The Nigerian stock market is experiencing an uptrend, buoyed by spectacular results and dividend declarations from major companies. Analysts suggest this momentum could persist, even as investors await earnings from large financial institutions. While the market saw a 1.1 per cent dip last week due to profit-taking, the ongoing release of strong earnings and attractive dividend expectations are expected to sustain investor interest.
Key Highlights
BUA Cement reported a 381.7 per cent surge in annual net profit to N356 billion and a near fivefold increase in dividend for financial year 2025.
Dangote Cement announced a twofold jump in annual net profit to N1 trillion and a 50 per cent increase in dividend for the 2025 financial year.
NGX Group declared a dividend of N2 per share and a bonus issue of 1 new share for every 3 held.
MTN Nigeria's after-tax profit surged by 377.9 per cent, with a N15 per share dividend declared for 2025.
Mutual Benefits is trading below its intrinsic value, offering a potential opportunity for investors.
Analysts at Meristem Securities noted that while some investors might be securing profits after recent gains, market behaviour indicates a rotation of funds within the market rather than an outright exit. This suggests underlying confidence in select equities.
PREMIUM TIMES has identified several stocks with strong fundamentals that could offer reasonable price appreciation over time. These picks are the result of rigorous market analysis to mitigate the risk of random selection.
BUA Cement is a top pick this week, driven by its impressive 381.7 per cent increase in annual net profit, reaching N356 billion. The company also announced a nearly fivefold rise in its dividend for the 2025 financial year. BUA Cement boasts a Net Profit Ratio (NPR) of 23.3 per cent and a Price-to-Earnings (PE) ratio of 23.6x, with a Relative Strength Index (RSI) of 100.
Dangote Cement also features on the list for its significant financial performance, reporting a twofold jump in annual net profit to N1 trillion. The company declared a 50 per cent increase in its dividend for the 2025 financial year. Dangote Cement's NPR stands at 23.2 per cent, with a PE ratio of 13.7x and an RSI of 63.1.
NGX Group has been selected for announcing attractive returns to shareholders: a dividend of N2 per share and a bonus issue of 1 new share for every 3 shares held. The company's PE ratio is 18.9, and its RSI is 71.1.
MTN Nigeria is also among the top selections, having reported a substantial 377.9 per cent surge in its after-tax profit. The telecommunications giant declared a N15 per share dividend for 2025. MTN Nigeria's NPR is 18.3 per cent, its PE ratio is 18.4x, and its RSI is 72.7.
Lastly, Mutual Benefits makes the list for trading below its intrinsic value. The insurer has an NPR of 22.2, a PE ratio of 4.8x, and an RSI of 52.5, presenting a potential value opportunity for investors.
It is important to note that this selection serves as an investment guide, not a direct buy, sell, or hold recommendation. Investors are advised to consult with their financial advisors before making any investment decisions.
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