Nigerian equities extended their gains last week, rising 1.1% despite a lack of fresh market triggers. The advance, driven largely by the insurance and oil & gas sectors, pushed year-to-date returns on the Nigerian Exchange (NGX) to 36.6%, underscoring the market’s resilience in 2025.
Analysts at Meristem Securities expect half-year earnings from Tier-1 banks to set the tone for trading in the coming sessions. “Key triggers such as anticipated corporate announcements, particularly H1:2025 results from Tier-1 banks, are expected to provide some support to market activity,” the firm noted in its weekly outlook.
They also see bargain hunting resurfacing in undervalued counters that recently retreated, potentially spurring renewed buying interest.
Investors are awaiting the half-year financials of UBA, GTCO, Access Holdings, and Zenith Bank—results that could influence both liquidity and sentiment.
Against this backdrop, PREMIUM TIMES has highlighted a selection of stocks with relatively strong fundamentals and room for appreciation. The screening relies on valuation metrics such as net profit ratios (NPR), price-to-earnings (P/E) multiples, and relative strength indices (RSI).
Stock Picks for the Week
Guaranty Trust Holding Company (GTCO)
GTCO leads this week’s list, trading below its intrinsic value and positioned to deliver a solid interim dividend. The lender’s NPR stands at 41.1%, with a P/E ratio of 3.4x. Its RSI of 45.8 suggests the stock is neither overbought nor oversold, providing room for upward movement.
Mutual Benefits Assurance
Mutual Benefits makes the cut for its discounted valuation. The insurer has an NPR of 13.1% and trades at a P/E of 4x. Its RSI of 60.2 reflects modest investor momentum, keeping it attractive for short- to medium-term positioning.
Transnational Corporation (Transcorp)
Transcorp continues to draw attention for trading below its underlying value. The conglomerate posts a healthy NPR of 20.8%, with a P/E of 6.8x. An RSI of 40.5 suggests the stock remains in attractive territory for accumulation.
May & Baker
The pharmaceutical company earns a spot for its fairly stable fundamentals. With an NPR of 7% and a P/E of 13.3x, May & Baker’s RSI of 32.7 points to an oversold position that could support a rebound.
Africa Prudential
Rounding out the picks, Africa Prudential is buoyed by strong profitability metrics. The firm’s NPR is 36.6%, with a relatively high P/E of 21.2x. Its RSI of 45.2 places the stock in neutral territory, leaving room for potential upside.
Outlook
While the broader market awaits Tier-1 bank results to set direction, select undervalued equities may benefit from bargain hunting. Investors are advised to track corporate announcements closely and align positions with risk appetite and portfolio goals.
Disclaimer: This article is intended for informational purposes only and does not constitute a buy, sell, or hold recommendation. Investors should consult their financial advisers before making investment decisions.
