Market Update for April 24
The bull transition on the Nigerian Exchange was strengthened on Thursday, amid the increaed position taking across the major sectors of the market with buying interest in blue chip companies and highly priced stocks. This weighed on the benchmark NGX All-Share index as it closed higher on a low traded volume and expanded market internals in the midst of new listing of two billion ordinary shares of Legend Internet Plc at N5.64 which further boosted the market capitalization at the end of the session trading.
More companies on the exchange made available outstanding Q1 numbers, a situation that supported demand for stocks across the low, mid and high cap that gave insight into what they should expect going forward. All eyes are on more Q1 corporate earnings, even as expectation of dividend income for reinvestment, will further boost the inflow of funds into the equity space.
Lafarge Africa Plc reported multi year high earnings of 80.3% and 837% growth respectively in top and bottom lines which stood at N248.5bn and N48.64bn to kick-start the current financial year on a positive note that translated to earnings per share of N3.02, against N0.32 recorded in the same period of 2024. These numbers triggered buying interest in the stock, with interim dividend of N4 per share. Also, BUA Cement in the same sector posted impressive numbers for same period which was also impressive, showing N105.4 billion revenue and PAT of N32.64 billion which represented 55.4% and 62% growth respectively. This also, is a pointer to what the market should expect from its industry. Another consumer goods company, Guinness Plc posted impressive 9months results that turned positive from negative earnings of N61.65 billion to profit of N6.72 billion for the period ended march 31, 2025.
Market players are still observing keenly the unfolding events globally as regard the impact of the U.S trade policy on the world economy, even as negotiations are ongoing to find a lasting solution to a problem that has already triggered a shift in global trade order. This problem is, however, a plus for some emerging economies like Africa, among others provided the right steps are taken. The extension of the NGX’s recovery is a bullish sign for the market ahead of more Q1 earnings reports, as investors and traders continue to navigate and watch the trend to take advantage of the seeming uptrend on the strength of listed companies’ performance. Investors continue to target fundamentally sound stocks as they position in value and defensive stocks with strong earnings power and positive technicals in the face of sector rotation persisting.
However, the changing global economic fundamentals and shift in trade pattern will definitely boost some economies across the globe and impact negatively on others even when trump backs down. It is therefore time for our economic managers and governments to rethink their fiscal and monetary policies if they are to drive and sustain growth in the nation economy, even as the recent oscillation and recovery are creating opportunities to buy in value and reshuffle your portfolios in today market.
The markup phase of the market and some major sectors revealed opportunities, as players target dividend income and capital gain. This is because the market is still at its oversold region, even as it’s retracing up in the midst of sector rotation, consolidation moves in some industries and expectations of more positive quarterly numbers any moment from now. These numbers will give a clear direction, if the earnings reports beat expectations.
Technically, money flow and other momentum tools are up, revealing that funds entering the market and strength that presents opportunities to buy low and sell high in the midst ongoing volatility and buying sentiment. As the index closed higher on buying sentiment and position taking, thereby creating the perfect setup for high probability of continuation to catch dividend season and Q1 numbers to reposition at the right price. Just as, the index trades above T-line but still below the two moving averages of 50-EMA and 50-SMA, even when it signaled recovery in the midst of changing market fundamentals and technicals on the NGX and the economy.
Market pulls as revealed by candlestick formation and momentum indicators, shows that the ADX is looking down to read 24.11 points, while RSI and Money Flow Index were mixed at 58.64 and 52.51points against the previous session’s 51.83 and 53.40 points respectively. At this state of the market, players should watch the trend and trade wisely in the midst of funds flowing into the market slowing down on a 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 gradually taking position amid revaluation of 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 Trump backtracking and market relief.
To navigate the rest of Q2 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 up to continue its oscillation, as it trades at $67.02per barrel, in the face of positive trade talk development and OPEC planning another output hike, even as US-Russia peace talk and ceasefire in Ukraine remains on shaky grounds. The trade tariffs negotiations and white house rumor talks flying to drive sentiment and global economic activities, just as geopolitical tensions 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’s trading started in the upside and was sustained throughout the session, despite oscillating on demand for consumer goods and insurance stocks, amid profit taking in other companies. This pushed the NGX’s index to cross the 106,000 psychological line and touch intra-day high of 106,103.00bps from its lows of 105,283.69bps, before closing sharply above its opening level at 106,074.26bps.
Market technicals were strong and mixed with lower volume when compared to previous session in the midst of breadth favoring the bulls on a buying sentiment as revealed by Investdata’s Sentiments Report showing 96% buy position and 4% sell volume. The total transaction volume index stood at 0.64points, just as momentum behind the day’s performance was relatively strong as Money Flow Index inched lower to read 52.51pts, from the previous day’s 53.40pts, indicating that funds left the market, despite closing higher.
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Index and Market Caps
At the end of trading, the composite Index NGXASI gained 790.59 basis points, closing at 106,074bps from 105.283.67bps, representing a 0.75% growth, while market capitalization rose by N508.15bn, at N66.70tr from the previous day’s N66.16tr, representing a 0.77% value gain. The different in index and market cap percentage gain was as a result of the listing Legend Internet company on the NGX.
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The upturn was driven by position taking in the shares of Nestle, MTNN, Wapco Dangote Sugar, International Breweries, Accesscorp, UBA, Zenith Bank and Ikeja Hotel, among others. This impacted positively on Year-To-Date gain which inched up to 3.06%, while Market capitalization gain stood at N6.18tr, representing 6.18% increase over its opening level for the year.
Bullish Sector Indices
Sectoral performance indexes were up, save NGX Banking index that closed lower with 0.20%, while the NGX Insurance index led the advancers after gaining by 4.32% followed by Consumer, Industrial goods and Energy with 2.35%, 1.92% and 0.07% respectively.
Market breadth was positive as gainers outnumbered losers in the ratio of 44:14, while activities in volume and value were down, after investors exchanged 328.26m shares worth N10.4bn, with volume driven by trades in Accesscorp, Fidelity Bank, GTCO,Chams and Zenith Bank.
Wapco and Nestle were the best performing stocks, gaining 10% each, closing at N79.2 and N1100.00 per share respectively on the back of sentiment and impressive. On the flip side, JohnHolt and HMCALL lost 10% and 9.96%, closing at N6.30and N4.70 per share, purely on profit taking.
Market Outlook
We expect mixed sentiments to continue on profit taking as investors digest of Q1 numbers in expectation of more Q1 earnings reports in the midst of profit taking and 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
ambrose.o@investdataonline.com
Tel: 08028164085, 08179547605
