Since the start of February, Nigerian stocks have been on a steady decline for reasons ranging from profit-taking in equities that have yielded returns over time, to reallocation of proceeds from shares sales to investment in other securities.
The price correction and volatility has induced a 5.25 per cent fall in the benchmark index so far this month.
Nevertheless, periods of downturn like the current one usually offer a good chance for investing since stocks are generally priced low. As the dividend season emerges, shrewd investors will also be looking to position for incentives beyond regular stock yields.
We have curated some stocks you should look out for this week based on market developments last week and a couple of fundamental factors.
PREMIUM TIMES Stocks to Watch is a selection of equities monitored for potential trading or investment. An investor may randomly assemble some stocks for investment purposes. But we have done some rigorous analytical evaluation to save you that hassle.
However, this is not a buy, sell or hold recommendation. You may have to involve your financial advisor before taking investment decisions.
UNITED CAPITAL PLC
United Capital tops our list for declaring a N0.70 dividend per share for 2020, 40 per cent higher than the N0.50 it paid shareholders for the previous year. Its Earnings Per Share (EPS) is N2.62 while its Price-to-Earnings (PE) ratio is 2.42, making it cheap for investment at a price of N6.35.
Investors desiring to benefit from the dividend payout must purchase the stock before the close of business on March 5.
AFRICA PRUDENTIAL PLC
Africa Prudential features on our list this week by virtue of its proposal of dividend per share of N0.50 for 2020. It currently sells for N7.30 per share, has an EPS of N0.88 and a PE ratio of 8.30.
PORTLAND PAINTS & PRODUCTS NIGERIA PLC
Portland Paints makes our list on account of its proposed merger with Chemical and Allied Products Plc.
Shareholders have the liberty to either receive the payment of N2.90 for every share held in Portland Paints as settlement for cancellation of their stake in the company at the end of the process or have every eight ordinary shares held in Portland Paints exchanged for 1 in the new enlarged entity to be called Chemical and Allied Products Plc.
Portland Paints’ current market price is N3.25.
ACCESS BANK PLC
Access Bank appears on our list for trading below its intrinsic value. It currently sells for N8.40, with an EPS of N3.08 and a PE ratio of 2.72.
FIDELITY BANK PLC
Fidelity Bank makes our list for trading significantly below its real value. It is priced at N2.48 per share, with an EPS of N0.92 and a PE ratio of 2.70.
BETA GLASS PLC
Beta Glass features on our list for trading at its lowest price in 52 weeks. It sells for N50 per share.
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