Nigerian stocks retreated by 0.6 per cent last week, following sell pressure on bank, oil & gas and industrial goods stocks.
With the audited financial reports of four of the Big 5 banks due before the end of the month, analysts are betting that stronger dividend declaration by the lenders could help drive gains in the short term.
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“The equities market is expected to maintain its positive momentum as investors continue to position themselves ahead of the FY-2024 earnings season and possible corporate action declarations,” said analysts at United Capital in their outlook for the week.
“Nevertheless, given the elevated interest rate environment in the fixed-income market, we still expect bearish sentiments to linger in the background,” they added.
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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.
Access Holdings
Access Holdings 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 1x. Its relative strength index (RSI) is 26.4.
Berger Paints
Berger Paints makes the cut for currently trading below its intrinsic value. The company’s PB ratio is currently 1.4x, while the PE ratio is 8.8x. Its RSI is 12.8.
Total Energies
Total Energies appears on the list for trading significantly below its intrinsic value. The energy company’s PB ratio is 2.9x, while its PE ratio is 7.3x. The RSI is 0.
ALSO READ: Nigeria’s stock market down 0.43%, investors lose N285bn
Julius Berger
Julius Berger appears in the pick for currently trading well below its underlying value. The PB ratio of the company is 0.6x, while the PE ratio is 13.7x. Its RSI is 0.
UACN
UACN features in this week’s pick for trading below its intrinsic value. The PB ratio of the conglomerate is 1.5x, while its PE ratio is 6.8x. The RSI is 35.1.
Wema Bank
Wema Bank makes this week’s list for trading below its intrinsic value. The lender’s PB ratio is 0.9x, while the PE ratio stands at 0.7x. Its RSI is 37.4.
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