Year-End Rotation in Nigerian Stocks: Presco, Stanbic IBTC & Custodian Lead Strategic Picks
As 2025 winds down, Nigerian equities are closing the year on a strong and confident note, driven by sustained market gains and renewed investor optimism.
Here’s a clear breakdown of what this report is saying and why these stocks are drawing attention
Market Overview: Why This Matters
• Nigerian stocks have recorded three consecutive weekly gains in December, signalling improved market momentum.
• The market rose 1.8% last week, largely driven by consumer goods stocks, the best-performing sector in 2025.
• With just days left in the year, institutional investors are repositioning portfolios, locking in profits while rotating into stocks with strong fundamentals ahead of:
• 2025 full-year earnings
• Dividend declarations
According to Meristem Securities:
• Investors are shifting into fundamentally sound stocks
• Short-term volatility may occur due to profit-taking and portfolio rebalancing, but quality stocks remain attractive.
Why These Stocks Were Selected
Premium Times emphasises that this list is:
• ❌ Not a buy/sell/hold recommendation
• ✅ A fundamental-based investment guide
• Designed to reduce the risk of random stock picking
The selections focus on:
• Profitability
• Valuation (Price-to-Earnings ratios)
• Market momentum (RSI)
• Long-term growth potential
Breakdown of the Top Stock Picks
Presco Plc
Why it stands out
• Operates in the agri-business sector, a long-term growth driver in Nigeria
• Strong profitability and operational efficiency
Key Metrics
• Net Profit Ratio (NPR): 38.8%
• Price-to-Earnings (P/E): 10.7x
• RSI: 0 (suggests possible oversold condition)
Why investors are watching it: High margins and strong earnings potential in a defensive sector.
Stanbic IBTC Holdings Plc
Why it stands out
• Trading below intrinsic value
• Strong earnings capacity within the banking sector
Key Metrics
• NPR: 34.5%
• P/E: 4.6x (very cheap by market standards)
• RSI: 14.9 (deeply oversold)
Why investors are watching it: Attractive valuation plus dividend potential.
Custodian Investment Plc
Why it stands out
• Undervalued stock with stable fundamentals
• Solid performance in the insurance and asset management space
Key Metrics
• NPR: 20.2%
• P/E: 4.1x
• RSI: 47.1 (neutral)
Why investors are watching it: Cheap valuation with steady earnings.
Seplat Energy Plc
Why it stands out
• Robust fundamentals despite oil sector volatility
• Exposure to energy exports and FX earnings
Key Metrics
• NPR: 7.8%
• P/E: 9.7x
Why investors are watching it: Energy resilience and long-term cash flow strength.
Coronation Insurance Plc
Why it stands out
• Improving fundamentals in a recovering insurance sector
Key Metrics
• NPR: 9.7%
• P/E: 11x
• RSI: 56.5 (moderate momentum)
Why investors are watching it: Sector recovery play with reasonable valuation.
Big Picture Takeaway
• The Nigerian stock market is ending 2025 with positive momentum
• Investors are prioritising value, profitability, and earnings strength
• These stocks reflect a defensive, fundamentals-first strategy ahead of earnings season
⚠️ As always, investors are advised to consult a financial advisor and align decisions with personal risk tolerance and investment goals.
As 2025 winds down, Nigerian equities are closing the year on a strong and confident note, driven by sustained market gains and renewed investor optimism.
Here’s a clear breakdown of what this report is saying and why these stocks are drawing attention
Market Overview: Why This Matters
• Nigerian stocks have recorded three consecutive weekly gains in December, signalling improved market momentum.
• The market rose 1.8% last week, largely driven by consumer goods stocks, the best-performing sector in 2025.
• With just days left in the year, institutional investors are repositioning portfolios, locking in profits while rotating into stocks with strong fundamentals ahead of:
• 2025 full-year earnings
• Dividend declarations
According to Meristem Securities:
• Investors are shifting into fundamentally sound stocks
• Short-term volatility may occur due to profit-taking and portfolio rebalancing, but quality stocks remain attractive.
Why These Stocks Were Selected
Premium Times emphasises that this list is:
• ❌ Not a buy/sell/hold recommendation
• ✅ A fundamental-based investment guide
• Designed to reduce the risk of random stock picking
The selections focus on:
• Profitability
• Valuation (Price-to-Earnings ratios)
• Market momentum (RSI)
• Long-term growth potential
Breakdown of the Top Stock Picks
Presco Plc
Why it stands out
• Operates in the agri-business sector, a long-term growth driver in Nigeria
• Strong profitability and operational efficiency
Key Metrics
• Net Profit Ratio (NPR): 38.8%
• Price-to-Earnings (P/E): 10.7x
• RSI: 0 (suggests possible oversold condition)
Why investors are watching it: High margins and strong earnings potential in a defensive sector.
Stanbic IBTC Holdings Plc
Why it stands out
• Trading below intrinsic value
• Strong earnings capacity within the banking sector
Key Metrics
• NPR: 34.5%
• P/E: 4.6x (very cheap by market standards)
• RSI: 14.9 (deeply oversold)
Why investors are watching it: Attractive valuation plus dividend potential.
Custodian Investment Plc
Why it stands out
• Undervalued stock with stable fundamentals
• Solid performance in the insurance and asset management space
Key Metrics
• NPR: 20.2%
• P/E: 4.1x
• RSI: 47.1 (neutral)
Why investors are watching it: Cheap valuation with steady earnings.
Seplat Energy Plc
Why it stands out
• Robust fundamentals despite oil sector volatility
• Exposure to energy exports and FX earnings
Key Metrics
• NPR: 7.8%
• P/E: 9.7x
Why investors are watching it: Energy resilience and long-term cash flow strength.
Coronation Insurance Plc
Why it stands out
• Improving fundamentals in a recovering insurance sector
Key Metrics
• NPR: 9.7%
• P/E: 11x
• RSI: 56.5 (moderate momentum)
Why investors are watching it: Sector recovery play with reasonable valuation.
Big Picture Takeaway
• The Nigerian stock market is ending 2025 with positive momentum
• Investors are prioritising value, profitability, and earnings strength
• These stocks reflect a defensive, fundamentals-first strategy ahead of earnings season
⚠️ As always, investors are advised to consult a financial advisor and align decisions with personal risk tolerance and investment goals.