Nigerian stocks advanced by 0.9 per cent last week on the back of relatively strong appreciation in consumer goods and bank stocks as investors’ interest in stocks improved, with transaction volume rising by 3.6 per cent.
The main equity index added 1.53 per cent in January, but the outlook for the whole is even more optimistic. Analysts at the investment bank Cardinal Stone are betting that equities will return 40 per cent this year.
“The equities market is expected to maintain its positive momentum as investors continue to position themselves ahead of the FY-2025 earnings season and possible corporate action declarations,” said analysts at United Capital in their outlook for the week.
“Nevertheless, given the elevated interest rate environment in the fixed-income market, we still expect bearish sentiments to linger in the background.”
The official data for Nigeria’s rebased GDP and Consumer Price Index (which measures inflation) are due and could be released this week. Inflation data are likely to set the tone for activities in the fixed-income space this week, which could in turn impact how stocks fare.
PREMIUM TIMES has assembled some stocks with fundamentals and other potential, adopting key analytical approaches to save you the hassle of randomly picking equities for investment.
The selection, a product of analytical market watch, offers a guide to entering the market and taking strategic positions in hopes that equities will increase in value 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.
Consolidated Hallmark Insurance Holdings
Consolidated Hallmark tops this week’s list for presently trading well below its intrinsic value, making the stock a potentially good buy for investors seeking cheap stocks that offer value for money. The company’s price-to-earnings (PE) ratio is 1.4x, while its price-to-book (PB) ratio is 0.9x. The Relative Strength Index (RSI) is 52.9.
Custodian Investment
Custodian Investment features on this week’s pick for trading significantly below its underlying value at the moment. The PE ratio of the company is 2.2x, while its PB ratio is 0.9x. The RSI is 62.4.
Beta Glass
Beta Glass makes the cut for currently trading below its intrinsic value. The company’s PE ratio is 3.1x, while the PB ratio is 0.7x. Its RSI is 81.8.
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Coronation Insurance
Coronation Insurance appears on the list for trading significantly below its intrinsic value at the moment. The underwriter’s PE ratio is 6.1x, while its PB ratio is 1.5x. Its RSI is 62.6.
NPF Microfinance Bank (NPF MFB)
NPF MFB features on this week’s list for currently trading well below its underlying value. The microlender’s PE ratio is 4.4x, while its PB ratio is 0.8x. The RSI is 52.
NEM Insurance
NEM Insurance appears in the pick for currently trading well below its actual value. Its PE ratio is 2.8x, while the PB ratio is 1.1x.
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