Market Update for March 25

The seeming recovery and buying sentiment on the Nigerian Exchange continued on Tuesday, as benchmark indicators inched up on low traded volume and positive market internals, thereby sustaining the bullish mood for a third consecutive session in the midst of uptrend, improving momentum and earnings expectation. These are happening amid the usual end-of-the quarter window dressing by market operators and fund managers which kickoff ahead of the statutory deadline for submission of the 2024 audited financial statements for companies with December year-end.

The expansion of market breadth at the end of Tuesday’s trading is a reflection of increasing bargain hunting activities, as sector rotation, portfolio reshuffling and dividend positioning continue after the recent pullbacks had revealed value in the market.

Many companies on the NGX continued to notify the investing public of board meetings to review and approve their audited 2024 accounts., a situation expected to impact the market positively if these numbers beat expectation in dividend payout and performance. The ongoing volatility due to the global trade warfare will definitely make some economies across the globe and mar others. It is therefore time for economic managers and governments to rethink their fiscal and monetary policies if they are to drive and sustain growth in their domain, even as the ongoing political crisis in River State as a result of emergency rule as declared by FG, remain a concern for investors.

The NGX at this phase provides opportunity for market players to target dividend paying companies, as pullbacks will impact dividend yields positively and provide room for higher upside that support capital gain. This is because the market is still at its oversold region that supports retracement in the midst of buying sentiments for some sectors, consolidation moves in some industries and expectations of positive corporate numbers from some others, based on their quarterly and full year unaudited performance, coupled with their dividend payouts history.

Technically, money flow and other momentum tools are up, revealing gradual return of strength that present opportunities to buy low and sell high in the midst ongoing volatility and mixed sentiment. The index inched higher to signal position taking thereby creating the perfect setup for high probability of continuation to catch dividend season repositioning at the right price. Also, as the index trades slightly above the T-line but below two moving averages of 50-EMA and 50-SMA, this indicates recovery in the face of changing market fundamentals and technicals on the NGX and the economy.

Market players’ sentiments as revealed by candlestick formation and momentum indicators, shows that ADX is looking down to read 24.17points, while RSI and Money Flow Index were up at 45.47 and 29.50 points against the previous session’s 44.97 and 24.83 points respectively. Consequently, market players should watch this current trend and trade wisely in the face of funds are entering to the market on a buying sentiment in some sectors and profit taking in others on a daily time frame. Also, trading volume pattern continued to oscillates, suggesting smart money are watching amid players revaluing the market and short-term opportunities, looking at economic events in the face of policy direction of the government that look inconsistent and global economic outlook in the face of trade war uncertainty and geopolitical tension.

To navigate the rest of Q1 and beyond profitably, it is important to run with economic events, fundamental and technical analysis, join investdata live sessions at noon every Monday, Wednesday and Friday’s trading session “and also get investdata technical toolbox to play the current state of the market do suggest that discerning investors are gradually becoming greedy, while others are fearful, as seen in the recent pullbacks. Despite the oscillating volume of transaction witnessed in recent time, it is time to position in undervalued stocks, sectors and the next insider playing opportunity.

Oil prices on Tuesday rose to continue its oscillation, trading at $73.15 per barrel in the midst of prolonged expected crude draw and ceasefire in Ukraine. Even as Ukraine ask for the details of US-Russia peace talk. As trade war uncertainty continue to drive sentiment.   The geopolitical tension across many economies remains a concern to the global economy and energy consumption in 2025. This trend may likely continue, while the up and down movement continues to drive volatility, even as global economic uncertainty continues to influence global oil supply and demand.

Tuesday’s trading on the NGX opened slightly in the green and was sustained throughout the session, despite oscillating on positioning in some stocks and selloffs in others. This situation pushed the NGX’s index to an intra-day high of 105,645.50bps from its lows of 105,394.00bps, before closing marginally above its opening level at 105,593.30bps.

Market technicals were positive and strong with lower volume when compared to the previous session in the midst of breadth favoring the bulls on a buying sentiment as revealed by Investdata’s Sentiments Report showing 79% buy position and 21% sell volume. The total transaction volume index stood at 0.75points, just as impetus behind the day’s performance was weak as Money Flow Index inched up to read 29.50pts, from the previous day’s 24.83pts, indicating that funds entered the market.

To successfully invest and trade in this volatile market for the rest of the year, order for Investdata’s video on Buy & Sell Technical Analysis Toolbox to navigate the volatile market profitably, enhance trading decisions and boost your bottom line. Also, to up your game in stock trading and investing, understanding the key to trading price and index action will go a long way to make the difference in your trading results, check out the video materials on our site and take action.

Index and Market Caps

At the close of trading, the benchmark NGX All-Share Index inched marginally higher by 41.89 basis points, closing at 105,593.28bps from 105,551.39bps, representing a 0.04% up, while market capitalization rose by N26bn, at N66.21tr from the previous day’s N66.19tr, representing a 0.04% value gain.

