NGX Extends Uptrend As Investors Digest Policy Meeting Outcomes, Undertake Strategic Portfolio Realignment

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The Nigerian Exchange (NGX) had a positive outing last week amid profit booking and positioning, as trading started on a negative note and finished in the green amid buying interests in the consumer goods sector. Despite the bearish mood that prevailed during the period as a result of wait and see attitude of market players. The benchmark NGX All-Share index closed higher, after gaining 0.41%, translating to an increase in value and in the process creating wealth for discerning investors. Also, market capitalisation reached N67.614tr, while the NGXASI stood at 108,497.40 points reaching year-to-date growth 5.41%, just as the sectorial indexes remained green YTD.

For example, the NGX 30 is up 5.89% YTD, the Banking Index has risen by 10.90%, the pension Index by 8.47%, the Insurance Index rise by 4.53%, and the consumer Goods Index has increased by 6.63%. However, the Oil and Gas Index recorded a negative return of 6.11%. In terms of market internals for the period, 28 stocks advanced, while 58 declines.

NGXASI Daily Chart

Technically, the daily index’s action reveal a topping market in the midst of distribution phase, as candlestick signals a market that is resisting decline with the formation hammer candlestick that support reversal, especially at a time all eyes are on financial fundamentals and money flow into reads 74 points above the T-Line.

NGXASI Weekly Chart (Opening Chart)

The market on a weekly time frame remains bullish as indicated by the index action, supported by price appreciations by blue-chip companies and large cap stocks that witnessed new entrants ahead of more corporate numbers. We noticed declining traded volume as the market was rally on a weekly bases to reflect the wait and see mood of investors and traders. Even when there were pockets of profit taking during the period. Momentum remains strong to support the uptrend. To take advantage of big market moves, you must understand how to spot continuation patterns, time your entries and ride the momentum safely and effectively-even when market defies expectations.

Abbey Mortgage Bank Weekly

Leading the top gainers chart was Abbey Mortgage Bank, which rose from N3.10 to N3.60 , a 16.13% increase during the week, driven by strong investor confidence in the housing sector. Smart Products Nigeria Plc followed with a 15.38%, moving from N0.26 to N0.30, benefiting from the increased demand for consumer goods. Dangote Sugar Refinery Plc appreciated by 15.00%, climbing from N36.00 to N41.40, reflecting strong sales performance and strategic expansion in the sugar industry, ahead of the commencement of the Islamic holy month of Ramadan, when Muslims observe 30 days of fasting and prayer. The same reason may have impacted BUA Foods Plc as it gained 11.91%, advancing from N373.50 to N418.00 per share, supported by sustained consumer demand for its products. Sovereign Trust Insurance Plc increased by 11.86%, from N1.18 to N1.32, driven by improved financial performance and market expansion.

Union Dicon Weekly Chart

On the decliners chat, Union DICON Salt Plc lost 25%, dropping from N8.00 to N6.00, while struggling with declining sales and market competition. Ikeja Hotels Plc shed 21.43%, from N14.00 to N11.00 on the back of profit-taking after its recent price surge. UPDC Plc lost 17.99%, from N3.78 to N3.10, amid weakening investor sentiment in the real estate sector. Academy Press Plc lost 16.52%, falling from N3.33 to N2.78, following reduced demand for its shares. Oando Plc also saw a 15.71% decline, from N70.00 to N59.00 on rising concerns over operational challenges in the Nigerian oil and gas sector.

Trending in the Economy: The Central Bank of Nigeria (CBN) kept its key interest rate at 27.50% on Thursday after six hikes last year, citing stability in the foreign exchange market and a gradual decline in inflation rate. While economists were divided over the rebased inflation figure of 24.48% in January, even as the CBN is optimistic about macroeconomic stability in the country. With inflation trending downward, CBN Governor, Olayemi Cardoso said the focus is now on bringing it to single digit. Despite risks of food prices spike, market confidence is improving, and rate moderation is seen as a future possibility.

Global Market and Oil: Stocks closed lower on Wall Street but edged higher in Europe on Friday amid uncertainty over U.S. President Donald Trump’s latest policy moves, including spending cuts and tariffs, as well as Germany’s upcoming elections. Oil prices dropped over 2%, while gold retreated from record highs.

Trump has imposed tariffs on major U.S. trading partners and pushed to cut federal jobs, fueling market concerns.

“The sell-off reflects uncertainty over the rapid pace of government changes,” said Joshua Wein of Hennessy Funds.

U.S. business activity hit a 17-month low, signaling economic unease. The S&P 500 fell 1.71% to 6,013.13, the Dow lost 1.69% to 43,428.02, and the Nasdaq dropped 2.20% to 19,524.01, all finishing the week lower.

European shares fluctuated ahead of Germany’s election, with the Stoxx 600 climbing 0.52% to end the week up 0.26%. Global markets were mixed, with MSCI’s world index down 1.03% but its Asia-Pacific index rising 1.35% to a three-month high.

Federal Reserve officials signaled that easing inflation could allow further rate cuts. The U.S. 10-year Treasury yield fell 7.2 basis points to 4.427%. Meanwhile, the dollar strengthened, with the dollar index up 0.25% to 106.62 as the euro fell 0.38% to $1.046.

Oil prices fell amid supply disruptions in Russia and easing geopolitical risks. Brent crude dropped 2.68% to $74.43 per barrel, while WTI fell 2.87% to $70.40. Gold declined as investors took profits, with spot gold down 0.16% to $2,934.10 an ounce.

Sectorial Indexes Charts and Stocks Price Action for the Week

NGX Banking Index Weekly Chart