Nigerian stocks recorded one of its sharpest weekly gains last week, adding 5.1 per cent, largely supported by strong half-year corporate results, which helped create positive sentiments in the market.
Industrial goods and bank stocks led the charge, appreciating by 10.1 per cent and 3.5 per cent respectively.
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“We see considerable headroom for further repricing, particularly within the banking sector and the industrial and consumer goods sectors, which continue to benefit from favourable valuation multiples and sector-specific tailwinds,” analysts at Meristem Securities had said in their outlook for the week.
“As the H1:2025 earnings season unfolds, we expect investor interest to shift toward sectors like Consumer and Industrial Goods, where earnings releases are anticipated in the near term,” they added.
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That said, the majority of companies that often pay interim dividends are yet to announce their cash distribution plans for the half-year period, meaning that more of such announcements could determine the direction the market will be heading this week.
Except for First HoldCo, the mid-year results of the Big 5 lenders are yet to be issued. Their release any moment soon might also shape sentiments among investors.
PREMIUM TIMES has assembled some stocks with sound fundamentals, adopting rigorous approaches to save you the risk of picking equities at random for investment.
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The pick, a product of an analytical market watch, offers a guide to entering the market and taking strategic positions in hopes that selected stocks will record reasonable price appreciation with the passage of time.
This is not a buy, sell or hold recommendation but a stock investment guide. You may need to involve your financial advisor before taking investment decisions.
Custodian Investment
Custodian Investment tops this week’s list for announcing a 66.7 per cent increase in dividend for half-year 2025 (HY 2025), compared to the same period of last year. The price-to-book (PB) ratio of the company is 1.5x, while the price-to-earnings (PE) ratio is 4.4x. Its relative strength index (RSI) is 94.8.
Wema Bank
Wema makes the selection for trading below its intrinsic value and for reporting a 229.1 per cent increase in net profit for HY 2025, compared to the same period of last year. The lender’s PB ratio is 1.6x, while its PE ratio is 1.2x. The RSI is 88.9.
NEM Insurance
NEM Insurance appears on the pick for trading below its underlying value and for reporting a 45.6 per cent increase in net profit for HY 2025. The PB ratio of the underwriter is 1.7x, while the PE ratio is 4.1x. Its RSI is 85.2.
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Jaiz Bank
Jaiz makes the cut for trading below its intrinsic value. The bank’s PB ratio is 2.4x, while the PE ratio is 6x. Its RSI is 62.6.
Mutual Benefits Assurance
Mutual Benefits makes the cut for trading below its underlying value. The insurer’s PB ratio is 0.5x, while the PE ratio is 3.4x. Its RSI is 80.3.
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