Market Update for July 10
The bullishness on the Nigerian Exchange continued on Thursday on renewed strength following the increased buying interest in blue chip companies among others, which impacted the high momentum in the face of positive sentiment for macroeconomic factors and declining rates in the fixed income market instruments. The bourse extended its seven straight sessions of back-to-back gains on a very high traded volume as reflected in its highest single day gain so far of 2% in the recent rally. The benchmark NGX All-Share Index and market capitalisation hit new historic all-time highs of 124,446.80 basis points and N78.7tr respectively.
Also, the NGX index’s action broke out various psychological lines of 122,000, 123,000 and 124,000 in a single trading session due to price appreciations of highly priced stocks which weighed on the NGXASI as it closed higher on buying sentiment and positive market internals. This reflected a huge dose of investor confidence and continued flow of funds into the equity space with the number of stocks hitting new 52-week highs increasing, just as sectorial indexes broke out new highs to confirm the bull market. This is happening in the midst of cautious trading and positive momentum with all eyes are on the consumer price index report for the month of May expected next week. There is also the lookout for early filers releasing their Q2 numbers which will give insights into what investors should expect for this season, as well as guide their investment decisions.
The NGX is still at a critical level of pullback or continued uptrend, depending on market forces. Already, the market is in its overbought region with strong momentum that calls for cautious trading and profit taking while companies continue to notify the exchange of the board meetings to approve their Q2 earnings reports. These are in addition to the all-important Central Bank of Nigeria (CBN) policy meeting slated for July 20 and 21.
The ongoing rally on the NGX is creating opportunities for new entry and bargain hunting, as the market expects corporate numbers to beat investors’ expectations and Monetary Policy Rate remains unchanged at the forthcoming policy meeting of the CBN.
The high volume of trades reveals institutional participation in the market with stock prices rallying in the midst of strong positive market internals, while investors are taking advantage of any pullback to buy into value ahead of earnings inflow. There is also the impact of market confidence around the government’s economic reforms, while foreign investors are also seeing value in the NGX, a situation that has supported inflow of funds into the market and the economy at large. Nevertheless, the expected mixed trend in Q3 may not halt the bull trend if corporate earnings beat expectation. Already, the slowdown in fixed income market rates has triggered money flowing into the market.
All eyes are on U.S President Donald Trump’s tariffs deadline and letters to trade partners, as events continue unfolding in the midst of geopolitical tensions, global uncertainties due to the Middle East ceasefire moves for peace talk, which had impacted mixed sentiment on the major stock markets of the world. Nonetheless, there is need to avoid panic selling, even as profit booking could arise.
As such, let your trading plan and investment objective guide your entry and exit. It is noteworthy that the improvement in macroeconomic data points to where the domestic economy is heading. This is the time to pay close attention to momentum, price action and market structure while timing your trades and avoiding losing money with your stop loss. While navigating the market and targeting value on the strength of companies’ performance and prospect, focus on growth and defensive stocks with strong earnings power and positive technicals in the face of sector rotation persisting.
Technically, money flow and other momentum tools were up, indicating that funds are entering the market on position taking that presents opportunities to buy low and sell high in the midst ongoing volatility and overbought state of NGX. The index inched higher on a buying interest, thereby creating the perfect setup for high probability of continuation to catch better-than-expected corporate earnings to reposition at the right price. Also, the index action trading above T-line and the two moving averages of 50-EMA and 50-SMA which reveals strength in the midst of changing market sentiment and technicals on the NGX. But RSI continued to signal overbought market as it reads 82.29, which also called for cautious trading and know when to cash out profit even when taking positions.
Market pulse as revealed by the candlestick formation and momentum indicators shows that the ADX is very strong to read 69.34points, while RSI and Money Flow Index were up at 86.85 and 72.73 points against the previous session’s 82.29 and 70.89 points respectively. NGX at this point call for players to be watchful and trade wisely in the midst of markup phase and buying sentiment in some sectors and profit taking in others on a daily time frame. Also, trading volume pattern continues to oscillate, suggesting smart money are present in the market amid revaluation of the market and short-term opportunities, looking at economic events in the face of policy direction of the government and global economic outlook in the face of uncertainties and geopolitical tensions.
To navigate the rest of Q3 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 Thursday inched lower to continued its oscillation, trading at $69.83 per barrel, in the midst of uncertainty and concerns over tariffs deadline. Also, the ceasefire in Mideast for peace talks that continues to hold, and Ukraine-Russia war. Even as OPEC production hike misguide the market. The ongoing developments will deflate inflation and rate hikes if peace is achieved. All eyes are on oil cartel meeting this weekend. Tariffs and geopolitical tensions are already driving mixed macroeconomic data emanating from the U.S and China which remain a concern for investors. Just as uncertainties across many economies remain a major source of 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.
Meanwhile, Thursday trading started in the upside and it was sustained for the rest of the session, despite oscillating position taking and profit booking in some stocks. This situation pushed the composite index to its intra-day high of 124,479.00bps from its lows of 121,996.40bps, before closing sharply above its opening level at 124,446.80bps.
Market technicals were strong and positive with higher volume when compared to previous session in the midst of breadth that favors the bulls on a buying sentiment as revealed by Investdata’s Sentiments Report showing 99% buy position and 1% sell volume. The total transaction volume index stood at 1.56points, as impetus behind the day’s performance was strong, as Money Flow Index was inched higher to read 72.73pts, from the previous day’s 70.89pts, indicating that funds entered the market.
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Index and Market Caps
At the end of Thursday, the NGXASI gained 2,457.13bps, closing at 124,446.80bps from 121,989.67bps, representing a 2.01% growth, while market capitalization rose by N1.76 trillion to close at N78.73tr from the previous day’s N76.97tr, representing a 2.28% appreciation in value.
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The robust upturn was driven by accumulation and buying interest in the shares of MTNN, UBA, Ellah Lakes, Japaul Gold, PZ, Wapco, Zenith Bank, Accesscorp,NB, NGXGroup and Cavrton among others, which impacted positively on Year-To-Date gain which inched higher to 20.91% while Market capitalization gain stood at N25.54tr, representing 25.43% increase over its opening level for the year.

Bullish Sector Indices
Sectoral performance indexes all closed green led by NGX Insurance index after gaining 3.96%, followed by Banking, Consumer goods, Industrial goods and Energy with 3.86%, 1.15%, 0.25% and 0.04% respectively.
Market breadth was positive as gainers outnumbered losers in the ratio of 58:21, while activities in volume and value were up, after investors exchanged 1.30million shares worth N27.68bn, with volume driven by trades in Japaul Gold, Accesscorp, Aiico, Japaul Gold, UBA and FCMB.
Conhall and UBA were the best performing stocks, gaining 10% each, closing at N3.30 and N39.60 per share respectively on the back of sentiment and market forces. On the flip side, Nemieth Pharm and Legend Internet lost 9.89% and 9.89% respectively, closing at N9.00 and N7.21per share, purely on profit taking and selloffs.

Market Outlook
We expect positive sentiments on bargain hunting and sector rotation in the midst of profit booking, as traders trade with caution, while investors digest March year-end accounts and dividend payout and buying into value in the midst of portfolio reshuffling, even as few audited accounts 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.

Ambrose Omordion
CRO|Investdata Consulting Ltd
info@investdata.com.ng
ambrose.o@investdataonline.com
ambroseconsultants@yahoo.com
Tel: 08028164085, 08179547605