There are people searching online every day for information on how to invest in Nigeria stock. Many foreign investors are interested in the Nigeria stock market because it is doing so well presently, and some investors are even becoming wealthy. In fact, the Nigerian Stock Market (NSE) value has gone up 78.6% over the last 12 months. Foreign portfolio managers are important to the Nigeria stock market. Since they have had great interest in Nigerian investments lately, it has been said that up to $6.2 billion dollars in investments are being considered for the African continent in 2013. The NSE All-Share Index is seeing increased growth, and foreign investors are important to capital markets for several reasons.
The Nigerian stock market is seeing more participation by foreign investors. It has been said that over 23 foreign portfolio managers are preparing to enter the market. However, the amount of foreign investments that are made in the Nigeria stock market is directly related to conditions of the foreign portfolio manager’s home country. Currently, foreign investors only have 39.3 percent of the holdings in the Nigerian Stock Exchange (NSE). This is expected to grow as the value of the Nigeria stock continues to increase.
The NSE All-Share Index is seeing growth. This is encouraging news to foreign investors. The Nigeria stock exchange experienced +35.45% returns in 2012, which are the highest since 2008. The Nigerian stock market is continuing to grow in 2013. So far, it has experienced +30.88% growth. It is expected that the NSE will likely exceed the progress that it has reported since 2008.
The African continent in general, and Nigeria in particular, has been singled out as fertile ground for new investments. However it is not always easy to invest in Nigeria stock, especially when you are a foreign investor. Two of the ways that you can choose to invest in Nigeria stock are by ETFs and by mutual funds. But you will want to do your own research.
Foreign portfolio managers study continuously to find markets that are doing well and that will make good investments. The African market has attracted quite a bit of attention lately, and the Nigeria stock market in particular has been very successful. Being able to make successful investments is important, as the funds can be used to make other investments. Some investors may choose to use their stock dividends to start a business or purchase an existing business, purchase real estate, or invest in more stocks. Diversifying your portfolio is an important strategy for building wealth.
If you decide that you would like to invest in the Nigeria stock market, your first step is to find a reputable stockbroker. Choose carefully with the guidance of a large bank based in Nigeria, or by recommendation from someone that you trust. Choose a stockbroker that has a proven track record with verifiable references. Once you have selected a stockbroker, your next step is to find out what the minimum amount of funds are that you will need to get started. You can request that your stockbroker arranges to have your dividends directly deposited into your trade account.
As a result of the increase growth of the Nigeria stock exchange, more foreign portfolio managers are choosing to invest in Nigerian stocks. This is good news for Nigeria, as foreign investments support further growth and development in Nigeria. This is also good news for foreign investors, as Nigerian investments have been doing very well lately.