Nigerian Stocks to Watch: Oando’s Struggles, VFD’s Surge, and Wema’s Rights Issue in Focus
The Nigerian stock market closed the week ending April 11, 2025, on a bearish note, as the All-Share Index dropped by 0.90% to 104,563.34 points. This performance aligns with a broader global equities downturn sparked by renewed tariff fears. Despite the downturn, some equities defied the trend—most notably VFD Group, which gained an astonishing 53.87% for the week, bringing its year-to-date growth to 97.5%. However, market breadth was notably negative, with 56 stocks declining versus just 27 gainers, highlighting a generally cautious investor sentiment.
Among the stocks facing investor skepticism is Oando Plc, which has plunged by about 40.9% year-to-date, partly due to recent sabotage incidents targeting gas pipelines in Bayelsa State. The disruptions raise concerns about operational risks, pushing investors to reassess their exposure. Meanwhile, VFD Group’s sharp rally has led analysts to anticipate a near-term correction, despite the stock’s strong fundamentals and trailing P/E ratio of 17.00x. The group’s recent spike may prompt profit-taking as traders look to lock in gains from its extraordinary rise.
Wema Bank has entered the spotlight after announcing a N150 billion rights issue, offering shares at a 5% discount to its current market price. This move signals the bank’s push to meet new capital requirements and expand operations. Given the recent strong performances of newly issued banking stocks on the NGX, Wema’s offer is expected to attract investor interest, especially from those eyeing both the rights and potential capital gains. Conversely, First HoldCo, which recently completed a similar issuance, has seen flat returns, with its share price holding steady at the offer level of N25. Some investors are expected to trim their positions while awaiting the company’s final dividend announcement.
In the insurance sector, AIICO Insurance showed resilience amid broader market volatility, gaining 1.97% even as the NGX Insurance Index dropped by 4.57%. Its Beta of 1.18 confirms a strong correlation with market movements, making it a useful indicator for broader sentiment. The stock experienced a rollercoaster week—dipping to a low of N1.30 before rebounding to close at N1.55—signaling renewed trader interest. With increased market sensitivity and recent price action, AIICO is set for active trading in the coming week, joining the ranks of key stocks to monitor closely.
Source: business day