Learn About Stock Trading

A stock, also known as equity, represents ownership in a company, with shares being units of that ownership. To buy and sell shares, investors need a brokerage account and a licensed stockbroker. Dividend income is a portion of a company's profits distributed to shareholders. Common Nigerian stock market myths include the idea that it's a quick path to riches, and that it's too risky for the average investor. 

1. What is a stock?

A stock is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings, according to Investopedia. 

When you buy a stock, you're essentially buying a fraction of that company. 

There are two main types of stock: common and preferred. Common stock offers voting rights and variable dividends, while preferred stock typically offers fixed dividends and priority in liquidation. 

2. How do I buy & sell shares?

Step 1: Open a brokerage account: You'll need an account with a licensed brokerage firm, either online or through a traditional brokerage. 

Step 2: Choose a stockbroker: If you prefer personalized advice, you can choose a human broker. If you're comfortable making your own decisions, an online broker can be more cost-effective. 

Step 3: Fund your account: Deposit money into your brokerage account to be able to buy shares. 

Step 4: Research and select stocks: Research companies you're interested in, looking at their financial performance, industry outlook, and other relevant information. 

Step 5: Place your order: Use the brokerage platform to place a buy or sell order. You can choose between different order types (e.g., market orders, limit orders) depending on your investment strategy. 

Step 6: Monitor your investments: Keep track of your portfolio's performance and make adjustments as needed. 

3. What is dividend income?

Dividends are payments made by a company to its shareholders, representing a portion of its profits, according to Investopedia.

When a company is profitable, it may choose to distribute some of those profits to shareholders in the form of dividends.

Dividends can be paid out as cash or additional shares.

Dividend payments are typically made on a regular schedule (e.g., quarterly). 

4. Common Nigerian stock market myths:

Myth 1: The stock market is a get-rich-quick scheme:

While it's possible to make significant returns, the stock market is not a guaranteed path to wealth. It requires careful research, patience, and a long-term perspective. 

Myth 2: You need a lot of money to start investing:

You can start investing with small amounts, especially with fractional shares or through investment apps. 

Myth 3: The stock market is too risky for the average investor:

Diversification, research, and a long-term investment strategy can help mitigate risk. There are also low-risk investment options like bonds and mutual funds. 

Myth 4: All stocks are the same:

Different companies have different risk profiles and potential for returns. It's important to research individual stocks and understand their specific characteristics. 

Myth 5: Past performance guarantees future returns:

While historical data can be helpful, it's not a guarantee of future success. Always consider current market conditions and company-specific factors.  

DAILY NEWS FLOW FOR 29TH OF MAY 2025



Daily News Flow – May 29, 2025

Local News

Naira Shows Stability as U.S. Dollar Gains
The Naira maintained stability in the informal market, trading around N1,615–N1,618 per U.S. dollar, while appreciating against other currencies. Market dynamics indicate growing investor confidence in CBN’s ongoing reforms as daily transactions hit an impressive half a billion dollars. Read more

Senate Approves N1.8 Trillion for 2025 FCT Budget
The Federal Capital Territory Administration (FCTA) has received Senate approval for a N1.8 trillion statutory appropriation bill, aimed at funding ongoing projects and key development initiatives. Read more

FG’s Series VI Sukuk Offer Oversubscribed by 735%
The Debt Management Office (DMO) has announced a record N2.205 trillion in subscriptions for the Federal Government’s Sovereign Sukuk program, reflecting 735% oversubscription since its launch in 2017. Read more

Germany Expands Green Hydrogen Collaboration with Nigeria
Germany has committed to expanding technical cooperation with Nigeria on developing a green hydrogen supply chain, covering production, transportation, storage, and utilization. Read more

Company News

πŸ’° Abbey Mortgage Bank to Raise N100 Billion for Commercial Banking Expansion
Abbey Mortgage Bank’s board has approved plans to raise N100 billion to transition from a primary mortgage institution to a regional commercial bank, aligning with CBN’s minimum capital requirement of N50 billion. Read more

⚠️ SEC Warns Against Silverkuun Investment Scheme
The Securities and Exchange Commission (SEC) has flagged Silverkuun Investment Cooperative Society as an unregistered financial scheme, urging investors to exercise caution. Read more

