United Capital, Veritas Kapital Assurance, UBA top stock pick this week

Barely six months gone, the year has been strongly on the side of stocks, with Nigerian equities having gained 34 per cent to date, led by the NGX Industrial Goods Index.

That sector index tracking the performance of the industrial sector, where big guns like Dangote Cement and BUA Cement dominate, alone has recorded roughly 74 per cent appreciation.

One big positive during the period, able to help keep the momentum of gain for the rest of 2024, is the consistency of interest foreign investors have been showing in Nigerian stocks month on month. Those investors executed deals worth N458.3 billion in the year to May, compared to less than N100 billion in the same period of last year, a level seen in pre-pandemic days.

The earnings reports of companies have begun to be issued, but those of major firms are awaited, and they are likely to be a key driver of market activities in the next few months.

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 taking investment decisions.

United Capital

United Capital tops this week’s pick for declaring a bonus of 2 new shares for every 1 currently held and an interim dividend of N0.90 per share. The qualification date for both rewards is the close of business on 31 July, while the payment date for the dividend is 9 August.

Veritas Kapital Assurance

Veritas Kapital makes this week’s list for trading well below its intrinsic value, making it a potentially strong investment for value investors. The price-to-book (PB) ratio of the underwriter is presently 0.7x, while its price-to-earnings (PE) is 0.9x.

ALSO READ: Linkage Assurance, Zenith Bank, Ikeja Hotel top stock picks this week

United Bank for Africa (UBA)

UBA features on this week’s list for currently trading below its intrinsic value. The lender’s PB ratio is 0.3x, while the PE ratio is 1.2x.

NEM Insurance

NEM Insurance appears in the pick for currently trading well below its actual value.

The PB ratio of the insurer is 0.7x at the moment, while the PE ratio is 1.9x.

UACN of Nigeria (UACN)

UACN appears on the list for trading significantly below its real value. The conglomerate’s PB ratio is 0.8x, while its PE ratio is 2.9x.

Custodian Investment

Custodian Investment makes the cut for currently trading below its real value. The financial services group’s PB ratio is currently 0.8x, while the PE ratio is 2x.