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5 Cheapest Shares on the Nigerian Stock Exchange

Updated 17 Aug 2022
5 Cheapest Shares on the Nigerian Stock Exchange

The 5 Cheapest Shares on the Nigerian Stock Exchange revealed. We have carried out extensive research to identify the most affordable shares currently listed on the NGX.

This is a complete guide to the 5 Cheapest Shares on the Nigerian Stock Exchange.

In this in-depth guide you’ll learn:

  • The advantage of buying cheap shares in Nigeria
  • 5 Cheapest Shares on the Nigerian Stock Exchange
  • How to Choose the Right Share Broker in Nigeria
  • The Best Share Brokers in Nigeria

And lots more…

So, if you’re ready to go “all in” with the 5 Cheapest Shares on the Nigerian Stock Exchange…

Let’s dive right in…

The advantage of buying cheap shares in Nigeria

Many people who decide to participate in the stock market want to invest by purchasing inexpensive stocks. The ability to start with a smaller initial investment is the main benefit of investing in inexpensive stocks.

The significantly higher potential for return is another advantage of this kind of investing. Investors will be able to buy more shares by investing in inexpensive stocks than they otherwise might have done with a more costly company.

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5 Cheapest Shares on the Nigerian Stock Exchange

Nigerian Aviation Handling Company (NGX: NAHCO)

Nigerian Aviation Handling Company Plc is an investment holding company with a focus on aviation support and services.

This covers crew transportation, aircraft handling, passenger facilitation, and aviation training. The business was founded in 1979 to serve as the only ground handler at Lagos’ newly opened Murtala Muhammed International Airport.

Today, 35 airlines operating in Nigeria, including both local and international carriers, are handled by Nigerian Aviation Handling Company Plc at 9 airports around the country.

With a market value of NGN 10.6 billion, Nigerian Aviation Handling Co. is now the 60th most valuable company on the NGX and accounts for around 0.038% of the equity market on the exchange.

Nigerian Aviation Handling’s share price was 3.74 NGN at the beginning of the year. Since then, it has increased by 45.5%, placing it 20th on the NGX in terms of year-to-date performance.

Growth and Valuation Information
Share Price 5.44 NGN
Market Capitalization 10.6 billion NGN
Earnings per share 0.46 NGN
Price/Earnings Ratio 11.76
Dividend Yield 6.28%
Gross Turnover 6.53 million NGN

Cutix Plc (NGX: CUTIX)

Cutix Plc is a Nigerian manufacturer that specializes in making and marketing various electrical wires, cables, and switchgear components.

With a current market value of NGN 8 billion, or around 0.028% of the Nigerian Company Exchange equity market, Cutix Plc is the 67th most valuable stock on the NGX.

Over the last three months, Cutix has been the 44th most actively traded stock on the Nigerian Stock Exchange.

Growth and Valuation Information
Share Price 2.27 NGN
Market Capitalization 8 billion NGN
Earnings per share 0.27 NGN
Price/Earnings Ratio 8.56
Dividend Yield 4.20%
Gross Turnover 4.04 million NGN

Oando Plc (NGX: OANDO)

cheapes shares nigerian stock exchange

One of the major suppliers of comprehensive energy solutions in Africa is Oando PLC, and one of its wholly-owned subsidiaries is Oando Trading, a supply and trading firm.

With offices in the United Arab Emirates, South Africa, and Nigeria, Oando Trading is a prominent player in the global oil markets and has direct access to major energy markets throughout Africa.

Petrochemicals, industrial and liquefied natural gas, refined oil products, and crude oil are among Oando Trading’s primary trading commodities, making it a top provider of petroleum goods in Nigeria.

The corporation handled over 800,000 metric tons of refined goods and sent over 15 million barrels of crude oil abroad in the previous year.

With a current market value of NGN 64.4 billion, or around 0.229% of the Nigerian Company Exchange’s equity market, Oando Plc is the 29th most valuable stock on the NGX.

Based on its year-to-date performance on the NGX, Oando is now ranked 37th on the exchange. Its share price started the year at 4.42 NGN and has since increased by 17.2%.

