Ecobank, Regal Insurance, C & I Leasing top stocks pick this week
The uptrend in the Nigerian equity market appears to have come to stay further than anyone could have expected on the back of buy interest that has failed to wane.
It stands to reason that the lion’s share of portfolio investment would have shifted to treasury bills, bonds and other fixed income securities, whose yields became dramatically attractive to both foreign investors and investors at home after a big hike in interest rate last month by the central bank.
That regardless, stocks continue to have their moment, posting one of their strongest weekly performance this year at 3.7 per cent. And it is intriguing that domestic participation has been the driver of the market’s spectacular run of gains all along since around mid-last year.
What that means is that Nigerian stocks still hold considerable potential, considering that international investors interest is pretty likely to improve as dollar scarcity continues to subside, giving room to shares to unlock more value.
PREMIUM TIMES has assembled some stocks with fundamentals and other potential, adopting key analytical approaches to save you the hassle of randomly picking equities for investment.
The selection, a product of analytical market watch, offers a guide to entering the market and taking strategic positions in hopes that equities will increase in value with the passage of time, particularly in the short term.
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
Ecobank tops this week’s pick for currently trading way below its intrinsic value, brightening its chances of strong price appreciation in the future. The price-to-book (PB) ratio of the pan-African lender is 0.3x, while its price-to-earnings (PE) ratio is 1.1x.
Regal Insurance
Regal Insurance appears on the list for trading substantially below its real value. The underwriter’s PB ratio is 0.3x, while its PE is 3.9x.
C & I Leasing
C & I Leasing appears in the pick for trading significantly below its actual value. The PB ratio of the company is 0.4x, while the PE ratio is 4x.
Sovereign Trust Insurance
Sovereign Trust Insurance makes the cut for currently trading below its real value. The underwriter’s PB ratio is 0.5x, while the PE ratio is 6.3x.
University Press Limited (UPL)
UPL features on this week’s stock selection for presently trading below its intrinsic value.
The publisher’s PB ratio is 0.6x, while the PE ratio is 5.1x.
Veritas Kapital Assurance
Veritas Kapital Assurance makes this week’s list for currently trading below its actual value. The lender’s PB ratio is 0.8x, while the PE ratio is 2.6x.
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By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.
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The uptrend in the Nigerian equity market appears to have come to stay further than anyone could have expected on the back of buy interest that has failed to wane.
It stands to reason that the lion’s share of portfolio investment would have shifted to treasury bills, bonds and other fixed income securities, whose yields became dramatically attractive to both foreign investors and investors at home after a big hike in interest rate last month by the central bank.
That regardless, stocks continue to have their moment, posting one of their strongest weekly performance this year at 3.7 per cent. And it is intriguing that domestic participation has been the driver of the market’s spectacular run of gains all along since around mid-last year.
What that means is that Nigerian stocks still hold considerable potential, considering that international investors interest is pretty likely to improve as dollar scarcity continues to subside, giving room to shares to unlock more value.
PREMIUM TIMES has assembled some stocks with fundamentals and other potential, adopting key analytical approaches to save you the hassle of randomly picking equities for investment.
The selection, a product of analytical market watch, offers a guide to entering the market and taking strategic positions in hopes that equities will increase in value with the passage of time, particularly in the short term.
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
Ecobank tops this week’s pick for currently trading way below its intrinsic value, brightening its chances of strong price appreciation in the future. The price-to-book (PB) ratio of the pan-African lender is 0.3x, while its price-to-earnings (PE) ratio is 1.1x.
Regal Insurance
Regal Insurance appears on the list for trading substantially below its real value. The underwriter’s PB ratio is 0.3x, while its PE is 3.9x.
C & I Leasing
C & I Leasing appears in the pick for trading significantly below its actual value. The PB ratio of the company is 0.4x, while the PE ratio is 4x.
Sovereign Trust Insurance
Sovereign Trust Insurance makes the cut for currently trading below its real value. The underwriter’s PB ratio is 0.5x, while the PE ratio is 6.3x.
University Press Limited (UPL)
UPL features on this week’s stock selection for presently trading below its intrinsic value.
The publisher’s PB ratio is 0.6x, while the PE ratio is 5.1x.
Veritas Kapital Assurance
Veritas Kapital Assurance makes this week’s list for currently trading below its actual value. The lender’s PB ratio is 0.8x, while the PE ratio is 2.6x.
Support PREMIUM TIMES’ journalism of integrity and credibility
Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.
For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.
Donate
TEXT AD: Call Willie – +2348098788999
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