Nigerian stocks continued their upward trend last week, advancing by 2.2 per cent on the back of notable gains recorded by industrial goods stocks. In all, the benchmark index has added 30.6 per cent this year.
“We anticipate a sustained positive bias in the local bourse, as investors’ strong appetite for equity assets continues to fuel upward repricing across tickers,” analysts at Meristem Securities had said in their outlook for the week.
“We see legroom for further appreciation in undervalued equities in the financial services, Industrial goods, and utilities sectors,” they added.
Half-year corporate results have begun to roll in, with a couple of fairly strong financials released during the week. More are anticipated this week as well as dividend announcements, which could set the tone for how the market will generally fare.
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.
BUA Cement
BUA Cement tops this week’s list for reporting a strong half-year result, which saw net profit jump 428 per cent to N181 billion. The price-to-book (PB) ratio of the company is 7.8x, while the price-to-earnings (PE) ratio is 33.4x. Its relative strength index (RSI) is 88.9.
Nascon Allied Industries
Nascon makes the selection for trading below its intrinsic value. The company’s PB ratio is 4.8x, while its PE ratio is 1×1. The RSI is 96.9.
Dangote Cement
Dangote Cement appears on the pick for its likelihood of paying a good dividend for half-year 2025. The PB ratio of the company is 3.7x, while the PE ratio is 14x. Its RSI is 76.7.
Lasaco Assurance
Lasaco makes the cut for trading below its intrinsic value. The underwriter’s PB ratio is 0.5x, while the PE ratio is 7.6x. Its RSI is 47.8.
Northern Nigeria Flour Mills (NNFM)
NNFM makes the cut for trading below its intrinsic value. The company’s PB ratio is 1.9x, while the PE ratio is 10.6x. Its RSI is 33.5.
