Coronation Insurance, MTN Nigeria, C & I Leasing top stock pick this week

Nigerian stocks paused their run of gains last week, dipping by 0.12 per cent as profit-taking in banking stocks weighed on market performance. That is no reason for concern though, with investors’ confidence still substantial and 29.1 per cent yield so far recorded by the market as the first quarter draws to a close.

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“We expect the market to maintain its positive trend as no immediate risks are likely to disrupt the prevailing bullish sentiment,” analysts at Meristem Securities said in a note to investors during the week.

“Any profit-taking is expected to be mild and unlikely to change the market’s upward direction,” they added.

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, 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 taking investment decisions.

Coronation Insurance

Coronation Insurance tops this week’s list on the basis of its strong fundamentals and its potential for price appreciation in the short term as indicated by its low relative strength index (RSI).

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The net profit ratio (NPR) of the underwriter is 9.2 per cent, while the price-to-earnings (PE) ratio is 10.8x. Its RSI is 44.6.

MTN Nigeria

MTN Nigeria makes the cut for its attractive fundamentals and for its prospect for short-term price appreciation. The NPR of the telecom giant is 7.8, while the PE ratio is 2.4x. Its RSI is 73.7.

C & I Leasing

C & I Leasing makes the pick for trading below its underlying value. The company’s the PE ratio is 7.7 and its RSI is 35.8.

ALSO READ: UBA, NPF Microfinance Bank, Lafarge top stock pick this week

Cadbury

Cadbury appears on the pick on the basis of its robust fundamentals. The NPR of the food company is 7.1, while the PE ratio is 11.9. The RSI is 38.8.

Sterling Financial Holdings

Sterling Financial Holdings makes the selection for trading below its intrinsic value. The banking group’s NPR is 16.5 per cent, while the PE ratio is 4.8x. Its RSI is 53.7.