Emmanuel OchayiAfrinvest’s FY 2023 Review and 2024 Outlook report has pinpointed promising prospects for penny stocks on the Nigerian Exchange Limited, particularly those priced below or around N5 per unit.
Sterling Financial Holdings Company Plc stands out, with projections fueled by its partnership with the African Export-Import Bank.
“Sterling is expected to benefit significantly from its collaboration with Afreximbank, boosting non-oil exports globally and ensuring sustained operational efficiency,” the report said.
Developments also reveal that Sterling has inked a $75 million agreement with Afreximbank during the Intra-Africa Trade Fair in Cairo. This move underscores the commitment to foster non-oil exports in Nigeria.
The optimism extends to the insurance sector, with expectations of robust performance in 2024.
The report cites NAICOM’s initiatives to spur growth and elevate global competitiveness, highlighting the potential introduction of a risk-based capital framework in the coming year as a catalyst for sector advancement.
JapaulGold and Ventures Plc, a mining company, takes center stage as it posts post-tax profits for the first time in seven years.
The report attributes this success to a 215% increase in topline revenue. Furthermore, the proposed acquisition of a 50% equity interest in H&H mines and full ownership of Covenant Gems and Gold minerals could strategically position the company as a market leader.
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Honeywell Flour Mills’ inclusion in the projection is justified by its production of an essential product. Analysts anticipate potential revenue boosts through pricing and volume adjustments.
Even the real estate sector, represented by UPDC, is poised for growth. The report notes, “Following interventions by the FGN to enhance growth in the real estate market via expansion in the capital market.” This suggests a favorable outlook for UPDC as the market continues to evolve under government support.
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