Buy Alcoa shares - how to invest in Alcoa shares in Kenya

ALCOA INC is a US metallurgical corporation that was founded in 1886 (headquartered in Pittsburgh, Pennsylvania) and is the third largest producer of aluminium in the world.

In addition to mining aluminium and producing products from this metal and its alloys, the company also mines bauxite and produces alumina. The company's products are used in the defense and oil, gas, construction and automotive, aircraft, etc. Today, the company has operations in more than thirty countries around the world and employs more than 60,000 people.

The Company operates in three reportable segments: Bauxite, Alumina and Aluminium. The Bauxite and Alumina segment is primarily conducted by a number of affiliated operating companies affiliated with Alcoa World Alumina and Chemicals ("AWAC"), a subsidiary of Alcoa Corporation and Alumina Limited ("Alumina Limited"). The Aluminium segment comprises the Company's Aluminium Smelting, Casting and Rolling business and the Energy Division. The Bauxite segment concentrates on the Company's worldwide bauxite mining operations. The Alumina segment comprises the Company's global network for processing bauxite into alumina. The Company's Aluminium segment consists of global smelting and foundry operations, a rolling mill in the US and a portfolio of energy assets in Brazil, Canada and the US.

You can find out more about the company on the official Alcoa website
You can find out more about the company on the official Alcoa website

Despite tangible losses in 2020 due to the pandemic and lower aluminium and alumina prices (last year's revenues fell 11% to almost $9.3bn, down from $10.433bn in 2019), Alcoa expects volatility to decline and markets to improve in 2021, forecasting global aluminium consumption growth of 7%.

Alcoa's fourth-quarter 2020 net loss fell 76 times to $4 million, or 2 cents per share, compared with a loss of $303 million, or $1.63 per share, in the same period a year earlier.

The decline was driven by a rebound in aluminium prices at the end of last year due to the economic recovery in China.

The average realized aluminium price in the fourth quarter rose to $2094 per tonne from $2042 per tonne a year earlier. The positive outlook for aluminium consumption expectations, as well as an increase in the metal's price, give grounds to expect a rise in the company's share price.

At the date of this writing, the stock was trading at $31.57, up 399.96% YoY.

Undoubtedly, these figures as well as the relevance of Alcoa's output attracts many investors.

Let's look at how you can invest in Alcoa shares in Kenya.

Information on Alcoa's current share price
Information on Alcoa's current share price

How to invest in Alcoa shares in Kenya?

Alcoa shares are traded on the New-York Stock Exchange (NYSE), where they are ticker AA.

In addition to the American site, Alcoa shares may also be found on the Bolsa Mexicana de Valores (BMV); Frankfurt Stock Exchange (FSE); Berlin Stock Exchange; Stuttgart Stock Exchange (SWB), as well as the Swiss, Austrian and London stock exchanges.

Alcoa shares are included in calculation of several indices, including: Dow Jones US, Dow Jones Mid-Cap Value, NYSE Composite, S&P/TSX Global Mining.

Select
Select "AA" ticker to find Alcoa shares on the platform

You can only invest online with the help of a licensed intermediary, a brokerage company which works with these exchanges and can give you access to an online investment platform through which you can buy and sell shares.

There are four things to consider when choosing a broker:

  • Reliability - having all the necessary documents required under Kenyan law to carry out brokerage activities in the securities market (licences, permits);
  • Reputation and experience. Find out what kind of practical experience this brokerage company has in the market, what year it has been operating since, what are the opinions on the company's performance. Search for real feedback from experienced traders, ask market experts for their opinion on the quality of services provided by this broker;
  • What are the fees for the services provided? Different brokerage companies charge different commissions for specific services, access to information, etc. Clarify all these points before concluding the trades, calculate the potential costs;
  • Functionality. Investigate what functions and tools the online investment platform offers you.

The last point - the functionality of the online trading platform - is particularly important.

An online trading platform is the software provided to you for operating a brokerage firm, through which you will have access to all trades on the exchange continuously, 24 hours a day, 7 days a week, in real time. A quality online trading platform has the following features:

  • Simple and easy registration;
  • Intuitive interface;
  • Demo account for trial trading;
  • Training base;
  • Availability of complete information on the stock market in terms of investment markets and companies whose shares are displayed on the platform;
  • The availability of indicators to enable technical analysis;
  • The availability of functions that facilitate successful investing, such as the possibility to use leverage (multiplier function) or stop-loss function, through which one can limit the possible expenses, etc.;
  • The possibility of selecting a given period for analysis, including an archive;
  • The possibility to access the data 24 hours a day, 7 days a week;
  • Availability of a mobile version for easy access to data;
  • Fees for services rendered;
  • Minimum top up amount;
  • Minimum withdrawal amount;
  • Availability of twenty-four-hour feedback (customer support chat).
Alcoa share trading platform online
Alcoa share trading platform online

The modern online brokerage market offers a wide choice of intermediaries, with brokerage companies literally competing for clients by offering more and more innovative designs for the quality of your work.

