Five stocks with strong fundamentals named in Nigeria
In Nigeria, Premium Times Nigeria included Transcorp, AXA Mansard, Guaranty Trust Holding Company (GTCO), NPF Microfinance Bank and Neimeth in its weekly stock list. The publication noted that the selection is an investment guide, not a recommendation to buy, sell or hold securities.
Market situation
Last week, Nigerian stocks fell by 1.6% amid profit-taking in all sectors except oil and gas. The insurance index recorded the steepest decline, falling 5.5%. According to Premium Times Nigeria, it remains the only sector index with a negative year-to-date return.
Investment bank United Capital Plc said in an investor note that stocks of companies with strong earnings, attractive valuations and stable dividend payments should remain in focus. The publication also reported that market attention is expected to shift to the primary market this week due to the launch of Dangote Refinery's $1.6 billion IPO.
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Company metrics
Transcorp topped the selection due to strong fundamentals and trading below intrinsic value, the publication said. The company has an NPR of 24.7, a price-to-earnings (P/E) ratio of 4.5x and a 10-day relative strength index (RSI) of 31.5.
GTCO was also included in the list due to strong fundamentals and trading below intrinsic value. Its NPR is 37.4, its P/E is 5.4x and its RSI is 47.8. For insurer AXA Mansard, Premium Times Nigeria cited an NPR of 3.4, a P/E of 29.8x and an RSI of 47.3.
NPF Microfinance Bank made the list due to, in the publication's assessment, adequate fundamentals: the bank's P/E is 7.2x and its RSI is 22.5. For pharmaceutical company Neimeth, an NPR of 12.2, a P/E of 33.2x and an RSI of 40.8 were cited.
