Types of stocks on the NGX and what they actually mean:
1. Blue chips: The big proven names. Dangote Cement, MTN, GTCO, Zenith. They move slower but they’re solid.
2. Defensive stocks: Food and medicine. People buy them whether the country is sweet or hard. Nestlé, BUA Foods, Fidson.
3. Cyclical stocks: These follow the economy. Cement, construction, hotels. When the country is building, they’re smiling. Lafarge, Julius Berger, Transcorp Hotels.
4. Commodity stocks: Profit moves with oil and crop prices. Seplat, Aradel, Presco, Okomu.
5. Penny stocks: Cheap shares, usually small companies. They can double fast and crash faster. Handle with care.
6. New listings: Fresh on the exchange with limited history. Transcorp Power listed March 2024 (by introduction). Dangote Refinery is the next big one expected in 2026.
Save this one. Most people don’t lose money because stocks are hard. They lose because they bought what they never understood.
I only bought a few blue-chip companies, but I know that with this solid book on NGX, my knowledge of the market will improve and I will definitely understand analysing companies financial statements, and making better decisions in my NGX journey going forward.
I am new to the NGX market and in the same breath preaching the gospel to my friends. Coming from a science background, I had followed a few people here that serves as mentor but still unable to breakdown financial statements of companies on my own and make a solid decision.
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@abalu_uthman I was happy that I scooped MTN at 803 but now trading at 800 and there was an opportunity to get it at 790 a few minutes ago and felt I would have waited a bit. 🤨