Ruth Ibikunle
The Nigerian Stock Market last week closed on a positive note with 4.47% growth amidst renewed buy interests. Year to date, the market has returned 51.22% with the All-Share Index and Market Capitalisation at 155,640.55 points and N98.793 trillion respectively.
In a stock market review with Jide Dahunsi, Group Head, Investment Research at SCM Capital Limited, the following were discussed.
Excerpts:
The stock market last week closed on a bullish note with 4.47% growth. What is the outlook for the new week?
We expect the positive momentum to continue in the Consumer Goods index and the Industrial Index, bolstered by impressive corporate earnings release, unattractive fixed income yield, positive economic report (Nigeria’s exit from the grey list) amid sustained high system liquidity.
How would you rate Q3 2025 earnings report released so far?
The corporate earnings affirmed analysts’ forecast. FMCGs and Industrial tickers had significant topline growth driven majorly by volume.
Forex stability supported the PBT performance amidst modest growth in the operating expenses.
What is driving the growth in ARADEL, PZ, NASCON, BUA Cement, Dangote Cement, MTN?
ARADEL – The increased stake in ND Western by additional 40% (41.67% current holding) has been identified as the major driver of the recent rally as investor bet on earnings growth.
PZ – The Q1’2025 saw appreciable growth. Investors sentiment has been very strong around the FMCGs tickers on year-on-year performance improvement.
NASCON – While the acquisition scheme is technically on the table, the ticker has enjoyed sustained buying bargain on expectation.
BUA Cement – Earnings expectation and policy helped to drive the rally.s
Dangote Cement – The cement industry is projected to benefit significantly from government’s infrastructure drive across the country, offering the various tickers opportunity to grow their volume sale as price is relatively constant. A major recovery in the forex loss is a catalyst
MTNN – The fundamentals, tariff increase, large and increasing subscriber base, enlarged spectrum and forex recovery have supported the price valuation metrics of MTN.
What are the possibilities for NEM Insurance, Cornerstone Insurance based on their Q3 2025 results?
The new Nigerian Insurance Industry Reform Act (NIIRA 2025) is a landmark piece of legislation that modernizes Nigeria’s insurance sector, offering opportunities for insurance firms to grow their balance sheet and earnings.
However, the recapitalization exercise may depress their EPS on impact of dilution.
How attractive is Wema Bank at N20.50?
This will be dependent on how the firm will be able to utilize the new fund.
What are the stocks to watch?
Stocks in the Consumer Goods Sector and Industrial Goods.
Jide Dahunsi, Group Head, Investment Research, SCM Capital Limited,