As an investors or a prospective one choosing the right shares to invest in is a tricky affair. Confusion exists over which stocks to invest in for the short term and which ones to hold for a longer period. Investors also find it difficult partitioning their funds between government securities and ordinary stocks.

Assuming you are an investor looking to inject money into the NSE today, these are the stocks you should consider:

Mumias Sugar Company: for investors looking for a long term investment the Mumias share would be a sure bet. This is because, as we had mentioned earlier, the share is grossly undervalued. As per our analysis the share should be trading between KES 12 and KES 17 not at its current KES 5.30 per share. Due to this observation an investor who puts their money in the stock and holds on to it for a considerable period such as a year would make a significant profit of 126%!

Equity Bank: for any investor regardless of their duration of investment the Equity share is one to consider. This is because upon observation of week-on-week trading the counter registered high share volumes and high volatility. An increase of half a shilling or a shilling may not seem like much but considering that the share price stands at KES 20 this small increment translates to a 5% increase. If one had invested KES 100,000 in the share such an increase would translate to a profit of KES 5000 in a day. That’s extremely good.

NIC Bank: for an investor with a long term investment in mind the NIC Bank share may be one to consider. The bank has embarked on a sound expansion strategy that will see it expand its branch network in the region. In addition to that the bank has an upcoming rights issue that, upon its success, would significantly increase shareholder wealth.

Kenya Reinsurance: last month the company announced an increase in profits and a proposed bonus issue of 6 new shares for every 1 held by shareholders. Should this be approved by the shareholders, their wealth would increase significantly. Consequently, an investor with an investment horizon of about six months should consider the share. The share has also been performing positively over the last month or so constantly featuring in the highest gainers at the bourse on any given day.

{ The above does not constitute investor advice and it remains the opinion of the writer}