Nigerian stocks are witnessing a buoyancy not seen for a pretty long time and have so far returned 2.9 per cent or N613.6 billion, an affirmation of increasing local investors’ confidence at a time the market is short of foreign investors’ cash.
Last week alone contributed N329 billion of that sum as the market reported gains Monday through Friday, setting it on the path of recording a second consecutive year of positive return.
The selection, a product of analytical market watch, offers a guide to entering the market and take strategic positions in hopes that equities will gain value with the passage of time, particularly in the short term.
This is not a buy, sell or hold recommendation. You may have to involve your financial advisor before taking investment decisions.
United Capital makes this week’s pick on the combined strength of its nine-month earnings performance and for trading below its intrinsic value, which makes it cheap for investment.
The investment bank reported a three-fifths jump in revenue and a 72 per cent rise in profit for the period.
Infinity Trust makes the list on the back of strong earnings performance for the nine-month period to September.
The mortgage bank posted an almost one quarter increase in revenue and a 52 per cent rise in after-tax profit for the period.
CAVERTON OFFSHORE SUPPORT
Caverton features on the list on account of trading significantly below its actual value. Its PE ratio as of Friday was 4.88 at the price of N1.73 per share, while its EPS is N0.35.
Fidelity makes the selection for trading below its intrinsic value. The lender closed trade on Friday at N2.74 per unit, with a PE ratio of 2.29 and an EPS of N1.20.
FLOUR MILLS OF NIGERIA
Flour Mills appears on the list for trading below its real value. The stock was priced at N29.30 per unit on Friday with a PE ratio of 4.53 and an EPS of N6.47.
Support PREMIUM TIMES' journalism of integrity and credibility
Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.
For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.
TEXT AD: To advertise here . Call Willie +2347088095401...