From September (the day I shared a strong fundamental and technical reasons you should start buying Nigeria stocks), the stock market has added more strength to its index – now up by 3.87% (from 25,978 basis to 26,985). Besides, the 2.53% bullish run in the last 5 days has pushed the market index into the positive region on a year-to-date – NSE ASI is now up by 0.54%. (Let’s pop champagne!!).
But before you buy into the hotties, take your time to understand the reason the market is bullish at this critical time the world is battling a pandemic.
Like I shared in the previous stock recommendations, CBN’s latest monetary policy stance is the reason rates on fixed income instruments are at their all-time low – savings deposit now earns 1.15%, 365-day treasury bill is between 2-3%, while returns on 2-year and 3-year FGN Bonds are in the low range of 4.13% and 5.13%, respectively.
All these paltry returns are in no way close the inflation rate (last reported to be 13.22%) and if you are still considering these options, your money is losing value.
For smart money managers, it makes more sense to hunt for alternative opportunities that offer better returns. This summarizes the reason we are seeing the return of capital in the stock market but you know what? it’s only a few stocks that will attract this new inflow – High-yield Dividend Stocks with Good Fundamentals.
A few weeks ago I recommended UCAP as a stock to watch. The stock has appreciated from N3.01 to N3.33 with more upside in the coming months. As a top to my picks, here are 2 must-own safe stocks to add to your portfolio in the new bull market.Continue reading “2 Must-Own Dividend Stocks for the New Bull Market.”