This strategy has become a meme of sorts, and an informal market play, essentially encouraging investors to “buy the dip” on tariff headlines, betting that the administration will back off and markets will recover.

The “TACO trade” itself isn’t a stock or ETF, but rather a market phenomenon or strategy observed and exploited by astute investors. It works on the premise that Trump’s aggressive tariff rhetoric, while initially rattling markets, ultimately gives way to more moderate approaches, leading to a swift recovery in asset prices. When Trump issues new tariff threats, risk assets, particularly stocks, often experience a sharp decline. However, history has shown that these threats are often followed by Trump backing down or delaying implementation, triggering a robust rally in equity markets.

A case in point is the market’s reaction to Trump’s “Liberation Day” tariffs announced on April 2nd. The S&P 500 plummeted over 12% in response. However, the announcement of a 90-day tariff pause on April 9th sparked a furious rally, resulting in the best single day for the S&P 500 in nearly 20 years. Similarly, in mid-May, after a trade deal framework with China lowered tariffs for 90 days, stocks recovered all April losses, with the S&P 500 rising over 1% since then.

Despite the market’s fascination with the “TACO” acronym, President Trump has unsurprisingly rejected the characterization, asserting that his shifting positions are part of a strategic negotiation process. When questioned about the term, he dismissed it as a “nasty question” and emphasized that his tactics have attracted significant investment to the U.S. economy.

However, the market’s embrace of the “TACO trade” has led to a situation where some analysts believe it’s becoming “priced in,” meaning investors are already anticipating the eventual walk-backs and factoring them into their investment decisions. This raises concerns about the potential for diminished returns as the market becomes more efficient in predicting Trump’s moves.

The “TACO” phenomenon has had tangible effects on stock markets. For example, the S&P 500 index experienced a 15% dip in April 2025 due to policy uncertainty stemming from tariff threats and subsequent reversals. Such volatility underscores the significant influence of trade policy announcements on market performance.

Looking ahead, market watchers are closely monitoring upcoming US-China and US-EU negotiations. Analysts suggest that if Trump’s pattern of walking back tariffs continues, growth-oriented and risk assets may continue to benefit, supporting a “run it hot” economic environment.

The “TACO trade” exemplifies the intricate relationship between political decisions and financial markets. Investors’ ability to anticipate and respond to policy-induced market fluctuations highlights the importance of understanding political dynamics in investment strategies.

As the administration continues to navigate complex trade negotiations, the market is watching closely, ready to either feast on the “TACO” or brace for a potentially spicy surprise.

The post What is the ‘TACO Trade’? appeared first on asktraders-stg.knitbyhands.com.

The origin of the term can be traced back to the mid-1980s when journalists first referred to brief recoveries that were mistakenly perceived as market bottoms. The primary characteristics of a dead cat bounce include a short-term recovery, underlying weaknesses in the asset or market, and the continuation of a decline due to a lack of fundamental improvements.

Distinguishing between a dead cat bounce and a genuine recovery can help make a huge difference in the long-term performance of your stock portfolio. A true recovery is typically longer-lasting and supported by strong fundamentals, such as improved economic conditions or company performance. Genuine recoveries also show sustained bullish sentiment, higher trading volumes, and the formation of higher lows and higher highs.

Buying stocks that are making a recovery can be a very fruitful investment strategy, yet catching the proverbial falling knife in the midst of a dead cat bounce can destroy a portfolio. Learning to differentiate between the two can help you to avoid common pitfalls and make more informed decisions, and putting in place stop losses can help avoid getting caught unawares in a turnaround story that goes wrong.

Identifying A Dead Cat Bounce

Identifying a dead cat bounce involves analyzing volume, trend continuation indicators, and fundamental factors. Low or inconsistent trading volumes and failure to break key resistance levels are common signs of this phenomenon. Technical indicators, such as moving averages, RSI, and MACD, can help confirm whether the bounce is likely to continue or reverse. Additionally, the absence of fundamental improvements in the underlying business, sector, or economy often points to the bounce being unsustainable.

To identify whether a bounce is sustainable or merely a signal of a continuing downtrend, investors monitor volume, resistance levels, indicators, and fundamental data. Understanding the reasons behind a dead cat bounce and recognizing opportunities when trends re-establish can provide valuable insights for market participants.

The dead cat bounce pattern is a short-lived and temporary recovery in the price of an asset, usually occurring during a prolonged decline or bear market.

It often occurs when traders and investors mistakenly believe that prices have hit their lowest point and are beginning to recover. However, this recovery is not supported by strong fundamentals and typically proves to be temporary, followed by a resumption of the downward trend.

For instance, price charts often illustrate the phenomenon of a dead cat bounce, showing an overall downward trend with brief recoveries during bearish phases. These recoveries are ultimately short-lived, and prices continue to fall after these moments, solidifying their classification as dead cat bounces.

What Causes The Dead Cat Bounce?

A dead cat bounce often results from factors such as short-covering, speculative buying, or market sentiment reacting to minor positive news. Technical reasons, like hitting a support level or oversold conditions, can also trigger such a bounce. However, these are rarely signs of a sustained recovery. Instead, they are temporary reactions that may mislead investors into believing the worst is over.

The dead cat bounce serves as a warning that a brief recovery in a market or asset price may be temporary and is not supported by strong fundamentals. It often creates the illusion that the bottom has been reached, leading some to believe that the market or asset price will now sustain an upward trajectory. However, technical analysts view a dead cat bounce as a continuation pattern rather than a reversal, emphasizing its short-term nature.

The term first gained prominence in the financial industry during the mid-1980s. By the late 1980s, the term had become more widespread, with its use extending to other markets, such as the oil industry, where temporary recoveries were mistaken for sustainable improvements. Over time, the phrase has become a part of mainstream financial vocabulary, serving as a cautionary metaphor for temporary market recoveries that are often followed by continued declines.

Notable Examples

• 2008 Financial Crisis: Many stocks experienced brief recoveries during the global financial crisis before continuing to decline further.
• Dot-Com Bubble (2000-2002): Technology stocks had multiple dead cat bounces during their prolonged downturn.
• COVID-19 Pandemic (March 2020): Some stocks experienced dead cat bounces during the initial sell-offs as markets tried to find a bottom.

The post The Dead Cat Bounce Explained – Learn the Causes, & How To Identify appeared first on asktraders-stg.knitbyhands.com.

This means if you have capital gains that pushed you into a higher tax bracket, selling losing stocks could pull your taxable income back down.

The end of each calendar year always comes with a narrative on financial media surrounding tax loss harvesting, and portfolio rebalancing that warrants a closer look from retail. We hear the tales of why markets may be moving in one direction or another, and these topics always tend to rear their heads, but it is not as complicated as may be first thought.

Adjusting your investment portfolio by selling underperforming stocks can be a strategic way to enhance your returns while also reducing your tax liability.

As an example, Boeing shares lost ~30% through 2024, whilst Tesla gained 60%.

If you had both Boeing (NYSE: BA), and Tesla stock (TSLA) in your portfolio, the tax on gains from Tesla could be reduced by selling part of your Boeing holdings.

Considerations and Limitations

Navigating these strategies effectively requires careful planning and consultation with a financial advisor to maximize the potential advantages while ensuring compliance with tax regulations.

