Sterling Bank, Coronation Insurance, Africa Prudential top stock pick this week

Nigerian stocks continued their upward trajectory last week as the benchmark index expanded by 2.3 per cent, taking the year-to-date yield of the market to 60.9 per cent. Industrial goods stocks were the main driver.

“Investors are expected to continue positioning in response to ongoing Q1:2026 earnings releases, while dividend considerations should remain a key driver of portfolio rotation across major sectors of the market,” analysts at Meristem Securities said in their outlook for the week.

This week, investors will be on the lookout for the outcome of the Central Bank of Nigeria’s monetary policy committee meeting, which could shape positioning in equities in the near term.

PREMIUM TIMES has assembled some stocks with sound fundamentals, adopting rigorous approaches to save you the risk of picking equities at random for investment.

The pick, a product of an analytical market watch, offers a guide to entering the market and taking strategic positions, with the expectation that selected stocks will record reasonable price appreciation with the passage of time.

This is not a buy, sell or hold recommendation but a stock investment guide. You may need to involve your financial advisor before taking investment decisions.

Sterling Bank

Sterling Bank tops this week’s list on the basis of its strong fundamentals and for trading below its intrinsic value.

The net profit ratio (NPR) of the lender is 16.5 per cent, while the price-to-earnings (PE) ratio is 4.7x. Its relative strength index (RSI) is 49.8.

Coronation Insurance

Coronation Insurance appears on the pick on the basis of its robust fundamentals. The NPR of the insurer is 9.2 per cent, while the PE ratio is 9.1x. The RSI is 39.5.

Africa Prudential

Africa Prudential makes the selection by virtue of its strong fundamentals. The company’s NPR is 45.2 per cent, while the PE ratio is 21.6x. Its RSI is 41.