The Nigerian stock market is showing signs of recovery as investor interest in undervalued stocks gains momentum, according to Futureview Financial Services Limited. In a recent market report, the firm highlighted that strong earnings reports and favorable corporate actions are likely to boost investor confidence and drive a positive trend.
Despite this optimism, last week ended on a negative note for the Nigerian Exchange (NGX), with investors losing over N421 billion. The NGX All-Share Index (ASI) dropped by 0.62% on a week-on-week basis, closing at 107,821.39 points from the previous 108,497.40 points. This decline was mainly due to profit-taking activities in key stocks, as investors redirected funds toward higher-yield opportunities in the fixed-income market. As a result, the year-to-date return fell to 4.76%.
Futureview’s stock recommendations suggest a cautious approach toward the banking sector, except for Access Holdings and Sterling Bank, which have been given a buy rating. The firm remains bearish on consumer goods and telecom stocks but sees opportunities in undervalued insurance and oil & gas stocks.
For investors looking for potential gains, Futureview projects a 20.90% return on Oando Plc, 10.86% on Total Energies, 19.62% on Japaul Gold, and 34.84% on Aradel Holdings. In the insurance sector, NEM Insurance is expected to yield 15.34%, Mansard 16.24%, Sunu Assurance 31.83%, and Cornerstone Insurance 31.35%, while AIICO is marked for holding.
In the industrial goods sector, the firm recommends holding shares in Dangote Cement and Lafarge Africa (WAPCO) but suggests buying BUA Cement. Beta Glass, on the other hand, has been rated a sell.
