BUA Cement, Dangote Cement, NGX Group top stock pick this week

A good number of spectacular results and dividend declarations by mega-cap companies on the Nigerian Exchange last week shows the current uptrend in the market could last longer.

The impact of that may define the direction of trade this week, even as analysts and investors await the earnings release of big lenders.

The market shed 1.1 per cent during the week on the back of profit-taking actions.

“Ongoing earnings releases and dividend expectations should continue to keep investors interested in the market,” analysts at Meristem Securities said in their outlook for the week.

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“While some investors may lock in profits after the recent run-up, current market behaviour suggests that investors are rotating funds within the market rather than exiting altogether,” they added.

Looking forward, the positive news of much-stronger strong earnings results and dividend announcements by big-cap companies should boost market performance this week, all things being equal.

PREMIUM TIMES has assembled some stocks with sound fundamentals, adopting rigorous approaches to save you the risk of picking equities at random for investment.

The pick, a product of an analytical market watch, offers a guide to entering the market and taking strategic positions, with the expectation that selected stocks will record reasonable price appreciation with the passage of time.

This is not a buy, sell or hold recommendation but a stock investment guide. You may need to involve your financial advisor before taking investment decisions.

BUA Cement

BUA Cement tops this week’s pick for recording a 381.7 per cent surge in annual net profit to N356 billion and for announcing a near fivefold increase in dividend for financial year 2025. The cement maker’s NPR is 23.3 per cent, while the PE ratio is 23.6x. Its RSI is 100.

Dangote Cement

Dangote Cement makes the list for reporting a twofold jump in annual net profit to N1 trillion and for declaring a 50 per cent increase in dividend for the 2025 financial year.

The net profit ratio (NPR) of the corporation is 23.2 per cent, while the price-to-earnings (PE) ratio is 13.7x. Its relative strength index (RSI) is 63.1.

Nigerian Exchange Group (NGX Group)

NGX Group appears on the pick for announcing twin rewards of N2 per share dividend and a bonus issue of 1 new share for every 3 held by shareholders. The PE ratio of the company is 18.9. The RSI is 71.1.

MTN Nigeria

MTN Nigeria makes the selection for reporting a 377.9 per cent surge in after-tax profit and a N15 per share dividend for 2025. The wireless operator’s NPR is 18.3 per cent, while the PE ratio is 18.4x. Its RSI is 72.7.