Nigerian stocks fell by 1.2 percent last week, marking the third consecutive week of broad retreat following the introduction of a T+1 settlement cycle in June. The Banking Index was the worst hit, receding by 10.5 percent, followed by the Insurance Index, which also suffered significant losses.
FTSE Russell Puts Upgrade on Hold
FTSE Russell, a global provider of stock market indexes, placed its recent upgrade of Nigeria from unclassified to a frontier market on hold during the week. The decision was driven by fears that Nigeria's new rule, which compels international investors to prefund their accounts before transactions, may be deterring foreign participation. Failure by stock market authorities to respond swiftly to address the issue could leave stocks hammered further by apathy and capital flight from foreign investors.
Market Outlook and Half-Year Results
This week, increased positioning, notably in stocks that pay dividends at least twice a year, could be witnessed as the market awaits the release of half-year corporate results. Investors are advised to stay ahead with Premium Times for breaking stories, investigations, and in-depth reporting.
Stock Investment Guide
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 picks, a product of an analytical market watch, offer 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.
NEM Insurance
NEM Insurance tops this week's list for its strong fundamentals. The net profit ratio (NPR) of the underwriter is 9.6, while the price-to-earnings (PE) ratio is 8.5x. Its 10-day relative strength index (RSI) is 27.4.
Custodian Investment
Custodian Investment appears on the pick on the basis of its attractive fundamentals and for trading below its intrinsic value. The NPR of the company is 26.3, while the PE ratio is 5.3x. The RSI is 8.4.
Fidelity Bank
Fidelity Bank makes the selection for trading below its intrinsic value. The lender's NPR is 16, while the PE ratio is 3.3x. Its RSI is 27.4.
United Capital
United Capital makes the cut for its vibrant fundamentals. The NPR of the company is 51.2, while the PE ratio is 10x.
Aradel Holdings
Aradel Holdings features on the pick for its strong fundamentals. The energy company's NPR is 57.4, while the PE ratio is 14.2x. The RSI is 17.