Attention: If you have not signed up for INVESTDATA’s buy and sell signal setup, don’t delay, because the number of stocks entering their oversold range has increased as market correction and volatility call for intelligent trading and positive chart patterns to be on our watchlist. These stocks have potentials to retrace, considering their earnings prospects and the oscillating moves in an upmarket and weak economy.

To become a member, send ‘YES’ or ‘STOCKS’ to the phone numbers below. Take advantage of this service to buy right and sell right at the current oscillating market in the midst of earnings season, portfolio reshuffling, and repositioning as we await an economic reform policy that can stimulate and re-track the economy to the path of growth and development.

Meanwhile, the upturn was driven by position taking in financial services and tech company’s stocks like GTCO, Zenith Bank, Fidelity Bank, Conhall, Aiico, Mutual Benefits, Etranzact, Omatek and Chams, among others. This impacted mildly on Year-To-Date gain that inched higher to 2.59%, while Market capitalization gain stood at N6.26tr, representing 5.50% increase over its opening level for the year.

Mixed Sector Indices

Sectoral performance indexes were mixed as the NGX Energy and Consumer Goods closed lower by 1.69% and 0.01% respectively, while the NGX Insurance led the advancers after gaining 1.99%, followed by Banking and Industrial goods with 1.33% and 0.01% respectively.

Market breadth was positive as gainers outnumbered losers in the ratio of 29:21, while transactions in volume and value were mixed after investors exchanged 345.33 million shares worth N15.08bn. Volume was driven by trades in Accesscorp, UBA, Universal Insurance, Fidelity Bank and Zenith Bank.

May&Baker and Mutual Benefit Assurance were the best performing stocks, gaining 10% and 9.59% respectively, closing at N8.80 and N0.80 per share respectively on the back of sentiment and market forces. On the flip side, Eterna and Royal Exchange lost 9.21% and 7.95%, closing at N34.50 and N0.81per share, purely on profit taking.

Market Outlook

We expect mixed sentiment to continue on bargain hunting and profit taking, as more corporate earnings are expected to hit the market with dividend announcement. Also, sector rotation and portfolio rebalancing continued in the market with investors taking advantage of price correction to buy into value.

This is amid the volatility and pullbacks that add more strength to upside potential. Consequently, investors should take advantage of price correction. Also looking at the trends and events across the globe and domestically.

Q2 2025 Investdata Master Class

Theme: Post-Earnings Season Strategies For Winning Edge In Q2 Market Oscillation

Sub-Topics

1. Risk-Reward Managing Tools & Proven Patterns For Profitable Trading On The NGX by Mr Abdul-Rasheed Oshoma Momoh, ED Operations at, TRW Stockbrokers Ltd
2. Game-Changing Strategies For Identifying Overvalued & Undervalued Stocks In Any Market Cycle For Higher Returns, by Mr Kebira Jimoh Aruna, MD/CEO GlobalView Capital Ltd
3.  NGX Sector Rotation With Earnings Power & Technical Tools For Profitable Investing,by Mr Ambrose Omordion, CRO. Investdata Consulting Ltd
4. Current Opportunities In Nigeria’s Mortgage Landscape, by Mr Tope Ojo, Managing Partner, Tope & Tunde Estate Surveyors & Valuers

It is obvious that volatility on the NGX is not ending soon. So, how would you describe the recent market action? “Topping,” “Pullbacks,”or“Volatility.”

What is important is how and what you should be doing to build your wealth in view of these changing market fundamentals and otherwise. The strange trends and patterns emerging on the exchange are unusual for fundamentalist and dividend income investors, because the inflow of impressive corporate earnings and dividend announcements is not impacting yields positively, as expected in the new phase of the equities market.

It is an anomaly we have only seen once before in this decade. The last time this pattern played out was in late 2007 and early 2008, and it helped to create some of the biggest winners in stocks market history. In the NGX today, intelligent investors and smart traders are combining fundamental and technical analyses to beat market oscillation and manipulation in the various cycles and seasons. That is why we are excited to share something New and Unique in this upcoming Q2 Master Class.

Takeaways from this Q2 Master Class

1. Discover how successful traders and investors wake up Knowing how the market and trades are likely to move
2. Learn how technical traders catch market turns and ride the waves in days or weeks
3. How following Trends and Patterns can boost your trading returns
4. Simple and effective short-term trading strategiesyou can implement in just a few minutes daily
5. How to quickly identify the best trades and investing opportunities to win
6. The power of sector rotation and portfolio rebalancing for boosting your portfolio bottom line.
7. What stands you out as a pro as you start thinking and trading with confidence
8. 5 Stocks that will outperform inflation by doubling CPI rate in Q2, 2025

Don’t miss this class, if you have any exposure to the stock market, either directly or indirectly via managed funds of any kind……

Date: March 29, 2025

Time: 9am

Fee: N100,000

Venue: Zoom

If you want to reset your profit by taking advantage of opportunities in financial market and assets repricing in Q2 and beyond, send Yes to 08028164085, 08179547605 now.

Ambrose Omordion

CRO|Investdata Consulting Ltd

info@investdata.com.ng

ambrose.o@investdataonline.com

ambroseconsultants@yahoo.com

Tel: 08028164085, 08179547605