Nigerian stocks appreciated for the eighth week in a row last week, adding 4.3 per cent as increased interest in industrial goods equities drove gains.
Positive sentiments around the corporate results for the half-year period are likely to be a key driver of activity in the market in the near time as the earnings season begins and investors position ahead announcement of interim dividend.
“We expect the Nigerian equities market to extend its positive performance due to sustained interest in tickers with strong fundamentals as investors anticipate impressive H1:2025 corporate earnings performance,” analysts at Meristem Securities said in their outlook for the week.
“Also, moderating yields in the fixed income market is expected to spur more activity in the equities market,” 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 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.
Lasaco Insurance
Lasaco tops the week’s list for trading below its intrinsic value. The price-to-book (PB) ratio of the underwriter is 0.5x, while the price-to-earnings (PE) ratio is 7.7x. Its relative strength index (RSI) is 54.
Transcorp
Transcorp makes the selection for trading significantly below its intrinsic value. The company’s PB ratio is 1.7x, while its PE ratio is 5.3x. The RSI is 60.1.
ALSO READ: Japaul, Lasaco, Consolidated Hallmark top stock pick this week
Access Holdings
Access Holdings appears on the pick for trading below its underlying value. The PB ratio of the financial services group is 0.4x, while the PE ratio is 2x. Its RSI is 71.2.
Coronation Insurance
Coronation makes the cut for trading below its intrinsic value. The insurer’s PB ratio is 1.6x, while the PE ratio is 4.7x. Its RSI is 53.7.
Julius Berger
Julius Berger features on the list for its prospects of recording a reasonable price appreciation in future. The construction company’s PB ratio is 0.5x, while the PE ratio is 20.4x. Its RSI is 25.7.
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