Last week, Nigerian stocks depreciated by 1.2 per cent, despite increased trading activity, as all the sector indices, led by consumer goods, retreated.
Trade volume stood at 12.2 billion shares, compared to 5.4 billion a year earlier.
“Given the market’s strong year-to-date performance, we expect investors to remain selective, with profit-taking in stocks that have recorded significant gains likely to limit the extent of the market’s upside,” analysts at Meristem Securities had said in their outlook for the week.
“Dividend expectations could provide an additional source of support, particularly for the Tier-1 banks, where dividend yields remain relatively attractive,” they added.
Positioning for the half-year earnings season could still continue this week, with the corporate results of four of the Big 5 banks and those of some other companies yet to be made public.
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, with the expectation 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.
Ecobank Transnational Incorporated (ETI)
ETI tops this week’s pick based on its strong fundamentals and for trading below its intrinsic value. The banking group’s net profit ratio (NPR) is 79 per cent, while the price-to-earnings (PE) ratio is 3x. Its 14-day relative strength index (RSI) is 29.4.
Cornerstone Insurance
Cornerstone Insurance makes the selection for its strong…
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