Nigerian stocks marginally increased last week as they added 0.2 per cent, with buy interest in the industrial sector as the main driver. The main share index has returned 38.1 per cent year to date.
As predicted by analysts, the market has been lacking in key drivers lately, and that may not significantly change until companies start issuing third-quarter corporate results in a couple of weeks’ time.
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“Sell pressure on tickers trading at their year-highs may persist intermittently, as price discovery in the market evolves,” analysts at Meristem Securities said ahead of the week.
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.
Fidelity Bank
Fidelity tops this week’s list for trading below its intrinsic value. The net profit ratio (NPR) of the lender is 27.5 per cent, while the price-to-earnings (PE) ratio is 2x. Its relative strength index (RSI) is 20.
NPF Microfinance Bank
NPF Microfinance Bank makes the cut for trading below its intrinsic value. The company’s NPR is 21 per cent, while the PE ratio is 6.6x. Its RSI is 46.7.
Chemical and Allied Products (CAP)
CAP appears on the pick for its fairly strong fundamentals. The NPR of the company is 10.2 per cent, while the PE ratio is 12.7x. Its RSI is 40.5.
ALSO READ: AIICO, FCMB Group, Fidson top stock pick this week
Presco
Presco makes the selection for its fairly strong fundamentals. Its NPR is 51 per cent, while its PE ratio is 11.8x. The RSI is 0.
May & Baker
May & Baker makes the cut for its currently sound fundamentals. The company’s NPR is 7.1 per cent, while the PE ratio is 11.9x. Its RSI is 29.6.
