Nigerian stocks appreciated by 2.5 per cent last week, reversing the preceding week’s loss, as increased demand for consumer goods equities drove gains.
The main equity index has yielded 8.6 per cent this year, with the consumer goods index leading other sector indexes with a 37.4 per cent yield, while the insurance index is the worst performer.
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“Retail activity may support mid and small-cap stocks temporarily, but institutional follow-through will be limited due to potential participation at the upcoming bond auction. Market may stay within the current range barring any positive catalyst from the macros,” analysts at investment bank United Capital said ahead of the week.
“Investors may portray selective interest in defensive, rotating into consumer staples, telcos, and banks with solid outlooks,” they added.
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Looking forward, profit-taking in a couple of stocks, including those approaching their 52-week high, might be witnessed in the market this week.
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 tops this week’s list for trading significantly below its intrinsic and book value. The price-to-book (PB) ratio of the banking group is 0.4x, while the price-to-earnings (PE) ratio is 1.5x. Its relative strength index (RSI) is 48.1.
John Holt
John Holt appears on the pick for currently trading below its underlying and book value. The PB ratio of the firm is 0.6x, while the PE ratio is 0.8x. Its RSI is 61.2.
Linkage Assurance
Linkage Assurance appears on the list for trading below its intrinsic and book value. The insurer’s PB ratio is 0.5x, while its PE ratio is 3.9x. The RSI is 53.
READ ALSO: Nigerian Stock Market: Investors traded N75 billion last week
Prestige Assurance
Prestige Assurance makes the cut for currently trading well below its underlying and book value. The underwriter’s PB ratio is 0.7x, while the PE ratio is 4.6x. Its RSI is 49.7.
Access Holdings
Access Holdings makes the cut for trading below its underlying and book value. The corporation’s PB ratio is 0.3x, while the PE ratio stands at 1.3x. Its RSI is 54.4.
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