The decision to sell underperforming stocks should be strategic, factoring in potential tax savings and the reallocation of capital into more promising investments.

Beyond offsetting capital gains, if your losses exceed the total gains, taxpayers are allowed to deduct up to $3,000 ($1,500 if married filing separately) from their ordinary income. This deduction can provide significant savings, particularly for those in higher tax brackets.

It is important to note that short-term capital gains are taxed as ordinary income, with the highest US tax rate in 2024 being 37%, along with a potential 3.8% investment income surcharge.

Investors should be mindful of several limitations, including the wash-sale rule. This rule mandates a 30-day waiting period before repurchasing a sold security or a substantially identical one to claim the tax loss. However, this rule offers some flexibility with ETFs and mutual funds, as there are grey areas regarding what constitutes “substantially identical,” particularly if different indexes are tracked.

The post What is Tax Loss Harvesting? appeared first on asktraders-stg.knitbyhands.com.

It is worth noting however that learning to trade silver can be complex, and the market is influenced by a myriad of factors, making price trends complex and dynamic. In this article, we delve into long-term silver price projections for 2025 to 2030 and analyze the key drivers likely to shape its trajectory.

Historical Trends in Silver Prices

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Understanding the historical movements in silver prices provides valuable context for anticipating future trends. Over the past two decades, silver has experienced significant price fluctuations, driven by a combination of economic, political, and technological influences.

Key Historical Patterns

• Between 2000 and 2011, silver saw a dramatic bull run, peaking in April 2011 at over $48 per ounce. This surge was fueled by heightened investment demand, economic uncertainties, and inflationary concerns.
• Following this peak, silver prices experienced a sharp decline and stabilized at lower levels over subsequent years.
• Since 2016, silver has regained momentum, supported by rising industrial demand, particularly from renewable energy sectors, and increased investment interest during periods of global economic instability.

Silver Price Forecast 2025–2030: Possible Scenarios

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Scenario 1: Base Case – Moderate Growth and Stability

In this scenario, silver prices follow a stable upward trajectory, underpinned by robust industrial demand and steady economic recovery.

• 2025: Prices are expected to range between $22 and $30 per ounce, with an average closing price of around $25–$28. While some volatility is anticipated, no extreme price swings are likely, assuming stable global economic conditions.
• 2030: By 2030, silver could trade between $35 and $55 per ounce, reflecting a 40%–70% increase from 2025 levels. This growth would be driven by expanding industrial applications, particularly in renewable energy sectors like solar power, alongside balanced supply and demand dynamics.

Scenario 2: Bull Case – Significant Price Surge

A bullish outlook envisions substantial price increases fueled by rising demand, geopolitical uncertainties, and constrained supply.

• 2025: Silver prices may surpass $30 per ounce, reaching $35 or higher, as industrial demand for electric vehicles (EVs) and solar technology accelerates. Geopolitical tensions and financial market uncertainties could further boost investor interest in silver as a safe haven.
• 2030: In this scenario, silver could climb to $80–$120 per ounce. Analysts such as Keith Neumeyer have forecast potential triple-digit prices, driven by booming industrial demand and potential supply shortages. Achieving such levels would imply an average annual growth rate exceeding 20%, making this an ambitious yet plausible scenario.

Scenario 3: Bear Case – Stagnation or Decline

A bearish outlook suggests stagnant or declining silver prices, driven by subdued demand and balanced supply.

• 2025: Prices may remain flat, trading between $22 and $25 per ounce, as stable global economic conditions and recovered production capacity limit price growth.
• 2030: Silver prices could hover between $30 and $40 per ounce, or even drop below $30 if demand growth slows and supply remains abundant. This scenario assumes no significant disruptions in global economic stability or industrial demand.

Factors Driving Silver Prices

Industrial Demand – Silver’s extensive use in industries such as electronics, solar energy, and healthcare makes it a critical material. The growth of renewable energy, particularly photovoltaic cells in solar panels, is expected to be a major demand driver.

Additionally, advancements in technologies like 5G and the Internet of Things (IoT) are likely to boost demand for silver in electronics.

Supply Dynamics – The majority of global silver production comes from countries like Mexico, Peru, and China. However, mining operations face challenges such as political instability, environmental regulations, and resource depletion, potentially leading to supply constraints.

Since silver is often produced as a byproduct of gold and copper mining, its availability is partly influenced by trends in those markets.

Macroeconomic Influences – inflation, interest rates, and geopolitical tensions are macroeconomic factors that heavily impact silver prices.

• Rising inflation often increases silver’s appeal as a hedge, driving prices upward.
• Conversely, economic recovery and normalized interest rates could apply downward pressure on silver prices.

Currency Movements – Silver is traded in U.S. dollars, making its price sensitive to exchange rate fluctuations.

• A strong U.S. dollar tends to weigh on silver prices, as it makes the metal more expensive for international buyers.
• A weaker dollar generally boosts prices, as it enhances affordability for non-dollar-denominated investors.

Investment Strategies

1. Buy-and-Hold Strategy
   Long-term investors can benefit from holding physical silver (coins or bars) or silver ETFs, allowing them to ride out market fluctuations and capitalize on future price appreciation. This strategy requires patience and a long-term outlook.
2. Tactical Allocation
   Tactical investors adjust their silver exposure based on market trends and forecasts. For instance, if industrial demand is projected to surge, they may increase their positions. Conversely, during periods of economic stability, they might reduce exposure in favor of higher-yield investments.
3. Physical Silver vs. “Paper Silver”
   Investors can choose between owning physical silver or financial instruments like ETFs, futures, and mining stocks.
   • Physical silver provides tangible ownership but comes with storage and insurance costs.
   • ETFs and futures offer liquidity and ease of trading but carry counterparty risks.

Silver’s Outlook Beyond 2025

Silver’s future price trajectory will be shaped by a combination of industrial demand, supply constraints, and macroeconomic trends. While uncertainties make precise predictions challenging, silver’s dual role as an industrial input and a hedge against uncertainty ensures its continued relevance in global markets.

For investors, silver offers diverse opportunities, whether through long-term holdings, tactical adjustments, or diversified portfolios. By understanding the key drivers and adopting well-informed strategies, investors can position themselves to benefit from silver’s potential in the years ahead.

The post Silver Price Forecast 2025–2030: A Long-Term Outlook appeared first on asktraders-stg.knitbyhands.com.

Significant challenges and opportunities for the natural gas market were seen through 2024, shaped by geopolitical tensions, technological innovations, and global economic uncertainties. These factors are expected to have a profound influence on the market in the years ahead.

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Natural Gas Market Forecast: 2025–2030

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The natural gas market could evolve along various paths depending on political, technological, and economic developments. Below are three potential scenarios:

Scenario 1: Stability and Moderate Price Increases

In this scenario, global natural gas demand remains steady, supporting moderate price growth.

• 2025: Prices stabilize around $3.00 to $3.50/MMBtu as renewable energy adoption progresses but fails to completely replace natural gas in many regions.
• 2030: Prices rise to $4.00–$4.50/MMBtu due to sustained demand from emerging markets and a slower-than-expected decline in gas consumption in industrialized countries.

