The total market value of Nigerian equities was slightly up by 0.05 per cent last week but shares’ valuation remains broadly depressed, given that stocks have been on a steady decline and have not regained their rhythm since touching their near 16-week high on August 13.
Yet a bright spot in the current gloom lies in how the decline in prices of stocks is making them generally cheap for investment, with Bloomberg’s recent rating numbering four of Nigeria’s biggest banks among Africa’s five cheapest stocks.
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.
CAVERTON OFFSHORE SUPPORT GROUP
Caverton makes this week’s pick for currently trading well below its intrinsic value, making it cheap for investment purposes. It closed the last trading session at N1.72 per unit, with Earnings Per Share (EPS) of N0.35 and a Price-to-Earnings (PE) ratio of 4.85.
AXA MANSARD INSURANCE
AXA Mansard, Nigeria’s biggest insurance company by market value, makes the selection for trading close to its lowest price in 52 weeks at the moment. It closed the last session at N0.83 per share.
FBN Holdings features on the list on account of being currently priced well below its real value, meaning it stands a good chance of appreciating in future. It opens on Monday at N7.5 per share and EPS of N2.11 as well as a PE ratio of 3.56.
NIGERIAN AVIATION HANDLING COMPANY (NAHCO)
NAHCO appears on this week’s list for currently trading below its actual value. It closed at N3.04 per unit at the last trading session, has EPS of N0.60 and a PE ratio of 5.28.
Dangote Sugar makes the list for being priced below its real value. It has EPS of N2.50 per share, making it cheap for investment purposes considering its price of N17.20 at the last trading session. The PE ratio is 6.89.
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