First HoldCo, Prestige Assurance, NPF Microfinance Bank top stocks pick this week

Nigerian stocks continue to ride on a sturdy wave of investor sentiment, which is driving the share prices of lots of equities to their 52-week peak.

The momentum could last fairly long though, with hopes of exciting corporate results for some blue-chip companies seen pivoting the market higher.

The Nigerian bourse added 0.4 per cent in the week that just went by, signalling its fifth week of unbroken gains.

PREMIUM TIMES has assembled some stocks with sound fundamentals, adopting rigorous approaches to save you the risk of picking equities at random for investment.

The pick, a product of an analytical market watch, offers a guide to entering the market and taking strategic positions in hopes that selected stocks will record reasonable price appreciation 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.

First HoldCo

First HoldCo features on this week’s list for currently trading below its intrinsic value, making it a potentially good investment for value investors. The price-to-book (PB) ratio of the financial services group is 0.4x, while the price-to-earnings (PE) ratio is 1.5x. Its relative strength index (RSI) is 44.5.

Prestige Assurance

Prestige Assurance makes the cut for currently trading below its intrinsic value. The insurer’s PB ratio is currently 0.9x, while the PE ratio is 5.7x. Its RSI is 45.3.

NPF Microfinance Bank

NPF Microfinance Bank appears on the list for trading significantly below its intrinsic value. The microlender’s PB ratio is 0.8x, while its PE ratio is 4.4x. The RSI is 45.3.

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Coronation Insurance

Coronation Insurance appears in the pick for currently trading well below its underlying value. The PB ratio of the underwriter is 1.7x, while the PE ratio is 6.5x. Its RSI is 54.7.

Japaul Gold & Ventures

Japaul features in this week’s pick for trading below its innate value. The PB ratio of the company is presently 1.6x, while its PE ratio is 7.3x. The RSI is 42.4.

Custodian Investment

Custodian Investment makes this week’s list for trading below its intrinsic value. Its PB ratio is 0.9x, while the PE ratio stands at 2.2x. Its RSI is 50.8.