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: ASI Slips, Then Rebounds as Aradel, BUA Foods Lead Charge
The Nigerian stock market experienced a rollercoaster week, reflecting cautious investor sentiment and sector-specific pressures. The NGX All-Share Index (ASI) initially shed 0.62% week-on-week, closing at 109,028.62 on Friday, May 23. This decline was primarily triggered by sell-offs in heavyweight sectors, particularly oil & gas, banking, and telecoms. Investor appetite was dampened by concerns over rising interest rates and weaker-than-expected corporate earnings from a few bellwether stocks. The market breadth was negative for most of the week, with decliners significantly outweigh gainers.
However, the tide turned by Monday, May 26, as renewed buying interest returned to the market, pushing the ASI up by 0.79% to close at 109,884.93. Leading this rebound were strong performances from ARADEL and BUA Foods, both of which gained significantly and sparked broader investor confidence. ARADEL, in particular, continued its impressive run as one of the best-performing oil & gas stocks, attracting institutional inflows. Similarly, BUA Foods saw increased demand on the back of optimistic forecasts around consumer goods performance in Q2, driven by rising food prices and improved production capacity.
While Monday’s rebound was a positive signal, market activity remains fragile. Turnover volumes showed some improvement compared to the previous week, but investor participation is still largely cautious, with many traders adopting a wait-and-see approach amid macroeconomic uncertainties. The week also witnessed mixed movements across sectors: while consumer goods and industrials saw modest recoveries, banking stocks remained under pressure due to tighter monetary conditions. As the market heads into a new week, attention will likely shift to upcoming corporate actions, macroeconomic indicators, and any regulatory updates that could impact investor confidence.
Top 10 Gainers
| Rank | Stock | Price (₦) | % Change |
| 1 | ARADEL | 505.90 | +9.98% |
| 2 | UPL | 4.79 | +9.86% |
| 3 | ABCTRANS | 2.70 | +8.43% |
| 4 | LINKASSURE | 1.59 | +8.16% |
| 5 | CILEASING | 4.40 | +7.32% |
| 6 | DEAPCAP | 0.33 | +32.00% |
| 7 | FTNCOCOA | 1.40 | +30.84% |
| 8 | DAARCOMM | 0.41 | +28.13% |
| 9 | NEM | 8.60 | +24.64% |
| 10 | ELLAHLAKES | 3.52 | +23.59% |
Top 10 Losers
| Rank | Stock | Price (₦) | % Change |
| 1 | TRIPPLEG | 2.07 | -10.00% |
| 2 | MRS | 141.80 | -9.97% |
| 3 | CHELLARAM | 10.58 | -9.96% |
| 4 | UHOMREIT | 45.70 | -9.95% |
| 5 | IMG | 35.90 | -9.91% |
| 6 | TANTALIZER | 0.41 | -29.31% |
| 7 | THOMASWY | 2.27 | -20.91% |
| 8 | OMATEK | 0.20 | -20.00% |
| 9 | JULI | 1.05 | -19.23% |
| 10 | PRESTIGE | 0.39 | -17.02% |
Buy, Sell, or Hold? Rafiki’s Recommendations
1. Omatek
Price: 0.71
P/E ratio: -23.99
Market Cap: 2.09B
Recommendation: Sell
Based on Omatek Ventures Plc’s Q1 2025 financials, the company continues to face significant challenges. Revenue for the quarter was a mere ₦0.30 million, while administrative expenses amounted to ₦12.63 million, leading to an operating loss of ₦12.33 million. The company’s equity position remains negative at ₦2.65 billion, and it carries substantial liabilities totaling ₦5.52 billion. With a negative Altman Z-Score of -5.39, indicating a high risk of bankruptcy, and a lack of positive earnings per share, the financial outlook is concerning. Given these factors, it would be prudent to avoid investing in Omatek Ventures Plc at this time.
2. Prestige
Price: 1.03
P/E ratio: 4.65
Market Cap: 13.65B
Recommendation: Hold
Given the current price of ₦1.03 and a P/E ratio of 4.65, Prestige stock appears to be reasonably valued. However, without the latest quarterly data, it’s prudent to adopt a cautious approach. Therefore, a ‘Hold’ recommendation is appropriate until the Q1 2025 financial results are released and can be thoroughly analyzed.
3. Tripple G
Price: 1.03
P/E ratio: 4.65
Market Cap: 13.65B
Recommendation: Sell
Tripple Gee & Company Plc’s financial performance for the year ended March 31, 2025, reveals significant challenges. The company reported a net loss of ₦1.38 billion, a stark contrast to the ₦7 million profit achieved in the previous year. This downturn is attributed to a sharp decline in revenue, which fell by 17% year-over-year to ₦1.82 billion, and a substantial increase in distribution and administrative expenses, which nearly doubled to ₦1.08 billion. Additionally, finance costs surged by 151% to ₦571 million, exacerbating the company’s financial strain. Consequently, Tripple Gee’s equity position turned negative, with shareholders’ equity standing at ₦(576.7) million, indicating that liabilities exceed assets. Given these factors, the company’s financial health appears precarious, and the stock presents a high-risk investment. Investors are advised to sell and avoid further exposure until there is a demonstrable turnaround in the company’s financial performance.
4. Linkage Assurance
Price: 1.59
P/E ratio: 4.41
Market Cap: 24.49B
Recommendation: Hold
Linkage Assurance Plc’s Q1 2025 financials indicate a steady performance. The company reported a pre-tax profit of ₦829.6 million, marking a 7.8% increase from the ₦769.4 million recorded in Q1 2024. This growth was primarily driven by an 18% rise in insurance revenue, which reached ₦6.05 billion. However, investment and other income declined by 41.5% year-over-year, totaling ₦1.68 billion. Despite this, the company’s total assets grew by 6% to ₦69.6 billion, and its equity position remained strong. With a current price of ₦1.59 and a P/E ratio of 4.41, the stock appears reasonably valued. Given the mixed signals—solid core business performance but declining investment income—a ‘Hold’ recommendation is appropriate until further clarity emerges.
5. FTN Cocoa
Price: 2.27
P/E ratio: -0.46
Market Cap: 8.85B
Recommendation: Sell
FTN Cocoa Processors Plc’s Q1 2025 financials reveal significant challenges. The company reported a net loss of ₦575.55 million, despite recording revenue of ₦572.02 million during the quarter. This indicates that operational costs exceeded income, leading to a gross loss of ₦6.88 million. Total liabilities increased by 5% to ₦18.52 billion, while equity declined by 39% to ₦2.12 billion, reflecting a weakening financial position. Given the negative earnings and deteriorating equity, the stock appears high-risk. Investors are advised to sell and avoid further exposure until there is a demonstrable turnaround in the company’s financial performance.
6. ABCTrans
Price: 2.70
P/E ratio: 8.26
Market Cap: 6.46B
Recommendation: Buy
ABC Transport Plc (ABCTrans) delivered a solid Q1 2025 result, posting a profit after tax of ₦194.74 million compared to a ₦24.55 million loss in the same period last year—a clear turnaround signal. Revenue surged 57% year-over-year to ₦690.37 million, reflecting strong demand recovery and improved cost efficiency.
Despite a relatively small market cap of ₦6.46 billion, ABCTrans has drawn increased investor interest, evidenced by its recent price momentum. The P/E ratio of 8.26 suggests the stock is still undervalued relative to peers, especially given its return to profitability.
That said, the company’s balance sheet still carries significant debt (₦1.4 billion in borrowings), which poses a moderate risk. However, if the current revenue trajectory holds and cost controls remain tight, debt servicing should be manageable.
