Despite an absence of key drivers, Nigerian stocks advanced by 1.1 per cent last week, indicating the extent of the resilience the market has built for itself so far this year. The insurance and the oil & gas sectors drove gains, leaving the year-to-date return of the bourse at 36.6 per cent.
“Key triggers such as anticipated corporate announcements, particularly H1:2025 earnings releases from Tier-1 banks, are expected to provide some support to market activity,” analysts at Meristem Securities said in their outlook for the week.
“Bargain hunting may resurface on stocks that have recently declined as investors take advantage of attractive entry points in undervalued stocks, which could spur renewed buying interest,” they added.
The market is still awaiting the half-year audited reports of big lenders like UBA, GTCO, Access Holdings and Zenith, which could influence trading activity this 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.
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.
Guaranty Trust Holding Company (GTCO)
GTCO tops this week’s list for trading well below its intrinsic value and for its chances of paying a good dividend for the half-year (HY) 2025 period. The net profit ratio (NPR) of the lender is 41.1 per cent, while the price-to-earnings (PE) ratio is 3.4x. Its relative strength index (RSI) is 45.8.
Mutual Benefits Assurance
Mutual Benefits makes the cut for trading below its intrinsic value. The company’s NPR is 13.1 per cent, while the PE ratio is 4x. Its RSI is 60.2.
Transnational Corporation (Transcorp)
Transcorp appears on the pick for trading below its underlying value. The NPR of the company is 20.8 per cent, while the PE ratio is 6.8x. Its RSI is 40.5.
READ ALSO: GTCO hits N500 billion recapitalisation target after rights issue
May & Baker
May & Baker makes the selection for its fairly strong fundamentals. Its NPR is 7 per cent, while its PE ratio is 13.3x. The RSI is 32.7.
Africa Prudential
Africa Prudential makes the cut for its currently sound fundamentals. The company’s NPR is 36.6 per cent, while the PE ratio is 21.2x. Its RSI is 45.2.