Scenario 2: Declining Prices Due to Oversupply

An oversupply scenario sees increased production outpacing demand, leading to price reductions.

• 2025: Prices fall to $2.50–$2.80/MMBtu as expanded shale gas production in North America and LNG exports from Qatar flood the market.
• 2030: Prices drop further to $2.00–$2.50/MMBtu as rapid adoption of renewable energy and energy efficiency measures reduce demand in Europe and North America.

Scenario 3: Rising Prices Driven by High Demand

This bullish scenario predicts sustained demand growth, particularly from emerging markets.

• 2025: Prices climb to $4.00–$4.50/MMBtu as countries like China and India increase natural gas consumption to replace coal in power generation.
• 2030: Prices surge to $5.00/MMBtu or higher, driven by geopolitical supply constraints and delayed renewable energy adoption in key regions.

Key Drivers Influencing the Natural Gas Market

Political Factors

Political conditions are one of the most influential elements shaping the natural gas market. International trade agreements, sanctions, and global diplomatic relations, especially concerning major exporters like Russia, play a pivotal role in determining supply and pricing.

Global climate policies also weigh heavily on the future of natural gas. While it is considered cleaner than coal, natural gas is still a fossil fuel, and stricter carbon emission regulations push countries toward reducing their reliance on it over time.

Technological Advancements

Innovations in extraction methods, such as hydraulic fracturing (fracking), have significantly increased production capacity, particularly in the United States. At the same time, advancements in renewable energy and storage technologies are gradually reducing reliance on fossil fuels like natural gas.

Emerging technologies in carbon capture and storage (CCS) could extend the role of natural gas as a transition fuel by minimizing its environmental impact, making it a more sustainable option during the global energy transition.

Economic Factors

Global energy demand is expected to grow, fueled by rapid development in emerging economies like India and China. This could stabilize or increase natural gas demand, even as developed nations shift toward renewable energy.

However, fluctuations in production costs, exchange rates, inflation, and geopolitical instability could impact the profitability and market dynamics of natural gas. For instance, currency volatility can affect the competitiveness of liquefied natural gas (LNG) exports.

Regional Differences

Europe

Europe remains heavily reliant on natural gas imports, with Norway and Russia being key suppliers. Efforts by the European Union to diversify energy sources and enhance energy efficiency could temper demand. However, geopolitical tensions and investments in renewable energy will likely shape Europe’s market trajectory.

North America

North America, particularly the U.S., has become a dominant force in global natural gas markets due to its shale gas boom. Increased LNG exports position the region as a key supplier, but rising competition with renewables and shifting global demand may challenge long-term growth.

Asia-Pacific

The Asia-Pacific region is expected to drive much of the global demand for natural gas, particularly in fast-growing economies like China and India. These countries are expanding natural gas usage as a cleaner alternative to coal, but accelerated renewable energy development could offset demand growth.

Various Ways To Access Natural Gas Markets

Natural Gas Futures

Futures contracts allow investors to speculate on natural gas prices or hedge against price fluctuations. While these instruments offer significant profit potential, they also carry risks like rollover losses, which occur when transitioning from expiring to new contracts.

Leveraged Products

Leveraged instruments like CFDs and options provide opportunities for energy trading via short-term speculation on price movements. While leverage amplifies gains, it also magnifies losses, making these products best suited for experienced traders.

Gas Stocks and ETFs

Investing in companies involved in natural gas production, transportation, or technology offers indirect exposure. Natural gas ETFs provide diversification by tracking a basket of industry-related stocks, reducing the risk of as renewable energy adoption accelerates. For investors, the market offers diverse opportunities but also demands careful strategy and risk management to navigate its inherent volatility.

The post Natural Gas Price Forecast – 5 Year Outlook to 2030 appeared first on asktraders-stg.knitbyhands.com.

A key factor in short squeezes is high short interest, meaning many traders have short positions in the stock. To significantly boost the price, multiple short sellers need to buy shares to cover their positions. Short squeezes are often brief and end once short sellers either cover their positions or stop buying to limit further losses.

Why Identifying Short Squeezes Is Important

Short squeezes are unique trading events that require special attention because they work differently than typical price breakouts. These events can push stock prices much higher than usual, often above previous support levels and if you are not aware that your position is involved in a squeeze, you can easily get caught out.

For those in a bullish position, staying too long in a short squeeze could mean a sudden and steep drop back to support levels. It’s essential to watch the reasons behind the price movement and consider how long the momentum might last.

For short sellers, short squeezes need careful handling. What might seem like an ideal price to short can quickly rise, forcing you to buy back shares at a loss to close a position sooner than expected.

Short squeezes bring extreme price swings that create both opportunities and risks, demanding a more cautious approach than standard breakouts.

When is a ‘Squeeze’ Not a Squeeze

Short squeezes and breakouts might look similar, with both pushing prices higher, but they operate on entirely different principles. We have a separate guide on identifying breakouts that might be useful to you here. Here’s what sets them apart and how to identify a squeeze in action, and some simple rules on separating a squeezing stock from one making a breakout.

Recognizing a Short Squeeze: Key Indicators

Short Interest Check

The groundwork for any squeeze is high short interest. Stocks with a high ratio of short interest to average daily volume, known as the “days to cover” ratio, are particularly prone to squeezes. A ratio above five days suggests high potential for a squeeze but paying attention to the total % of float shorted, and the cost to borrow are other important factors to note.

Float Size Matters

A stock with a limited public float—fewer available shares—can make it tough for short sellers to cover, escalating the odds of a squeeze. Whilst it is not impossible for a large float stock to squeeze, one with a lower float are often harder to come by, potentially causing greater impetus. Low-float stocks tend to be highly volatile, with even minor buying pressure potentially triggering a squeeze. A glance at the % of float held by insiders and institutions can provide some useful information about the remaining stocks that are likely to be freely traded.

High Volatility or Volume

If a stock shows heightened volatility with a high days-to-cover ratio, it could signal that short sellers are gearing up to cover, potentially igniting a squeeze. Volume increases could also hint at short covering, or pressure that may ignite short covering. Watch for sudden surges in volume, as this could mean that short sellers are closing positions. However, keep in mind that volume spikes also occur in bullish breakouts.

Catalyst Events

Identifying what’s driving price movements is crucial. A positive earnings report or unexpected industry news can generate bullish momentum without a short squeeze. But if shorts were betting on negative news, an unexpected positive event could kickstart a squeeze.

The post Understanding & Identifying Short Squeezes in the Stock Market appeared first on asktraders-stg.knitbyhands.com.

Online broker platforms have revolutionised the investment industry by offering cost-effective and reliable ways of gaining exposure to the stock markets. The move by retail investors into stocks has been helped by share prices rallying, and retail investors who make the right decisions have posted significant returns. If you’d invested in the relatively sedate S&P 500 index in January 2023, by the end of the year, you’d have recorded a gain of more than 20%, with this year on track for similar gains with Q4 remaining. With that in mind we take a look at how to choose some of the best shares to buy for beginners.

Why Shares Are Ideal For Your First Trade

Nothing is ever guaranteed in the markets, but part of the appeal of stock trading is the impressive historical returns. Equities are also associated with relatively low-price volatility. There is enough opportunity to make returns, but less chance that wild price swings will blow up your account or cause you to sell up at just the wrong time due to panic starting.

