Reported by Tahir Ishaq Shehu
The Nigerian Exchange (NGX) posted a moderate year-to-date return of 16.57% in the first half of 2025, marking a deceleration from the 33.81% rally recorded during the same period in 2024. Despite the tempered broader market performance, several individual stocks far outpaced the index, delivering triple-digit gains and attracting investor attention with strong earnings, compelling valuations, and in some cases, pure speculation.
A review of the top ten performing stocks on the NGX in H1 2025 reveals a diverse blend of growth-driven names, turnaround plays, and momentum-fueled penny stocks. The standout performers reflect ongoing sector rotation into under-owned industries such as agriculture, healthcare, and industrials, as well as investor interest in both fundamentals based and sentiment driven opportunities.
Among the top ten, SCOA Nigeria Plc ranks 10th, notching an impressive 161.65% year-to-date return. The stock opened the year at N2.06 and surged to N5.40 by the end of June, with most of its bullish momentum occurring in January when it rallied 97.57% in a single month.
SCOA’s rally appears to be a mix of value discovery and speculative flows. While its price to sales ratio of 0.5 points to relative undervaluation based on revenue, its high price to earnings (P/E) ratio of 22.5x and unusual beta of -0.11 suggest that investor optimism is tilted toward future potential rather than present fundamentals. Analysts view the stock as high risk, high reward, attracting speculative capital chasing breakout momentum.
What drove the outperformance across the board?
Strong earnings surprises: Several companies posted unexpectedly strong Q1 results, sparking reratings and investor inflows.
Valuation reratings: Stocks with historically low P/Es and signs of operational recovery gained traction.
Speculative flows: Penny and illiquid stocks benefited from sentiment driven trading.
Sector rotation: Nontraditional sectors like agriculture, healthcare, and industrials saw renewed investor interest as markets diversified beyond the dominant banking and oil sectors.
From Beta Glass’s fundamentally backed rally to Smart Products’ speculative surge, the NGX in H1 2025 offered a broad spectrum of winning stories. While some remain reasonably valued, others are now priced for perfection, raising the stakes for the second half of the year.