Growth and Valuation Information
Share Price 5.18 NGN
Market Capitalization 64.4 billion NGN
Earnings per share
Price/Earnings Ratio
Dividend Yield
Gross Turnover 7.23 million NGN

Champion Breweries Plc (NGX: CHAMPION)

cheapest nigerian shares

Champion Breweries Plc is a well-established Nigerian brewery that produces Champion Lager Beer, Champ Malta, and several non-alcoholic drinks.

Champion Breweries started the year with a share price of 2.35 NGN and has since gained 63.8% on that price valuation, putting it 14th on the NGX in terms of year-to-date performance.

In the last four weeks, CHAMPION stock has risen by 13%, putting it in tenth place on the NGX. This is encouraging news for the company’s shareholders.

Growth and Valuation Information
Share Price 3.85 NGN
Market Capitalization 30.1 billion NGN
Earnings per share 0.17 NGN
Price/Earnings Ratio 22.73
Dividend Yield
Gross Turnover 330,500 NGN

Computer Warehouse Group Plc (NGX: CWG)

Computer Warehouse Group Plc is a Nigerian IT firm that provides comprehensive ICT services to businesses throughout the continent of sub-Saharan Africa. CWL Systems, DCC Networks, and Expert Edge Software are the company’s three main departments.

With a market value of NGN 2.3 billion, or around 0.0082% of the Nigerian Company Exchange equity market, Computer Warehouse Group is the 101st most valuable stock on the NGX as of right now.

Growth and Valuation Information
Share Price 0.91 NGN
Market Capitalization 2.3 billion NGN
Earnings per share
Price/Earnings Ratio
Dividend Yield
Gross Turnover 407,700 NGN

How to choose the Right Share Broker in Nigeria

Traders could not have picked a more favourable time to enter the investment market than the present. Competition among online brokers is high, which means costs are dropping down and features are being boosted.

Those interested in trading global financial instruments could choose from a wide variety of online forex and CFD brokers. However, there are several factors to consider when choosing a broker and we will go through them here.

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Commission Charges

Individual stocks, options, mutual funds, exchange-traded funds, and bonds are the main investment types offered by brokers. Some will also provide exposure to the forex market, futures trading, and cryptocurrency exchanges.

Both the suitability of the broker’s offerings to your investment requirements and the fees you must pay is dependent on the investments the broker has available. You should pay close attention to the commissions that are involved with the investments you like.

Overall Reliability

There is a diverse selection of brokers available. Several have been popular for many years, while others have just recently emerged.

That does not imply they cannot be trusted, but if they are managing transactions for clients, they are members of a self-regulatory organization like the Financial Industry Regulatory Authority (FINRA), the Financial Conduct Authority (FCA), and other regulators, or subject to additional oversight.

Account Fees

While it could be impossible to eliminate account fees, they may be kept to a minimum. To withdraw funds or investments, or to close your account, most brokers will assess a fee. When switching brokers, your new firm could pay some or all your transfer expenses.

If a broker does not charge them, or if you do not use their optional services, you could avoid paying most additional costs.

Annual costs, inactivity fees, trading platform subscriptions, and additional charges for research or data are all examples of the kind of expenses you should be aware of.

Pricing and Execution on Trades

Cost is less of a factor today, leading to commission-free transactions becoming the norm at most brokerages.

However, you should consider the brokerage’s position on the controversial practice of paying for order flow and how much it costs before making a final decision.

This is especially true if you are an active trader who wants their deal completed at the best price possible, even if it means a difference of a few cents.

Additional Tools, Educational Materials, and Features

Look for a brokerage that provides free educational tools like live webinars, detailed how-to instructions, video tutorials, glossaries, and more if you are just starting in the investment world.

You should also look at the broker’s commitment to educating its customers about the inherent hazards of more complex trading tactics like options.

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Conclusion

Buying cheap shares on the NGX could allow traders to get a head start before the share appreciates, allowing them to profit from the appreciation when they buy the dip.

However, there is a chance of losing money even though your investment in cheap stocks is constrained. The best strategy, like with any investment, is diversification.

Do not invest all your money in a single stock. By investing in a mix of equities and other investment vehicles like mutual funds, you can diversify your risk.

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