After wrapping up January with a modest 1.53% gain, the Nigerian Exchange (NGX) is treading carefully as it steps into February. The market outlook is clouded by disappointing earnings reports from several listed companies towards the end of January, which have left investors cautious about potential stock movements.
During the trading week from January 27 to 31, the NGX posted a 0.87% increase, with the All-Share Index (ASI) closing at 104,496.12. Some stocks delivered remarkable performances, while others faced significant declines, highlighting the mixed investor sentiment currently influencing the market.
Top Performers and Laggards from Last Week
Leading the pack was Chellarams, which surged by 60.44%, followed closely by Vitafoam with a 31.48% gain, and Beta Glass, which climbed 20.98%.
On the downside, several previously high-performing stocks saw notable declines:
- Veritas Kapital Assurance dropped sharply by 29.68%
- MRS Oil slid by 18.96%
- AIICO Insurance fell 10%
- Transcorp Hotels lost 9.97%
As investors recalibrate their portfolios, this week is expected to be driven by portfolio rebalancing, with certain stocks poised for growth while others may continue to face downward pressure.
Stocks to Keep an Eye On This Week
1. Oando Plc
Oando’s latest financial report has left investors disappointed, triggering a 10% sell-off last Friday. Despite generating a hefty ₦4.1 trillion in revenue, the company’s ₦65 billion net income failed to meet expectations.
What’s more concerning are Oando’s mounting current liabilities of ₦6.6 trillion and a negative equity position of ₦273 billion, which raise serious questions about its financial health. With a price-to-earnings (P/E) ratio of 13.7x, Oando’s valuation appears stretched, making it a risky bet unless significant improvements are seen in its financials soon.
2. MTN Nigeria
MTN Nigeria has enjoyed a 25% gain in 2025, fueled by strong investor confidence following recent tariff hikes. However, with the company set to release its unaudited 2024 financial results, there’s potential for a shift in market sentiment.
While MTN returned to profitability in Q3 2024, posting a ₦4 billion net income, the real challenge lies in offsetting the ₦515 billion net loss from the first nine months of the year. Its accumulated losses now stand at ₦723 billion, raising concerns about its ability to deliver value to shareholders in the near term. If the upcoming results don’t show significant recovery, we could see a sharp market correction.
3. Presco Plc
Presco Plc continues to impress, showcasing strong growth potential despite its rising share price. The stock has jumped 23.2% in 2025, closing January at ₦585 per share.
With a net income of ₦104.3 billion—a staggering 219% increase—Presco’s earnings per share (EPS) stands at ₦104.28, reflecting a healthy P/E ratio of 5.6x. This suggests that the stock remains attractively priced despite its recent rally.
Many analysts believed Presco had peaked when it crossed the ₦400 mark in 2024. However, its robust financials hint at more upside, with some market watchers speculating the stock could reach ₦1,000 if growth momentum continues.
4. Sunu Assurances
After an extraordinary run in 2024—where its stock skyrocketed 877%, from ₦1.10 to ₦10.75—Sunu Assurances has hit rough waters in 2025. The stock has already declined by 46.5%, and the bearish trend is expected to persist.
Despite its impressive rally last year, Sunu now appears overvalued compared to its industry peers. With an EPS of ₦0.63 and a P/E ratio of 9.13x, investors seem to be reassessing the stock’s true worth. Unless the company delivers strong financial results soon, further sell-offs are likely as the market corrects its inflated valuation.
5. UAC Nigeria
UAC Nigeria has caught the attention of investors following one of its strongest earnings performances to date. The stock has climbed 14.5% in 2025, trading at ₦36 per share.
With a relatively modest P/E ratio of 7.0x, UAC Nigeria appears undervalued compared to other stocks on the NGX. This could signal more upside potential, especially as market confidence in the company continues to build.
What to Expect This Week
As we move further into February, the NGX is likely to experience increased volatility driven by:
- Earnings releases from key companies
- Portfolio rebalancing activities
- Investor reactions to macroeconomic factors, including interest rates and inflation
While some stocks like Presco and UAC Nigeria show strong growth potential, others like Oando and Sunu Assurances face significant headwinds. MTN Nigeria’s upcoming financials could be a major market mover, depending on whether it can offset its previous losses.
Investors are advised to stay informed, review their portfolio strategies, and make decisions based on both fundamental analysis and market trends.
