Nascon, Coronation, Jaiz Bank top stock pick this week

Nigerian stocks advanced by 2.9 per cent last week, lifted by bank and oil & gas equities. All the sector indexes appreciated during the week.

The main equity index has yielded 60.5 per cent so far this year.

“Recent broad-based declines have, however, brought several frontline and mid-cap stocks to more attractive entry levels. This could encourage some bargain-hunting during the week,” analysts at Meristem Securities said in a note ahead of the week.

PREMIUM TIMES has assembled some stocks with sound fundamentals, adopting rigorous approaches to save you the risk of picking equities at random for investment.

The pick, a product of an analytical market watch, offers a guide to entering the market and taking strategic positions, with the expectation that selected stocks will record reasonable price appreciation 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.

Nascon

Nascon tops this week’s list for its strong fundamentals. The net profit ratio (NPR) of the salt maker is 9.3, while the price-to-earnings (PE) ratio is 11.5x. Its 14-day relative strength index (RSI) is 6.9.

Coronation Insurance

Coronation appears on the pick on the basis of its attractive fundamentals. The NPR of the insurer is 22.7, while the PE ratio is 5.2x. The 14-day RSI is 55.4.

Jaiz Bank

Jaiz makes the selection for its strong fundamentals. The bank’s NPR is 28.5, while the PE ratio is 1.5x. Its 14-day RSI is 43.9.

Fidson

Fidson makes the cut for its sound fundamentals. The NPR of the drug manufacturer is 7.8, while the PE ratio is 17.7x. The 14-day RSI is 43.

CAP

CAP makes the cut for its sound fundamentals. The NPR of the chemical manufacturer is 14.1, while the PE ratio is 13.5x. The 14-day RSI is 3.6.