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
The Nigerian equities market delivered a strong performance last week, with the All-Share Index (ASI) rising by 2.54% to close at 108,733.40 on Friday, May 9, 2025. This marked the highest weekly close on record, as all major sector indices posted gains and investor sentiment turned decisively bullish. The surge was supported by broad-based buying, especially in consumer goods, banking, and industrial stocks.
Trading activity also intensified, with total volume rising by 20.26% to 2.6 billion shares, compared to 2.19 billion shares in the prior week. Market capitalization climbed by ₦1.7 trillion, closing at ₦68.3 trillion, comfortably above the ₦68 trillion threshold. Notably, 68 stocks advanced, up from 52 in the previous week, while decliners fell to 28 from 37—reflecting a positive breadth across the market.
Leading the rally were names like MULTIVERSE (+57.48%), ACADEMY PRESS (+50.52%), and Beta Glass (+46.31%), while laggards included ABBEY MORTGAGE (-15.66%), MEYER (-13.51%), and Veritas Kapital (-10.81%).
However, the market opened this week on a softer note. On Monday, May 12, the ASI declined by 0.43%, settling at 108,261.47 as investors locked in profits from last week’s highs. Market capitalization also slipped to ₦68.04 trillion, while trading volume fell by 9.77% to 414.3 million shares across 16,664 deals, indicating a cautious start to the week.
Despite the decline, gainers like MULTIVERSE, SMURFIT, and MEYER maintained strong upward momentum with 10% increases. On the downside, ETRANZACT and JOHNHOLT led the losers. Volume drivers included TANTALIZER (49.1M shares), VFDGROUP (48.8M shares), and ACCESSCORP (29.4M shares).
Among large-cap stocks, the mood was mixed. LAFARGE fell 4.88%, MTNN dipped 2.07%, and FIDELITY BANK slipped 2.00%. In the FUGAZ banking group, FIRSTHOLDCO (+0.97%) and UBA (+0.14%) posted modest gains, while ZENITHBANK and GTCO saw slight declines.
Top 10 Gainers
| Stock | Price Change | % Gain |
| MULTIVERSE | ↑ | +57.48% (WTD), +10.00% (Mon) |
| ACADEMY PRESS | ↑ | +50.52% (WTD) |
| Beta Glass | ↑ | +46.31% (WTD), +9.99% (Mon) |
| The Initiates Plc | ↑ | +34.95% (WTD) |
| International Energy Insurance | ↑ | +31.88% (WTD) |
| Chellarams Plc | ↑ | +31.81% (WTD) |
| Skyway Aviation Handling | ↑ | +30.11% (WTD) |
| Associated Bus Company | ↑ | +26.55% (WTD) |
| Cadbury Nigeria | ↑ | +22.26% (WTD) |
| Northern Nigerian Flour Mills | ↑ | +20.67% (WTD) |
Top 10 Losers
| Stock | Price Change | % Loss |
| ABBEY MORTGAGE BANK | ↓ | -15.66% (WTD) |
| MEYER | ↓ | -13.51% (WTD) (Note: gained +10% on Monday) |
| Veritas Kapital | ↓ | -10.81% (WTD) |
| VFD Group | ↓ | -10.61% (WTD) |
| Transcorp Power | ↓ | -9.98% (WTD) |
| Haldane McCall (HMCALL) | ↓ | -9.57% (WTD) (Note: gained +9.88% on Monday) |
| Transnational Corporation | ↓ | -7.69% (WTD) |
| DEAP Capital | ↓ | -7.27% (WTD) |
| Regency Assurance | ↓ | -6.78% (WTD) |
| United Capital | ↓ | -6.58% (WTD) |
Buy, Sell, or Hold? Rafiki’s Recommendations
- Jumia
Price: N3.450
P/E: -3.19
Market Cap: 422.5M
Recommendation: Overvalued, Sell or hold
Jumia is unprofitable with a negative P/E and declining cash reserve, despite some improvement in gross profit and reduced losses in Q1 2025. Customer growth and GMV are flat, showing limited traction, while the company continues to burn cash without clear near-term profitability. At ₦3.45, the stock appears overvalued relative to its risk profile and weak fundamentals, making it more sensible to sell unless you’re willing to bet on a long-term turnaround.