Stocks listed on reputable exchanges such as the New York Stock Exchange, London Stock Exchange, and NASDAQ are regulated instruments. That means their markets are monitored to ensure trading is fair and efficient. The companies also have to comply with high levels of transparency in terms of reporting which means investors are less likely to be blind-sided by a company’s management or insider dealings.

What Are The Qualities of Great Beginner Shares?

Buying shares in a company means you own part of it and are entitled to a share of any future profits. Most share valuation models derive current share price from expected future earnings, so a firm with improving medium and long-term prospects should see its share price begin to climb.

Volatility & Dividends

Profits returned to investors are called dividends and can be in the form of a cash payment or more shares. Exact T&Cs vary from company to company, but many firms pay dividends quarterly or semi-annually. Firms in stable sectors with limited growth potential tend to pay higher than average dividends and are known as income stocks.

Management teams of firms with exciting new projects in the pipeline may choose to re-invest profits in new schemes. Companies that take this approach can expect their share price to outperform the market average and are called growth stocks. In this case, investor gains are in the form of capital gains, when, or if, those new projects come good.

The greater number of variables involved in valuing a growth stock results in differences of opinion on what the share price should be. The greater the difference, the larger the price swings when news updates are released, and certain groups adjust their view of the firm’s prospects. Growth stocks tend to be associated with higher price volatility. That can be a problem for novice traders as P&L swings can cloud decision making.

Share price history & Technical analysis

Historical share price performance is tracked by those who use technical analysis to help their decision making. The brokers mentioned in the above list of trusted brokers provide charts and technical tools which can be used to help spot the next move.

These technical analysis tools include SMA’s (Simple Moving Averages), Fibonacci levels and Heiken Ashi candles. Some traders base their strategies around these metrics, whilst others lean more towards fundamental analysis.

Source: IG

Holding periods and what to avoid

One top tip for beginners is having a clear strategy and establishing trade entry and exit points. Consideration also needs to be given to how long you intend to hold your position. The answer to that question is down to individual circumstances. One common error carried out by beginners is over-trading which involves not giving positions enough time to develop. It’s essential to keep up to date with market events, but it is also advisable to choose a strategy and stick with it.

Beginner-friendly Stock Analysis and Trading Strategies

If you’re new to trading, there are certain questions to ask which can help improve your chances of being successful.

The first is to establish how much time and resources you can commit to trading. Some strategies are more labour intensive than others, and buying a basket of shares in a sector you think will do well using Exchange Traded Funds (ETFs) might be an alternative to purchasing single stocks.

The second important check is that your chosen strategy is the right one for current market conditions. The market correction in January of 2022 highlights how market sentiment can change due to a reappraisal of the underlying economic situation.

Demo accounts are helpful tools for beginners getting to grips with the practicalities of trading. They’re also used by experienced traders who want to test a new strategy in a virtual environment. If you’re considering using any of the below strategies, it is important to familiarise yourself with them before putting hard cash into the market.

• VWAP Trading Strategy
• Pullback Trading Strategy
• Heiken Ashi Trading Strategy
• Trendline Trading Strategy
• 52 Week Trading Strategy
• Price Action Trading Strategy
• Volume Trading Strategy
• Intraday Trading Strategy

Five Top Stocks For Beginners

The below list of five stocks include our thoughts on some of the best shares to buy for beginners, using fundamental and technical analysis to pick out suitable targets for novice traders to purchase given the current market conditions. It also factors in a degree of diversification.

One thing that hasn’t changed is the functionality of the online platforms that keeps getting ever more user-friendly. Opening an account is done online and can be completed in minutes.

Here are five of the best shares for beginners to buy today:

Amazon (NASDAQ: AMZN)

Source 123RTF

Amazon.com Inc stock has been hard to ignore for some time, but the latest earnings update suggests that momentum continues to build. That report released to investors on 3rd February 2022 included an eye-watering statistic relating to Earnings Per Share (EPS), which came in at $27.75 per share. Forecasts had predicted $3.77 per share.

It can be challenging to ignore the FOMO around Amazon. An investment in AMZN in April 2014 would currently be showing a +900% return, but the good news for investors making decisions for 2022 is that the firm’s success has been well managed and was backed up by investment in new high-growth sectors.

The online sales platform has an almost unchallengeable position as the world’s go-to shop, but the AWS (Amazon Web Services) division is booming. AWS also has higher profit margins, so whilst it accounts for 12% of total revenue, it generates 60% of the group’s total operating profit.

The Covid inspired global shift to online working and socialising looks set to continue, which puts Amazon stock at the top of the list of best beginner shares.

Johnson & Johnson (NYSE: JNJ)

Source 123RTF

The threat of higher inflation and interest rates has blown some of the froth off the top of high-growth tech stocks, and a rotation into more defensive stocks such as Johnson & Johnson looks set to be one of the stock market trends to keep an eye on.

JNJ’s share price has posted consistent returns over the last three years, up 8.14% in 2021, 7.97% in 2020, and 13.03% in 2019. Its market cap of $429bn means the firm has the critical mass to develop new product lines, and its pharmaceutical products are well insulated from the risk of an economic downturn. It also has a dividend yield which is currently an impressive 2.59%

These returns might not be life-changing, but stocks with lower price volatility can be some of the best beginner shares as they take the emotion out of investing. That can help newbies hold their nerve during the price corrections, which inevitably hit the markets from time to time.

Britvic (LSE: BVIC)

Source 123RTF

UK drinks manufacturer Britvic has a portfolio of leading brands and investing in BVIC continues the theme of investing in firms that offer some protection against economic uncertainty.

This could be a good year to diversify capital across different sectors. Britvic might be an excellent long-term bet thanks to Covid and the lockdowns that suppressed its stock price over the last two years.

With popular and government opinion moving towards the world learning to ‘live with Covid’ future full-on lockdowns appear less likely than they did 12 months ago. The firm has a £2.35bn market cap, pays a dividend yield of 2.75% and has a P/E ratio just above 20. With strong brands such as J2O, Robinson’s, and Tango supported by tie-ups to produce Pepsi and 7UP in the UK until 2040, the stock looks set to benefit from a return to normality. Currently trading at 879p, there is plenty of room for share price growth before BVIC stock has to contend with pushing past the all-time-high share price of 1,079p recorded in October 2019.

BHP Group (LSE: BHP)

Source 123RTF

Commodity prices are notoriously volatile, but the recent surge in the price of metals and energies looks set to continue. They’re already influencing BHP, which has global interests in copper, iron ore, nickel, petroleum, potash, and metallurgical coal.

BHP ticks a lot of boxes. The firm recently announced a 61% increase in pre-tax profit for the six months to the end of December 2021. It has a dividend yield of 9.12% and a P/E ratio of 12.7.

There are two potential kickers for those looking to buy BHP. The first is that copper stocks are due to play a part in the global economy’s transition away from carbon dependency. The other is that a commodity super-cycle could be forming. These multi-year trends are moments when commodity investors really cash in.

Bank of America (NYSE: BAC)

Source 123RTF

The banking sector is one of the few areas of the economy positioned to benefit from the anticipated interest rate rises. Increased numbers of defaults by borrowers have to be factored in, but higher interest rates lead to improved profit margins.

