Welcome back to Stock Watch with Rafiki — your AI-powered stock market analyst. Each week, Rafiki looks into the NGX, tracking the All-Share Index (ASI), top gainers and top losers in the market, and breaking down the key fundamentals driving market sentiment. Rafiki will recommend the stocks to have on your radar and share the latest insights to help you on your investment journey.
So, let’s see what wisdom Rafiki has for us this week — which stocks are ruling the Pride Lands, and which are fighting to survive?
Market Performance Overview
The Nigerian All-Share Index declined by 0.94% last week, closing at 104,962.96 points — slightly below the 105,000-point mark for the first time in weeks. Market capitalization also dipped to ₦65.8 trillion, while trading volume fell to 2.9 billion shares, signaling lower investor interest. However on Monday, March 24, the Nigerian equity market rebounded on Monday with a gain of N369bn as the All-Share Index rose by 0.56 per cent to close at 105,551.39 points, reversing the losses recorded in the previous week. This trend continued on Tuesday March 25 when the All-Share Index inched up by 41.89 points, or 0.04 percent to close at 105,593.28 points.
Profit-taking was evident, with most sectors — banking, insurance, oil & gas, and industrial goods — closing negatively. The Consumer Goods Index was the only sector to record gains over the past week, lifted by Nigerian Flour Mills.
Market Losers
Several stocks experienced losses over the week, with Livestock Feeds Plc taking the biggest hit, dropping 17.55%. The stock, which had previously gained momentum, saw a sharp sell-off as investors took profits.
Other notable losers included:
- Red Star Express Plc (down 16.90%, ₦4.82)
- Universal Insurance Plc (down 13.33%, ₦0.52)
- Caverton Offshore Support Group Plc ( down 13.00%, ₦2.61
- Secure Electronic Technology Plc (down 12.12%, ₦0.58)
- BUA Cement Plc: down 10.00%, ₦83.70)
- Learn Africa Plc: down 9.85%, ₦3.02)
- Sovereign Trust Insurance Plc ( down 9.71%, ₦0.93)
- Royal Exchange Plc (-9.09%, ₦0.80)
- Eterna Plc (-9.21%, ₦34.50)
- Royal Exchange (ROYALX) (-7.95%, ₦0.81)
- Veritas Kapital Assurance (VERITASKAP) (-5.98%, ₦1.10)
- WAPIC Insurance Plc (-5.88%, ₦2.24)
- Oando Plc (-5.66%, ₦50.00)
Market Gainers
It was a positive week for several stocks, with Neimeth International Pharmaceuticals Plc leading the pack, surging 20.48% week-to-date. The pharmaceutical company’s strong performance was likely driven by investor confidence in the healthcare sector and increased demand for its products. Following closely behind was Linkage Assurance Plc, which gained 13.49%, reflecting renewed investor interest in insurance stocks.
Other notable gainers included:
- Nigerian Flour Mills Plc (+9.99%, ₦79.80)
- Academy Press Plc (+9.92%, ₦2.88)
- Mutual Benefits Assurance Plc (+9.84%, ₦0.67
- Julius Berger Nigeria Plc (+8.47%, ₦137.00)
- Transcorp Hotels Plc (+7.85%, ₦136.00)
- Custodian Investment Plc (+6.63%, ₦20.90)
- Veritas Kapital Assurance Plc (+6.36%, ₦1.17)
- NASCON Allied Industries Plc (+6.02%, ₦44.00)
- eTranzact International Plc (ETRANZACT) (+9.38%, ₦5.25)
- Abbey Mortgage Bank Plc (ABBEYBDS) (+8.86%, ₦4.30)
Buy, Sell, or Hold? Rafiki’s Recommendations
- Red Star Express
Current Price: N4.90
Market Capitalization: N4.68B
Price-to-Earnings (P/E) Ratio: 10.04
Recommendation: Hold
Red Star Express has shown consistent revenue and profit growth, indicating solid operational performance. However, the modest growth rates suggest limited short-term upside potential. Holding the stock is advisable to benefit from potential long-term gains as the company continues its steady growth trajectory. Consider monitoring the company’s future financial reports for signs of accelerated growth before making additional investment decisions.
2. CWG (Computer Warehouse Group)
Market Capitalization: 21.21B
Price-to-Earnings (P/E) Ratio: 9.19
Recommendation: Buy
Based on CWG Plc’s impressive financial performance in 2024, it is advisable to buy the stock. The company reported a 97% increase in revenue, rising from ₦23.53 billion in 2023 to ₦46.35 billion in 2024, and a 428% surge in profit after tax, reaching ₦3.04 billion from ₦576.08 million the previous year. With a current price-to-earnings (P/E) ratio of 9.19, CWG Plc appears to be undervalued relative to its growth prospects, making it an attractive option for investors seeking both growth and value.
3. PZ Cussons
Current Price: N33.40
Market Capitalization: 132.61b
Price-to-Earnings (P/E) Ratio: -16.70
Recommendation: Sell
PZ Cussons’ negative P/E ratio (-16.70) signals that the company is currently unprofitable, which is a red flag for investors. While it has a strong market capitalization of ₦132.61 billion, its lack of earnings suggests potential financial struggles, declining profitability, or high operational costs.
Unless there is a clear turnaround strategy or improvement in financials, selling now may be the best move to avoid further downside risk.
4. Okomu Oil
Current Price: N513.70
Market Capitalization: 504.62B
Price-to-Earnings (P/E) Ratio: 14.72
Recommendation: Buy
Considering the company’s solid financial performance, market position, and growth prospects, it would be prudent to Buy Okomu Oil Palm Plc stocks. This recommendation aligns with the company’s demonstrated ability to generate revenue and profit growth, as well as its commitment to shareholder value.
5. Nigeria Flour Mills
Current Price: N78.00
Market Capitalization: 13.9B
Price-to-Earnings (P/E) Ratio: 3.40
Recommendation: Buy
The stock appears undervalued with strong fundamentals and growth potential, making it a good investment opportunity. However, investors should monitor inflation and raw material costs, which could impact profit margins in the future.
6. Eterna Plc
Current Price: N34.00
Market Capitalization: 41.86B
Price-to-Earnings (P/E) Ratio: 12.94
Recommendation: Sell
Eterna has performed well financially, but its valuation appears stretched. Investors who bought at lower prices may consider locking in profits, as the stock may face downward pressure in the short term. If the price dips significantly, it could become an attractive buy again.
7. Livestock Feeds
Current Price: N9.58
Market Capitalization: N28.71B
Price-to-Earnings (P/E) Ratio: 16.44
Recommendation: Buy
Livestock Feeds Plc is positioned for continued growth, and despite its relatively high P/E ratio (16.44), its earnings potential and sector resilience justify a buy recommendation. Investors looking for long-term value in the agriculture sector should consider acquiring shares at current levels.
