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 All-Share Index (ASI) fell by 0.55% last week. While this may seem small, in market capitalization terms, it translates to a loss of nearly ₦700 billion. The ASI dropped to 105,955 points, marking three consecutive weeks of losses in March.
Despite the decline, trading volume surged by 80.45% to 3.2 billion shares, signaling increased market activity. When share prices drop while volumes rise, it often suggests more sellers than buyers, which is typically a sign of a market downturn. Market capitalization dipped to ₦66.3 trillion, holding onto the ₦66 trillion threshold. Fourteen stocks gained, while six stocks declined, showing a slight improvement in market sentiment.
NGX Premium Index was down 1.45%, driven by losses in MTN, UBA, and First Bank, each down over 2%. Insurance Index went up 0.89%, led by Cornerstone Insurance. The Consumer Goods Index was slightly positive, the Oil & Gas Index went down 1.15%, the Banking Index declined while the Industrial Goods Index: Also fell.
Market Losers
Several stocks experienced losses over the week. Notable among them were:
- Omatek Ventures – -7.89% (₦0.70 per share)
The tech manufacturing company faced sell pressure this week, possibly due to weak investor sentiment and low trading volumes. - Cadbury Nigeria – -8% (₦23.00 per share)
Despite being a major player in the FMCG space, Cadbury’s shares dipped this week, potentially reflecting concerns around rising input costs and shrinking consumer demand. - Academy Press – -9.66% (₦2.62 per share)
The publishing and printing firm saw a pullback after recent gains, likely as investors took profits amid reduced trading activity. - Berger Paints – -9.8% (₦18.85 per share)
The drop in Berger Paints’ share price could be attributed to lower investor appetite for manufacturing stocks amid rising operating costs. - VFD Group – -9.92% (₦47.20 per share)
The investment group’s stock declined this week, possibly due to market reactions to recent financial disclosures or broader sell-offs in the financial services sector. - Conoil – -10% (₦331.20 per share)
Despite its strong fundamentals, Conoil experienced a sharp drop, likely driven by profit-taking after previous rallies in the oil and gas sector. - University Press – -10% (₦4.00 per share)
The publishing company lost ground this week, with the decline likely tied to waning investor interest in the media and education sector. - IEI Insurance – -10%
IEI shares slipped this week, reflecting broader volatility in the insurance sector and concerns over underwriting performance. - Mecure Industries – -10.36%
Mecure joined the list of laggards this week, continuing a downward trend that reflects growing pressure on pharmaceutical stocks. - Neimeth Pharmaceuticals – -17% (Biggest loser of the week)
Neimeth led the week’s decline, suffering the heaviest loss as investors responded to sector-specific concerns and weakening outlook.
Market Gainers
Top Gainers in the NGX this week include;
- May & Baker – +9.43% (₦5.50 per share)
The pharmaceutical company continues to attract investor interest with steady growth, reflecting strong fundamentals and market confidence in the sector. - UPDC Real Estate Investment Trust – +10.71%
The REIT posted a notable uptick this week, driven by renewed interest in the real estate sector and expectations of stable income returns for unit holders. - Cornerstone Insurance – +10.41% (₦3.50 per share)
Investor optimism in the insurance sector has buoyed Cornerstone’s share price, signaling growing confidence in its financial health and future outlook. - Eterna PLC – +11.27%
After gaining a massive 52% two weeks ago, Eterna has continued its bullish run, bringing its two-week rally to 64%—largely fueled by improved earnings prospects and investor sentiment in the energy sector. - Royal Exchange PLC – +12.82%
Royal Exchange saw a strong surge this week, likely spurred by increased activity in the insurance and financial services space. - Tantalizers – +13.13%
The fast-food company saw an impressive jump in share price this week, hinting at renewed investor confidence in the consumer goods segment. - CWG PLC – +13.2%
The tech solutions provider continues to ride on the wave of digital transformation, attracting strong buy interest from investors anticipating growth in Nigeria’s ICT sector. - FTN Cocoa – +14.2%
This agro-allied stock is gaining attention amid rising global interest in agricultural commodities and potential operational restructuring. - Caverton Offshore – +15.3%
After last week’s stunning 37.2% gain, Caverton maintained its upward momentum, signaling continued investor confidence in its aviation and marine logistics services. - Livestock Feeds – +22.6% (Biggest gainer of the week)
Livestock Feeds topped the charts with the highest gain of the week, driven by bullish sentiment in agribusiness stocks and strong year-on-year performance.
