UBA, NEM Insurance, NNFM top stock pick this week
Nigerian stocks gained 4.5 per cent last week, driven by increased buy interest in industrial goods and oil & gas stocks.
The main share index has returned 51.2 per cent year to date.
With the earnings season already here, increased activities in terms of earnings release and trading are expected to be seen in the market in the weeks ahead.
“In our view, investors sentiment will be largely influenced by 9M:2025 earnings releases and dividend declarations, which should bolster buying interest from dividend seeking investors,” analysts at Meristem Securities said ahead of the week.
“In the same vein, the recently released inflation data (headline inflation for September fell to 18.02% YoY vs. 20.12% YoY in August) is spurring expectations of further interest rate cut, and as such may improve the attractiveness of equity assets,” they added.
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.
United Bank for Africa (UBA)
UBA tops this week’s list for trading below its intrinsic value. The net profit ratio (NPR) of the lender is 22.3 per cent, while the price-to-earnings (PE) ratio is 2x. Its relative strength index (RSI) is 27.
NEM Insurance
NEM Insurance makes the cut for trading below its intrinsic value. The insurer’s NPR is 25.9 per cent, while the PE ratio is 4.1x. Its RSI is 54.9.
Northern Nigerian Flour Mills (NNFM)
NNFM appears on the pick for its fairly strong fundamentals. The NPR of the company is 4.3 per cent, while the PE ratio is 9.9x. Its RSI is 96.8.
AIICO Insurance
AIICO makes the selection for its fairly strong fundamentals. Its NPR is 6.3 per cent, while its PE ratio is 10x. The RSI is 42.8.
Mutual Benefits
Mutual Benefits makes the cut for its currently sound fundamentals. The underwriter’s NPR is 13.1 per cent, while the PE ratio is 4.3x. Its RSI is 29.6.