Ecobank, Cornerstone Insurance, Access Holdings top stock pick this week

Nigerian stocks added 0.7 per cent last week, with only three trading sessions observed on account of public holidays on Monday and Thursday.

Buyers’ interest in consumer goods and industrial goods equities drove the advance. The main equity index has returned 12.1 per cent so far this year, with the consumer goods index leading the four other sector indexes.

“The equities market might be mildly positive, leading to a slight gain in the ASI. This is hinged on the market benefiting from the spillover effect of excess liquidity in the financial system,” analysts at United Capital said ahead of the week.

“Similarly, investors might start positioning for Q2-earnings season in June, favoring corporates with FX gains, cost control, clear growth trajectory, and those with potentials for quality interim dividend payment,” they added.

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 in hopes 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.

Ecobank Transnational International (ETI)

ETI tops this week’s list for trading significantly below its intrinsic and book value. The price-to-book (PB) ratio of the banking group is 0.2x, while the price-to-earnings (PE) ratio is 1.4x. Its relative strength index (RSI is 48.8.

Cornerstone Insurance

Cornerstone Insurance appears on the pick for currently trading below its underlying value. The PB ratio of the insurer is 1.1x, while the PE ratio is 3x. Its RSI is 63.5.

Access Holdings

Access Holdings appears on the list for trading below its intrinsic and book value. The PB ratio of the financial services group is 0.3x, while its PE ratio is 1.3x. The RSI is 47.3.

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Coronation Insurance

Coronation Insurance makes the cut for currently trading well below its intrinsic value. The underwriter’s PB ratio is 1.1x, while the PE ratio is 4.1x. Its RSI is 45.5.

Prestige Assurance

Prestige Assurance makes the cut for trading below its underlying and book value. The insurer’s PB ratio is 0.7x, while the PE ratio stands at 4.6x. Its RSI is 51.1.