Market Update for March 10

It was a mixed session on the Nigerian Exchange on Monday, starting the week on positive note with marginal gains as market players reacted to the latest corporate earnings inflow and dividend announcements from Africa Prudential and others. These lifted investors sentiment and buying interest, even as its counterpart across the globe witnessed selloffs to breakdown major moving average in these domains.

The benchmark NGX All-Share index closed higher, halting the previous loss on a less than average traded volume and positive market internals that reveal the seesaw movement on the exchange, even as the index’s action consolidates while forming an inverted hammer and double bottom, signaling  a reversal pattern which need confirmation as trading opens on Tuesday. Fixed income market yields continued to decline in the face of the ongoing earnings reporting season.

The volatility on the NGX creates opportunities to buy into value stocks in the midst of portfolio realignment, as all eyes are on expected full-year audited earnings that will continue to guide buying and money flow into the market. The seeming renewed position taking in banking stocks and other fundamentally sound companies that experienced pullbacks recently supporting buying interest among dividend income investors. This side trending as market players search for value in stocks with inherent opportunities in the different sectors.

The oscillation and profit taking are short term realities that are driven by market dynamics in repositioning and preparation for more audited scorecards and dividend expectation this season. Importantly also at this period are dividend payout and yields which remain very important to players at a time like this, when there is over-subscription in TB auction and rates are declining in recent time. Knowing that different phases of the market comes with its own opportunities and benefits, especially with reactions to earnings as market players are digesting corporate numbers and rate direction of the apex bank after the last policy meeting.

At the current phase of the NGX, investors should target dividend paying companies, as pullbacks will impact dividend yields positively and provide room for higher upside that support capital gain. This is due to market had entered overbought region that signal price adjustment and correction in the midst of selling 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 inching up, revealing somewhat strength returning to the market and present opportunities of buying low and selling high in the midst ongoing volatility and mixed sentiment. The index was slightly up to signal watch thereby creating the perfect setup for high probability of continuation to catch dividend season repositioning at the right price. Also, as the index still trades below the T-line and above the two moving averages of 50-EMA and 50-SMA, this indicates relatively strength in the face of changing market fundamentals and technicals on the NGX and the economy.

The NGX index’s action looked up in the midst of accumulation phase and selling sentiments, as revealed by candlestick formation and momentum indicators. As ADX inched lower to read 33.19points, while RSI and Money Flow Index were up at 51.09 and 29.46 points against the previous session’s 50.36 and 22.18 points respectively. Consequently, market players should watch this current trend and trade wisely in the face of funds entering the market on a mixed 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 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 were stable to continue its oscillation, as it trades at $69.85 per barrel in the midst of weak economic data from China and fear of recession in US, even as OPEC plan to hike supply. As Eurogroup meets US to push peace talk in Ukraine. As trade war uncertainty continued to drive volatility.  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 the raging war between Ukraine and Russia continues to influence global oil supply and demand.

Meanwhile, Monday’s trading opened slightly in the upside and was it sustained, despite oscillating on bargain hunting positioning and profit taking in some stocks. The situation pushed the NGX’s index to an intra-day high of 106,873.50bps from its lows of 106,527.30bps, before closing below its opening level at 106,621,90bps.

Market technicals were positive and mixed with higher volume when compared to the previous session in the midst of breadth favoring the bulls on a selling sentiment as revealed by Investdata’s Sentiments Report showing 27% buy position and 73% sell volume. The total transaction volume index stood at 0.78points, just as energy behind the day’s performance was relatively weak as Money Flow Index inched higher to read 29.46.pts, from the previous day’s 22.18pts, 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 inched 83.31 basis points, closing at 106,621.9bps from 106,533.26bps, representing a 0.08% up, while market capitalization rose by N52.17bn, at N66.77tr from the previous day’s N66.71tr, representing a 0.08% 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.

The upturn was driven by position taking and buying interest in the shares of Dangote Sugar, Africa Prudential, Transcorp, Eterna, FCMB, Caverton and Livestock Feeds, among others. This impacted mildly on Year-To-Date gain that inched up to 3.59%, while Market capitalization gain stood at N7.34tr, representing 6.83% increase over its opening level for the year.

Mixed Sector Indices

Sectoral performance indexes were mixed, with the NGX Consumer Goods and Banking indexes closing 0.23% and 0.20% higher respectively, while the NGX Insurance led the decliners after losing 0.87%, followed by Energy and Industrial goods with 0.44% and 0.18% respectively.

Market breadth was positive, as gainers outnumbered losers in the ratio of 31:26, while activities in volume and value were up after investors exchanged 364.97 million shares worth N17.64bn. Volume was driven by trades in Fidelity Bank, Accesscorp, Zenith Bank, Africa Prudential and UBA.

Eterna and Transcorp were the best performing stocks, gaining 9.98% and 9.96% respectively, closing at N37.35 and N51.55 per share respectively on the back of sentiment and market forces. On the flip side, VFDGroup and IEI lost 9.92% and 8.72%, closing at N47.20 and N1.78per share, purely on profit taking and selloffs.

Market Outlook

We expect mixed sentiment, as portfolio reshuffling continue on bargain hunting and digesting of corporate action/ Q1 earnings forecast.  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