Stock Recommendation for the Week of July 21, 2025

Equities on NGX continued their bullish leap for the eighth consecutive week, with the NGX ASI closing above 131,000 points. The market’s upward trend was driven primarily by increased activity in the industrial, banking and consumer goods sectors.

The All-Share Index (ASI) rose 5.74% to close at 131,585.66 points on Friday, up from 124,446.80 points. As of July 18, 2025, the market capitalisation was at N83.24trn, while the year-to-date (YTD) return closed at 27.84%.

The Sectoral Index performed largely bullish last week, with the NGX Industrial Goods Index climbing 19.17%, the NGX Banking Index increasing by 5.36%, and the NGX Consumer Goods Index rising 1.34%. The NGX Insurance Index fell by 3.65%, and the NGX Oil and Gas Index declined by 0.76%. As a result, market sentiment weakened to 4.4x from 7.4x.

This week, the banking sector experienced a positive shift from Capital Market Operators (CMOs), with several banks receiving “Buy” recommendations like Capital Bancorp, Afrinvest, Lead Capital, and Cowry Asset Management. This indicates rising investor confidence, particularly in ACCESSCORP and UBA, which are viewed as strong investment opportunities. The Consumer Goods sector presented a more cautious stance overall, with CMOs predominantly issuing “Hold” recommendations, followed by a mix of “Sell” and “Buy”. DANGSUGAR received an increased number of “Sell” recommendations despite an increase in its share price.

In the Industrial Sector, analysts issued more “Buy” recommendations this week, reflecting a positive outlook on various stocks, particularly DANGCEM, which received strong endorsement from CMOs. “Hold” recommendations were also common where analysts advsised investors to remain cautious. In the ICT sector, “Buy” recommendations predominated as confidence grew in its potential.

Analysts showed an increased number of “Buy” recommendations in the Oil and Gas sector this week, with ARADEL receiving strong endorsements from CMOs. In addition to these favourable views, there were also mixed “Hold” and “Sell” recommendations for other companies in the sector. The Agriculture sector primarily reflected a cautious stance, with “Hold” recommendations predominating.

While the market remains under pressure, selective opportunities exist across sectors. Investors can align their portfolios with the latest recommendations to strike a balance between growth potential and risk management amid market volatility.