πŸ“ˆ CardinalStone Raises Unilever’s 2025 Target Price to N54.99
CardinalStone has revised Unilever Nigeria Plc’s target price to N54.99, up 18% from previous forecasts. The firm projects a 19.5% share price increase, backed by improved revenue, better cost management, and strengthened cash flow. Read more

International News

🌏 Asia-Pacific Markets Rally as U.S. Court Blocks Trump’s Tariffs
Asia-Pacific stocks surged after a U.S. federal trade court ruled against Trump’s reciprocal tariffs, with South Korea’s Kospi rising 1.89% and Kosdaq climbing 1.03%. Read more

πŸ“Š Dow Futures Jump 500 Points as Nvidia Beats Earnings Expectations
Stock futures soared after a court blocked Trump’s tariffs, while Nvidia’s earnings exceeded forecasts, boosting S&P 500 futures by 1.66%, Nasdaq by 2%, and Dow futures by 1.42%. Read more

πŸ† Gold Prices Drop After U.S. Court Decision on Tariffs
Gold hit a one-week low, trading at $3,268 an ounce, following a U.S. court ruling against Trump’s Liberation Day tariffs, which weakened its safe-haven appeal. Read more



BREAKING: FG’s Series VI Sukuk Offer Oversubscribed by 735%, Hits Record N2.205 Trillion!

 


 

Nigeria’s capital market has witnessed unprecedented investor confidence, as the Federal Government’s Series VI Sukuk recorded a 735% oversubscription, attracting a record-breaking N2.205 trillion in subscriptions.  


This massive interest highlights the growing appeal of ethical investments and the government’s commitment to infrastructure development**. The funds raised will be used to construct and rehabilitate roads and bridges across Nigeria’s six geopolitical zones and the Federal Capital Territory (FCT).  


Why This Matters for Investors  

✅ Strong Market Confidence: The oversubscription signals high investor trust in Nigeria’s economic reforms.  

✅ Infrastructure Growth: Your investments contribute to nationwide development, improving connectivity and economic activity.  

✅ Stable Returns: Sukuk bonds offer semi-annual income payments, making them a secure investment option.  

πŸ“ž Call/WhatsApp +2348161102425 to learn how you can leverage this opportunity and invest in Nigeria’s thriving capital market!   


Why You Should Invest in FCMB Stocks Now

 

The Nigerian stock market is buzzing, and FCMB Group Plc is one of the standout opportunities for investors looking to maximize returns. With a strong financial performance, consistent growth, and strategic expansion, FCMB is positioned for long-term profitability.  


Why Invest in FCMB Now?  

✅ Strong Growth Potential: FCMB’s stock has gained over 43% in the past year, showing resilience and upward momentum.  

✅ Affordable Entry Price: At ₦9.70 per share, FCMB remains undervalued compared to competitors, making it a great buy.  

✅ Dividend Payouts: Investors benefit from consistent dividends, with a recent payout of ₦0.55 per share.  

✅ Expanding Market Presence: FCMB continues to grow its financial services, including **investment banking, asset management, and stockbroking, ensuring diversified revenue streams.  

✅ Strong Financial Performance: The company reported a profit of ₦32.23 billion in Q1 2025, reflecting solid earnings growth.  

How to Get Started  

πŸ“ž Call/WhatsApp +2348161102425 for expert guidance on securing your FCMB shares today! Let’s help you maximize your investment potential in Nigeria’s thriving capital market. πŸš€ 

Navigating Nigeria’s Bullish Market: Why You Should Stay Invested


The Nigerian stock market is experiencing a strong upward trend, with experts forecasting a 39% gain in 2025. Banking stocks, consumer goods, and industrial sectors are leading the charge, fueled by recapitalization efforts and new equity listings. 

As an investor, this is the perfect time to reassess your portfolio and take advantage of the market’s momentum. With six Nigerian stocks already surpassing 20% growth this year, strategic investments could yield impressive returns. 

What Should You Do Next?

- Review Your Portfolio: Ensure your investments align with the current market trends.

- Leverage Expert Insights: Our team is here to provide tailored recommendations.

- Stay Ahead of the Curve: The market is moving fast—don’t miss out on key opportunities.

