Nigerian stocks experienced a downturn last week, with the main equity index dropping by 3.1 per cent due to sell-offs in sectors like oil & gas and industrial goods. This occurred during the week Nigerian Exchange introduced a T+1 clearing and settlement cycle. However, market activity showed a positive turn on Friday.
Analysts at Meristem Securities anticipate renewed bargain-hunting in fundamentally sound stocks and banking equities that have recently seen price corrections. They also cautioned that intermittent profit-taking might persist, leading to short-term volatility as investors rebalance portfolios.
PREMIUM TIMES has identified stocks with strong fundamentals, offering a guide for investors. This selection is based on analytical market watch, aiming to mitigate the risk of random equity selection.
This guide is not a buy, sell, or hold recommendation. Investors are advised to consult their financial advisor before making investment decisions.
Africa Prudential
Africa Prudential leads this week’s picks due to its strong fundamentals and its stock trading close to its 52-week low. The company’s net profit ratio (NPR) stands at 45.2 per cent, with a price-to-earnings (PE) ratio of 18.8x. Its 14-day Relative Strength Index (RSI) is 40.5.
AIICO Insurance
AIICO Insurance is included for its strong fundamentals. The underwriter reports an NPR of 17.1 per cent and a PE ratio of 7.3x. Its 14-day RSI is recorded at 49.2.
C & I Leasing
C & I Leasing is featured for its robust fundamentals and its stock trading below its intrinsic value. The company’s NPR is 7.6 per cent, and its PE ratio is 5.1x. The 14-day RSI is 44.
Access Holdings
Access Holdings is selected based on its strong fundamentals and its stock trading below intrinsic value. The financial institution has an NPR of 14.1 per cent and a PE ratio of 1.8x. Its 14-day RSI is 43.7.
May & Baker
May & Baker makes the list due to its strong fundamentals. The pharmaceutical firm has an NPR of 11.7 per cent and a PE ratio of 17.8. Its 14-day RSI is 56.8.
