The 78.4 per cent leap in the size of trade conducted on Nigerian stocks last week and the considerable rise in the value of those deals affirm faith the market continues to win itself from investors.
Equity trading at the Nigerian Exchange for August was almost a half higher in value than a year ago, according to the bourse’s Domestic & Foreign Portfolio Investment Report.
That said, international investors accounted for only 15.1 per cent of that.
It is the third weakest monthly inflow from such investors this year, suggesting that Nigerian stocks are still remotely away from regaining the vibrancy they were noted for among frontier market peers in the pre-pandemic days when foreign participation dominated trade for months.
The balance is now shifting in such a way that homegrown interest in shares is helping drive trade, with increasing involvement of big institutional players, especially pension funds.
Since the start of the year to this point, domestic participation has been the pivot that has helped the market yield achieve its 31.7 per cent yield.
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 making investment decisions.
Beta Glass
Beta Glass tops this week’s list for presently trading well below its intrinsic value and close to its lowest price level in 52 weeks, making the stock a potentially good buy for investors seeking cheap stocks that offer value for money. The company’s price-to-earnings (PE) ratio is 4.4x, while its price-to-book (PB) ratio is 0.5x.
Access Holdings
Access Holdings features on this week’s pick for trading significantly below its underlying value at the moment and for trading close to its 52-week low. The PE ratio of the financial services group is 0.9x, while its PB ratio is 0.3x.
Prestige Assurance
Prestige Assurance makes the cut for currently trading below its intrinsic value and close to its lowest price in 52 weeks. The insurer’s PE ratio is 1.9x, while the PB ratio is 0.4x.
NPF Microfinance Bank (NPF MFB)
NPF MFB appears on the list for trading significantly below its fundamental value at the moment and close to its 52-week low. The micro-lender’s PE ratio is 6.3x, while its PB ratio is 0.8x.
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Linkage Assurance
Linkage Assurance features on this week’s list because it is currently trading well below its underlying value and close to its lowest price level in 52 weeks. The underwriter’s PE ratio is 2.9x, while its PB ratio is 0.6x.
Wema Bank
Wema Bank appears in the pick for currently trading well below its actual value. Its PE ratio is 1x, while the PB ratio is 0.9x.
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