Fairly strong first-quarter results continued to power upbeat sentiments among investors in Nigerian stocks as the main equity index advanced for the third straight last week, with the consumer goods index leading the charge.
The main stock index appreciated by 2.5 per cent, one of the fastest rates this year, taking the year-to-date yield on Nigerian stocks to 5.6 per cent.
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“Generally, investors await Monetary Policy Committee (MPC)’s decision in their upcoming meeting in May,” analysts at United Capital said going into the week.
“Concurrently, retail investors are engaging in profit-booking, resulting in selloffs that impede the consistent upward movement of stock prices,” they added.
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With the Central Bank of Nigeria’s rate-setting meeting just barely a week away, investors are likely to adopt a wait-and-see approach this 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.
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.
Academy Press Plc
Academy Press tops this week’s list for trading significantly below its intrinsic value and for reporting an appreciably stronger first-quarter result. The price-to-earnings (PE) ratio is 5.9x, while the relative strength index (RSI) is 95.2.
NNFM
NNFM makes the cut for currently trading well below its underlying value. The company’s PE ratio is 4x, while its RSI is 75.3.
Zenith Bank
Zenith Bank appears on the list for trading below its intrinsic value. The bank’s PE ratio is 1.5x, while the RSI is 56.8.
AXA Mansard
Axa Mansard appears on the pick for currently trading below its underlying value. The PB ratio of the insurer is 2.9x, while the PE ratio is 7.2x. Its RSI is 45.6.
Fidelity Ban
Fidelity makes the cut for trading below its underlying value. The lender’s PE ratio stands at 1.5x, while the RSI is 70.2.