- DEAP Capital
Price: 0.99
P/E: -9.82
Market Cap: 1.49B
Recommendation: Strong Sell
DEAP Capital continues to face significant financial challenges, with low revenue of ₦1.22 million in Q1 2025 compared to operating expenses of ₦36.8 million, leading to a ₦35.5 million pre-tax loss. The company also carries a large retained deficit of ₦2.29 billion and relatively low shareholder equity, which suggests ongoing efforts will be needed to restore financial stability. While its market cap stands at ₦1.49 billion, current fundamentals do not yet reflect strong operational performance or profitability. Given the current state of the business and the risks involved, a cautious approach is advisable, and a sell recommendation is appropriate for investors seeking more stable opportunities.
- Airtel Africa
Price: N2,156.90
P/E: 34.97
Market Cap: 13.2T
Recommendation: Buy or Hold
Airtel Africa’s return to profitability, with a pre-tax profit of $661 million and strong revenue growth of over 20%, reflects a solid operational turnaround and effective cost management. The company’s robust EBITDA margin of nearly 47%, reduction in net debt, and over $1 billion in free cash flow highlight its financial strength and ability to sustain growth across its African markets. While its P/E of 34.97 suggests a premium valuation, it also reflects investor confidence in Airtel’s long-term growth potential, especially in mobile data and financial services. For growth-focused investors, this supports a Buy recommendation, while more conservative investors may consider a Hold to monitor continued performance.
- Veritas Kapital Assurance Plc
Price: N1.05
P/E: -1.53
Market Cap: 14.56B
Recommendation: Sell or Hold
Veritas Kapital Assurance reported a loss after tax of ₦913.3 million in Q1 2025, continuing its trend of negative earnings with a P/E ratio of -1.53 and an accumulated deficit of ₦5.46 billion. Although the company maintains a solid equity base of over ₦11 billion and has generated gross premiums of ₦2.14 billion, its core insurance operations remain unprofitable, as reflected in the underwriting loss of ₦196.5 million. Given the disconnect between its market valuation and current financial performance, this stock may not present strong value for new investors at this time. A Sell recommendation is suitable for value-focused investors, while a Hold may be considered if already positioned and expecting long-term improvement.
- BUA Cement
Price: N83.70
P/E: 20.68
Market Cap: 2.83T
Recommendation: Buy
BUA Cement reported strong Q1 2025 results, with revenue rising to ₦161.1 billion and profit after tax increasing to ₦26.8 billion, reflecting solid demand and operational efficiency in a challenging macroeconomic environment. The company maintains a healthy P/E ratio of 20.68, signaling reasonable valuation relative to earnings, and its ₦2.83 trillion market cap is supported by consistent profitability and strong market share in the Nigerian cement industry. With a robust balance sheet, steady cash flow, and ongoing investments in capacity expansion, BUA Cement is well-positioned for long-term growth, making it a compelling Buy for investors seeking exposure to Nigeria’s infrastructure and real estate development.
- Custodian Investment
Price: N18.00
P/E: 2.02
Market Cap: 105.87B
Recommendation: Buy
Custodian Investment continues to demonstrate strong financial health, with its Q1 2025 results showing a solid growth trajectory and a P/E of 2.02, indicating significant undervaluation relative to its earnings. The company has been able to maintain a stable dividend payout of ₦1.1 per share, showcasing its commitment to returning value to shareholders. With a market cap of ₦105.87 billion, Custodian operates in the growing insurance and investment space in Nigeria, offering resilience through its diversified portfolio and strong capital base. The company’s solid performance, coupled with its attractive valuation, makes it an excellent Buy for value investors looking for stable, income-generating opportunities in the Nigerian market.
- Lafarge
Price: N77.95
P/E: 9.09
Market Cap: 1.26T
Recommendation: Buy
Lafarge Africa’s strong Q1 2025 performance, marked by increased revenue and profitability, positions it as a solid investment choice with a P/E ratio of 9.09, suggesting it is relatively undervalued compared to its earnings potential. The company’s market cap of ₦1.26 trillion reflects its dominant presence in Nigeria’s cement industry, with consistent demand driven by infrastructure and housing growth. With analysts like Cordros raising Lafarge’s target price to ₦104.71, the company’s strong operational results, coupled with strategic investments and market leadership, support a Buy recommendation for investors seeking exposure to the construction and building materials sector.
