Nigerian stocks added 0.9 per cent last week, driven by increased interest in the consumer goods sector. The benchmark index itself has yielded 37.8 per cent so far this week.
“Expected macroeconomic data and corporate earnings releases during the week may shape investors’ trading decisions,” analysts at Meristem Securities had said in their forecast note for the week.
“Sell pressure on tickers trading at their year-highs may persist intermittently, as price discovery in the market evolves,” they added.
This week, the outcome of a two-day meeting of the monetary policy committee is expected, with analysts foreseeing the announcement of Nigeria’s first rate cut in years. That could impact the direction that trade may take during the 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.
AIICO Insurance
AIICO tops this week’s list for trading well below its intrinsic value. The net profit ratio (NPR) of the insurer is 6.3 per cent, while the price-to-earnings (PE) ratio is 10.6x. Its relative strength index (RSI) is 56.2.
FCMB Group
FCMB Group makes the cut for trading below its intrinsic value. The financial service group’s NPR is 8.1 per cent, while the PE ratio is 4.6x. Its RSI is 44.3.
Fidson Healthcare
Fidson appears on the pick for trading below its underlying value. The NPR of the company is 9.4 per cent, while the PE ratio is 9.6x. Its RSI is 44.5.
ALSO READ: Zenith, AIICO, Fidson top stock pick this week
Aradel Holdings
Aradel makes the selection for its strong fundamentals. Its NPR is 66.7 per cent, while its PE ratio is 8.6x. The RSI is 4.3.
Vitafoam
Vitafoam makes the cut for its fairly sound fundamentals. The company’s NPR is 13.5 per cent, while the PE ratio is 7.9x. Its RSI is 37.4.
