someone else loses 1 million naira.

Yeah, the Nigerian Stock Exchange doesnt really respond as sharply to changes in the political and social arenas as other exchanges eg NYSE. For example, the year Sharia Law was introduced in some states Nigerian Breweries and Guiness increased their profitability.

Nwoke:



The stock market is a zero-sum game. You cannot win 1 million naira unless someone else loses 1 million naira.

Actually it isn't because in a bull market a lot of capital flows into the market,some of it from abroad.If it was otherwise market capitalisation will never rise.A few years ago b4 the Obasanjo adminstration the market capitalisation was about 2 billion dollars,now it is about 15 billion dollars.
But it is interesting that the market has risen the most since our return to democracy in 1998,which brought about increasing investor confidence in the economy ,but recently it has stagnated a little bit.That is why I suggested earlier for caution from now till 2007,till the country's political fortunes are sorted out.The increasing uncertainty has caused a souring in investor confidence as many foreign investors and even Nigerian investors move thier money overseas.
Of course the flip side is that the higher the risk the greater the return,hence one can argue that now is the best time to invest so that one can be in the best position to reap profits once other investors start to return at the end of 2007.But that depends on how confident you are in the political process

invest ooooo and who knows wat happends. My uncle is an MD in one stock office in lagos and ma aunt works dere as well. Well in the 80's or 90's that this shares isn't a big thing, one of my aunties advised my mom to buy and relutantly, my mom both for like how many kobo sef and when she went back last year, she went to where my uncle and aunt works and they traced it cuz it was first and the money had reached more than 200,000 each for I and ma elder sista and b4 she came back, she bought more from 1st bank and other places for da 7 of us (kids) in the house, itz a good thing

thank god for you

Nwoke:

depending on the way things go, you might be the one regretting that you did not sell early.

The stock market is a zero-sum game. You cannot win 1 million naira unless someone else loses 1 million naira.

No sir! That is not true. That is not how the stock market functions.  In fact the most potent and easiest way that has been proven over time is to invest in the stock market through a careful selection of your portfolio.  When you have money to invest, I will advice you to think the stock market first without batting an eye-lid.  What Ebony9ja said is true.  Let me also butress his point with my own personal experience. 
In 1993, I bought 2000 shares in Union Dicon Salt @ #2.00 per share.  In 1997 when I decided to sell my stake in the company, the price had catapulted to more than # 50.00 per share.  In the intervening period between the date of acquisition and disposal, the company had declared cash dividends of about #8000.00 and stock dividends of more than 2000 additional shares that increased my holdings to 4000 shares.  By the time I sold the shares, I had raked in a profit of more than #200,000.00 on an initial investment of #4000.00. 
Did I profit from another persons loss?  Absolutely not.  Initially when I bought my shares in the company I,  with other investors/shareholders,  entrusted our money to the management for the running of the day-to-day affairs of the company. Investing in ordinary shares of a company is a high risk investment and in return for our money, the company board of directors (BOD) passed some of the good fortunes the company made to us the shareholders. 
Overtime a company that has been performing well might make some bad business decisions that could hurt or threaten its ability to continue as a going concern.  Or, it might be greed on the part of the prime-movers or the CEO of the company that could threaten its continued existence.  These problems does not manifest themselves in a year.  It takes time for them to blossom. The ability to recoginze these business failings before they start to manifest and result in the company's performance going south is the hallmark of an astute investor.  A good investor will appreciate that all is not going well with the company and will divest from the company before the burble burst.  At any rate there are checks and balances that are put in place by the SEC to monitor the performances of the company in other to safeguard the investments of its shareholders.

