Guinness, Abbey Mortgage Bank, International Breweries top stocks to watch

For the week ending April 17, the Nigerian Exchange (NGX) extended its bearish trajectory in April, with the All-Share Index (ASI) declining by 0.32%. The index shed 329.53 points to close at 104,233.81.

Profit taking emerged as the dominant theme of the week, particularly among heavily capitalised stocks. GTCO Holdings led the losers’ chart with a sharp 13.24% drop in its share price—from N68 to N59—while Zenith Bank followed closely, recording an 11.91% decline.

On the upside, Nigerian Breweries delivered a strong performance, gaining 13.13% after reporting an impressive Q1 2025 net income of N44.6 billion.

A standout performer during the week was VFD Group, which has become one of the market’s biggest surprises in April. The stock climbed 9.46% during the week, pushing its month-to-date gain to a remarkable 103 percent and closing at N96 per share.

The trading week starting April 22 is projected to see improved trading activity on consumer goods and breweries stocks. Nigerian Breweries’ financials have set the tone for the kind of results expected from other similar companies during the week.

March inflation figures are also expected to play a key role in shaping market sentiment this week. With the Central Bank of Nigeria (CBN) likely to maintain its current monetary policy stance, interest rates in the fixed income market are expected to remain elevated. As a result, the equities market is projected to exhibit a bearish tone in the near term, at least on the surface.

Guinness Nigeria

Following Nigerian Breweries’ strong performance, the tide may be turning for the country’s beer makers, signaling an end to a stretch of loss-making quarters. Attention now shifts to Guinness Nigeria, which is expected to release its nine-month financial results shortly.

As anticipation builds, investors may position themselves ahead of the earnings announcement, making Guinness Nigeria one to watch in the coming week. The stock trades at an N80 share price, with a negative P/E ratio of 3.5x. With the majority shareholder, Tolaram, initiating a Mandatory Takeover Bid at N81.60 per share, investor interest in Guinness Nigeria is likely to intensify.

VFD Group

Last week, BusinessDay projected a potential sell-off in VFD Group shares following a sharp 54% gain the previous week. Contrary to expectations, the stock continued its upward trajectory, fueled by strong buying pressure, and has now surged by an impressive 103 percent in April alone.

Given this momentum, the possibility of a full offer on VFD Group shares in the early part of the trading week cannot be ruled out.

International Breweries

Just like Guinness Nigeria, International Breweries is on our radar, as the group is expected to post a profit for Q1 2025. In the week ending April 17, the stock posted a 6.8% gain. The bullish trend is expected to continue during this week.

The stock has a share price of N5.50, with a negative P/E ratio of 4.7x.

AIICO Insurance

AIICO Insurance—a stock known for closely reflecting overall market volatility with a beta of 1.18—stands out as one to watch. Last week, it recorded a 9.09 percent gain, closing at N1.56 per share.

With a price-to-earnings ratio of 4.46x, AIICO appears reasonably valued. However, given broader market sentiment, the stock may still face downward pressure in the near term.

Abbey Mortgage Bank

In the preceding week, Abbey Mortgage Bank (ABBEYBDS) surged by 46.17%, closing at N8.96 per share. Year-to-date, the stock has appreciated by an impressive 199%, making it the top-performing stock on the exchange so far in 2025.

However, with a relatively high price-to-earnings ratio of 45.0x, ABBEYBDS appears highly priced, and as such, significant profit-taking is anticipated in the coming weeks.