After returning 37.7 per cent last year, Nigerian stocks started 2025 on a promising note.
In Africa, the Nigerian Exchange emerged the third top-performing equity index behind only the stock exchanges of Zambia and Ghana.
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For the first week of the year, the main equity index advanced by 0.6 per cent across four trading days, marked by an unusually strong interest in insurance stocks, which accounted for eight of the top ten gainers.
“Looking forward, the equities market is expected to retain its buy interest as investors cherry-pick undervalued stocks,” analysts at United Capital said ahead of the week.
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“The Bulls will remain incentivized to persist in bargain hunting, given the tremendous mid-long-term opportunities in the equities market.
“Fund managers and businesses may entertain mid-long-term (≥3 months) investment objectives, cherry-picking only sound equities with strong fundamentals and ongoing/pending corporate actions,” they added.
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.
Total Energies Marketing Nigeria
Total Energies tops this week’s pick for trading significantly below its underlying value.
The relative strength index (RSI) of the energy company is 23.4, while its price-to-earnings (PE) ratio is 2.9x. The price-to-book (PB) ratio is 2.2x.
Access Holdings
Access Holdings makes this week’s list for trading significantly below its intrinsic value, brightening its chances of strong price appreciation in the future. The lender’s RSI is 52.9, while the PE ratio is 1.1x. The PB ratio is 0.4x.
John Holt
John Holt features on this week’s list for currently trading below its intrinsic value. The company’s RSI is 63.5, while the PE ratio is 1.4x. Its PB ratio is 0.8x.
University Press
University Press appears in the pick for trading below its underlying value. Its RSI is 49.8, while the PE ratio is 8.8x. The PB ratio is 0.3x.
ALSO READ: Nigerian stocks end 2024 yielding 38%
Linkage Assurance
Linkage Assurance appears on the list for trading significantly below its underlying value.
The insurer’s RSI is 88.4, while its PE ratio is 3.6x. The PB ratio is 0.5x.
C and I Leasing
C and I Leasing makes the cut for currently trading below its intrinsic value. The company’s RSI is 72.6, while the PE ratio is 5.9x. The PB ratio is 0.2x.
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