Nigerian stocks reported strong gains last week on the back of increased investors’ interest in oil & gas and industrial goods stocks, and improved positive sentiment in the market. The main equity index rose by 6.2 per cent.
More corporate reports for the full year 2025 are currently expected, especially those of the big lenders and top corporations, which may shape the direction of the market in the near term.
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“We believe ongoing earnings releases and dividend expectations should continue to anchor sentiment, particularly in stocks with strong fundamentals,” analysts at Meristem Securities said in their outlook for the 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.
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The pick, a product of an analytical market watch, offers a guide to entering the market and taking strategic positions, with the expectation 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.
Access Holdings
Access Holdings tops this week’s list on the basis of its strong fundamentals and for trading below its intrinsic value.
The net profit ratio (NPR) of the financial services group is 13.8 per cent, while the price-to-earnings (PE) ratio is 1.8x. Its relative strength index (RSI) is 71.8.
AIICO
AIICO appears on the pick on the basis of its currently robust fundamentals. The NPR of the insurer is 8.1, while the PE ratio is 8.4. The RSI is 52.6.
Transcorp
Transcorp makes the selection for trading below its intrinsic value. The company’s NPR is 22.2 per cent, while the PE ratio is 8.4x. Its RSI is 71.5.
UBA
UBA makes the cut for trading below its intrinsic value. The NPR of the lender is 23.8, while the PE ratio is 2.4x. Its RSI is 73.7.
United Capital
United Capital makes the pick for its strong fundamentals. The company’s NPR is 51.6 per cent, while the PE ratio is 12.8. The RSI is 67.2.