US banks have struggled to make a return on the difference between savings and borrowing rates due to base rates being close to zero. Offering savers negative interest rates on cash balances is just too hard an idea to push through. With the US Federal Reserve due to start sending rates higher, BAC, with its $376bn market cap and exposure to all areas of the North American economy, could be one of the best-undervalued stocks.

Getting Into Share Trading As A Beginner

Buying shares in a company has always been a relatively straightforward process, but online broker platforms have taken ease and convenience to another level. The platforms have been designed to minimise user error and are robust and reliable, and intense competition between brokers has resulted in cost savings being passed on to clients. Buying into companies with good prospects has never been simpler.

Diving straight into the markets is one option but registering for an online Demo account is highly recommended. That way, you can practice picking and buying stocks using virtual funds and upgrade from risk-free trading to a live account when the time is right. As Demo accounts are free to use, they also offer a chance to test out different brokers to find the best fit.

Online brokers

Firms that offer free to use share trading accounts include eToro and  IG. The process of executing a trade can be as simple as entering the quantity you want to buy and clicking a button. At that point, cash in your account is converted into a stock position. Developing an understanding of how to get the best out of your platform can help the trading bottom line, and the below breakdown of the process and some of the technical terms used has been compiled by experienced traders.

Putting on a trade

Locating the stocks you want to trade at eToro can be done by filtering by sector or using the search function.

Different order types to consider

It’s possible to click and buy or use a Limit Order where you input the price level at which you want to enter into a trade. Applying some patience can help optimise trade entry points. Once in a trade, Stop Losses and Take Profit orders allow you to manage your positions using automated instructions to sell at specific price points. That way, you don’t need to monitor your portfolio 24/7.

Source: eToro

Profit & Loss

After executing a trade, the stock position you have bought will have its value determined by live market prices.

Source: eToro

Performance can be monitored in the Portfolio section of the platform, which is also the area of the site to visit when the time comes to sell all or part of your position. When trades are closed out, P&L converts from being unrealised to realised, and gains or losses are crystalised and reflected in the cash balance. That capital can then be used to buy other positions or returned to the bank account which funded the brokerage account in the first place.

Source: eToro

Some brokers offer price alert messaging systems to keep you updated on market events and stop-losses and take profit orders can be adjusted at any time during the life of a trade. Checking the site’s Portfolio section soon after executing a trade is highly recommended. Even experienced traders make ‘fat finger’ errors, so spotting and correcting them before market prices move too much can prevent any mistakes from becoming costly.

FAQ

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If the price falls below that level, it may be a good time to offload or short the stock, but it could provide an excellent opportunity to go long and benefit from some upward momentum if it breaks above. Here we will take you through breakout trading and identify four of the best breakout stocks to watch.

What Is Breakout Trading?

Breakout trading is trading a stock that trades outside of a defined support/resistance or range.

The support range is the level at which the stock price does not fall any further, and the resistance level is the level at which the stock price does not rise any further. Usually, stocks move between these two levels. If they go beyond the support or resistance line, it becomes the new support or resistance level. If a stock breaks a defined level, it usually indicates that the price will continue in the direction of the break.

Breakouts that occur on high volume provide more significant momentum and indicate that price is more likely to trend in that direction. When the price breaks through the resistance and support level, the traders who were waiting immediately jump in and those who did not want the price to break out exit the position to cut down on their potential losses.

One thing to be aware of is that not all traders will use the same support and resistance levels, and so a breakout on low momentum can indicate that the move has less chance of success.

Some breakout levels can be identified by looking at the trading range of the current price, along with previous price action; whereas other breakouts could be psychological levels. If you take the example of a stock trading at new highs, round numbers such as $100, or $1000 can prove to be psychologically important levels.

It may be that many have set stops, or take profits at these rounded levels, but it can also be that markets are also waiting to see how a stock responds to these new prices.

How To Find and Confirm Breakouts

There are various ways to find breakout stocks, but most will start with technical analysis, or taking a look at the charts. If you are looking to narrow down the options to check, looking at stocks making the biggest moves is a decent place to start. Checking our shares page can give you an overview of some of the biggest daily movers for you to conduct some of the following analysis.

The two main technical indicators you will want to use when looking for breakouts are the RSI, and the MA. The RSI (relative strength index) is a momentum oscillator can help you determine if a stock is overbought or oversold. A breakout accompanied by an RSI moving from oversold to neutral territory is a bullish sign, but one moving into overbought may be one that is destined to pullback and retest for a breather.

The moving average lines will give you some moving targets, with a break above or below key levels (50 period, 200 period) potentially signifying a trend change. A moving average break along with a key level breaking in a stock could be a strong breakout signal.

Plot Out Some Key Support & Resistance Levels

Start by using historical price data to pinpoint where the stock has repeatedly faced resistance, or found support. Support and resistance levels are price points where a stock has historically struggled to move above, or below, and are marked out or watched by almost all market participants.

A breakout above or below either level, especially with high volume, is a strong signal. It can take stocks multiple attempts to break through these levels, but when a successful breach happens, it can signal a breakout.

Often after a breakout, markets might look for the stock to pull back to retest the previous resistance level (now support) or support (now acting as resistance). If the stock manages to hold the breakout level on the retest, it ‘confirms’ the move and provides a firmer entry signal.

It is usually a good move to look at the stock across different time frames (hourly, 4 hour, daily) to confirm the breakout as if the break appears on on multiple time frames it can have a greater chance of holding.

Look For Consolidation Patterns or Range Trading

See if the stock has previously been trading within a range for an extended period. Common consolidation patterns include triangles (ascending, descending, symmetrical), rectangles, or flags. These patterns often precede a breakout.

A period of consolidation often represents a balance between buyers and sellers. When the stock breaks out of this range, it can indicate that one side has gained control, leading to a strong move in that direction.

Is Volume Significantly Higher Than Usual?

A significant increase in trading volume during a breakout is a key indicator of the breakout’s strength. Check the daily volume on the chart, along with the average daily volume (ADV) of the stock. High volume suggests that more and more traders or investors are entering the market, accepting (or providing support) to the new price level.

Stocks that breakout with low volume might find it more difficult to sustain the run, leading to a false breakout. You would want to find stocks that are showing at least 50% higher than average volume as a confirmation signal.

Fundamentals & Sector Trends

Positive catalysts can provide increased volume, and help push a stock into breakout territory. A catalyst can take many forms; from product launches, partnerships, or industry developments, through to earnings releases or analyst price target revisions.

Stocks will also often move in tandem with their sector. A strong-performing sector can lift individual stocks, leading to more extreme breakouts. Broader market conditions being bullish would generally support breakouts, while bearish markets may support breakdowns in price. As one point of risk management, you should also pay attention between some of the differences between breakout stocks, and those that are in the midst of a short squeeze as these can move in similar ways, but break down very differently.

The post Breakout Stocks – How To Identify and Confirm A Breakout appeared first on asktraders-stg.knitbyhands.com.

For those trading Forex in Malaysia, many would say that the best time to get involved is during the crossover of the European and American trading sessions, when big volumes occur. That means 9 p.m. to 12 a.m Malaysia time which may not be suitable for many. Do not worry, there are plenty of options.

