Nigerian stocks advanced by 0.7 per cent last week on increased investors’ interest in industrial goods stocks, taking the year-to-date yield of the benchmark index to 27.5 per cent.
As the first quarter of the year gradually winds down, investors and analysts will be watching out for the 2025 audited financial reports of big lenders, which could shape the direction the market might be heading in the near term.
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“Dividend declarations from companies that recently released their full-year results could continue to attract income-seeking investors, providing support for some counters,” said analysts at investment bank Meristem Securities in their outlook for the week.
“Similarly, sentiment in the oil and gas sector could remain upbeat following the recent rise in global oil prices, largely driven by ongoing geopolitical tensions,” they added.
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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.
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.
NEM Insurance
NEM Insurance tops this week’s list on the basis of its strong fundamentals and for trading below its intrinsic value.
The net profit ratio (NPR) of the insurer is 14.2 per cent, while the price-to-earnings (PE) ratio is 7.1x. Its relative strength index (RSI) is 55.7.
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Fidelity Bank
Fidelity Bank features on the pick on the basis of its currently robust fundamentals and for trading below its underlying value. The NPR of the lender is 19.1, while the PE ratio is 3.6x. The RSI is 43.1.
Africa Prudential
Africa Prudential makes the selection for its strong fundamentals. The company’s NPR is 33.8 per cent, while the PE ratio is 19.4x. Its RSI is 46.8.
Cornerstone Insurance
Cornerstone Insurance makes the cut on the basis of its strong fundamentals. The NPR of the underwriter is 14, while the PE ratio is 11.9x. Its RSI is 39.4.
BUA Foods
BUA Foods makes the pick for its strong fundamentals. The company’s NPR is 28.1 per cent, while the PE ratio is 28.4x. The RSI is 47.7.
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