MORISON Industries Plc emerged as the standout performer on the Nigerian Exchange (NGX) last week, recording the strongest single-counter gain as investors piled into the stock on the back of improving revenue trends and renewed appetite for domestically focused consumer names.

The company’s shares surged by 32.49 percent in the week ended December 12, closing at N4.69 from an opening price of N3.54, according to the NGX weekly market bulletin. The N1.15 jump marked the biggest percentage advance among all listed equities during the review period, reversing the stock’s subdued performance in November and early December.

Trading records show that the rally was driven by a handful of strong buying sessions rather than a slow build-up. After trading as low as the N3.22 level in late November and early December, the share price climbed steadily through the N3.50 and N3.90 range before surging to the N4.50 and N4.70 band towards the end of the week.

Market watchers noted that the pattern pointed to a mix of short-covering and fresh speculative demand, amplified by momentum traders responding to the initial uptick.

Although there was no specific corporate announcement highlighted in NGX data for the week, analysts say the sharp rebound reflects a company-specific re-rating. Investors appear to be repositioning in anticipation of a gradual turnaround, supported by Morison’s improving top-line performance and interim disclosures for 2025, alongside broader positive sentiment in the equities market.

The company’s most recent full-year financial statements underscore both the opportunity and the risk being priced into the stock. For the year ended December 31, 2024, Morison Industries reported revenue of N287.18 million, almost double the N145.23 million recorded in the preceding year, signalling a recovery in sales. However, the group remained in the red, posting a loss before tax of N76.96 million and a total comprehensive loss of N78.75 million, highlighting persistent cost and financing pressures.

Interim disclosures for 2025 point to modest balance-sheet expansion, with total assets rising and liabilities increasing in line with working-capital requirements as operations scale up. The board approved interim statements in October 2025, with management reiterating its focus on cost controls and restructuring measures aimed at restoring profitability. Full clarity on earnings, however, is expected only after the completion of the company’s audited full-year results.

Market analysts caution that the scale of last week’s rally could trigger near-term profit-taking and heightened volatility, especially with the stock now trading well above its recent support levels. In the medium term, sentiment is likely to remain closely tied to the company’s ability to convert revenue growth into sustainable cash flow and earnings.

For now, Morison Industries’ outsized weekly gain has placed it firmly in the spotlight, as investors weigh the prospects of a turnaround against the reality of lingering losses, making the stock one to watch as the year draws to a close.

 

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