Top Stock Picks This Week: NEM Insurance, Custodian, and Fidelity Bank

Last week, Nigerian stocks dropped by 1.2 percent. This marks the third week of losses since the T+1 settlement cycle started in June.

The Banking Index took the hardest hit, falling by 10.5 percent. The Insurance Index also faced a decline. FTSE Russell, a global stock market index provider, paused its recent upgrade of Nigeria from unclassified to frontier market. They are worried that the new rule, which requires international investors to fund their accounts before trading, might be scaring them away.

If stock market authorities do not act quickly to fix this issue, stocks may continue to suffer from lack of interest and capital flight from foreign investors.

This week, we might see more activity in stocks that pay dividends at least twice a year. The market is waiting for the release of half-year corporate results.

PREMIUM TIMES has put together some stocks with solid fundamentals. We used careful methods to help you avoid randomly picking stocks for investment.

This list is based on market analysis. It’s a guide for entering the market and making smart choices, with hopes that these selected stocks will increase in value over time.

This is not advice to buy, sell, or hold. You should talk to your financial advisor before making any investment decisions.

NEM Insurance

NEM Insurance is at the top of this week’s list because of its strong fundamentals. The net profit ratio (NPR) for the company is 9.6, and the price-to-earnings (PE) ratio is 8.5x. Its 10-day relative strength index (RSI) stands at 27.4.

Custodian Investment

Custodian Investment is included due to its attractive fundamentals and because it is trading below its actual value. The NPR for Custodian is 26.3, while the PE ratio is 5.3x. The RSI is 8.4.

Fidelity Bank

Fidelity Bank makes the list for trading below its actual value. The lender’s NPR is 16, and the PE ratio is 3.3x. Its RSI is 27.4.