After concluding January with a 1.53% gain, the NGX enters February on a cautious note. Investor sentiment remains wary as subpar earnings reports from select listed companies in late January raise concerns about stock performance.
For the week between January 27 and 31, the NGX appreciated by 0.87 percent, with the All-Share Index closing the week and the month at 104,496.12. During the week, Chellarams was the best performing stock with 60.44 percent, followed by Vitafoam with 31.48 percent, and Beta Glass with 20.98 percent.
Some of 2024’s top-performing stocks led the declines, with Veritas Kapital Assurance shedding 29.68% and MRS Oil dropping 18.96%. Notably, AIICO Insurance fell by 10%, while Transcorp Hotels lost 9.97%.
This week, portfolio rebalancing is expected to dominate scenes, with some stocks projected to appreciate considerably, while some are projected to decline.
Oando Plc
Oando’s 2024 earnings have disappointed investors, triggering a sharp sell-off on Friday. The stock tumbled 10% as the company’s N65 billion net income fell short of expectations.
Read also: Stocks gain N1.06trn in one week
Despite reporting a robust N4.1 trillion in revenue, concerns over its financial health persist—current liabilities have surged to N6.6 trillion, and a negative equity position of N273 billion raises red flags. With a lofty price-to-earnings (P/E) ratio of 13.7x, Oando’s valuation appears increasingly difficult to justify.
MTN Nigeria
MTN Nigeria has gained 25% in 2025, driven by investor confidence following news of a tariff increase.
However, with the imminent release of the company’s unaudited 2024 financials, investor sentiment could face a reality check. In Q3 2024, MTN Nigeria returned to profitability with a net income of N4 billion, but the bigger question remains: Can it generate enough profit to offset its substantial N515 billion net loss from the first nine months of 2024? With accumulated losses reaching N723 billion, the company is not yet positioned to deliver returns to shareholders. If the upcoming financials reveal that recent gains are insufficient to reverse these losses, a swift market reaction could follow.
Presco Plc
Presco’s 2024 financial results highlight strong growth potential, despite its elevated share price. The stock has surged 23.2% in 2025, closing January at N585. With a net income of N104.3 billion—an impressive 219% increase—Presco’s earnings per share (EPS) reached N104.28, translating to a price-to-earnings (P/E) ratio of just 5.6x. This modest valuation suggests that, despite its recent rally, the stock remains attractively priced given its strong financial performance.
When Presco surpassed the N400 mark in 2024, analysts and market observers speculated that the stock had reached its valuation peak. However, the company’s strong performance suggests that its share price could still have significant upside, potentially reaching N1,000.
Sunu Assurances
The financial performance of insurance companies in 2024 has not kept pace with their strong market rally. This disconnect became evident in the last week of January, as the NGX Insurance Index declined by 2.86%, making it the worst-performing index in the market.
Sunu Assurances, in particular, has been on a sharp downturn in 2025, shedding 46.5% so far, with the downtrend expected to continue. After an extraordinary 877% surge in 2024—from N1.10 to N10.75—the stock now appears overvalued relative to industry peers. With an earnings per share (EPS) of N0.63 and a price-to-earnings (P/E) ratio of 9.13x, Sunu Assurances may face further sell-offs as investors reassess its lofty valuation.
UAC Nigeria
Following its strongest earnings performance to date, UAC Nigeria may gain further traction among investors. The stock has risen 14.5% this year, reaching N36 per share. With a price-to-earnings (P/E) ratio of 7.00x, UAC Nigeria remains relatively undervalued on the NGX, suggesting a potential upside as market confidence builds.
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