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Unless you are buying an IPO - initial public offer which are normally offered through the medium of banks, stockbrokage firms, discount houses and other financial institutions, any other investment in shares must be processed through the auspices of a stockbroker.
I think investments in Banks and Petroleum companies would provide a wonderful ROI (return on investment) going by the reforms the banks had just gone through and the ongoing unprecedented rise in crude oil prices that is making the oil companies smile to the banks worldwide. You may also want to consider companies in Food, Beverages and Tobacco as well as Breweries sectors all of which are riding high on the Nigerian stock exchange presently.
I am not resident in Nigeria so I can't help with recommendations on how to go about selecting a stockbroker. Go to AfricanCapitalMarket.com for more on investing in stocks.

The site seems to be wrong. its taking me to msn search.

I think something is wrong with your web browser. OK, try this link as see if it takes you to the website:
http://www.africancapitalmarkets.com/stock/free/index.php
Disclaimer: I don't know much about the website; I only received info on it through my e-mail from ThisDay when they entered into a sort of marketing alliance with the company to market TransCorp shares.

Alrite. Thanks for that.

I was going through IBTC online and i saw the IBTC bank selling shares for Corner stone insurance. its going to close this friday 19th of may. does anyone know anything about how to get a 25 thousand naira worth of shares with them?.i am very very interested.

Just walk into any IBTC Charteredbank branch and get the form,pay and submit-you are donw with it

@gbengaijot, get a friend to pick up the form and email or fax it to u, you can fill it and send it back with the value of how much you want to invest. I am not in Nigeria but I invest in the Stock Exchange almost every month.

Which other sharwes do you buy?, give me ideas, i am only investing for long term profit and i prefer IPO's, if you know another way, please post and let me know.

if u reside outside the country how do u get your dividend mails and how do u pay it into your bank account?

you can open a domiciliary (dollar) account here and leave a standing instruction with your bank to pay in the dollar equivalent of your dividend to that account.

For my dividend mails, I opened a Post Office Box and a special interest yielding savings account. My younger brother in Nigeria has the keys to the P O Box and he clears the mail every 3 months. Then he pays the dividend warrants into the account.

I have a current account in Nigeria and also a stockbroking account with a Stockbroking firm. I just sign cheques from wherever I am home to be paid into the stockbroking account.Then I send an sms of email to my stockbroker instructing him what stock to buy. Usually, I follow business news online to know when an IPO will be out.

I started investing before I left Nigeria, so I got a grasp of it. I started with NGN3000,so you dont even need a million as many people think.

.

Thanks Ramono and Ebony9ja

@gbengaijot
Did you read the prospectus of the Insurance Company before you decide to invest in the company? If you have not done so,you will need to study it very carefully to know:

1. Who are the promoters of the company. Betterstill, you want to know moreabout the management team, whether they are competent?

2. Is the financial record good? Study the past five years accounting record of the company to make an informed decision.

3. iS their forecast future dividend promising? Does the company have a history of generous dividend policy or is it a conservative one that doesn't reward shareholders with cash dividend? Sometimes it is not a bad policy to plough back profit for expansion and growth but this must reflect on the upward movement of the share price so that what you lose in cash dividend, you gain in share appreciation - which to me is the better option.

4.For what purpose are they seeking the funds from the investors? These and many more probing questions will be answered by a painstaking study of the company's prospectus.

From the foregoing, it is clear that you have to do your homework before investing. Do not commit your funds unless and until you are satisfied that your return from the investment is guaranteed. Of cource there is no certainty because of the element of risks involved. But remember the higher the risk, the higher the returns, which explains why banks interest will always be lower than stock market returns. Good luck.

Do you all pay taxes on the gains you have accumulated from the stock market? Just curious

@ndipe
Sale of shares are no longer subject to  capital gains tax so u can smile all the way to the bank.

Actually they are. Selling now attracts a 5% VAT so you'd probably be paying about 4.5652% of the sell value as commission as against 4.0652% as buying commission.

@ Dumsky
The tax you are refering to is Value added tax which is atx on the transaction not necessarilly the gian made. You pay VAT even when you sell at a loss. However prior to 1996 when apital gains tax was applicable, whenevr you made a profit on the sale of shares you had to pay tax on that profit at about 20%.

Hmmmmmmmmmmmmm