Market Update for March 24

Trading activities for the last week of March and first quarter of the year started on a positive note on the Nigerian Exchange, thereby extending the bull transition for a second session, although on a low traded volume and positive market breadth. This signaled an uptrend on the strength of expected financial service sector earnings reports, as shown by the impressive earnings report from the United Bank of Africa Plc, particularly its corporate action of a final dividend of N3.00 per share which excited the market. The numbers triggered bargain hunting in banking stocks and others that impacted the benchmark NGX All-Share index positively to close higher, just as all eyes are on more audited financial statements inflow this week and early April ahead of the statutory deadline for submission of 2024 accounts.

The global stock markets seem to rebound in the midst of renewed buy interest, sector rotation and uncertainties surrounding the global economies as a result of trade war and geopolitical tensions. Just as unfolding events in Rivers State continued to damper investor confidence in the face of seemingly rebounding on the NGX and fixed income market rate inching up in recent TB primary market auctions. In all this, NGX pullback had created this new entry opportunities for discerning investors and smart traders to position in value stocks ahead of influx of corporate earnings and end of the quarter window dressing by fund managers and others market operators.

However, the market’s rebound will be supported by dividend growth and strong earnings, as companies declare dividend for 2024 financial year.  Many quoted  companies on the exchange are notifying the market of their board meetings to approve the audited numbers for 2024.  This is expected to impact the market positively if these numbers beat expectation in dividend payout and performance. The ongoing volatility due to global trade warfare will definitely make some economies across the globe and mar some others. It is therefore time for economic managers and government to rethink their fiscal and monetary policies if they are to drive and sustain growth in their domain, even as the recent selloffs are creating opportunities to buy in value and rebalance portfolios in the mature markets and in our market today.

The accumulation/markup phase of the NGX 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.

The market pulse, as revealed by candlestick formation and momentum indicators, shows that ADX slide to read 26.21points, while RSI and Money Flow Index were up at 44.97 and 24.83 points against the previous session’s 37.47 and 19.26 points respectively. Consequently, market players should watch this current trend and trade wisely in the face of funds coming back 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 Monday inched higher to continue its oscillation, as it trades at $72.89 per barrel in the midst of continued US-Russia peace talk and ceasefire in Ukraine. Even as increasing US crude inventory threat OPEC production hike plan and projection, 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.

Meanwhile, Monday’s trading started in the upside and it was sustained for the rest of the session, despite oscillating on buying interest in banking stocks and others, while selloffs and profit taking continued in some companies. This situation pushed the NGX’s index to an intra-day high of 105,614.100bps from its lows of 104,963.00bps, before closing above its opening level at 105,551.39bps.

Market technicals were positive and strong with higher 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 90% buy position and 10% sell volume. The total transaction volume index stood at 0.94points, just as energy behind the day’s performance was weak as Money Flow Index inched up to read 24.83pts, from the previous day’s 19.26pts, 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

The composite NGX All-Share Index, at the end of Monday gained 594.44 basis points, closing at 105,551.39bps from 104,962.96bps, representing a 0.56% growth, while market capitalization rose by N369bn, at N66.19tr from the previous day’s N65.82tr, representing a 0.56% appreciation in value.

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.

The upturn was driven by buying interest and accumulation in the shares of Oando, Livestock, GTCO, UBA, Zenith Bank, Accesscorp, Fidelity Bank and Custodian, among others. This impacted positively on Year-To-Date gain that inched higher to 2.55%, while Market capitalization gain stood at N6.23tr, representing 5.46% increase over its opening level for the year.

Mixed Sector Indices

Sectoral performance indexes were mixed, as the NGX Insurance and Industrial goods closed lower by 1.49% and 0.01% respectively, while the NGX Banking led the advancers after gaining 3.78%, followed by Energy and Consumer goods with 0.39% and 0.07% respectively.

Market breadth was positive as gainers outnumbered losers in the ratio of 25:22, while activities in volume and value were up after investors exchanged 440.54 million shares worth N10.47bn. Volume was driven by trades in Zenith Bank, FCMB, UBA, Accesscorp and Fidelity Bank.

Royal Exchange and Livestock Feeds were the best performing stocks, gaining 10% and 9.87% respectively, closing at N0.88 and N9.24 per share respectively on the back of sentiment and market forces. On the flip side, NEM and Ucap   lost 9.63% and 9.29%, closing at N12.20 and N16.60per share, purely on profit taking and selloffs.

Market Outlook

We expect continuation of position sentiment on bargain hunting in the midst of profit taking, portfolio reshuffling and digesting of corporate earnings and dividend payout, as more 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