Oando, VFD, Wema, and other stocks to watch this week

For the week ended April 11, 2025, the Nigerian Exchange recorded a 0.90 percent decline, mirroring the broader global equities sell-off triggered by renewed tariff concerns. The All-Share Index closed at 104,563.34 points, reflecting the cautious market sentiment.

Despite the overall bearish trend, select stocks experienced strong bullish momentum. Notably, VFD Group surged by 53.87 percent during the week, extending its year-to-date gain to an impressive 97.5 percent. However, market breadth remained negative, as 56 stocks posted losses—more than twice the number of gainers, which stood at 27—underscoring the uneven performance across the board.

As global equities markets stabilize, some positive momentum may trickle into the Nigerian market, despite low foreign participation.

Attention is also turning to the CBN’s upcoming monetary policy announcements, which are expected to influence market sentiment this week. Meanwhile, JP Morgan’s call to end long positions on Nigerian bonds could prompt selective moves by foreign investors.

Last week, there was immense selling pressure on insurance bonds, as profit-taking on the extremely profitable insurance stocks continued. The NGX Insurance Index declined by 4.57 percent that week. Some of these insurance stocks are included in our watchlist for this week.

Read also: Investors trade N1.116trn stocks in two months

Oando Plc

After its beyond-impressive run in 2024, Oando Plc has seen massive shorting by investors this year. Down by about 40.9 percent year-to-date, recent activities in Bayelsa State are compounding Oando’s woes. The stock is currently down to its lowest share price since August 16.

Following recent sabotage of key gas pipelines supplying NLNG, investors may respond by adjusting their positions in anticipation of potential disruptions or operational impacts.

VFD Group

After posting a 53.78 percent gain in just one week, market corrections are the logical conclusion to VFD’s bullish run. With a trailing P/E ratio of 17.00x, VFD Group is reasonably priced, but a sell-off is projected this week.

Wema Bank

Wema Bank has kicked off its recapitalization drive with the launch of a N150 billion rights issue, offering new shares at N10.45 each, representing a 5 percent discount to its current trading price of N11.

Given the recent performance of newly issued banking stocks on the NGX, which have shown strong capital appreciation potential, Wema Bank’s offering is likely to attract keen investor interest. Market watchers anticipate a surge in demand for the stock this week as investors position themselves to take up full rights as well as the potential upside.

First HoldCo

First Holding Company (First Bank) has listed the newly issued shares from the rights issue on the exchange. The shares, which were bought at N25 per share, did not produce any capital appreciation, as the stock’s current share price is N25.

While most investors will hold until First Holdco announces its final dividends for FY 2024, it is projected that some investors will manage their risks by selling off First Holdco shares. However, it is not expected that there will be a massive selloff.

AIICO Insurance

AIICO Insurance’s performance continues to reflect broader market sentiment, underscored by its Beta of 1.18—one of the most reliable indicators of market direction in 2025. While the overall market declined by 0.90 percent in the week ending April 11, AIICO posted a modest gain of 1.97 percent.

Notably, the stock dipped to a year-low of N1.30 during the week before recovering to close the week at N1.55. Given this volatility and its strong correlation with market trends, AIICO is expected to see heightened trading activity in the coming week, continuing the momentum observed previously.