Nigerian stocks depreciated by 0.5 per cent last week on the back of profit-taking activities, especially in bank and insurance stocks. Trade volume also declined by as much as 33 per cent, with financial services equities accounting for the bulk of the transactions.
The NGX Insurance Index shed 8.2 per cent, setting the broader index up for a 0.8 per cent retreat.
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“We anticipate a gradual build-up in market momentum, particularly as investors aim to take advantage of attractive entry opportunities across tickers that shed prices last week,” analysts at Meristem Securities had said in their outlook.
“A handful of tickers still trading at their year-highs offer opportunities for further profit-taking activities this week,” they added.
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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.
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.
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Chemical and Allied Products (CAP)
CAP tops this week’s list for its currently sound fundamentals. The net profit ratio (NPR) of the company is 10 per cent, while the price-to-earnings (PE) ratio is 12.6x. Its relative strength index (RSI) is 55.4.
Fidson
Fidson Healthcare makes the selection for trading fairly below its underlying value. The pharmaceutical firm’s NPR is 9 per cent, while its PE ratio is 9.6x. The RSI is 44.5.
United Bank for Africa (UBA)
UBA appears on the pick for trading below its underlying value. The NPR of the lender is 24.1 per cent, while the PE ratio is 2.1x. Its RSI is 47.9.
Transnational Corporation (Transcorp)
Transcorp makes the cut for trading fairly below its intrinsic value. The conglomerate’s NPR is 20.8 per cent, while the PE ratio is 7.1x. Its RSI is 37.7.
ALSO READ: Transcorp, UBA, Africa Prudential top stock pick this week
Africa Prudential
Africa Prudential makes the cut for its currently sound fundamentals. The company’s NPR is 37 per cent, while the PE ratio is 22.8x. Its RSI is 50.9.
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