Nigerian stocks marginally declined by 0.1 per cent last week, even as trade volume improved by roughly 52 per cent.
The financial services sector, dominated by banks and insurers, remained the top choice of investors as it alone accounted for 70.1 per cent of transactions.
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So far this year, only the oil and gas sector, at 0.5 per cent, carries a negative yield of the five sector indexes, while the benchmark index has returned 39.4 per cent.
“As investors remain cautious into year-end, activity is likely to be driven by selective buying in fundamentally strong stocks now offering attractive re-entry points,” analysts at Meristem Securities had said in their outlook for the week.
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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.
Fidelity Bank
Fidelity Bank tops this week’s list for its currently strong fundamentals and for trading below its intrinsic value.
The net profit ratio (NPR) of the lender is 27.5 per cent, while the price-to-earnings (PE) ratio is 3.6x. Its relative strength index (RSI) is 45.6.
NEM Insurance
NEM Insurance makes the cut for trading below its intrinsic value.
The insurer’s NPR is 26.1 per cent, while the PE ratio is 3.8x. Its RSI is 38.8.
Aradel Holdings
Aradel appears on the pick for its fairly strong fundamentals and for trading below its intrinsic value.
The NPR of the energy company is 53 per cent, while the PE ratio is 7.7x. Its RSI is 53.1.
Fidson Healthcare
Fidson makes the selection by reason of its fairly strong fundamentals.
Its NPR is 8.8 per cent, while its PE ratio is 9.1x. The RSI is 16.7.
United Capital
United Capital makes the cut for its currently sound fundamentals.
The company’s NPR is 54.5 per cent, while the PE ratio is 15.6x. The RSI is 48.3.
