Insurance equities have taken centre stage on the Nigerian Exchange (NGX) following the passage of the Nigerian Insurance Industry Reform Act last week, a sweeping overhaul that has sparked renewed investor confidence.
According to NGX data, the insurance sector posted a record 41% return during the week—its best performance since 2009—while the broader All-Share Index (ASI) advanced by 3.2%.
Investment bank Meristem Securities, in its market outlook, projected a continued bullish bias as investors reprice stocks upward on the back of strong corporate earnings. Analysts expect sustained demand for insurance equities to drive further gains this week.
In addition to insurance stocks, investors are also eyeing the half-year earnings releases of the country’s major banks, with GTCO and Zenith Bank’s results already awaiting Central Bank approval.
Stocks to Watch This Week
This list is based on market fundamentals and analysis, not as a buy, sell, or hold recommendation. Investors are advised to consult their financial advisers before making decisions.
Aiico Insurance
Aiico leads this week’s watchlist for trading below its intrinsic value. It has a price-to-book (PB) ratio of 1.7x, a price-to-earnings (PE) ratio of 9.4x, and a relative strength index (RSI) of 86.7.
Jaiz Bank
Jaiz Bank is trading well below its intrinsic value, with a PB ratio of 2.9x, a PE ratio of 7x, and an RSI of 76.1.
Transcorp Power
The power company is trading at its lowest price in 52 weeks, with a PB ratio of 15x, a PE ratio of 27.5x, and an RSI of 0—indicating potential oversold conditions.
Lasaco Insurance
Lasaco enters the list with a moderate 10-day RSI of 65.8, suggesting room for near-term gains. Its PB ratio stands at 1.9x, while its PE ratio is -17.4x.
Presco
Presco is trading below its intrinsic value, with a PB ratio of 2.2x, a PE ratio of 5.5x, and an RSI of 66.7.
GTCO
GTCO is also undervalued relative to its fundamentals, with a PB ratio of 1.2x, a PE ratio of 3.6x, and an RSI of 61.3.
With the insurance sector outperforming the broader market and key earnings reports on the horizon, analysts say investors may find strategic opportunities in stocks trading below their intrinsic value or showing technical indicators for potential gains.
