Top Stock Picks This Week: Transcorp, AXA Mansard, GTCO

Nigerian stocks fell by 1.6 percent last week. This drop came after many investors took profits across all sectors except for oil and gas.

The Insurance Index took the hardest hit, dropping by 5.5 percent. It is now the only sector index this year that has a negative yield.

Investment bank United Capital Plc shared a note with investors. They said, “Stocks with strong earnings, attractive valuations and consistent dividend payouts should also remain in focus.”

This week, attention will turn to the primary market. The big $1.6 billion initial public offering of Dangote Refinery is set to start.

PREMIUM TIMES has put together a list of stocks that have good fundamentals. They used careful analysis to help you avoid the risk of picking stocks randomly for investment.

This pick is based on a thorough market watch. It serves as a guide to entering the market and making smart choices. The hope is that these selected stocks will see reasonable price increases over time.

This is not a recommendation to buy, sell or hold any stock. It is a guide for stock investment. You should talk to your financial advisor before making any investment decisions.

Transnational Corporation (Transcorp)

Transcorp is at the top of this week’s list. It has strong fundamentals and is trading below its true value. The company's net profit ratio (NPR) is 24.7, and its price-to-earnings (PE) ratio stands at 4.5x. Its 10-day relative strength index (RSI) is 31.5.

AXA Mansard

AXA Mansard made the list because of its attractive fundamentals. The insurer has an NPR of 3.4 and a PE ratio of 29.8x. Its RSI is at 47.3.

Guaranty Trust Holding Company (GTCO)

GTCO is included for its solid fundamentals and because it is trading below its true value. The banking group has an NPR of 37.4 and a PE ratio of 5.4x. Its RSI is 47.8.