Nigerian stocks are yet to witness a significant rally from the largely positive half-year corporate results as equities only appreciated by 0.1 per cent last week, driven by increased demand for bank stocks.
Only the banking index advanced among the five sector indices tracked by the exchange amid broad profit-taking. The market is currently awaiting the earnings reports of four of the Big 5 lenders, which could be out any moment soon.
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PREMIUM TIMES has assembled some stocks with sound fundamentals, adopting rigorous approaches to save you the risk of picking equities at random for investment.
The pick, a product of an analytical market watch, offers a guide to entering the market and taking strategic positions, with the expectation that selected stocks will record reasonable price appreciation with the passage of time.
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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.
Coronation Insurance
Coronation Insurance tops this week’s selection on the basis of its sound fundamentals. The insurer’s net profit ratio (NPR) is 19.8 per cent, while the price-to-earnings (PE) ratio is 7.9x. Its 14-day relative strength index (RSI) is 44.1.
Wema Bank
Wema Bank makes the cut for its strong fundamentals and for trading below its intrinsic value. The NPR of the lender is 30.5 per cent, while the PE ratio is 1.1x. Its 14-day RSI is 45.8.
UACN
UACN makes the selection for its strong fundamentals. The company’s NPR is 5.5 per cent, while the PE ratio is 22.8x. Its 14-day RSI is 28.8.
May & Baker
May & Baker makes the list for its sound fundamentals. The pharmaceutical company’s NPR is 11.7 per cent, while the PE ratio is 11.7x. Its 14-day RSI is 26.1.
Sterling Financial Holdings
Sterling Financial Holdings appears on the pick for its strong fundamentals and for trading below its intrinsic value. The NPR of the lender is 16.4, while the PE Ratio is 5.6. The 14-day RSI is 48.6.
Vitafoam
Vitafoam features on the list for its strong fundamentals. The NPR of the company is 14.9, while the PE Ratio is 18.7. The 14-day RSI is 52.7.
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