Market Update:
The Nigerian equities market sustained its upward trajectory on Tuesday, extending gains for the third consecutive trading session, as investors continued to position in fundamentally strong counters and dividend-paying stocks ahead of the quarter-end. The bullish momentum was underpinned by renewed demand in Berger Paints (+9.06%), Beta Glass (+8.16%), Cadbury (+8.04%), Oando (+4.95%), PZ Cussons (+2.50%), and Dangote Sugar (+2.33%), as well as tier-one banking names including GTCO (+2.03%), Fidelity Bank (+1.92%), Stanbic IBTC (+1.01%), UBA (+0.94%), Zenith Bank (+0.86%), and AccessCorp (+0.18%).
Consequently, the NGX All-Share Index (ASI) advanced by 0.23% to close at 141,761.36 basis points, compared to 141,439.77 points in the previous session. Similarly, market capitalization added N203.46 billion to settle at N89.70 trillion, while the year-to-date return (YtD) further strengthened to 37.73%, reinforcing the market’s resilient bullish trend so far in 2025.
Market Breadth:
Despite the positive close, market sentiment was slightly on the weak side, as 32 losers outnumbered 27 gainers, reflecting bouts of profit-taking. NCR topped the advancers’ chart, closing at a new 52-week high of N11.55 per share, while Legend Int’l (LEGENDINT) led the losers’ table, despite trading close to its yearly high. This suggests that while investors are still hunting bargains, some are also locking in recent profits.
Market Activity:
Trading activity witnessed an uptick, as both volume and value improved compared to the previous session. A total of 605.02 million units were exchanged, representing a 2.33% increase, valued at N12.90 billion, across 28,845 deals. FCMB led the chart by volume with 89.30 million units, while WAPCO dominated by value, posting N1.63 billion worth of trades.
Contribution by volume showed FCMB (14.76%), Veritas Kapital (11.32%), and AIICO (5.98%) as the top three most active stocks, while by value, WAPCO (12.64%), MTNN, and GTCO took the lead.
Global Oil Market Update:
Crude oil prices reversed Monday’s rally, slipping into negative territory as risk aversion resurfaced in global equity markets. Brent crude declined 1.4% to $67.86 per barrel, while WTI dipped 1.6% to $63.78 per barrel. Analysts note that while the Russia-Ukraine conflict and expectations of fresh U.S. sanctions on Russian oil remain bullish factors, investor caution over global economic growth continues to weigh on prices.
Technical View & Outlook:
The NGX All-Share Index extended its bullish run, forming a positive candlestick that reflects sustained buying interest, even in the face of mild profit-taking. The index remains above its short- and medium-term moving averages, while momentum indicators such as RSI and MACD point to sustained strength, although currently approaching overbought levels.
Market breadth remains mixed, suggesting selective buying by investors, particularly in banking, consumer goods, and industrial stocks. Given the sustained inflow of funds into the equity space and resilience of blue-chip counters, the market is likely to maintain its bullish bias in the near term, though intermittent pullbacks should be expected as investors rebalance portfolios.
Going forward, we expect buying interests in value and dividend-paying stocks to continue to drive sentiment, especially as investors anticipate corporate earnings and possible interim dividend declarations. However, traders are advised to remain cautious, adopting a strategy of buying on pullbacks while monitoring key resistance levels at 142,000 basis points and support around 140,800 basis points.
