Economy
Stocks Investors Can Buy, Sell, Hold This Week
By Dipo Olowookere
Last week, the equity market in Nigeria was bearish and the reason was not far-fetched, investors are yet to have full confidence in the market.
Last year, the exchange posted a yearly gain of 50.03 per cent and this was surprising because the year 2020 was challenging because of the global health crisis caused by COVID-19.
But despite the harsh environment, the local stock exchange outperformed other leading world exchanges to close bullish. It is important to note that the low yield environment in the fixed income market during the period made many investors have a second look into the equity space.
Since the fixed income ecosystem started to improve this year, the stock market has been struggling as attention has returned to the risk-free investment tool.
Last week, the market recorded a week-on-week decline of 0.69 per cent, but there were hopes that things may get better as the market breadth closed positive after 33 equities appreciated in price, higher than the 25 equities that depreciated in value in the week.
As investors get started for a new trading week, analysts are projecting a bullish week if there are positive macroeconomic or corporate announcements.
However, if there are none, “we expect the bearish run to continue this week, despite the existing bargain hunting opportunities.”
But in the midst of the headwinds, investors can still pick some stocks can could yield cool returns, according to research notes of two of the leading stockbrokers in the market, ARM Securities and Meristem.
Stocks to sell
Both organisations agreed that holders of FCMB shares should sell them because the banking stock is selling above its fair value of below N2. The equity price of the tier-2 lender ended at N2.86.
However, ARM put a sell rating on Nigerian Breweries, Okomu Oil and for Meristem, its sell rating is on Guinness Nigeria, Honeywell Flour Mills, NASCON, Vitafoam, BUA Cement, Berger Paints, Ardova and Total Nigeria.
Stocks to buy
In its weekly recommendation obtained by Business Post, Meristem said investors can consider buying Ecobank, Fidelity Bank, FBN Holdings, Stanbic IBTC, UBA, AIICO Insurance, Axa Mansard Insurance, Coronation Insurance, International Breweries, Fidson, GSK, Neimeth, Conoil and Seplat.
For ARM, it put buy rating on Fidelity Bank and a strong buy rating on Access Bank, FBN Holdings, UBA, Zenith Bank and Dangote Sugar.
Stocks to hold
The brokerage firm also said it has a neutral rating on Dangote Cement, Lafarge Africa, Guinness Nigeria, Seplat, Unilever Nigeria, Nestle Nigeria and Presco.
For Meristem, it said investors can hold Access Bank, Wema Bank, Nigerian Breweries, Flour Mills, Nestle Nigeria, UAC Nigeria, Okomu Oil, Presco, PZ Cussons, Dangote Cement, Lafarge Africa, Eterna and Airtel Africa.
The full stock recommendation of Meristem can be found HERE
You can see that of ARM Securities in the image below;
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited rebounded by 0.46 per cent on Tuesday despite continued weak investor sentiment due to low confidence in the market.
The gains recorded yesterday were largely impacted by significant trades in First Holdco by a major shareholder of the financial institution.
In terms of price gainers and losers, the bears won the race, as 28 equities closed in the red and 24 equities ended in the green, indicating a negative market breadth index.
Learn Africa grew by 10.00 per cent to N9.90, First Holdco expanded by 9.98 per cent to N72.15, Thomas Wyatt rose by 9.80 per cent to N2.69, RT Briscoe improved by 8.68 per cent to N13.15, and Transcorp Hotels increased by 8.37 per cent to N242.00.
Conversely, International Energy Insurance lost 9.86 per cent to close at N4.66, Legend Internet slipped by 9.18 per cent to N4.45, Fortis Global Insurance decreased by 7.67 per cent to N2.77, FTN Cocoa tumbled by 7.55 per cent to N8.21, and International Breweries dropped 4.79 per cent to trade at N13.90.
Business Post reports that First Holdco led the activity chart with a turnover of 326.9 million units worth N22.3 billion. GTCO traded 22.5 million units valued at N2.8 billion, Access Holdings transacted 18.5 million units for N461.6 million, FCMB sold 16.1 million units worth N166.8 million, and Zenith Bank exchanged 15.9 million units valued at N1.7 billion.
At the close of business, a total of 634.8 million stocks valued at N53.3 billion exchanged hands in 42,494 deals versus the 523.5 million stocks sold for N22.3 billion in 59,945 deals on Monday, indicating a shortfall in the number of deals by 29.11 per cent, and a surge in the trading volume and value by 21.26 per cent and 139.01 per cent, respectively.
