Stanbic IBTC, Mutual Benefits and Aradel lead this week’s stock picks

Nigerian stocks appear to be regaining the bullish momentum that produced strong gains earlier in the year. The market rose 2.4% last week, its best performance in eight weeks, according to Premium Times.

The advance came as Nigeria prepares for FTSE Russell’s scheduled upgrade to frontier-market status this month. FTSE Russell also plans to admit 10 large-cap Nigerian stocks to its Frontier Index Series in September. A second-quarter GDP report showing 4.4% year-on-year growth added to the positive market backdrop.

Oil and gas shares led the move with a 9.1% gain, driven by fresh investor interest in Seplat Energy. Momentum could continue this week as investors await half-year results from several banks.

Premium Times selected five stocks through an analysis of fundamentals and market indicators. Stanbic IBTC Holdings leads the list, with a net profit ratio of 34.5%, a price-to-earnings ratio of 6.3 times and a 14-day relative strength index of 37.7. Mutual Benefits Assurance follows, with an 11.3% net profit ratio, a 4.7-times price-to-earnings ratio and an RSI of 47.4. The insurer is trading near its 52-week low.

Aradel Holdings was selected with a 28.4% net profit ratio, an 8.2-times price-to-earnings ratio and an RSI of 52.8. Access Holdings has a 14.1% net profit ratio, a 2.2-times price-to-earnings ratio and an RSI of 59.7. Nigerian Aviation Handling Company, or NAHCO, was included for its promising fundamentals, with a price-to-earnings ratio of 15.6 times and an RSI of 14.4.

The publication stressed that the list is an investment guide, not a buy, sell or hold recommendation, and advised readers to consult a financial adviser before making investment decisions.