Nigerian here, would you gentlemen be interested in seeing how the top5 Nigerian Banks performed this year?

[theyellowbird]

So..I figured out that there is little emerging market content here for obvious reasons ( NASDAQ and DJ are biggest in the world duhh)

But, I would love to tell you guys about some "gems" blue stocks outside the first world..before I post the results.. I would like to point out 2 major facts

1) 70% of the funds traded in our stock market is owned y foreign investors..so there is huge International demand.

2) The Nigerian Stock Index is up about +45% this year ( the tOp5 banks did even better)

So let's go: I will order the banks by market cap

I) Guaranty Trust Bank:+73%

https://imgur.com/l3zevRe

ii) Zenith Bank:+102%

https://imgur.com/Rjlzmqf

iii) Access Bank:+98%

https://imgur.com/tLcXZqO

iv) UBA:+151%

https://imgur.com/a2uDmDS

V) First Bank Holdings:+173%

https://imgur.com/zW4RyPA

 

[resjudicata]

@theyellowbird I love how people immediately jump on this and ask how they can invest. Those returns are great, but not unheard of for a developing economy. High returns, high risk. It's fine if you're in the country and know what's going on, but I don't think anyone outside Nigeria should hold individual stocks. Unless you really enjoy gambling.

@OP: Great idea to post about stocks in your country. This sub focuses way too much on the US. I'd love to read more about the Nigerian market - or other upcoming ones for that matter.

 

[theyellowbird]

@resjudicata Mate..thanks but I feel you are going overboard.. With the gambling insinuations

My country's financial service industry is the second most mature in Africa after South Africa

Secondly, the fact that foreign investors own 70% of the stocks in my country for 10 years running now..is a sign of stability.. I would say..

 

[resjudicata]

@theyellowbird Dude, zoom out and look at the volatility. Gained more than 100%, then lost almost all of it again - in 4 years!

You might be used to it but most investors here aren't. Also no one here has any idea about Nigerian stocks. It would be dumb investing in something one doesn't understand, wouldn't you agree? Would you invest in Colombian stocks?

Nothing against your country and I understand that Nigeria is developing fast. But this would be a very risky investment for anyone not familiar with the market.

 

[resjudicata]

more fundamentally sound than retarded cryptocurrencies, I'd YOLO some money on a Nigerian bank

 

[peanutbuttercupfairy]

@theyellowbird

Secondly, the fact that foreign investors own 70% of the stocks in my country for 10 years running now..is a sign of stability.. I would say..

Are you kidding me? This is capital that will flee at the slightest sign of a downturn.

 

[theyellowbird]

@peanutbuttercupfairy There was a downturn in 2014 and the foreign capital was patient enough..

Its not perfect but it fucking works

 

[peanutbuttercupfairy]

@theyellowbird The fact that you cite foreign capital as evidence of Nigeria's economic maturity and stability - do you really not see the irony here?

 

[resjudicata]

@peanutbuttercupfairy Foreign capital holds 20% of US equities and 43% us US bonds.

 

[resjudicata]

20% is very different from 70%.

 

[theyellowbird]

@resjudicata Look..we were a British Colony..

And when we first opened our stock market in 1960, it was pretty much imperial owned ( British companies operating in nigeria)

Most of our companies have Colonial roots, our banks for example can be traced back to British Colonial Nigeria..

Secondly..it's Africa second biggest economy, and sadly Foreigners see the potential in my country better than my fellow Nigerians

So the 70% might seem high to you, but its normal to us here..that's how it has always been.

 

[oakenshield]

@theyellowbird

Mate..thanks but I feel you are going overboard.. With the gambling insinuations

Don't take it personally. Many people here consider individual stock picking pretty close to gambling, even with American S&P 500 companies--the most successful companies in the world. That is just the nature of investing. Most people who try to pick individual stocks lose money.

Fact is, we are at the apex of a global recovery that began in 2009. From what you say, it seems Nigeria is just now getting on firm footing. We could go up a lot more from here, but the risk/reward ratio is not quite as favorable as it was a year ago. Global yields are rising. Particularly relevant for Nigeria, oil is facing resistance at the mid-2015 highs.

I personally think the global rally has legs and Nigeria possibly has more room to run than other countries, but it's anything but a sure bet.

 

[whereisrevelation]

@theyellowbird They might just as well be up this much because of loading up their balance sheets with bitcoin. Who knows.

 

[bakken90]

@resjudicata So, people who live outside of the U.S. shouldn't invest in U.S. companies?

 

[theyellowbird]

One reason this banks did so well this year, is that my country finally left recession after we needed to adjust to new oil prices..

Investor confidence returned after we left a recession, with our economy expected to grow next year, banking stocks would still remain the priority for International buyers

Secondly, with the new oil prices, our banking sector have started lending to the non oil sector..mainly because the drop in oil prices affected their non performing loans..

Anyways.. I hope my info is good enough..

**** found an ETF that you Westerners can get involved with

https://finance.yahoo.com/quote/nge

$NGE

 

[aquadoodle]

@theyellowbird How do I actually go about buying individual shares on the Nigerian market?

 

[bakken90]

@aquadoodle $NGE is an ETF that tracks MSCI's Nigerian Index. It's probably a little better than buying single companies in such a risky place, but that's my preference.

 

[theyellowbird]

@bakken90 Your comment should be higher

Thanks

 

[sokrun]

@bakken90

Company
Symbol
Price
Daily Change
52W Change

Msci Inc.
MSCI
128.23
+0.99%
+58.8%

** quote-bot by echoapollo*