Strong Start to 2026: UBA, Mutual Benefits & Lafarge Africa Lead This Week’s Stock Picks
Market Snapshot
Nigerian equities maintained their bullish momentum last week, with the benchmark market index advancing by 3.7%. The rally was broad-based, as all sector indices closed in positive territory, led by industrial goods and oil & gas stocks.
This strong opening reflects:
• Fresh new-year investment inflows
• Portfolio rebalancing by investors
• Growing anticipation of 2025 full-year earnings and dividend announcements
Analysts expect these factors to continue shaping market activity in the coming weeks, particularly as investors focus on fundamentally strong and undervalued stocks.
What’s Driving Investor Interest?
According to Meristem Securities:
• Investors are repositioning ahead of earnings releases and dividend declarations
• Market gains are being fueled by:
• Renewed interest in quality stocks
• Strategic portfolio adjustments
• Targeted buying of undervalued equities
This environment favors selective stock picking rather than random entry.
Top Stock Picks for the Week (Investment Guide, Not Recommendations)
These selections are based on fundamentals and valuation metrics. They are not buy, sell, or hold recommendations.
1. United Bank for Africa (UBA)
UBA leads this week’s list due to its strong fundamentals and attractive valuation.
• Net Profit Ratio (NPR): 23.8%
• Price-to-Earnings (P/E): 2.1x
• Relative Strength Index (RSI): 64.2
Why it stands out: Strong profitability and trading below intrinsic value.
2. Mutual Benefits Assurance
The insurer earns its spot for being undervalued with solid earnings strength.
• NPR: 15.3%
• P/E: 4.0x
• RSI: 67.2
Why it stands out: Attractive valuation in the insurance space.
3. Lafarge Africa
Lafarge Africa makes the list on the back of robust financial performance.
• NPR: 24.8%
• P/E: 9.8x
• RSI: 79.6
Why it stands out: Strong margins and solid industrial fundamentals.
4. May & Baker
The pharmaceutical company is selected for its consistent fundamentals.
• NPR: 8.7%
• P/E: 16.2x
• RSI: 97.3
Why it stands out: Strong momentum, though RSI suggests it may be stretched.
5. AIICO Insurance
AIICO appears on the list for trading below its underlying value.
• NPR: 8.2%
• P/E: 9.0x
• RSI: 63.0
Why it stands out: Fair valuation with improving fundamentals.
Key Takeaway for Investors
The Nigerian market’s strong start to 2026 highlights the importance of:
• Fundamental analysis
• Valuation discipline
• Sector diversification
As earnings season approaches, stocks with solid profitability and reasonable pricing are likely to attract sustained attention.
Market Snapshot
Nigerian equities maintained their bullish momentum last week, with the benchmark market index advancing by 3.7%. The rally was broad-based, as all sector indices closed in positive territory, led by industrial goods and oil & gas stocks.
This strong opening reflects:
• Fresh new-year investment inflows
• Portfolio rebalancing by investors
• Growing anticipation of 2025 full-year earnings and dividend announcements
Analysts expect these factors to continue shaping market activity in the coming weeks, particularly as investors focus on fundamentally strong and undervalued stocks.
What’s Driving Investor Interest?
According to Meristem Securities:
• Investors are repositioning ahead of earnings releases and dividend declarations
• Market gains are being fueled by:
• Renewed interest in quality stocks
• Strategic portfolio adjustments
• Targeted buying of undervalued equities
This environment favors selective stock picking rather than random entry.
Top Stock Picks for the Week (Investment Guide, Not Recommendations)
These selections are based on fundamentals and valuation metrics. They are not buy, sell, or hold recommendations.
1. United Bank for Africa (UBA)
UBA leads this week’s list due to its strong fundamentals and attractive valuation.
• Net Profit Ratio (NPR): 23.8%
• Price-to-Earnings (P/E): 2.1x
• Relative Strength Index (RSI): 64.2
Why it stands out: Strong profitability and trading below intrinsic value.
2. Mutual Benefits Assurance
The insurer earns its spot for being undervalued with solid earnings strength.
• NPR: 15.3%
• P/E: 4.0x
• RSI: 67.2
Why it stands out: Attractive valuation in the insurance space.
3. Lafarge Africa
Lafarge Africa makes the list on the back of robust financial performance.
• NPR: 24.8%
• P/E: 9.8x
• RSI: 79.6
Why it stands out: Strong margins and solid industrial fundamentals.
4. May & Baker
The pharmaceutical company is selected for its consistent fundamentals.
• NPR: 8.7%
• P/E: 16.2x
• RSI: 97.3
Why it stands out: Strong momentum, though RSI suggests it may be stretched.
5. AIICO Insurance
AIICO appears on the list for trading below its underlying value.
• NPR: 8.2%
• P/E: 9.0x
• RSI: 63.0
Why it stands out: Fair valuation with improving fundamentals.
Key Takeaway for Investors
The Nigerian market’s strong start to 2026 highlights the importance of:
• Fundamental analysis
• Valuation discipline
• Sector diversification
As earnings season approaches, stocks with solid profitability and reasonable pricing are likely to attract sustained attention.
