The final week of January could witness significant market activity, as investors reposition their portfolios in anticipation of upcoming earnings reports, which are set to be released starting in the first week of February. Essentially, this week will serve as a juncture for market participants to adjust their strategies based on projected corporate performance.
In the past week, the NGX posted a 1.22 percent gain, with the All-Share Index closing the week at 103,598.30. The market was driven by gains recorded by Transnational Corporation Plc (TRANSCORP) as well as MTN Nigeria. During the week, Guinness Nigeria released its half-year results, with Transcorp Power releasing its full-year unaudited results, driving a bullish sentiment towards both stocks.
This week, the stocks that should be on the investing public’s watchlist are companies with a consistent profitability profile, taking into cognizance their recent performances.
- Africa Prudential
In 2025, Africa Prudential has delivered an impressive 21.7% growth, extending the bullish momentum that began in December 2024. Since July 2024, the stock has generated a return exceeding 160%, cementing its position as one of the most expensive financial equities in the market.
With a P/E ratio of 35.0x and a P/B ratio of 5.1x, investors are paying a relatively high premium on Africa Prudential shares. It is projected that there will be quite a volume of profit taking on them stock this week.
- Transcorp Hotel
Following the recent disclosure of financial results by its sister company, Transcorp Power, it is anticipated that Transcorp Hotels’ 2024 financial statements will be unveiled this week. As expected, this release would provide insight into the company’s performance and direction in 2025.
With a share price of N127.35, Transcorp Hotel has produced a year-to-date of 9.78 percent which contributes to a six-month return of 29.4 percent. Having a P/E ratio of 106.1x and a price-to-book ratio of 17.1x, Transcorp Hotel can be regarded as an overpriced stock.
- MTN Nigeria
Despite posting a year-to-date return of 24 percent, MTN Nigeria is still far off from the target price projected by market analysts. For Meristem, MTN Nigeria has a target price of N279.42. The bullish sentiment on MTN is driven by an expected telecoms tariff increase which is expected to drive telecoms companies back to profitability.
- Aradel Holdings
Aradel Holdings is expected to release its 2024 unaudited financials on Monday, 27 January. It is expected that Aradel would post a record profit for 2024 given the hike in oil prices especially in the last quarter of 2024.
With a P/E ratio of 0.8x and price-to-book ratio of 1.7x, Aradel Holdings is an extremely underpriced stock with huge dividend-paying potential. In October 2024, the company made an interim dividend payout of N34.8 billion for the nine months ending September 30, 2024, marking a 31 percent dividend payout.
- AIICO Insurance
On the radar of market analysts, AIICO is still rated as a strong buy despite its 25.9 percent return in 2025. With a share price of N1.80, AIICO is rated as a penny stock, however, with a price-to-earnings ratio of 3.6x and price-to-book ratio of 1.0x, there is a very strong potential for capital appreciation with AIICO Insurance.
This week, it is expected that AIICO Insurance may see increased market activity.
