Nigerian stocks appreciated by 7.3 per cent last week, driven by industrial goods equities, taking the year-to-date yield to 55.7 per cent. The market achieved that on the back of improved trade volume in spite of limited trading days.
The momentum is expected to continue this week as the positive market sentiment from the largely impressive first-quarter results is anticipated to drive trade.
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“Market activity is expected to be driven largely by positioning ahead of dividend payments and anticipation of Q1:2026 earnings releases, particularly in fundamentally sound names across the sectors,” said analysts at Meristem Securities in a note to investors last 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 taking investment decisions.
Sterling Financial Holdings
Sterling Financial 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 banking group is 16.5 per cent, while the price-to-earnings (PE) ratio is 4.6x. Its relative strength index (RSI) is 45.3.
Nascon
Nascon appears on the pick on the basis of its currently robust fundamentals. The NPR of the company is 22 per cent, while the PE ratio is 16.9x. The RSI is 74.
Wema
Wema makes the selection for trading below its intrinsic value. The lender’s NPR is 29.4 per cent, while the PE ratio is 1.3x. Its RSI is 72.
Lafarge Africa
Lafarge Africa makes the cut for trading below its intrinsic value. The NPR of the company is 29.4, while the PE ratio is 20.6x. Its RSI is 93.8.
United Capital
United Capital makes the pick on the basis of its strong fundamentals. The company’s NPR is 48.1 per cent, while the PE ratio is 11.8x. The RSI is 68.4.
