This is not a buy, sell or hold recommendation but a stock investment guide.
Nigerian stocks are seeing a return of strength, spurred by much-increased activity on the demand side, which led activity in the market to improve by 257.9 per cent and the yield on stocks since the year started by 2 per cent after four weeks of consecutive declines.
A myriad of companies turned in their first-quarter results in the week that just went by, some of them out significantly strong, apparently the stimulus for the boom in the trade volume reported in the week.
Currently 0.2 per cent, the year-to-date yield on stocks is among the lowest so far since the start of the year, having peaked at 8.9 per cent in the week to 10 March before diminishing returns began to set in.
This week, the centre of interest for big players like portfolio managers and institutional investors will likely be the financials of large-cap companies as they hit the market and the potential they hold for investment. Companies which have announced strong dividends whose qualification dates are yet to expire might court some investors too.
PREMIUM
The selection, a product of analytical market watch, offers a guide to entering the market and taking strategic positions in hopes that equities will gain value with the passage of time, particularly in the short term.
This is not a buy, sell or hold recommendation but a stock investment guide. You may have to involve your financial advisor before making investment decisions.
Its price-to-earnings (PE) ratio was 4.6x as of the end of the last trading session, while its earnings per share (EPS) is N0.14.
The company's present PE ratio at the last trading session was 4.9x, while the EPS is N3.46.
FIDELITY BANK
The lender's PE ratio at the market close on Friday was 3.7x, while the EPS is N1.52.
DANGOTE SUGAR
Dangote Sugar features on the pick this week for reporting a 44.3 per cent leap in profit after tax to N8.9 billion for the first quarter. The firm's PE ratio as of Friday was 4.3x, while the EPS is N4.51
The company's PE ratio at the last trading session was 4.3x, while its EPS is N0.90.
JAIZ BANK
The PE ratio of the bank at the end of the last trading session was 4.8x, while its EPS is N0.20.
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