The US stock market opens at 9.30pm Malaysia time when the clocks are running on BST, and there is a period before, and for a few hours afterwards in their morning that coincide with traders becoming more active. This gives greater volumes on many of the currency majors and provides more opportunities for various strategies to be effective.

Remember, Malaysia Time is eight hours advanced from Coordinated Universal Time; thus, eight hours must be added to UTC to determine the local standard time.

When Does The Forex Market Trade?

Forex trading sessions, representing periods of significant financial market activity across different continents, are fundamental for Malaysian traders looking to pinpoint the most opportune moments to trade. Hence, understanding when the Forex market opens in Malaysia becomes essential.

In Eastern Standard Time, the Malaysian Forex market operates from Sunday through Friday at 5 p.m. Considering Malaysia’s position within the GMT+8 time zone, the hours for Forex market activity shift compared to the central trading sessions. Here we dissect the dynamics of Forex trading in Malaysian timing:

Ability to trade at any hour offers Malaysian traders considerable flexibility, implying that they need not restrict their activities solely to daybreak or late evenings. Although Forex trading is not governed by a specific time zone, savvy traders benefit from leveraging time zone disparities which influence currency trading timings.

Nonetheless, these windows pale in comparison to the surge in trades during sessions with overlaps. For those interested in currencies such as EUR, USD, or GBP, the most advantageous moment for Forex trading in Malaysia occurs between 8 to 11 a.m. EST, coinciding with the European and American session overlap, corresponding to 9 p.m. to 12 a.m, Malaysian time (GMT+8). It is within this timeframe that a predominant portion of the global Forex market’s daily trading volume materializes.

During the intersections of Sydney and Tokyo, Tokyo and London, as well as London and New York trading windows, the Forex market experiences heightened volatility. Such volatility becomes an opportune moment for traders to engage in buying or selling certain currency pairs.

There are other overlapping major currencies during regular business hours, such as the JPY and the AUD, and each of these overlap with the EUR and GBP before the US market get’s going.

Despite the fluctuating nature of Forex market activity throughout the day, it remains accessible around the clock, throughout the workweek. Bear in mind, both weekends and federal holidays preclude trading, compelling traders to modify their strategies accordingly—particularly those employing automated trading systems.

Forex Guide Is Forex Legal? Technical Analysis

Selecting Pairs, and Understanding the market in Malaysia

Prior to selecting a currency pair for trade, Malaysian traders should consider a few factors. Start by checking on your broker’s trading conditions (spread, commission, slippage, order execution, etc.) – these change based on the currency pair you trade, so it is worth checking this first to make sure that your ideal time lines up with the trading action on the pair you most want to trade, and that the fees are acceptable on said pair.

You also want to consider the availability of news and research sources, particularly if you are considering a minor or exotic pair that gains less global coverage. Access to information is essential, and you will want to make sure when deciding on the best time to trade that the sources you trust for information are also online.

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In Malaysia, Forex trading is governed by the Securities Commission Malaysia (which operates under the Capital Markets and Services Act of 2007) whilst taxes are the Inland Revenue Board Malaysia’s jurisdiction. This regulatory framework aspires to safeguard market integrity, protect investors, and maintain financial stability in the Forex market. It is incumbent upon investors to engage with licensed brokers, carry out thorough due diligence, and remain vigilant of their rights and protections to diminish the risks associated with Forex trading.

Despite what some may say, there isn’t a best time to trade forex in Malaysia for all traders, there is only a best time to trade for you. Your own personal circumstances, working schedule, family life, and various other factors will all play a role in what time suits you to be trading forex.

There are periods of heightened volume and volatility that can improve trading conditions and improve the effectiveness of certain trading strategies, but that in and of itself is not the complete picture. Get to know the various trading sessions and overlaps on demo accounts first, then try to carve out a dedicated period of your day that you can afford to allocate to trading.

*Brokers highlighted are not intended for Malaysian users but for those trading instruments from elsewhere. You will need locally regulated platforms and brokers.

The post Best Time Of The Day For Forex Trading in Malaysia appeared first on asktraders-stg.knitbyhands.com.

Whilst you can open multiple separate investing or trading accounts with a various stockbrokers or trading apps, as an individual investor (not company) you can only have a single CDS accounts.

Bursa Malaysia has enabled investors to access the stock market while on the go via their Bursa Anywhere App. In this article, we will go over what a Bursa Anywhere App is, how it works, and the important requirements for eligibility.

What is Bursa Anywhere App?

Bursa Malaysia Depository Sdn Bhd developed the Bursa Anywhere app to make it easier for investors to manage their CDS accounts without having to rely heavily on the brokerage firm. Recently, the Bursa Anywhere app has been updated with a new feature that allows investors to apply for a new Central Depository Services (CDS) account and register for e-Dividends using the app.

To open a CDS through a Bursa Anywhere app, you can simply download the mobile application of Bursa Anywhere from the Play Store or the Apple Store. This allows you to manage your CDS account remotely without having to deal with the broker again.

The app has received over 100,000 downloads, with an average rating on the Google Store of 2.9 stars.

How Does The Bursa Anywhere App Work?

The Bursa Anywhere application functions as a one-stop convenient platform for traders to keep track of and record all CDS account information. Among the services available to traders through the Bursa Anywhere app are the ability to update the information of each CDS account, downloading statements of account, and Initial Public Offering (IPO) application, as well as to view the portfolio value of each CDS account.

The Bursa Anywhere application is also equipped with several other facilities with features such as:

1. Transfer of shares between CDS accounts via FPX
2. Combined view of investor CDS accounts (if having multiple accounts)
3. Portfolio Value (for securities)
4. Update CDS information on a self -service basis
5. Notice of corporate announcements for investor portfolios
6. Access to e-statements with 12 months archive

Who Can Get a Bursa Anywhere Account?

Bursa Anywhere services are currently only available to individuals who have direct CDS accounts.  Through this app, investors can reactivate dormant accounts or inactive accounts. Interestingly, even when investors decide to manage their CDS account with the Bursa Anywhere app, it is not necessary for them to register for a Bursa Anywhere CDS account.

Ideally, investors can sign up for Bursa Anywhere app to leverage on the benefits and conveniences of the services provided, and are allowed to go with the option of conducting CDS-related transactions at the ADA (Authorised Depository Agents) office, otherwise known as broker, where their CDS account is maintained.

Please also keep in mind that each individual can only have one Bursa Anywhere account with one registered IC, and that CDS account holders can terminate their access to their Bursa Anywhere account at any time by following the simple steps in the Bursa Anywhere mobile application.

How to Open CDS Account with Bursa Malaysia

Source : Bursa Anywhere

1. Download Bursa Anywhere – The app is available on both the Play Store and the App Store. If you have previously used Bursa Anywhere and wish to open a new CDS account, proceed to step 4.
2. Create a Bursa Anywhere account – Before you can use Bursa Anywhere, you must first create a Bursa Anywhere account. To create an account, simply follow the steps outlined below. You will be required to enter your IC information, email address, and phone number. An email with a verification code will be sent to the address you provided earlier. Following that, you can configure your account particulars such as username, password, and security question.
3. Open a CDS account – After completing the preceding steps, the Bursa Malaysia will determine whether or not a CDS account has been established under your IC. You will be directed to this step if you do not already have a CDS. Existing CDS account holders who want to open a new CDS can do so by opening the side menu (side menu) and selecting “Account Opening.” You will be directed to the registration form as shown below. During the process, you will be asked to provide personal information as well as bank account particulars for the transfer of dividend funds.

