Market Momentum Continues: Transcorp, UBA, Linkage Assurance Shine as Top Stock Picks This Week

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Olori Uwem

Well-Known Member
Mar 18, 2024
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Market Momentum Continues: Transcorp, UBA, Linkage Assurance Shine as Top Stock Picks This Week

Market Overview: Why the Optimism Continues
• Nigerian equities gained 1.6% last week, extending their upward trend.
• Consumer goods stocks led demand, while financial services stocks accounted for over 50% of total trades.
• The market has shown strong resilience, absorbing year-end portfolio rebalancing pressures from institutional investors.
• This marks two strong weekly gains in December, reflecting growing investor confidence.

Analysts at United Capital expect:
• Continued measured optimism
• Sector-wide strength in banking, ICT, food & beverages, and building materials
• Support from macroeconomic data releases, earnings updates, and fiscal policy signals

⚠️ Important note: These stocks are not buy/sell recommendations, but investment guides based on fundamentals.

⭐ Top Stock Picks and Why They Matter

Transnational Corporation (Transcorp)

Why it stands out
• Trading close to its 52-week low → attractive entry point
• Net Profit Ratio (NPR): 22.2%
• Price-to-Earnings (PE): 6.9x
• RSI: 45.3 (balanced, not overbought)

Appeals to investors seeking value with solid profitability.

United Bank for Africa (UBA)

Why it made the list
• Trading below intrinsic value
• NPR: 23.4%
• PE: 1.9x (very low by market standards)
• RSI: 36.3 (approaching oversold zone)

Strong fundamentals plus valuation appeal for long-term investors.

️ Linkage Assurance

Why analysts are watching
• Trading below fair value
• NPR: 162% (exceptionally high profitability)
• PE: 4.9x
• RSI: 43.9

High profit efficiency with room for price appreciation.

️ BUA Cement

Why it qualifies
• Solid fundamentals in a key sector
• NPR: 15.8%
• PE: 17.4x
• RSI: 33.9 (near oversold territory)

Attractive for investors positioning ahead of infrastructure and construction demand.

Living Trust Mortgage Bank

Why it made the cut
• Fairly strong fundamentals
• NPR: 14.8%
• PE: 23.3x

A niche financial stock with steady fundamentals.

Big Picture Takeaway
• The Nigerian equity market is ending the year on a strong footing
• Banking, insurance, and industrial stocks continue to dominate investor interest
• These picks highlight value, profitability, and momentum, not short-term speculation

As always, consider speaking with a financial advisor before making investment decisions.