Nigeria: Nem Insurance, Ecobank, Veritas Kapital Top Stocks Pick This Week

This is not a buy, sell or hold recommendation but a stock investment guide.

Nigerian stocks were up by 0.8 per cent last week as more money chased stocks in the equity market.

The market has now yielded 31.4 per cent since the start of the year, with the NGX Oil and Gas Index leading other sector indexes.

Investment bank United Capital said in its investment view for the week that “The Bulls will remain incentivised to persist in bargain hunting, given the tremendous mid-long-term opportunities in the equities market.”

Access Holdings issued its 2023 audited financials with fairly strong performance. The result of top-tier rival United Bank for Africa is currently being awaited.

PREMIUM TIMES has assembled some stocks with fundamentals and other potential, adopting key analytical approaches to save you the hassle of randomly picking equities for investment.

The selection, a product of an analytical market watch, offers a guide to entering the market and taking strategic positions in hopes that equities will increase in value with the passage of time.

This is not a buy, sell or hold recommendation but a stock investment guide. You may need to involve your financial advisor before taking investment decisions.

NEM Insurance

NEM Insurance tops this week’s pick for trading significantly below its intrinsic value. The underwriter’s price-to-book (PB) ratio is 0.8x, while its price-to-earnings (PE) is 1.9x.

Ecobank Transnational Incorporated (ETI)

ETI features on this week’s list for currently trading below its intrinsic value. The lender’s PB ratio is 0.2x, while the PE ratio is 1.3x.

Veritas Kapital Assurance

Veritas Kapital makes this week’s list for trading well below its intrinsic value, making it a potentially strong investment for value investors. Its PB ratio is 0.9x, while its PE ratio is 1.5x.

UACN

UACN appears in the pick for currently trading well below its actual value. The PB ratio of the conglomerate is 1x at the moment, while the PE ratio is 0.7x.

Ikeja Hotel

Ikeja Hotel appears on the list for trading significantly below its real value. The company’s PB ratio is 0.8x, while its PE ratio is 2.5x.

Mutual Benefits

Mutual Benefits makes the cut for currently trading below its real value. The insurer’s PB ratio is currently 0.4x, while the PE ratio is 2.4x.