Selected Nigerian equities including NEM Insurance Plc, Fidelity Bank Plc and Africa Prudential Plc have emerged among analysts’ top stock picks for the week, as investors continue to position for potential gains on the Nigerian Exchange Group.
The recommendations come after the Nigerian equities market advanced last week, with the benchmark index gaining 0.7 percent on increased investor interest in industrial goods stocks. The rally has lifted the year-to-date return of the main index to about 27.5 percent, reflecting strong momentum in Africa’s largest stock market.
As the first quarter of the year approaches its close, investors are closely monitoring the release of audited 2025 financial statements by major lenders and corporates, which analysts say could shape the near-term direction of the market.
Analysts at Meristem Securities said dividend announcements from companies that have already released full-year results could continue to attract income-seeking investors in the coming weeks.
“Dividend declarations from companies that recently released their full-year results could continue to attract income-seeking investors, providing support for some counters,” the firm said in a market outlook note.
The analysts added that sentiment in the oil and gas sector could remain positive following the recent rise in global oil prices, which has been largely driven by geopolitical tensions affecting energy supply routes.
Market watchers say stronger oil prices tend to support investor confidence in Nigeria’s economy because crude exports account for the bulk of the country’s foreign earnings.
Among the equities highlighted this week, NEM Insurance Plc topped the list due to what analysts described as strong underlying fundamentals and a valuation that remains below its intrinsic value.
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The insurer recorded a net profit ratio of about 14.2 percent while its price-to-earnings ratio stood at roughly 7.1 times, indicating relatively attractive valuation levels. Its relative strength index, a technical indicator used to gauge momentum, was placed at 55.7.
Fidelity Bank Plc, one of Nigeria’s mid-tier lenders, also featured prominently in the selection due to its solid financial performance and relatively low valuation metrics.
The bank posted a net profit ratio of about 19.1 percent and traded at a price-to-earnings ratio of around 3.6 times, suggesting the stock remains undervalued compared with peers. Its relative strength index stood at 43.1, indicating moderate market momentum.
Another company highlighted in the selection is Africa Prudential Plc, a provider of registrar and investor services in Nigeria’s capital markets.
The firm was selected largely for its strong profitability metrics, including a net profit ratio of approximately 33.8 percent. However, its price-to-earnings ratio of about 19.4 times suggests a higher valuation compared with some other companies on the list. Its relative strength index was placed at 46.8.
Other companies included in the weekly stock watch are Cornerstone Insurance Plc and BUA Foods Plc.
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Cornerstone Insurance recorded a net profit ratio of about 14 percent and a price-to-earnings ratio of roughly 11.9 times, with a relative strength index of 39.4.
BUA Foods, one of Nigeria’s leading food manufacturing firms, was also highlighted due to its strong profitability. The company posted a net profit ratio of about 28.1 percent while trading at a price-to-earnings ratio of roughly 28.4 times. Its relative strength index was recorded at 47.7.
Analysts emphasised that the selections are intended only as an investment guide rather than a recommendation to buy, sell or hold specific stocks.
Investors are generally advised to consult professional financial advisers before making investment decisions, particularly in volatile market conditions.
Market participants will continue to monitor corporate earnings, dividend announcements and broader economic developments in the coming weeks as the first quarter draws to a close.
