UBA, NEM Insurance, NNFM Lead Analysts’ Top Stock Picks As Market Gains 4.5%

By OBI DAVIES

THE Nigerian stock market rose 4.5% last week, buoyed by strong buying interest in industrial goods and oil & gas stocks, pushing the year-to-date return to 51.2%.

Analysts expect market activity to intensify as the earnings season unfolds, with investor sentiment likely driven by nine-month earnings reports and dividend declarations.

According to Meristem Securities, the recent decline in headline inflation to 18.02% in September from 20.12% in August has raised expectations of further interest rate cuts, which could enhance the appeal of equities.

This week’s top stock picks, based on fundamental analysis, are:

• United Bank for Africa (UBA): Trading below intrinsic value with a net profit ratio (NPR) of 22.3%, PE ratio of 2x, and RSI of 27.

• NEM Insurance: Strong fundamentals with NPR 25.9%, PE 4.1x, and RSI 54.9.

• Northern Nigerian Flour Mills (NNFM): Solid performance indicators with NPR 4.3%, PE 9.9x, and RSI 96.8.

• AIICO Insurance: Moderate fundamentals, NPR 6.3%, PE 10x, RSI 42.8.

• Mutual Benefits Assurance: Promising outlook, NPR 13.1%, PE 4.3x, RSI 29.6.

Analysts advise investors to consult financial professionals before making decisions, noting that the list serves only as an investment guide, not a buy or sell recommendation.