An important consideration is the choice of investment method. You must determine for yourself whether you wish to protect your assets from depreciation and receive passive income in the future, or be an active participant in the market making money here and now.

Alcoa pays a dividend, but the last payment was made in 2016.  With dividend income, you should not expect a quick return with a minimum contribution. Generally, this type of investment is suitable for those who plan to invest a fairly substantial amount, and it is not their prerogative to make immediate profits; instead, the aim is to protect the money from depreciation and receive dividends in the future.

The most popular investment method is contracts for difference. A contract for difference (CFD) is a popular type of derivative that allows you to trade on margin, giving you more options in the financial markets.

When you use it, you do not buy the underlying asset. Instead, you buy or sell units of that financial instrument, depending on whether you believe the underlying price will go up or down. A CFD is a contract between a trader and a broker who agrees to exchange the difference in the value of the underlying security between the beginning and the end of the contract. In this way, you have the opportunity to make a profit even if the price of the stock falls.

Information on the trading conditions for Alcoa shares
Information on the trading conditions for Alcoa shares

How to buy Alcoa shares in Kenya?

Buying shares online is done through the online investment platform we mentioned above. Register on the platform.

To deal in Alcoa shares, select the "shares" section of the platform and enter the ticker symbol AA in the search box. The system will automatically redirect you to the Alcoa stock section. Here you will see all the information you need to work with, such as the current price of the asset, trading schedules, graphical representations of price movements over time, and so on. You will also see a panel with trading options like "buy", "sell", "deposit", "apply multiples" and so on.

How to register on the platform?

To get started, make a simple registration by entering your first name, last name and a valid email address in the registration form on the website. Click on 'register' and then check your email inbox. The system will automatically send you a link to confirm your registration - find the email with this link and click on it. When you click the link, you will be redirected back to the platform, so you can log in to your account.

Go through a simple registration process
Go through a simple registration process

How to open a Demo account?

When you first sign into the platform you will be asked to open a free demo account. With the demo account you can practice making transactions on the platform without the need to fund your account with real money. On your account you will see an amount (usually $10,000), which you will be free to trade with for training purposes. The benefits of this account can hardly be overestimated, as investing involves potential losses. So when you have little trading experience, and you don't want to take any chances, be sure to practice with a demo account. You will have access to the same features of the platform as when you use a real account, except of course for withdrawals. If your demo account fails, and you lose any dummy funds, you will be able to restore these funds and continue learning. There is no time limit on how long you can train and use your demo account.

Choose a trading account
Choose a trading account

How to deposit and withdraw funds from a real account?

Once you feel ready to invest real money in the company of your choice, you will need to fund your real account on the platform, using any of the payment tools available on the website. Typically, the minimum initial deposit amount is only $10. Again, we strongly advise you to be careful when you start investing and start with small amounts, because investing is a risky activity and without sufficient experience it is very easy not to make money but rather to lose it. You can deposit your account almost instantly using the payment systems listed under the "Deposit" tab. Choose the top up option that suits you best. The most popular funding method is via bank payment card.

You can withdraw funds from your account in the same way you deposited them.

Top up your account online
Top up your account online

Is it worth investing in Alcoa shares online?

Although the online trading platform is easy to use, don't be fooled into thinking that investing is a risk-free activity. To avoid losing your desire to invest after your first unsuccessful attempt, remember to proceed cautiously and gradually. Familiarise yourself with theoretical material; many of these are now available for free online and on the platform itself. Watch all the training videos carefully. Do not forget to practice trading on a demo account. When funding a real account and starting a real investment, make sure you invest an amount that you will not regret losing, and that will not cause you own financial ruin. Start with small amounts and increase your investments in tandem with your own experience and knowledge. Don't be in a hurry to use multiples in trading.

If we are talking specifically about Alcoa, the following facts and figures speak for investing in this company:

  • Alcoa is the world's third-largest aluminium producer and one of the world leaders in bauxite mining, alumina and aluminium and aluminium alloy products;
  • Alcoa was recognised at the World Economic Forum in Davos, Switzerland, in 2006, as one of the world's three fastest-growing corporations;
  • Despite losses in the previous year, Alcoa's net loss in the fourth quarter of 2020 fell 76-fold to $4 million, or 2 cents per share, compared with a loss of $303 million, or $1.63 per share, in the same period a year earlier;
  • As of the date of this writing, Alcoa's share price stands at $31.57, up 399.96% from the same period last year.

Thus, the company is showing growth, and the extensive use of aluminum in various industries ensures the company's demand in the global market going forward.

Market experts consider it advisable to invest in Alcoa shares in Kenya, and the opportunity to do so online gives you a chance to join the big world of investing right now and experience first-hand all the benefits of working with shares of the steel giant Alcoa.

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