Nigerian equities advanced by 0.7 per cent last week, recording their first gain in five weeks due to increased interest in bank stocks.
The market ended the first quarter yielding only 2.7 per cent as investors and portfolio managers still find fixed-income assets reasonably more attractive than stocks.
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“The equities market is expected to improve marginally as investors position for the FY-2024 earnings season and possible corporate action declarations,” analysts at United Capital said in their outlook note ahead of the week.
However, they hinted at potential bearish sentiments considering the elevated interest rate environment in the fixed-income space.
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“For the equities market, investors’ confidence is still wary. If you look at the equities market, you will see that the market has been on a downturn,” Felicia Awolope, senior investment research analyst at Meristem Securities, told PREMIUM TIMES.
PREMIUM TIMES has assembled some stocks with sound fundamentals, adopting rigorous approaches to save you the risk of picking equities randomly for investment.
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.
Guaranty Trust Holding Company (GTCO)
GTCO features on this week’s list for declaring a total dividend per share of N8 for the financial year 2014, which compares to the N3.20 it declared for the preceding year. The price-to-book (PB) ratio of the financial services group is 0.9x, while the price-to-earnings (PE) ratio is 1.6x. Its relative strength index (RSI) is 73.
Access Holdings
Access Holdings makes the cut for currently trading well below its underlying value. The corporation’s PB ratio is 0.4x, while the PE ratio is 1x. Its RSI is 23.4.
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Custodian Investment
Custodian Investment appears on the list for trading significantly below its intrinsic value. The conglomerate’s PB ratio is 0.9x, while its PE ratio is 2.3x. The RSI is 42.5.
Fidson Healthcare
Fidson appears in the pick for currently trading below its underlying value. The PB ratio of the company is 1.7x, while the PE ratio is 8x. Its RSI is 31.3.
NEM Insurance
NEM Insurance features in this week’s pick for trading below its intrinsic value. The PB ratio of the underwriter is 1x, while its PE ratio is 2.9x. The RSI is 52.2.
Berger Paints
Berger Paints makes this week’s list for trading below its underlying value. The company’s PB ratio is 1.4x, while the PE ratio is 8.8x. Its RSI is 0.
