Nigerian Stocks on the Move: Okomu Oil, Fidelity Bank, and Fidson Shine as Top Picks This Week
The Nigerian stock market is set for another exciting week as the Q3 earnings season continues to heat up. With several companies already releasing strong results, analysts expect increased trading activity and renewed investor optimism in the coming days.
The Nigerian Exchange (NGX) has already delivered a 44.7% year-to-date gain, outperforming inflation and signaling one of the market’s best runs in years. Experts also anticipate that a possible rate cut extending into next year could encourage a shift of funds from fixed-income instruments into equities, further boosting market momentum.
Adding to the positive sentiment is Nigeria’s upgrade to the FTSE Russell Watchlist, which opens the door for potential reclassification from Unclassified to Frontier Market status — a move that could attract more foreign investment.
To guide investors this week, Premium Times highlighted a few standout stocks based on their fundamentals and potential for value appreciation. Here’s a closer look at them:
1️⃣ Okomu Oil Palm Plc
Topping the list, Okomu Oil recently declared a special interim dividend of ₦10, reflecting strong profitability. The company boasts a Net Profit Ratio (NPR) of 33% and a Price-to-Earnings (P/E) ratio of 14.5x. Its Relative Strength Index (RSI) is at 100, suggesting robust investor demand.
2️⃣ Fidelity Bank Plc
Fidelity Bank continues to trade below its intrinsic value, presenting an attractive entry point for investors. It has an NPR of 27.5%, a P/E ratio of 2.2x, and an RSI of 44.9, indicating potential for upward movement.
3️⃣ Fidson Healthcare Plc
Fidson remains a solid choice due to its consistent fundamentals and sector positioning. The pharmaceutical firm reports an NPR of 9.4%, P/E ratio of 9.4x, and RSI of 45.9, reflecting balanced investor sentiment and steady performance.
4️⃣ United Bank for Africa (UBA)
UBA is currently trading significantly below its intrinsic value. With an NPR of 22.3%, P/E ratio of 1.9x, and RSI of 33.8, the stock offers value potential for investors looking for long-term growth in the banking sector.
5️⃣ Mutual Benefits Assurance Plc ️
This insurer makes the list for its undervaluation and improving fundamentals. It holds an NPR of 13.1%, P/E ratio of 4.1x, and RSI of 57.9, signaling moderate investor interest with room for more appreciation.
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The Big Picture
With strong earnings, a stable macroeconomic backdrop, and the FTSE Russell Watchlist upgrade in play, the Nigerian market looks primed for further growth. However, investors are advised to approach with strategy — focusing on companies with solid fundamentals, dividend consistency, and clear growth potential.
Note: This is not a buy, sell, or hold recommendation. Always consult your financial advisor before making investment decisions.
The Nigerian stock market is set for another exciting week as the Q3 earnings season continues to heat up. With several companies already releasing strong results, analysts expect increased trading activity and renewed investor optimism in the coming days.
The Nigerian Exchange (NGX) has already delivered a 44.7% year-to-date gain, outperforming inflation and signaling one of the market’s best runs in years. Experts also anticipate that a possible rate cut extending into next year could encourage a shift of funds from fixed-income instruments into equities, further boosting market momentum.
Adding to the positive sentiment is Nigeria’s upgrade to the FTSE Russell Watchlist, which opens the door for potential reclassification from Unclassified to Frontier Market status — a move that could attract more foreign investment.
To guide investors this week, Premium Times highlighted a few standout stocks based on their fundamentals and potential for value appreciation. Here’s a closer look at them:
1️⃣ Okomu Oil Palm Plc
Topping the list, Okomu Oil recently declared a special interim dividend of ₦10, reflecting strong profitability. The company boasts a Net Profit Ratio (NPR) of 33% and a Price-to-Earnings (P/E) ratio of 14.5x. Its Relative Strength Index (RSI) is at 100, suggesting robust investor demand.
2️⃣ Fidelity Bank Plc
Fidelity Bank continues to trade below its intrinsic value, presenting an attractive entry point for investors. It has an NPR of 27.5%, a P/E ratio of 2.2x, and an RSI of 44.9, indicating potential for upward movement.
3️⃣ Fidson Healthcare Plc
Fidson remains a solid choice due to its consistent fundamentals and sector positioning. The pharmaceutical firm reports an NPR of 9.4%, P/E ratio of 9.4x, and RSI of 45.9, reflecting balanced investor sentiment and steady performance.
4️⃣ United Bank for Africa (UBA)
UBA is currently trading significantly below its intrinsic value. With an NPR of 22.3%, P/E ratio of 1.9x, and RSI of 33.8, the stock offers value potential for investors looking for long-term growth in the banking sector.
5️⃣ Mutual Benefits Assurance Plc ️
This insurer makes the list for its undervaluation and improving fundamentals. It holds an NPR of 13.1%, P/E ratio of 4.1x, and RSI of 57.9, signaling moderate investor interest with room for more appreciation.
⸻
The Big Picture
With strong earnings, a stable macroeconomic backdrop, and the FTSE Russell Watchlist upgrade in play, the Nigerian market looks primed for further growth. However, investors are advised to approach with strategy — focusing on companies with solid fundamentals, dividend consistency, and clear growth potential.
Note: This is not a buy, sell, or hold recommendation. Always consult your financial advisor before making investment decisions.
