Ruth Ibikunle
The Nigerian stock market last week closed on a positive note as the NGX All Share Index soared by 2.37%. Year to date, the market has returned 42.81% with the All-Share Index and Market Capitalisation at 146,988.04 points and N93.296 trillion respectively.
In a stock market review with Mr Gilbert Ayoola, a seasoned Capital Market Analyst, the following were discussed:
Excerpts:
The stock market last week closed on a bullish note with 2.37% growth. What is the outlook for the new week?
The Nigerian stock market closed last week on a strong bullish note, with the All-Share Index advancing 2.37%, buoyed by upbeat Q3 earnings expectations, bargain hunting, and renewed investor confidence across key sectors.
The positive momentum is likely to continue this week because of sustained corporate earnings releases and improved market sentiment. However, the rally may face mild headwinds from profit-taking and global macro uncertainties. Overall, the outlook remains cautiously optimistic, with opportunities in fundamentally sound and dividend-yielding stocks.
What is driving the growth in MTN, Seplat, Sovereign Trust Insurance OMATEK, AXA Mansard, CHAMS, and Cutix?
The recent bullish momentum on the NGX has seen notable gains in select equities across diverse sectors.
The rally in these stocks reflects a mix of strong fundamentals, sector-specific tailwinds, and speculative interest. Here’s a concise breakdown of the key drivers behind the growth in MTN, Seplat, Sovereign Trust Insurance, OMATEK, AXA Mansard, CHAMS, and Cutix:
MTN
Investor sentiment remains strong following improved data revenue, fintech expansion, and anticipation of better Q3 earnings. MTN’s focus on network expansion and digital services continues to attract long-term investors.
Seplat
Rising global oil prices and Seplat’s consistent production output have buoyed investor confidence. The company’s strategic acquisitions and robust financials also position it favourably amid sector volatility.
Sovereign Trust Insurance
The stock has benefited from increased retail investor interest, low price attractiveness, and expectations of sector-wide recapitalisation, boosting its
speculative appeal.
OMATEK
The recent price surge appears driven by speculative trading and renewed interest in tech-adjacent penny stocks. Investors are positioning ahead of potential restructuring and business revival news.
AXA Mansard
Strong performance in health and life insurance segments, coupled with improved underwriting efficiency and digital adoption, has boosted earnings outlook, attracting institutional interest.
CHAMS
Momentum has been supported by its restructuring into a digital solutions provider and improved revenue streams from its identity management and fintech services.
Cutix
The cable manufacturer has seen improved demand due to infrastructure development and local sourcing policies. Positive financial results and consistent dividend payouts are also strengthening investor sentiment.
Is Ellah Lakes a good buy at N14.40?
Yes, Ellah Lakes is a good buy at the current price, supported by renewed investor confidence and a strong value proposition. The recent acquisition of a 100% equity stake in Agro-Allied Resources & Processing Nigeria Limited (ARPN) is a strategic move to expand its operational footprint and processing capacity. The company’s plan to raise up to N250 billion through equity issuance will further support its transformation into a vertically integrated agro-industrial business.
However, investors should note the company’s current financial challenges, including a net loss of N549.78 million for the 2025 fiscal year. At N14.40, the stock offers a modest upside to a target price of N15.40 (3.21%), trading below its 52-week high of N19.42 but slightly above the 50-day moving average of N13.51. The stock presents a balanced risk-reward opportunity for growth-oriented investors.
Why is NIEMETH trending down?
Neimeth’s stock is trending downward due to a combination of profit-taking and
growing investor concern over its financial health. Following a mild price uptick in previous weeks, sentiment turned cautious as the company’s H1 2025 results revealed key red flags.
Despite revenue growth, finance costs spiked 186% to N838 million, while administrative expenses soared 710% to N498 million, largely due to wage pressures, provisions, and ongoing restructuring. These rising costs have eroded profitability and raised questions about the company’s financial stability.
Additionally, broader macroeconomic headwinds, particularly high lending rates, continue to strain operations, further dampening investor confidence and driving the stock’s decline.
What are the stocks to watch?
Given the positive momentum in the Nigerian stock market, several stocks are poised for attention among stocks to watch for the week. These are MTN, Seplat, AXA Mansard, Cutix, CHAMS, Sovereign, Ellah Lakes, First HoldCo, Aradel, NB, UACN, Jaiz, UPDC, CWG, and many others.