Penny stocks such as insurance companies, Sterling Financial Holdings Company Plc, and JapaulGold, among others, are expected to perform well on the Nigerian Exchange Limited this year.
The PUNCH revealed that this is according to the FY 2023 Review and 2024 Outlook report compiled by financial services holding company, Afrinvest. The stocks included in this projection are those whose stocks are priced at or below N5 per unit.
Sterling Financial Holding Company Plc’s stock was projected to benefit from its partnership with the African Export-Import Bank.
“It is expected to benefit from its partnership with Afreximbank to boost non-oil exports and outside Africa and sustained operation efficiency,” the projection on the lender stated.
Sterling signed a $75 million agreement with the African Export-Import Bank to promote non-oil exports in Nigeria on the sidelines of the recently concluded Intra-Africa Trade Fair in Cairo, Egypt.
Insurance stocks are also projected to perform well this year. According to the report, “Following NAICOM’s move to stimulate sector expansion and elevate global competitiveness. The possibility of a risk-based financing structure in 2024 would be a spur for further progress.”
According to the prediction for mining business JapaulGold & Ventures Plc, “JapaulGold posted post-tax profits for the first time in seven years, buoyed by a 215 per cent increase in topline revenue.
“If finalized, the proposed acquisition of a 50% stock interest in H&H mines and full ownership of Covenant Gems and Gold minerals would reposition the company as a market leader.