You can enter any of the following documents for bank information:

1. Bank statements
2. The front page of the savings bank book

iii. Confirmation letter from the bank

1. Review and submit – Once all of the information has been entered, you can make a final check before submitting it to the Bursa Malaysia. If you are satisfied, you can continue posting and reading the next important process.

How Many Companies are In Bursa Malaysia?

At the end of 2023 and continuing into 2024, there are 995 public listed companies (PLC) listed on the Bursa Malaysia repository, an increase from 972 in 2022.

There are as you can see almost 1000 companies in which you can trade on the Bursa Malaysia, and not all the stocks or firms are created equally. It is always recommended for you as an investor to conduct extensive research on each company before embarking on a trading journey with them.

Start Your Share Trading Journey with Bursa Malaysia

To reduce your financial risk as a new investor, it is recommended that you trade in the Malaysian share market through a regulated entity such as the Bursa Malaysia.

You may also require a significant amount of practise as well as market knowledge gained through extensive research and analysis, which may be simple if you choose to trade with a well-regulated platform that provides important technical analysis on various market trends.

Additionally, with a Bursa Malaysia CDS account, particularly the Bursa Malaysia Anywhere app, you can manage and supervise your CDS account as well as all transactions from a single app.

The post Bursa Anywhere App Explained – Use Cases For Malaysian Investors appeared first on asktraders-stg.knitbyhands.com.

Inexperienced Forex traders often make the mistake of focusing solely on the potential for financial gain. You could make financial mistakes while desperately trying to get rich quick.

Successful Forex trading requires an understanding of the market, confidence in your analysis, and adherence to a trading strategy. Maintaining composure and reasoning during trading is crucial.

In addition, you should research the markets and currency pairs that interest you and use what you learn from the experiences of other traders to help you establish appropriate profit targets.

Trading in the Foreign Exchange (Forex) market may be lucrative, but you should not enter into it if you lack the competence to do so. Instead, you might preserve both until you feel confident enough to move onto the real markets by practising on dummy accounts.

To this end, it can be highly instructive to follow the tactics and approaches of successful Forex traders, which is why we have listed the 5 most successful traders in Nigeria below.

Patrick Ogagbor

Ex-Zenith Bank employee turned full-time FX trader Patrick Ogagboris now independently wealthy due to his successful trading on the Forex market.

Starting with just $200, Patrick began trading on the side and by 2007 had amassed a fortune. When he started making a profit trading, he cashed out and put it toward other things.

He was able to augment his income in this way until 2016, when he made the decision to quit his day job and focus on forex trading full time

He is widely considered to be one of Nigeria’s most successful forex traders thanks to his innovative approach to risk management and consistent follow-through.

He stresses the importance of market awareness in generating revenue. Because of this, one of his most successful strategies is to wait for the conditions of a transaction to be just right before entering into it.

Because he is able to keep his cool under pressure, he is able to safeguard his investments and earn the most possible return. After Patrick’s initial attempt at forex trading was successful, his loved ones started giving him money to invest on their behalf.

Blessing Ezeako

Blessing Ezeako is one of a very small number of women in Nigeria who has achieved the title of currency billionaire. The online forex trading firm that she began as a side hustle gradually evolved into the principal source of income for her and her family.

Blessing’s involvement in the foreign exchange market began as a pastime activity and eventually grew into a full-time occupation for her. She was able to discover that foreign exchange trading is not a Ponzi scam and is not a quick route to financial success.

She attributes a significant portion of her success in trading to the instruction that she received. She has reached all of her personal profit targets, which is one of the key accomplishments she has achieved.

She, like many other people who were new to the foreign currency market at the time, had a terrible start before she finally developed a trading technique that was profitable.

In spite of the obstacles she faced and the money she had lost, she was determined to learn how to make money trading Forex. As a consequence of this, she participated in a number of seminars, during which she gleaned information regarding money management, trading psychology, and trend trading.

The results of Blessing’s tireless quest of greatness as a forex trader were rewarding. She is largely regarded as one of the most successful female investors in Nigeria.

Bade Ajidahun Afioluwa

Bade’s gambling mentality toward the forex market caused him to lose substantial sums of money due to his irresponsible behaviour in the foreign exchange market. Someone whose circle of friends included people who had amassed significant riches through forex trading would have been utterly disheartened to hear this news.

Despite this, Bade began working toward creating a method that would allow him to dominate the market despite the fact that the odds were stacked against him once he admitted full responsibility for his earlier errors.

Because of Bade’s outstanding expertise, he became one of the most successful forex traders in Nigeria and rose to fame as a result. As a consequence of this, he was given responsibility for the economic security of his acquaintances, coworkers, and even family members.

Uche Paragon

Nigeria’s richest trader is Uche Paragon, a currency trader who has amassed a fortune of over $16 million. Apart from actively trading, Uche also runs a forex trading college in Lagos and another in Port Harcourt.

The trading firm CCI Traders is also under his control. Uche Paragon is well-known among Nigerians who frequent forex trading webinars and internet forums.

Uche embarked on a career in trading in 2007 and is now very successful and affluent. The story of Uche is intriguing since he stumbled across the lucrative industry of foreign currency trading.

Uche was exploring genuine online income opportunities when he came across an ad for XM Forex brokers providing a $30 no-deposit bonus to new traders in Nigeria.

That immediately peaked his interest. Despite his abilities, however, he encountered formidable obstacles to success in this field. As soon as he saw his lack of competence, Uche knew he would continue to lose money.

So, he invested the time and energy into learning about the forex market and coming up with a successful trading strategy, and the results were positive.

Chinedu Onuoha 

This Nigerian investor first gained experience trading foreign exchange, and has since branched out into commodities, futures, and stocks. He was a Forex trader for 12 years before he began instructing people in Nigeria.

His dedication to risk management and his research into long-term Forex methods led to his success in the foreign exchange market. He first dabbled with foreign currency, but eventually shifted his focus to commodities, futures, and stocks.

Chinedu Onuoha is currently instructing students with an eye toward a future in Forex trading. His inspiring teaching style and extensive industry expertise have made him a local celebrity in Nigeria.

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1.Cadbury Nigeria PLC (CADBURY)

As early as 1976, Cadbury stock prices were listed on the Nigerian Stock Exchange. Its main products are cocoa-based beverages, candies, and intermediates. Its cocoa butter, cake, and liquor are all exported intermediate products.

In Nigeria, Cadbury ranks among the top producers of FMCG. Bournvita, Cadbury 3-in-1 hot chocolate, Tom Tom, Buttermint, and Clorets gum are just few of the well-known brands that this company distributes.

As a division of Mondelz International, Cadbury has access to cutting-edge scientific studies that can help it diversify its product line and improve its quality.

Dividends are a kind of compensation paid by CADBURY to its stockholders. Only twice in the past decade have dividends been delayed. In the 2020 fiscal year, the dividend yield was 2%, which was close to the average dividend yield of 2.1 %.

