Nigerian stocks depreciated 1.4 per cent last week as increased sell pressure strained the market value of shares as smart money shifted more into fixed-income assets than equities.
That is not to say stocks are losing their shine.
One bright spot during the week was growth in the size of trade, with trade volume improving 12.7 per cent and the value of transactions up also, in this case, by 55.2 per cent.
A number of equities continue to offer value for money, some now lowly priced to a level that offers a strong entry point for different investors seeking stocks with the promise of price appreciation.
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.
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.
FCMB Group
FCMB Group tops this week’s list for currently trading well below its intrinsic value. The financial services group’s price-to-book (PB) ratio ratio is 0.3x, while the price-to-earnings (PE) ratio is 3.2x.
Linkage Assurance
Linkage Assurance appears in the pick for currently trading well below its actual value.
Its PB ratio is 0.4x, while the PE ratio is 2.8x.
Ecobank Transnational Incorporated (ETI)
ETI makes this week’s list for currently trading below its real value. The lender’s PB ratio is 0.4x, while the PE ratio is 1.4x.
AIICO Insurance
AIICO features on this week’s pick for currently trading below its intrinsic value, boosting its chances of strong price appreciation in the future. The PB of the insurer is presently 0.8x, while its PE ratio is 4.4x.
UAC of Nigeria Plc (UACN)
UACN appears on the list for trading significantly below its real value at the moment.
The conglomerate’s PB ratio is 0.9x, while its PE ratio is 2.8x.
Flour Mills
Flour Mills makes the cut for currently trading below its real value. The company’s PB ratio is currently 0.8x, while the PE ratio is 8.1x.
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