STOCKS TO WATCH THIS WEEK BY PREMIUM TIMES
Overview:
The article provides a stock investment guide for the week, focusing on key stocks like Zenith Bank, C & I Leasing, Ecobank (ETI), Prestige Assurance, Ikeja Hotel, and Mutual Benefits Assurance. It highlights the performance and potential of these stocks based on their recent market activities and financial ratios.
Key Points:
1. Stock Market Performance:
- Despite a decline in the quantity of shares traded last week, the Nigerian stock market was up by 0.6%.
- Increased interest in financial services stocks was a major driver of this uptrend.
- The market is attracting institutional investors' capital, despite high monetary policy rates favoring fixed-income assets.
2. Investment Outlook:
- Fund managers and businesses are advised to focus on mid-long-term investment objectives (≥6 months).
- The recommendation is to invest in equities with strong fundamentals and ongoing corporate actions like mergers and acquisitions (M&As).
3. Sector Focus:
- Bank stocks are highlighted as particularly undervalued, offering promising investment opportunities.
- Zenith Bank is specifically mentioned for its strong financial performance and dividend declaration.
4. Featured Stocks:
- Zenith Bank: Declared an interim dividend of N1 per unit for the half-year 2024, showing significant growth in profit after tax to N578 billion. It has a PB ratio of 0.4x and a PE ratio of 1.4x.
- C & I Leasing: Trading significantly below its intrinsic value, with a PB ratio of 0.1x and a PE ratio of 6.9x.
- Ecobank (ETI): Also trading below its actual value, with a PB ratio of 0.4x and a PE ratio of 1.2x.
- Prestige Assurance: Trading below its real value, with a PB ratio of 0.4x and a PE ratio of 2x.
- Ikeja Hotel: Currently undervalued, with a PB ratio of 0.6x and a PE ratio of 2.6x.
- Mutual Benefits Assurance: Also significantly undervalued, with a PB ratio of 0.6x and a PE ratio of 2.4x.
5. General Advice:
- The article emphasizes that the information provided is a guide and not a recommendation to buy, sell, or hold stocks. Investors are encouraged to consult financial advisors before making decisions.
Overview:
The article provides a stock investment guide for the week, focusing on key stocks like Zenith Bank, C & I Leasing, Ecobank (ETI), Prestige Assurance, Ikeja Hotel, and Mutual Benefits Assurance. It highlights the performance and potential of these stocks based on their recent market activities and financial ratios.
Key Points:
1. Stock Market Performance:
- Despite a decline in the quantity of shares traded last week, the Nigerian stock market was up by 0.6%.
- Increased interest in financial services stocks was a major driver of this uptrend.
- The market is attracting institutional investors' capital, despite high monetary policy rates favoring fixed-income assets.
2. Investment Outlook:
- Fund managers and businesses are advised to focus on mid-long-term investment objectives (≥6 months).
- The recommendation is to invest in equities with strong fundamentals and ongoing corporate actions like mergers and acquisitions (M&As).
3. Sector Focus:
- Bank stocks are highlighted as particularly undervalued, offering promising investment opportunities.
- Zenith Bank is specifically mentioned for its strong financial performance and dividend declaration.
4. Featured Stocks:
- Zenith Bank: Declared an interim dividend of N1 per unit for the half-year 2024, showing significant growth in profit after tax to N578 billion. It has a PB ratio of 0.4x and a PE ratio of 1.4x.
- C & I Leasing: Trading significantly below its intrinsic value, with a PB ratio of 0.1x and a PE ratio of 6.9x.
- Ecobank (ETI): Also trading below its actual value, with a PB ratio of 0.4x and a PE ratio of 1.2x.
- Prestige Assurance: Trading below its real value, with a PB ratio of 0.4x and a PE ratio of 2x.
- Ikeja Hotel: Currently undervalued, with a PB ratio of 0.6x and a PE ratio of 2.6x.
- Mutual Benefits Assurance: Also significantly undervalued, with a PB ratio of 0.6x and a PE ratio of 2.4x.
5. General Advice:
- The article emphasizes that the information provided is a guide and not a recommendation to buy, sell, or hold stocks. Investors are encouraged to consult financial advisors before making decisions.