Buy, Sell, or Hold? Rafiki’s Recommendations
1. CWG Plc
Current Price: N9.20
Market Capitalization: 23.1B
Price-to-Earnings (P/E) Ratio: 8.7%
Recommendation: Buy
CWG Plc’s fundamentals are solid and improving, with consistent profitability and growth. The stock has also shown strong price momentum recently, gaining 13.2% this week, which may suggest a slightly overpriced entry point in the short term. However, it remains a good hold for medium- to long-term gains, especially if the company continues to expand its margins and revenue streams. Investors can consider adding more on a price dip, particularly if the fundamentals stay strong.
2. Conoil Plc
Current Price: N298.10
Market Capitalization: 206.87B
Price-to-Earnings (P/E) Ratio: 18.17
Recommendation: Sell
Although Conoil’s fundamentals for 2024 were decent, the technical indicators suggest that the stock is entering a downward trend. With bearish momentum and weakening investor sentiment, it’s prudent to lock in gains if you already hold the stock, especially considering the recent price correction and potential for further downside. You can always re-enter at a lower price point if the fundamentals remain solid and sentiment improves.
3. Cornerstone insurance
Current Price: N3.53
Market Capitalization: N63.68B
Price-to-Earnings (P/E) Ratio: 2.85
Recommendation: Buy (with medium-term view)
Based on the company’s released financials, Cornerstone Insurance shows strong growth across all key financial metrics. Improved earnings per share and consistent profitability make it an attractive dividend candidate. The stock still appears undervalued relative to its earnings potential and asset base. There’s upside potential as market sentiment around insurance improves and interest in defensive stocks grows.
4. May & Baker
Current Price: N8.750
Market Capitalization: 15.1B
Price-to-Earnings (P/E) Ratio: 8.92
Recommendation: Buy
May & Baker Plc’s 2024 financials reflect a strong and steady performance across key metrics, making the stock a solid BUY at its current level. With consistent revenue and profit growth, improved earnings per share, and a stronger equity position, the company is clearly on a path of sustainable value creation. The pharmaceutical sector also offers defensive advantages, and May & Baker’s positioning in local drug manufacturing aligns well with long-term industry trends.
5. Cadbury Nigeria
Current Price: 23.50
Market Capitalization: 53.59B
Price-to-Earnings (P/E) Ratio: -5.03
Recommendation: Sell
Cadbury Nigeria’s 2024 financials reflect a sharp decline in profitability, severe margin erosion, and a concerning drop in shareholder equity. With earnings turning negative and cost pressures rising, the outlook remains weak in the short to medium term. Until the company demonstrates a solid turnaround strategy and margin recovery, it may be best to exit the position and reallocate capital to stronger-performing stocks.
6. Jaiz Bank
Current Price: N3.32
Market Capitalization: N149.37B
Price-to-Earnings (P/E) Ratio: 4.73
Recommendation: Buy
Jaiz Bank delivered strong top-line and bottom-line growth, improved asset base, and a solid rise in customer deposits and equity. The bank’s fundamentals are improving steadily, and the business is scaling efficiently in the non-interest banking space. Despite a slight slowdown in net profit growth, the overall outlook remains positive. At current levels, the stock is attractive for long-term investors seeking stable growth and value.
7. Mecure Industries
Current Price: N11.15
Market Capitalization: 45B
Price-to-Earnings (P/E) Ratio: N/A
Recommendation: Hold
Mecure Industries continues to post solid growth in revenue, profit, and shareholder value, with expanding margins and a stronger equity position. However, the stock recently declined by over 10%, likely due to short-term market reactions rather than weak fundamentals. While the business outlook remains positive, buying now may not offer the best entry point given recent volatility. It’s advisable to hold for now and consider buying more on a price dip if the fundamentals stay strong.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your research or consult with a financial advisor before making investment decisions. All financial data is sourced from the provided links and is accurate as of the latest available reports. Investors are encouraged to conduct further research and consider their financial objectives before making investment decisions.
Financials of Companies in the Recommendation Section: CWG Plc, Cornerstone Insurance, May and Baker, Jaiz Bank, Conoil Plc, Cadbury Nigeria, Mecure Industries
