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Nigerian stocks sustained their gaining momentum at a quicker pace last week, helping the main equity index to advance by 2.4 per cent. Energy and bank stocks were the driver.
Looking forward, the market is likely to see last-ditch efforts this week by investors looking to position ahead of interim dividend declarations, with the half year around the corner.
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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.
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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.
Transnational Corporation (Transcorp)
Transcorp tops this week’s list for trading below its intrinsic value and for its prospects of declaring a good half-year dividend. The price-to-book (PB) ratio of the conglomerate is 1.6x, while the price-to-earnings (PE) ratio is 8.6x. Its relative strength index (RSI) is 64.6.
NASCON
NASCON makes the pick for trading below its underlying value and its chances of paying a good half-year dividend. The PB ratio of the FMCG company is 3.4x, while the PE ratio is 7.8x. Its RSI is 86.4.
ALSO READ: Ecobank, Cornerstone Insurance, Access Holdings top stock pick this week
Presco
Presco appears on the list for trading below its intrinsic value and its likelihood of announcing a strong half-year dividend. The PB ratio of the food processing company is 6.1x, while its PE ratio is 11.1x. The RSI is 87.7.
NEM Insurance
NEM Insurance makes the cut for trading well below its underlying and book value. The underwriter’s PB ratio is 1.1x, while the PE ratio is 2.7x. Its RSI is 75.
Consumer Warehouse Group (CWG)
CWG makes the cut for trading below its underlying and book value. The company’s PB ratio is 3.1x, while the PE ratio stands at 5.5x. Its RSI is 75.1.
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