The Nigerian equities market started 2025 on a moderate bullish note, posting a 1.53% gain in January.
The NGX All-Share Index rose from 102,926.40 points at the end of 2024 to 104,496.12 points by January 31, 2025.
This reflects a more cautious growth compared to the 35.28% surge recorded in January 2024.
The restrained sentiment was largely driven by declines in the Oil & Gas (-1.61%), Insurance (-8.52%), and Industrial Goods (-1.1%) sub-sectors, indicating mixed investor confidence.
As companies begin to release their audited 2024 financials, dividend declarations are also influencing market movements.
Amidst this backdrop, several stocks delivered exceptional performances in January, driven by a mix of fundamental improvements, speculative interest, and liquidity trends.
Here are the top ten best-performing stocks in January 2025:
University Press Plc (UPL)
- YtD Return: +45.45%
- Liquidity: Moderate (26 million shares traded, valued at N107 million)
- Fundamentals: Returned to profitability (N798 million pre-tax profit from N224 million loss in 2023)
UPL posted a 45.45% gain in January, extending its 26.26% gain in 2024. The company’s return to profitability has been a key driver of investor interest.
However, with moderate trading liquidity (ranked 89th on NGX), the sustainability of its rally remains uncertain.
Lower liquidity can result in higher price volatility, making sustained upward movement dependent on stronger earnings momentum and increased trading activity.
NCR Nigeria Plc
- YtD Return: +46%
- Liquidity: Low
- Beta: 0.408 (Moderate market correlation)
- Fundamentals: Pre-tax loss widened by 205% to N2.199 billion
Despite recording a 46% rally in January, NCR’s fundamentals remain weak, with a significant increase in pre-tax losses.
The company, engaged in vehicle sales, construction equipment, and industrial machinery, has yet to show clear signs of profitability.
However, its beta of 0.408 suggests some sensitivity to market trends, while speculative buying may be driving its rally despite weak earnings.
Honeywell Flour Mills Plc (HONYFLOUR)
- YtD Return: +52.1% (Third-best performer)
- Liquidity: High (329 million shares traded over three months)
- Beta: 0.3766 (Moderate market correlation)
- Fundamentals: Pre-tax profit up 239%, revenue up 123% YoY
Honeywell Flour Mills gained 52.1% YtD, ranking third on NGX. Notably, the stock recorded a 26% gain in the past four weeks, reflecting growing investor confidence.
The company’s strong revenue and profit growth, alongside high trading activity (ranking 31st most traded stock on NGX), suggests that fundamentals are supporting its rally.
With a beta of 0.3766, the stock is moderately influenced by market movements but also benefits from its liquidity and earnings momentum.
Chellarams Plc
- January YtD Return: +76.5% (Second-best performer)
- Liquidity: Moderate
- Fundamentals: Pre-tax loss reduced to N305 million from N456 million
Chellarams surged 76.5% YtD, ranking as the second-best performing stock. Despite ongoing losses, its financial recovery, reflected in a significant reduction in pre-tax losses, signals a potential turnaround.
The company operates across distributive trade, manufacturing, motorcycle assembly, dairy, and retail, a diversified portfolio that may be attracting speculative interest despite its unprofitable status.
SCOA Nigeria Plc
- January YtD Return: +97.57% (Best-performing stock on NGX)
- Liquidity: Moderate (Average daily volume: 152,576 shares)
- Beta: -0.0274 (Moves almost independently of the market)
- Fundamentals: 135% YoY pre-tax profit growth in 2024
SCOA led the market with a 97.57% return, reflecting strong investor interest. While its trading activity is moderate, its diverse business model spanning automobile sales, manufacturing, power, and food production supported strong earnings growth.
Despite its low correlation to the broader market, investor sentiment remains positive, with expectations that the stock could match or exceed its 2023 return of 115%.
Others that made the top 10
- Trans-Nationwide Express +44.93
- Vitafoam +38.91%
- Northern Nigeria Flour Mill +38.04%
- The Initiates Plc +37.60%
- Multiverse Mining and Exploration +36.73%
Can the rally be sustained?
The top-performing stocks in January 2025 exhibited a mix of fundamental strength, liquidity variations, and speculative interest:
- SCOA and Honeywell Flour Mills stand out due to strong earnings growth and liquidity, making their rallies more sustainable.
- Chellarams and NCR have rallied despite weak profitability, raising questions about whether investor optimism can hold.
- UPL’s return to profit is positive, but its low trading rank suggests liquidity concerns may pose risks to sustainability.
As 2024 audited financials continue to be released, market sentiment may shift, especially as dividend announcements and earnings surprises influence investor behavior.
Stocks with strong fundamentals and liquidity are more likely to sustain their momentum in the coming months.
