Nigerian stocks are off to a great start, returning about 11.1 percent in just weeks, continuing the momentum that helped them achieve returns of about 46 percent last year.
Negative real yields on Nigerian bonds and treasury bills have made it impossible for them to beat the country’s persistent inflation.
This is forcing pension funds and institutional investors to divest in fixed income securities and pump the proceeds into stocks, which are currently experiencing a major boom, helping to push the combined value of Nigerian stocks to an unprecedented peak.
Just last week, the all-stock index reached a historic high of 80,000 points as demand skyrocketed and volume continued to recover to pre-pandemic levels.
Expectations of strong full-year results and higher profits will likely shape investors’ investment decisions this week
PREMIUM TIMES has compiled a number of stocks with other fundamentals and potential, adopting key analytical methods to save you the hassle of randomly selecting stocks for investment.
This selection, the product of analytical market observation, provides a guide for entering the market and taking strategic positions in the hope that stocks will gain value over time, especially in the short term.
This is not a buy, sell or hold recommendation but rather a stock investment guide. You may need to involve your financial advisor before making investment decisions.
Ecobank Transnational Incorporated (ETI)
ETI tops this week’s pick for trading well below its intrinsic value, making it cheap to invest.
the Price to earnings The African lender’s PE ratio is currently 2x, while the PE ratio is 2x Price is for reservation The ratio (PB) is 0.56x.
FCMB Group
FCMB Group is listed as trading well below its intrinsic value, increasing its chance of price appreciation. The Financial Services group has a P/E ratio of 3.8x, while the P/E ratio is 0.58x.
Securing sovereign confidence
Sovereign Trust is picking this week to currently trade well below its true value. The underwriter’s PB ratio is 0.65x, while the PE ratio is 8.5x.
Read also: Nigerian stocks end 2023 with a return of 13 trillion naira
Learn Africa
Learn Africa discounts trading at undervalue. The publisher’s P/E ratio is 5.8x, while its P/E ratio is 0.67x.
Cornerstone insurance
Cornerstone Insurance appears in the selection currently trading below its intrinsic value.
The insurance company’s PE ratio is 2.6x.
Access to holding
Access Holdings makes this week’s trading pick well undervalued. Its PE ratio is currently 3.7x, while its PB ratio is 0.6x.
Zenith Bank
Zenith Bank appears on the list for trading well below its intrinsic value. The lender’s P/E ratio is 0.7x, while the lender’s P/E ratio is 3x.
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