Nigeria’s stock market was bearish all through last week, forcing the valuation of quite a number of equities to a lower point of depression.
The last trickle of banks’ audited financials into the market was a mixed bag of improvement and setback in terms of performance and that had adverse implications for investors’ hunger to own shares.
But the redeeming feature lies in the advantage that falling prices bring to during downtrends, in that it makes stocks cheap for investors to take entry decision.
PREMIUM TIMES has assembled a number of 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 take strategic positions in hopes that equities will gain value with the passage of time, particularly in the short term.
This is not a buy, sell or hold recommendation. You may have to involve your financial advisor before taking investment decisions.
UNITED BANK FOR AFRICA (UBA)
UBA tops this week’s pick on the twin strength of a climb of more than one third in its half-year profit bringing it to N44.4 billion and its declaration of an interim dividend of N0.20 per share. Shareholders that own the company’s shares by September 30 will receive payment of the cash reward on September 30.
Fidelity Bank features on the list for reporting considerable growth across key performance parameters in its January to June financials. While profit for the period advanced by 70.8 per cent, its top-line added 6.2 per cent at N112.3 billion.
NPF MICROFINANCE BANK (NPF MFB)
NPF MFB makes the selection for trading well below its real value, making it cheap for investment. It is priced at N1.75 per unit, has Earnings Per Share (EPS) of N0.33 and a PE ratio of 4.97.
NEM appears on the list for currently trading significantly below its intrinsic value. It has EPS of N0.51, a PE ratio of 3.72 and trades at N1.93 per share.
RED STAR EXPRESS
Red Star Express makes the list for trading below its actual value. It has EPS of N0.47 per share and a PE ratio of 6.81. The stock is priced at N3.18 per unit.