Elsie UdohThe Nigerian Exchange (NGX) had a mixed week, but some stocks outperformed the broader market, delivering impressive gains for investors.
If you’re wondering whether these high-performing stocks are worth buying, we’ll break down their performance, the reasons behind their surge, and whether they present a good investment opportunity.
Join our WhatsApp ChannelTop 5 Stocks That Outperformed the NGX This Week
Here are the top five stocks that stood out this week:
1. ETERNA PLC (ETERNA)
- Closing Price: ₦37.55
- Weekly Gain: +9.96%
Eterna Plc, a leading player in the downstream oil and gas sector, saw a nearly 10% price increase.
The company’s rise is likely due to strong financials, increasing oil prices, and investor confidence in Nigeria’s energy sector.
With demand for petroleum products steady, Eterna remains a stock to watch.
2. Transnational Corporation of Nigeria PLC (TRANSCORP)
- Closing Price: ₦51.55
- Weekly Gain: +9.91%
Transcorp is a diversified conglomerate with interests in power, hospitality, and energy. Its steady growth and strategic acquisitions have bolstered investor confidence.
The stock’s recent surge shows its strong earnings and growing market dominance in the power sector.
3. First City Monument Bank (FCMB)
- Closing Price: ₦10.00
- Weekly Gain: +9.89%
FCMB’s rise is fuelled by strong financial performance, improved banking sector confidence, and growing fintech innovations.
The bank has been expanding its digital offerings, attracting more customers, and increasing revenue streams.
4. Africa Prudential PLC (AFRIPRUD)
- Closing Price: ₦36.25
- Weekly Gain: +9.85%
Africa Prudential, a key player in registrar services and investment solutions, gained investor interest due to its strong dividend payouts and steady revenue growth.
The company’s focus on technology-driven financial solutions makes it attractive for long-term investors.
5. ABC Transport PLC (ABCTRANS)
- Closing Price: ₦1.63
- Weekly Gain: +8.67%
ABC Transport saw a significant gain due to increased economic activities and a growing transportation sector.
The stock remains a speculative play but could benefit from investor’s expanding logistics and mobility needs.
READ ALSO: Factors Driving NGX’s Decline, What You Can Learn
Should You Buy These Stocks?
Investing in these stocks depends on several factors, including your risk appetite, investment goals, and market outlook.
Here’s a breakdown:
Reasons to Consider Buying
- Momentum & Market Sentiment: Stocks with strong weekly performance often attract further investment, driving prices higher in the short term.
- Sector Strength: Banking, energy, and fintech-related stocks are seeing increased investor confidence due to positive industry trends.
- Fundamental Growth: Many of these companies have strong earnings, low debt, and promising growth prospects.
Reasons to Be Cautious
- Profit-Taking Risks: A sharp rise in stock prices may lead to pullbacks as investors take profits.
- Market Volatility: The NGX can be unpredictable, and external factors like government policies and global market trends can impact stock performance.
- Short-Term vs. Long-Term Outlook: While these stocks have gained this week, investors should assess their long-term viability before committing capital.
Final Verdict: Should You Buy Now?
If you’re a short-term trader looking for momentum plays, these stocks could offer quick gains.
However, long-term investors should do further due diligence on company fundamentals before buying.
Remember, diversification is key to managing risk in the Nigerian stock market.
Pro Tip: Always review financial statements, industry trends, and market news before investing in any stock.
Also, keep an eye on NGX performance and economic trends to help you make informed decisions.
Elsie Udoh is an SEO content writer who specialises in writing engaging stories that resonates with diverse audiences. She studied mass communication at the Lagos State University.
