Top Value Picks in Nigerian Stocks This Week: NPF Microfinance Bank, AIICO, Kapital Insurance Among Leading Options- Ucap Analysts
Summary:
Despite a recent 0.2% dip in Nigeria’s stock market last week due to profit-taking in industrial goods stocks, investor interest remains high. The primary index has gained over 30% this year, largely driven by oil and gas stocks, which have seen a 133.1% return. With high yields available in fixed-income investments, analysts expect bearish sentiment to linger, but long-term investors may still find value in certain equities.
United Capital analysts suggest that investors may now focus on equities with strong fundamentals for mid- to long-term strategies. Below is a curated selection of stocks with solid potential based on intrinsic value and fundamentals.
Stock Highlights:
1. NPF Microfinance Bank
• Trading below intrinsic value with a PB ratio of 0.7x and a PE ratio of 10.4x.
• RSI: 37.8, indicating potential undervaluation.
2. AIICO Insurance
• Offers value with a PB ratio of 0.7x and a PE ratio of 2.5x.
• RSI: 52.6, which suggests moderate price momentum.
3. Veritas Kapital Assurance
• Well-positioned for value investors, with a PB ratio of 1x and a PE ratio of 2.2x.
• RSI: 43.4, indicating potential value.
4. NASCON
• Significantly below intrinsic value, with a PB ratio of 2.2x and a PE ratio of 6.9x.
• RSI: 27.9, pointing toward potential undervaluation.
5. Fidson
• Trading attractively with a PB ratio of 0.3x and a PE ratio of 9.6x.
• RSI: 29.5, which signals potential value.
6. Custodian Investment
• Undervalued with a PB ratio of 0.6x and a PE ratio of 1.3x.
• RSI: 36.1, indicating favorable conditions for entry.
This selection provides a foundation for investors interested in potential long-term gains. Note that this is an investment guide and not a buy/sell recommendation.
Summary:
Despite a recent 0.2% dip in Nigeria’s stock market last week due to profit-taking in industrial goods stocks, investor interest remains high. The primary index has gained over 30% this year, largely driven by oil and gas stocks, which have seen a 133.1% return. With high yields available in fixed-income investments, analysts expect bearish sentiment to linger, but long-term investors may still find value in certain equities.
United Capital analysts suggest that investors may now focus on equities with strong fundamentals for mid- to long-term strategies. Below is a curated selection of stocks with solid potential based on intrinsic value and fundamentals.
Stock Highlights:
1. NPF Microfinance Bank
• Trading below intrinsic value with a PB ratio of 0.7x and a PE ratio of 10.4x.
• RSI: 37.8, indicating potential undervaluation.
2. AIICO Insurance
• Offers value with a PB ratio of 0.7x and a PE ratio of 2.5x.
• RSI: 52.6, which suggests moderate price momentum.
3. Veritas Kapital Assurance
• Well-positioned for value investors, with a PB ratio of 1x and a PE ratio of 2.2x.
• RSI: 43.4, indicating potential value.
4. NASCON
• Significantly below intrinsic value, with a PB ratio of 2.2x and a PE ratio of 6.9x.
• RSI: 27.9, pointing toward potential undervaluation.
5. Fidson
• Trading attractively with a PB ratio of 0.3x and a PE ratio of 9.6x.
• RSI: 29.5, which signals potential value.
6. Custodian Investment
• Undervalued with a PB ratio of 0.6x and a PE ratio of 1.3x.
• RSI: 36.1, indicating favorable conditions for entry.
This selection provides a foundation for investors interested in potential long-term gains. Note that this is an investment guide and not a buy/sell recommendation.