Nigerian stocks continued on the path of gain last week, their fourth week of positive performance, with consumer goods stocks leading the advance this time around.
That momentum has largely progressed due to the market’s warm reception of first-quarter results, which have been broadly impressive. Sentiments could even be more favourable for a little longer if the outstanding corporate results for the period in question come out stronger when they are released.
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That said, the outlook for this week is fairly cautious as investors keep an eye out for the direction that the monetary policy stance of the Central Bank of Nigeria could take ahead of Tuesday’s announcement of interest rate decision.
PREMIUM TIMES has assembled some stocks with sound fundamentals, adopting rigorous approaches to save you the risk of picking equities at random for investment.
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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 making investment decisions.
First Holdco
First Holdco tops this week’s list for trading significantly below its intrinsic and book value. The price-to-earnings (PE) ratio of the banking group is 1.5x, while the price-to-book (PB) ratio is 0.4x. The relative strength index (RSI) is 39.8.
Ecobank Transnational Incorporated
Ecobank appears on the list for trading well below its intrinsic and book value. The group’s PE ratio is 0.01x, while the RSI is 49.5.
Prestige Assurance
Prestige Assurance appears on the pick for currently trading below its underlying value. The PE ratio of the insurer is 4.6x, while the PB ratio is 0.3x. Its RSI is 50.5.
ALSO READ: Academy Press, NNFM, Zenith top stock pick this week
Japaul Gold
Japaul Gold makes the cut for trading fairly below its underlying value. The company’s PE ratio is 6.7x, while the PB ratio is 1.6x. The RSI is 51.3.
NGX Group
NGX Group makes the cut for trading below its intrinsic value. The company’s PE ratio stands at 6.9x, while the PB ratio is 1.4x. The RSI is 59.9.
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