Business
NEM Insurance, Custodian, Fidelity Bank top stock pick this week
Last week, Nigerian stocks fell by 1.2 per cent, marking its third week of broad retreat in the wake of the introduction of a T+1 settlement cycle in June.
The Banking Index was worst hit, receding by 10.5 per cent, followed by the Insurance Index. FTSE Russell, a global provider of stock market indexes, during the week placed its recent upgrade of Nigeria from unclassified to a frontier market on hold on fears that the country’s new rule, compelling international investors to prefund their accounts before transactions, may be deterring.
Failure by stock market authorities to respond swiftly to address the issue may leave stocks hammered further by apathy and capital flight from foreign investors.
This week, increased positioning, notably in stocks that pay dividends at least twice a year, could be witnessed as the market awaits the release of half-year corporate results.
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.
NEM Insurance
NEM Insurance tops this week’s list for its strong fundamentals. The net profit ratio (NPR) of the underwriter is 9.6, while the price-to-earnings (PE) ratio is 8.5x. Its 10-day relative strength index (RSI) is 27.4.
Custodian Investment
Custodian Investment appears on the pick on the basis of its attractive fundamentals and for trading below its intrinsic value. The NPR of the company is 26.3, while the PE ratio is 5.3x. The RSI is 8.4.
Fidelity Bank
Fidelity Bank makes the selection for trading below its intrinsic value. The lender’s NPR is 16, while the PE ratio is 3.3x. Its RSI is 27.4.
READ ALSO: Cornerstone Insurances 2025s profit drops more than half as FX gains dry up
United Capital
United Capital makes the cut for its vibrant fundamentals. The NPR of the company is 51.2, while the PE ratio is 10x.
Aradel Holdings
Aradel Holdings features on the pick for its strong fundamentals. The energy company’s NPR is 57.4, while the PE ratio is 14.2x. The RSI is 17.
An Aero Contractors flight travelling from Lagos to Abuja on Saturday morning returned to its departure airport after the crew reported a technical issue while the aircraft was airborne.
The aircraft, which departed Lagos at about 7:30 a.m., had travelled part of the route mid air before the flight crew decided to discontinue the journey and return to Lagos as a precautionary safety measure.
Passengers were safely evacuated after the aircraft landed, and no injuries were reported.
A passenger aboard the flight told PREMIUM TIMES that the cabin became unusually hot while the aircraft was in the air, causing anxiety among passengers.
According to the passenger, the crew informed those on board that the aircraft had developed a technical problem and would return to Lagos but did not disclose the exact nature of the fault.
“There was a lot of panic because people did not know exactly what had happened. We were only told there was a technical problem and that we had to return to Lagos,” the passenger said.
As of 10:10 a.m., the affected passengers had begun boarding another Aero Contractors aircraft to continue their journey to Abuja, according to one of the passengers who spoke with PREMIUM TIMES.
PREMIUM TIMES contacted Aero Contractors for comments on the incident, including the nature of the reported technical issue, the reason for the aircraft’s return to Lagos and the arrangements made for affected passengers.
However, the airline had yet to respond as of the time this report was filed.
Recent incidents
Saturday’s occurrence comes about two months after a Max Air flight from Abuja to Katsina made an emergency return to the Nnamdi Azikiwe International Airport shortly after take-off following a reported technical fault.
As previously reported by PREMIUM TIMES, passengers on the May 2026 flight recounted hearing loud banging sounds from the aircraft before it reportedly lost altitude briefly and struggled to stabilise, prompting the pilot to return to Abuja as a safety precaution. The aircraft landed safely, and no injuries were reported.
READ ALSO: Benin runway excursion not crash or emergency landing Enugu Air CEO
The Aero Contractors incident also comes amid increased public attention to airline operations following Thursday’s runway excursion involving an Enugu Air Embraer E170 at Benin Airport.
Although all 63 passengers and five crew members escaped unhurt, the occurrence disrupted flight operations after the runway was temporarily closed, forcing Air Peace and United Nigeria Airlines to suspend flights to and from Benin while aircraft recovery and safety assessments were carried out.
While the circumstances surrounding the Aero Contractors, Max Air and Enugu Air incidents differ, they have renewed attention on operational reliability and safety across Nigeria’s aviation sector.
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