The Nigerian equity market was down by 0.33 per cent last week as traders’ hunt for yield depressed the main stock index even though there was a couple of strong corporate results that could have put stocks in further advance.
This week, promising earnings scorecards are expected from companies like Fidelity Bank, Transcorp and NPF Microfinance Bank, which could strengthen performance in the broad market.
PREMIUM TIMES has assembled a number of stocks with fundamentals and 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 taking 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 but a stock investment guide. You may have to involve your financial advisor before taking investment decisions.
ACCESS BANK
Access Bank leads this week’s pick by reason of its declaration of a 51 per cent surge in profit to N160.2 billion for last year after the lender’s annual gross earnings touched record N971.9 billion.
The financial institution is proposing a final dividend of N0.70 per share to shareholders who purchase and hold the company’s shares till at least 19th April. That brings its total dividend for the year to N1 per share, having paid an interim dividend of N0.30 earlier, which compares to a total dividend of N0.80 paid a year earlier.
NPF MICROFINANCE BANK
NPF Microfinance Bank makes the selection on the basis of its twin proposal of a scrip issue and dividend issue for the financial year 2021. The company’s audited financials are expected to be released this week after approval from the Central Bank of Nigeria.
CORNERSTONE INSURANCE
Cornerstone Insurance features in this week’s selection for trading well below its real value, meaning it stands a good chance of considerable price appreciation in the future.
The underwriter’s price-to-earnings (PE) ratio as of Friday was 3.30x, with earnings per share (EPS) of N0.18.
OANDO
Oando makes the list for currently trading significantly below its intrinsic value, brightening its chance of reasonable price appreciation in the future.
The oil driller’s PE ratio at the end of the last trading session was 2.16x, with EPS of N2.32.
CAP PLC
CAP features on this week’s list for trading close to its lowest price in the last 52 weeks, which makes it a good entry point for investment.
It’s PE ratio at the last session was 13.25x, with EPS of N1.36.
CONOIL
Conoil features on the list for trading below its actual value. The energy company’s PE ratio as of Friday was 5.73x, with EPS of N4.38.
JULIUS BERGER
Julius Berger makes the pick for trading much lower than its intrinsic value at the moment. The construction firm’s PE ratio at the end of the last trading session was 4.53x, with EPS of N5.85.
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