Nigerian stocks reported a modest gain last week, appreciating by 0.3 per cent as the market only ran limited trading sessions on account of the public holidays commemorating Eid el Adha celebrations.

The advance was largely 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 gone in 2026.

“From a technical standpoint, the market’s 10-day RSI moderated further to 71.47pts (vs. 78.93pts in the prior week), indicating that while the market remains in overbought territory, momentum has continued to ease, thereby reducing the intensity of previous overheating concerns and creates room for fresh buying interest to emerge,” said analysts at Meristem Securities in their outlook for the week.

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 pick on the basis of its strong fundamentals and for trading below its intrinsic value. The financial institution’s net profit ratio (NPR) is 16.4 per cent, while the price-to-earnings (PE) ratio is 5.1x. Its RSI is 53.4.

Coronation Insurance

Coronation Insurance makes the selection by virtue of its strong fundamentals. The NPR of the underwriter is 9.2 per cent, while the PE ratio is 9x. Its relative strength index (RSI) is 49.3.

Nascon Allied Industries

Nascon appears on the pick on the basis of its robust fundamentals. The NPR of the company is 22 per cent, while the PE ratio is 17.7x. The RSI is 66.1.

Aradel Holdings

Aradel makes the selection on the basis of its strong fundamentals. The NPR of the energy firm is 57.5 per cent, while the PE ratio is 21.5x. Its RSI is 67.8.

MTN Nigeria

MTN Nigeria makes the cut by virtue of its strong fundamentals. The NPR of the telco is 23.7x, while the PE ratio is 12.9. The RSI is 53.3.

Sterling Bank, Coronation Insurance, Nascon top stock picks this week

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