Nigerian stocks recorded a modest gain last week, appreciating by 0.3 per cent as the market operated with limited trading sessions due to the public holidays marking the Eid el Adha celebrations. The advance was primarily driven by increased demand for oil and gas stocks.
The main equity index has returned 60.9 per cent year to date, with just five months completed in 2026. Analysts at Meristem Securities noted in their weekly outlook that from a technical standpoint, the market's 10-day Relative Strength Index (RSI) moderated further to 71.47 points, compared to 78.93 points in the prior week. This indicates that while the market remains in overbought territory, momentum has continued to ease, thereby reducing the intensity of previous overheating concerns and creating room for fresh buying interest to emerge.
In the spirit of guiding investors, Premium Times has compiled a selection of stocks with sound fundamentals, employing rigorous analytical approaches to help investors avoid the risk of picking equities at random. This stock investment guide is not a buy, sell, or hold recommendation but a strategic tool. Investors are advised to consult their financial advisors before making investment decisions.
Stock Picks for the Week
Sterling Bank
Sterling Bank tops this week's pick based on its strong fundamentals and trading below its intrinsic value. The financial institution's net profit ratio (NPR) stands at 16.4 per cent, while its price-to-earnings (PE) ratio is 5.1 times. The RSI is 53.4.
Coronation Insurance
Coronation Insurance makes the selection by virtue of its strong fundamentals. The underwriter's NPR is 9.2 per cent, with a PE ratio of 9 times. Its RSI is 49.3.
Nascon Allied Industries
Nascon appears on the pick due to its robust fundamentals. The company's NPR is 22 per cent, and its PE ratio is 17.7 times. The RSI is 66.1.
Aradel Holdings
Aradel makes the selection on the basis of its strong fundamentals. The energy firm's NPR is 57.5 per cent, with a PE ratio of 21.5 times. Its RSI is 67.8.
MTN Nigeria
MTN Nigeria makes the cut by virtue of its strong fundamentals. The telco's NPR is 23.7 per cent, while the PE ratio is 12.9 times. The RSI is 53.3.
