Last week, Nigerian stocks traded down as equities came under a sell pressure so overwhelming it obliterated all the gainsthat had been garnered Monday through Friday, setting the consolidated market value of shares back by N123 billion.
Ironically, that should open up the suitable moment for investment rather than make investors to cringe away.
For one thing, a proven stock investment principle dictates investors enter the market at the time of falling share prices, when equities are generally low priced to increase their chances of delivering good returns when the market begins to boom.
For another, the Nigerian bourse is right into its earnings season, marked by releases of companies financials and announcements of dividends and bonuses, two major catalysts for price movements.
PREMIUM TIMES has assembled a number of stocks with fundamentalsand 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 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.
Access Bank currently has earnings per share (EPS) of N3.24 and a low price-to-earnings (PE) ratio of 2.81, which makes it cheap to invest in. The stock closed at N9.10 per share at the last session.
CAVERTON OFFSHORE SUPPORT GROUP
Caverton is trading below its intrinsic value, making it cheap for investment. It closed at N1.89 per share on Friday, has an EPS of N0.38 and a PE ratio of N5.01.
Chams closed at N0.20 per unit on Friday, the lowest level to which prices can fall as determined by the Nigerian Exchange, meaning the stock cannot fall further and can only rise, all things being equal.
Jaiz Bank is trading below its real value, meaning it still has a strong possibility of rising further. It has a PE ratio of 5.37, an EPS of N 0.11 and closed trade on Friday at N0.58.
Prestige Assurance is trading below its real value and is close to its lowest price in 52 weeks. The underwriter’s EPS is N0.07, while its PE ratio is 6.17.