Africa Prudential, BUA Cement, Mutual Benefits top stock pick this week

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.

Nigerian Stocks extended their gaining tempo for the fourth time in a row last week, adding 3.9 per cent, riding on the favourable investor sentiment that has kept trade bullish for quite a while now.

That upbeat market mood was evidently strong across the sectors as all the indexes appreciated, led by the Industrial Goods industry.

This week, investors and analysts will be keeping their gaze on more first-quarter’s earnings results for direction on where best to invest smart money in the short term.

Looking forward, Nigeria’s recent restoration to the FTSE Russell Frontier Market Index, seen as enhancing the visibility of its stocks to foreign investors, may also lift trade.

“We believe dividend-related activities will remain a major market catalyst, with investors likely to sustain positioning in fundamentally sound and yield-attractive counters, particularly within the banking sector, where dividend declarations and qualification dates continue to support demand,” said analysts at Meristem Securities in a note to investors last week.

“We also expect continued interest in the oil & gas space, driven by positive sector sentiment and expectations of dividend declarations, especially in Aradel,” 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, 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.

Africa Prudential

Africa Prudential tops this week’s selection on the basis of its sound fundamentals. The company’s net profit ratio (NPR) is 37.8 per cent, while the price-to-earnings (PE) ratio is 17.1x. Its relative strength index (RSI) is 42.

BUA Cement

BUA Cement makes the cut for its strong fundamentals. The NPR of the manufacturer is 49.7, while the PE ratio is 31.9x. Its RSI is 85.7.

Mutual Benefits Assurance

Mutual Benefits Assurance makes the list for its robust fundamentals and for trading below its intrinsic value. The NPR of the insurer is 22.2 per cent, while the price-to-earnings (PE) ratio is 4.2x. Its relative strength index (RSI) is 43.

United Capital

United Capital appears on the pick for its strong fundamentals. The PE ratio of the financial services company is 10.2, while the RSI is 29.4.

C and I Leasing

C and I Leasing makes the selection for trading below its intrinsic value. The company’s NPR is 5.4 per cent, while the PE ratio is 6.9x. Its RSI is 29.