Nigerian stocks were up by 0.7 per cent last week, driven by insurance and energy stocks. The two indices have returned 67.6 per cent and 139.4 per cent respectively year to date, making them the top-performing sector indices on the bourse.
At 31.3 per cent, the yield on Nigerian equities since the start of the year is now slightly behind the inflation rate as the country grapples with its worst cost-of-living crisis in a generation.
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Going into the week, analysts at the investment bank United Capital said “The bulls will remain incentivized to persist in bargain hunting, given the tremendous mid-long-term opportunities in the equities market.”
“Fund managers and businesses may entertain mid-long-term (≥3 months) investment objectives, cherry-picking only sound equities with strong fundamentals and ongoing/pending corporate actions. This strategy will maximise market opportunities, thereby optimising portfolio returns,” they added.
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PREMIUM TIMES has assembled some stocks with fundamentals and other potential, adopting key analytical approaches to save you the hassle of randomly picking equities for investment.
The selection, a product of analytical market watch, offers a guide to entering the market and taking strategic positions in hopes that equities will increase in value 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.
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Prestige Assurance
Prestige Assurance tops this week’s pick for currently trading significantly below its intrinsic value.
ALSO READ: Beta Glass, Linkage Assurance, Stanbic IBTC top stock pick this week
The insurer’s price-to-earnings (PE) is 3x, its relative strength index (RSI) is 56.1 and its price-to-book (PB) ratio is 0.5x.
MRS Oil
MRS makes the cut for trading below its intrinsic value. The PE ratio of the energy firm is 6.6x, while its RSI is 0. Its PB ratio is 1.6x.
Ecobank Transnational Incorporated (ETI)
ETI appears on the list for trading well below its intrinsic value. The lender’s PE ratio is 1.3x, while its RSI is 78.3. Its PB ratio stands at 0.2x.
Jaiz Bank
Jaiz Bank makes this week’s list for currently trading below its underlying value. The company’s PE ratio is 3.6x, and its RSI is 51.6. The PB ratio is 2.2x.
Veritas Kapital Assurance
Veritas appears in the pick for currently trading below its intrinsic value. Its PE ratio is 2x at the moment, while its RSI is 36.7. The PB ratio of the insurer is 0.9x.
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