The All-Share Index (ASI) was up during the trading day by 1,121.33 points to 242,870.44 points from 241,749.11 points, and the market capitalisation gained N719 billion to settle at N155.849 trillion compared with the previous day’s N155.130 trillion.
Market participants will be looking forward to the release of inflation data for June 2026 by the National Bureau of Statistics (NBS) today, Wednesday, July 15.
By Adedapo Adesanya
Oil prices climbed about 2 per cent to a one-month high on Tuesday after the US reportedly reimposed a naval blockade on Iran, which will reduce oil flows from the region through the Strait of Hormuz.
Brent futures rose by $1.43 or 1.7 per cent to settle at $84.73 per barrel, while the US West Texas Intermediate (WTI) crude increased by $1.20 or 1.5 per cent to $79.34 a barrel.
Brent closed at its highest since June 12, and WTI at its highest since June 15. The closing price increase kept Brent in technically overbought territory for a second day in a row for the first time since March.
Before the Iran war, about 20 per cent of global oil supplies flowed through the strait.
US President Donald Trump stepped back from a proposal to charge a 20 per cent fee to guard the Strait of Hormuz as part of the conflict with Iran, saying he would instead seek investment deals with Gulf states.
US forces had carried out waves of attacks for the third night after Iran said it had closed the strait. President Trump on Monday reinstated a blockade of Iranian shipping and proposed the fee, but hours before the fee was to take effect, the American President said the strait was open to all shipping traffic except that of Iran.
The renewed attacks have fed doubts that a memorandum of understanding signed last month will lead to a permanent halt in the war that has disrupted global energy supplies and stoked inflation fears.
Data showed that US consumer inflation slowed more than expected in June as energy prices retreated, but financial markets still expect an interest rate hike from the Federal Reserve.
The Federal Reserve Chairman Kevin Warsh on Tuesday vowed to “do my job” if challenged by President Trump, who has said he wants the US central bank to cut interest rates and boost economic growth.
The American Petroleum Institute (API) estimated that crude oil inventories in the US fell by 564,000 barrels in the week ending July 10. In the week prior, US crude oil inventories fell by 399,000 barrels.
Although commercial crude oil inventories excluding the SPR have been falling rapidly for three months now, shedding just over 60 million barrels over the last twelve weeks, US crude inventories are only down 9.2 million barrels so far this year. The US Energy Information Administration (EIA) will release its report later on Wednesday.
By Adedapo Adesanya
The 700,000 barrels per day Dangote Petroleum Refinery has begun pricing fuel products for the local market in US Dollars amid crude supply challenges.
The company cited difficulties securing sufficient crude under the government’s Naira-for-crude programme and rising global oil prices as reasons for the development.
The Naira-for-crude programme, launched in October 2024, allowed domestic refiners to purchase crude in the local currency and reduced pressure on the foreign exchange market.
Mr Edwin Devakumar, the vice president of the Dangote Group, said the refinery had been absorbing a currency mismatch by selling products in Naira while sourcing crude in Dollars, but limited crude supply under the Naira-for-crude programme had undermined the arrangement’s viability.
Dangote has now set the ex-depot price of petrol at $0.779 per litre, diesel at $1.087 per litre and aviation fuel at $0.942 per litre, according to a pricing template circulated to marketers.
Although the Nigerian National Petroleum Company (NNPC) Limited increased Dangote’s allocation to seven cargoes in May from about five previously, the refiner has said it requires 13 to 15 cargoes a month and has been forced to import the remainder at international prices.
The decision could boost demand for Dollars among fuel marketers and make domestic fuel prices more sensitive to exchange-rate fluctuations.
Dangote Refinery is steadily ramping up operations toward full capacity after a gradual start since late 2023. In April alone, it received 21 separate crude cargoes, with all supplies coming from West Africa, mainly Nigerian crude grades, with one cargo from Cameroon; however, it boosted international cargoes in recent months.
The refinery has been broadening the range of crude grades it processes as part of its ambition to operate as a fully merchant refinery. In 2025, about 70 per cent of the refinery’s crude imports came from Nigeria, while 24 per cent originated from the United States.
Dangote plans to double the refinery’s processing capacity to 1.4 million barrels per day by the end of 2028, a level that would enable it to process about 80 per cent of Nigeria’s recent crude oil production in a single day.
