Ruth Ibikunle
The Nigerian stock market last week closed on a positive note with 2.35%. Year to date, the market has returned 14.78% with the All Share Index and Market Capitalisation at 118,138.22 points and N74.534 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 2.35% growth. What is the outlook for the new week?
“The Nigerian equity market closed last week on a bullish trajectory, posting a solid 2.35% gain. This positive momentum is expected to carry into the new trading week, supported by broad-based sector strength, strong investor sentiment, and improving macro stability. However, intermittent profit-taking and cautious positioning ahead of key economic data and policy decisions may introduce short-term volatility. Investors are advised to remain focused on fundamentally sound stocks with resilient earnings and strong dividend histories.
What is driving the growth in Ellah Lakes, Beta Glass, and GTCO?
Ellah Lakes – The growth is fueled by its agricultural expansion, particularly the deal to manage Adarice Farms in Enugu, bringing rice, soybean, and cassava into its portfolio. This signals a strategic diversification away from core agro-processing and enhances its earnings visibility.
Beta Glass – Beta Glass has posted a remarkable Q1 2025 result, with pre-tax profit surging to N15.2 billion representing a +639% YoY, revenue up 86.9%, and EPS rising 594%. The growth is further supported by expanding exports into Francophone West Africa. These fundamentals have driven renewed investor confidence and a ~582% YtD price appreciation.
GTCO – Buoyed by currency stability, earnings optimism, and robust Q1 2025 results, GTCO has remained attractive. The bank’s consistent dividend payouts, strong asset quality, and ability to navigate regulatory challenges in view CBN’s forbearance policy reinforce investor trust.
How attractive are banking stocks?
Banking stocks remain a fundamentally strong play. Backed by robust core earnings, high dividend yields, capital adequacy, and strategic growth pathways, banks—particularly FUGAZ (FirstBank, UBA, GTCO, Access, Zenith)—offer compelling value. Stability in the FX market and expanding loan and fee income bases beyond mere currency revaluation gains make the sector a key pillar for medium-term equity positioning.
How attractive is Legend Internet at N7.92?
Legend Internet at N7.92 is showing a bullish turnaround after consolidating below its 52-week high of N10.00. It’s trading slightly above its short-term moving average, suggesting renewed buying interest. The company’s Q1 2025 earnings—2.2% revenue growth to N319.9 million and 20.8% gross profit increase—are encouraging. The new “fibre-to-the-room” rollout with Huawei adds to its long-term growth potential. Technically and fundamentally, it offers a balanced entry point for mid-risk investors.
Is NAHCO a good buy at N88.2?
Yes, NAHCO at N88.20 presents an attractive entry opportunity. The stock has broken past its historical resistance, riding on strong earnings performance, a healthy dividend yield, and continued momentum in the aviation logistics sector. Trading above its 50-day moving average with solid bullish signals, it remains a solid “BUY” for income and growth-seeking investors.
How attractive is Oando at N61?
Oando at N61 offers a compelling case for growth investors. Positioned between recovery lows and its 52-week high of N98.40, the stock is supported by asset expansion, an optimistic production outlook, and strategic positioning following the NAOC asset acquisition. The momentum is supported by improved energy prices and stronger investor appetite in the oil and gas sector.
What are the stocks to watch?
Here are the likely stocks to watch for the new week ahead, include BETAGLAS, GTCO, Ellahlakes, NAHCO, Oando, Zenith, Access, Transcorp, Fidelity, Presco, Okomu and a few others.“