Last week, Nigerian stocks advanced by 1 per cent despite fewer trading days occasioned by two public holidays observed in commemoration of Christmas. The gain rode on the back of the performance of the insurance and consumer goods indexes, which returned 7.9 per cent and 3.1 per cent respectively.
The main equity index itself has yielded 36.6 per cent year to date. That is higher than country’s inflation rate, highlighting the ability of Nigerian stocks to deliver strong returns in the face of rising price levels.
Going into the week, analysts at the investment bank United Capital said “The equities market is expected to retain its buy interest as investors cherry-pick undervalued stocks.”
“However, given the high interest rates in the fixed income and money markets, we expect some bearish undertone to persist in the equities market as fixed income biased investors take advantage of the high yields in the fixed income space,” they added.
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PREMIUM TIMES has assembled some 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 increase in value 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.
Nascon Allied Industries
Nascon tops this week’s pick for currently trading significantly below its intrinsic value and close to its lowest price in 52 weeks.
The company’s price-to-earnings (PE) is 7.2x, its relative strength index (RSI) is 37.7 and its price-to-book (PB) ratio is 2.3x.
C & I Leasing
C & I Leasing makes the cut for trading below its intrinsic value and close to its 52-week low. The PE ratio of the firm is 5x, while its RSI is 42. The PB ratio is 0.2x.
Access Holdings
Access Holdings appears on the list for trading well below its intrinsic value. The lender’s PE ratio is 1.1x, while its RSI is 48.8. Its PB ratio stands at 0.3x.
ALSO READ: Fidson, Meyer, Red Star Express top stock pick this week
Veritas Kapital Assurance
Veritas Kapital appears in the pick for currently trading below its intrinsic value. Its PE ratio is 2.4x at the moment, while its RSI is 64.2. The PB ratio of the insurer is 1x.
Prestige Assurance
Prestige Assurance makes this week’s list for currently trading below its underlying value. The company’s PE ratio is 4x, and its RSI is 77.2. The PB ratio is 0.7x.
United Bank for Africa (UBA)
UBA makes the selection for trading well below its intrinsic value. The lender’s PE ratio is 1.8, while its RSI ratio is 62.1. Its PB ratio is 0.3x.
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