πŸ“ž Call/WhatsApp - +2348161102425 us today to discuss how you can maximize your returns in this bullish market! Let’s make 2025 a year of financial growth. πŸš€


"Treasury Bills vs. Commercial Paper: Which is the Smart Money Move?"

         

 There are various money market instruments that have securitized such that investors can invest in them on an arm’s length bases.

Two of these instruments are Treasury Bills and Commercial papers. While these two instruments have many similarities, they also differ is some fundamental ways. Below is a table comparing the two: 


 

FGN Savings Bonds vs. Treasury Bills: Which Is Right for You?


FGN Savings Bonds vs. Treasury Bills: Which Is Right for You?



Investing in government securities is one of the safest ways to grow your money, but with options like FGN Savings Bonds and Treasury Bills, it’s important to understand their differences. While both are backed by the Federal Government of Nigeria (FGN), they serve different purposes, have different investment structures, and cater to different types of investors.

So, which one should you consider? Let’s break it down.


What Are FGN Savings Bonds?

FGN Savings Bonds are designed for individual investors who want a safe, predictable way to earn income. They are issued by the Debt Management Office (DMO) and provide quarterly interest payments, making them great for people who need steady cash flow.

Key Features of FGN Savings Bonds

Tenure: Typically 2 to 3 years
Interest Payments: Paid quarterly (every three months)
Entry Point: Minimum investment of ₦5,000, with increments of ₦1,000
Fixed Returns: The interest rate is fixed, meaning you know exactly how much you’ll earn
Non-Tradable: Once you invest, you hold it until maturity—you can’t sell it on the secondary market

Example of FGN Savings Bond Investment

Let’s say you invest ₦50,000 in a 3-year FGN Savings Bond with an interest rate of 10% per annum.

  • You’ll earn ₦5,000 annually, but instead of receiving it all at once, you get ₦1,250 quarterly.
  • After 3 years, you’ll receive ₦50,000 back plus all the interest earned over time.

This type of bond is perfect for individual investors, retirees, or anyone looking for a steady source of passive income.


What Are Treasury Bills?

Treasury Bills (T-Bills) are short-term securities issued by the Central Bank of Nigeria (CBN) to control money supply and raise funds for the government. Unlike FGN Savings Bonds, Treasury Bills do not pay periodic interest—they are sold at a discount, and investors make their profit when the full value is paid at maturity.

Key Features of Treasury Bills

Tenure: Usually 91 days, 182 days, or 364 days
Sold at Discount: Instead of paying interest, T-Bills are sold below face value, and investors earn the difference when it matures
Higher Entry Point: The minimum investment is ₦50 million at auctions, but retail investors can buy smaller units through banks and brokers
Tradable: Investors can sell Treasury Bills on the secondary market before maturity

Example of Treasury Bill Investment

Suppose you buy a ₦1,000,000 Treasury Bill with a discounted price of ₦900,000 and a tenure of 364 days.

  • You pay ₦900,000 upfront, and at maturity, the government pays you ₦1,000,000.
  • Your profit is ₦100,000, which effectively serves as your interest return.

Treasury Bills are great for institutional investors, companies, and individuals who need quick, secure investment options.


FGN Savings Bonds vs. Treasury Bills: Quick Comparison

Feature FGN Savings Bond Treasury Bill
Tenure 2–3 years 91–364 days
Entry Point ₦5,000+ ₦50 million (auction), lower via banks
Interest Payment Quarterly Paid at maturity (discount method)
Tradability Not tradable Can be sold before maturity
Best For Individuals, retirees, passive investors Corporations, institutional investors, short-term investors

Which One Should You Choose?

  • If you want steady quarterly income and a lower entry point, go for FGN Savings Bonds.
  • If you prefer short-term gains and liquidity, Treasury Bills are your best bet.

Both options are low-risk investments backed by the Nigerian government, so they’re ideal for preserving wealth.


Take Action Today!

Investing wisely is key to growing your wealth. Whether you're just starting or looking for ways to diversify your portfolio, government securities like FGN Savings Bonds and Treasury Bills offer safe, guaranteed returns.

πŸ‘‰ Need expert guidance? Reach out on WhatsApp at +2348161102425, and let's help you choose the best investment strategy for your financial goals!