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 Overview
The NGX experienced notable volatility this week. On March 4, the All-Share Index dropped by 0.34% to 107,455.13 amid a sharp decline in volume—even as NGXGROUP and LEARNAFRICA surged 10%; further declines occurred on March 5 (down 0.51% to 106,904.25) and March 6 (down 0.44% to 106,436.48), despite nearly 10% rallies from stocks like TANTALIZER and UHOMREIT. On March 7, the index rebounded by 0.32% to 106,780.72, driven by TRANSCORP’s 9.98% gain and strong volume from GTCO, and closed on March 11 with a modest 0.08% gain to 106,621.91 as ETERNA and TRANSCORP continued their rallies, while Geregu led trading value at N9.4 billion. Meanwhile, the Financial Services sector dominated trading activity by volume and value, followed by Consumer Goods and Services, with Zenith Bank, Fidelity Bank, Afriprud, and ACCESSCORP among the top contributors.
Market Gainers
Top Gainers in the NGX this week include;
- TRANSCORP: Consistently surged nearly 10% throughout the week, rising 9.98% on March 7 to N51.80 and 9.91% on March 11 to N51.55.
- AFRIPRUD: Demonstrated robust strength with gains of 9.87% on March 7 (N30.60) and 9.85% on March 11 (N36.25), reflecting solid fundamentals.
- SCOA: Recorded a brisk 9.88% jump on March 7 to close at N3.78, contributing notably to the week’s positive momentum.
- TANTALIZER: Notched up a 9.72% rise on March 7, closing at N2.37, signaling a resilient recovery amid market volatility.
- CAVERTON: Advanced 9.52% on March 7 to N2.76, attracting consistent investor interest over the week.
- ETERNA: Surged 9.96% on March 11 to N37.55, marking a strong turnaround from earlier pressures.
- FCMB: Gained 9.89% on March 11 to N10.00, indicating improved sentiment in the traditional banking sector.
Market Losers
Several stocks experienced losses over the week. Notable among them were:
- SUNUASSUR: Slumped by 10.00% on March 7 to N4.77, emerging as one of the week’s most pronounced decliners.
- MRS: Dropped 10.00% on March 7 to N166.50, reflecting significant downward pressure in its segment.
- REDSTAREX: Fell 10.00% on March 7 to N5.94, contributing further to the market’s drag.
- VFDGROUP: Declined 9.92% on March 11 to N47.20, highlighting a cautious sentiment among investors.
- INTENEGINS: Experienced an 8.72% fall on March 11, closing at N1.78 due to weaker fundamentals.
- CADBURY: Recorded an 8.00% drop on March 11 to N23.00, marking a steep decline among consumer stocks.
- LASACO: Slipped 7.99% to N2.65, rounding out the week’s list of significant losers.
Buy, Sell, or Hold? Rafiki’s Recommendations
- Aiico Insurance
Current Price: 1.61
Market Capitalization: 60.4B
Price-to-Earnings (P/E) Ratio: 4.43
Recommendation: Buy
Aiico Insurance’s low P/E ratio of 4.43 suggests it is undervalued relative to its earnings, indicating strong potential for future growth. Its market capitalization of 60.4B NGN reflects a solid and established presence in the Nigerian insurance sector. Coupled with consistent revenue growth and profitability as shown in its 2024 financials, the stock presents an attractive opportunity for investors seeking stable returns.
- Oando Plc
Current Price: 53.55
Market Capitalization: 723.87B
Price-to-Earnings (P/E) Ratio: 11.05
Recommendation: Buy
Oando Plc is trading at an attractive valuation given its current price of 53.55, market cap of 723.87B, and a low P/E ratio of 11.05, indicating potential undervaluation. Analysts would view the recent corporate actions as positive catalysts expected to drive improvements in operational efficiency and earnings growth. It’s best to consider Oando Plc as a compelling long-term investment opportunity with significant upside potential.
- GTCO
Current Price: 59.90
Market Capitalization: 1.22T
Price-to-Earnings (P/E) Ratio: 1.34
Recommendation: Buy
GTCO’s current price of 59.90 NGN and a market capitalization of 1.22T NGN underline its strong market position. GTCO stock is trading at a significant discount relative to its earnings, as indicated by the extremely low P/E ratio of 1.34, making it very attractive. Strong financial disclosures further support a robust outlook for growth, justifying a “Buy” recommendation for investors seeking value and stability.
- Fidelity Bank
Current Price: 17.050
Market Capitalization: 545.6B
Price-to-Earnings (P/E) Ratio: 2.34
Recommendation: Buy
Fidelity Bank’s attractive valuation, with a P/E ratio of just 2.34, indicates that the stock is significantly undervalued relative to its earnings. Its robust market capitalization of 545.6B NGN highlights a strong presence in Nigeria’s competitive banking sector. Solid financial performance in 2024 supports its growth potential.
- Tantalizers
Current Price: 2.86
Market Capitalization: 14.3B
Price-to-Earnings (P/E) Ratio: – 53.84
Recommendation: Sell
Tantalizers is trading at 2.86 NGN with a market capitalization of 14.3B NGN, but its negative P/E ratio of -53.84 clearly indicates significant losses and underlying financial challenges. The latest quarterly financials reveal persistent challenges that hinder a credible turnaround, raising concerns about future profitability. Given these factors, investors are advised to sell their positions to mitigate the risk of further value erosion.
- Afripud
Current Price: 35.20
Market Capitalization: 70.4B
Price-to-Earnings (P/E) Ratio: 49.22
Recommendation: Sell
Afripud’s high P/E of 49.22 indicates investors are paying nearly 50 times its earnings, which is unsustainable given its current financial performance. The Q5 2024 financials reveal weak growth and overinflated expectations that aren’t backed by solid fundamentals. For these reasons, selling Afripud is the prudent move to avoid overpaying for a stock with limited upside.
Stay tuned for next week’s Stock Watch with Rafiki for more insights on the NGX!
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
