Nigerian stocks shed 3.3 per cent last week after increased sell pressure from investors during a week in which many released corporate results failed to impress the market.

The central bank’s Monetary Policy Committee, on Tuesday, raised the benchmark interest rate by 4 percentage points, a hawkish stance aimed at curbing inflation. But that had weighty impact on the market as investors seeking stronger yields ditched stocks for fixed-income securities offering higher returns.

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 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, particularly in the short term.

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.

Sovereign Trust Insurance

Sovereign Trust Insurance tops this week’s pick for currently trading well below its intrinsic value, brightening its chances of strong price appreciation in the future.

The price-to-book (PB) ratio of the company is presently 0.5x, while its price-to-earnings (PE) is 6.4x.

Learn Africa

Learn Africa appears in the pick for currently trading substantially below its actual value.

Its PB ratio is 5.3x at the moment, while the PE ratio is 0.7x.

United Bank for Africa (UBA)

UBA appears on the list for trading significantly below its real value. The lender’s PB ratio is 0.5x, while its PE ratio is 1.6x.

Zenith Bank

Zenith Bank features on this week’s stock selection for currently trading below its intrinsic value.

The bank’s present PB ratio is 0.6x, while the PE ratio is 2.3x.

UACN

UACN makes this week’s list for currently trading below its real value. The conglomerate’s PB ratio is 0.8x, while the PE ratio is 5.1x.

Culled from Premium Times Nigeria