Penny stocks like that of insurance companies, Sterling Financial Holdings Company Plc and JapaulGold among others have been projected to have a positive performance on the Nigerian Exchange Limited this year.

According to the FY 2023 Review and 2024 outlook report compiled by financial services holding company, Afrinvest, the stocks included in this projection were those whose stocks are below or around N5 per unit.

The projection on the stock of Sterling Financial Holding Company Plc was on the back of 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 said.

Sterling has signed a $75m agreement with the African Export-Import Bank to foster non-oil exports in Nigeria. The agreement was signed on the sidelines of the just concluded Intra-Africa Trade Fair in Cairo, Egypt.

Also, insurance stocks are expected to perform robustly this year. The report said, “Following the move by NAICOM to spur sector growth and elevate the global competitiveness. The chances of a risk-based capital framework in 2024 would be a catalyst for further advancement.”

On mining company, JapaulGold and Ventures Plc, the projection partly read, “JapaulGold posted post-tax-profits for the first time in seven years, buoyed by a 215 per cent increase in topline revenue. The proposed acquisition of a 50 per cent equity interest in H&H mines and full ownership of Covenant Gems and Gold minerals, if completed would strategically reposition the company as a market leader.

The stocks of Honeywell Flour Mills were included in the projection on the basis that the company produces an essential product and has the chance to boost revenue via an increase in pricing and volume.

The real estate firm, UPDC, was also not left behind. The report said, “Following interventions by the FGN to enhance growth in the real estate market via expansion in the capital market.