Over the past decade, annual profits have averaged NGN296.4 million, with 2016 being the only year to post a loss. The corporation has been able to maintain free cash flow generation for the better part of a decade despite heavy investments in capital expenditures.

Buy This Stock

2. Flour Mills of Nigeria (FLOURMILL)

Flour Mills of Nigeria is unquestionably the most successful Nigerian food company. The Group has aggressively begun a number of different expansion and investment strategies it believes are necessary to ensure it retains its position at the top of its industry.

The funds will be used to expand Flour Mills’ existing food, Agro-Allied, and Logistics Support operations. FMN dominates each of these industries.

The current investments of the company include flour milling, pasta, noodle, edible oil, and refined sugar production, livestock feed production, farming, and other agro-allied activities, fertilizer distribution and sale, laminated woven polypropylene sack and flexible packaging material production and marketing, terminals A and B operation at the Apapa Port, custom clearing, forwarding, shipping agency, and logistics.

In recent years, the company has been steadily broadening its product offers by diversifying its flour-based and agro-allied business operations and launching initiatives that will provide synergies all the way down the value chain.

Buy This Stock

3. Unilever Nigeria PLC (UNILEVER)

Listed on the Nigerian Stock Exchange (NGX), Unilever Nigeria produces and distributes food, food ingredients, home, and personal care goods to retailers and wholesalers in Nigeria.

Unilever Nigeria Plc now provides services across multiple areas of the Consumer Goods value chain, including but not limited to the production and distribution of packaged goods, food ingredients, and household and personal care items.

There are a total of 5.75 billion shares outstanding, giving the business a market valuation of NGN 76.7 billion.

Stock buyers and sellers of Unilever Nigeria Plc should anticipate rising dividends and profits as the company’s earnings per share rises and its profits remain stable over time.

Live chart analysis of Unilever Nigeria Plc suggests that analysts expect the Consumer Goods industry to continue showing signs of improvement, with a larger market share and increased trading volumes.

Buy This Stock

4. Guinness Nigeria (GUINNESS)

Guinness Nigeria is the site of the original Guinness brewery established outside of the United Kingdom.

The firm’s premium brands are recognized all over the continent and beyond. Furthermore, the firm is committed to contributing to the growth and prosperity of the areas in which it does business.

For the duration of 2016 onwards, Guinness Nigeria Plc has owned the exclusive rights to import, market, distribute, and sell all International Premium Spirit brands owned by its parent company, Diageo plc (“Diageo”).

Baileys, Smirnoff, Gordon’s, Captain Morgan, Tanqueray, Ciroc, and the entire Johnnie Walker line are just a few of these labels.

In 2018, the firm started making and selling items with a PET (Polyethylene terephthalate) coating. Currently it manufactures PET bottles of Malta Guinness, Orijin Zero, and Dubic Malt.

Stockholders of Guinness Nigeria Plc can rest confident that their investment will yield dividends and profits thanks to the company’s rising earnings per share and consistent profitability over time.

Buy This Stock

5. Nestle Nigeria PLC (NESTLE)

Food production and marketing firm Nestle Nigeria Plc is a Nigerian subsidiary of the world’s largest food and beverage company. Nestle Nigeria Plc produces and distributes a variety of food and beverage items across the country, including bottled water. The company is divided into the food and drink industries.

Nestle Nigeria Plc’s origins may be traced all the way back to 1961, when the first firm was established. It first appeared on the Nigerian stock exchange on April 20, 1979.

Nestle Nigeria Plc now offers services across a wider spectrum of the Consumer Goods value chain, including retail and wholesale distribution of a wide variety of products under well-known names including Maggi, Golden Morn, Nan, Lactogen, Nutrend, and Cerelac.

Potential buyers and sellers of Nestle Nigeria Plc stock might rest easy knowing that the company has a history of increasing earnings per share and maintaining stable profits.

Nestle Nigeria Plc’s live stock price suggests that the Consumer Goods industry as a whole is poised for continued growth in both market share and trade volume.

Buy This Stock

6.Transcorp PLC (TRANSCORP)

Transnational Corporation Plc (Transcorp Group), one of Nigeria’s top conglomerates, has issued its half-year results for the year ending June 30th, 2022, demonstrating increased performance across all of its major investment lines in the Hospitality, Power, and Oil & Gas industries.

The N62.9bn in revenue reported by the conglomerate with key assets in Power, Hospitality, and Oil & Gas is an increase of 18% compared to the N53.3bn in revenue reported during the same time in 2021. Operating income increased by 25%, from N16.3bn in 2021 to N20.5bn in the same year.

The company’s profit before tax increased by 90%, from N7.1bn to 13.3bn, according to its unaudited half-year results submitted to the Nigerian Stock Exchange (NGX), while its profit after tax increased by 85%, from N6.5bn to 12.0bn. In the same time frame, the Group’s Shareholders’ funds increased by 8%, going from N146.3bn to N157.5bn.

Despite the global economic uncertainty, Transcorp Group is prepared to continue its rapid expansion through the end of the year and beyond.

Buy This Stock

7. Nigerian Breweries PLC (NB)

Lager, stout, non-alcoholic malt drinks, and soft drinks are all produced by Nigerian Breweries Plc, a firm established in Nigeria. It not only exports its products but also has one of the most cutting-edge breweries in the country.

At least ten breweries and two malting plants are run by Nigerian Breweries Plc out of Aba and Kaduna, respectively. The company also produces packaging materials such bottles, cans, and cartons.

Brands from Nigerian Breweries Plc’s product portfolio are currently sold in 13 countries, including the United Kingdom, South Africa, the United States, and numerous Middle Eastern and Western countries.

Buyers and sellers of Nigerian Breweries Plc stock can rest easy knowing that the company has a history of increasing earnings per share and maintaining stable profits, both of which bode well for future dividends and earnings.

Buy This Stock

8. Lafarge Africa (WAPCO)

Based on the current share price of N25.80 and the total number of outstanding shares of 16.105 billion, Lafarge WAPCO was valued at almost N416 billion on the local exchange.

Analysts have predicted a return on equity for the cement company of 15.4 percent this year, up from the company’s three-year average of 6.9 percent.

Since Lafarge Africa effectively cleaned up its balance sheet after undergoing restructuring initiatives, expectations of a greater return have increased over the past year. However, it continues to face stiff competition, particularly from BUA cement.

After selling its margin-dilutive South African unit a few years ago, the company has benefited from a deleveraged balance sheet and robust cash position, according to a number of analysts.

Analysts, however, believe that WAPCO is headed in the right direction and is on track to have a strong operating performance in the fiscal year 2022, thanks to increased volumes and enhanced cash conversion.

Positive demand traction in the local cement market is expected to continue till 2022. Analysts expect the Consumer Goods industry to continue its upward trend, with market share expanding along with trading volumes, as seen by the current chart of Nigerian Breweries Plc.

Buy This Stock

9.Guarantee Trust Bank PLC (GTCO)

The banking services offered by Guaranty Trust Bank Plc include investment, corporate, commercial, small and medium enterprise (SME), and retail banking.

As such, GT Bank is a popular option for Nigerians looking for a bank. Their current share price of N21.00 gives them a market capitalization of $618b.

Buy This Stock

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