Market Update for April 28
The bullish momentum continued on the Nigerian Exchange Monday as trading started on a positive outing, thereby reversing the previous loss position on increased buying activities of market players in the midst of a stronger than expected Q1 corporate earnings, and price adjustment for dividend and payment of dividend for the financial year ended December 31. Meanwhile, companies continued to announce interim dividend in Q1 2025 and unaudited accounts of March year end also hitting the market as the month of April winds down.
Market players positive reaction to corporate earnings as its hits the market during the trading session weighed on the benchmark NGX All-Share index which closed higher on a high traded volume and strong positive market breadth in the midst of more companies releasing their scorecards that had triggered renewed buying interest across the major sectors of the market. These numbers are offering insights into what investors should expect going forward in the current financial year, even as expectation of dividend income for reinvestment, will further boost the inflow of funds into the equity space.
Consumer goods sector earnings report so far have supported the bull-run on the strength of impressive numbers from Unilever, Cadbury, International Breweries, NB, Fidson and other sectors that have so far posted strong earnings. Investors and traders 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 NGX’s breaking out the 106,000 psychological line again on accumulation phase of the market, creates opportunities for investors and traders to continue their navigation and watch the trend to take advantage of likely uptrend on the strength of companies’ performance. Investors should 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 market is still at its recovery mood, 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 and the two moving averages of 50-EMA and 50-SMA, that signaled recovery and strength in the midst of changing market fundamentals and technicals on the NGX and the economy.
Investors sentiment as revealed by candlestick formation and momentum indicators, shows that the ADX is looking down to read 21.15 points, while RSI and Money Flow Index were up at 58.23 and 59.34points against the previous session’s 55.15 and 52.23 points respectively. At this state of the market, players should watch the trend and trade wisely in the midst of funds entering into the market 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 tariffs policy easing.
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 Monday inched lower to continue its oscillation, as it trades at $66.12per barrel, in the face of fixated demand and impact of US-China trade tariffs talks that is going up and down. Even as OPEC is planning another output hike, 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, Monday’s trading opened in the green and was sustained for the rest of the session, despite oscillating on demand for consumer goods and others stocks, amid profit taking in some companies. This pushed the NGX’s index to cross the 106,000 psychological line and touch intra-day high of 106,307.40bps from its lows of 105,725.60bps, before closing above its opening level at 106,116.18bps.
Market technicals were positive and strong with higher 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 69% buy position and 31% sell volume. The total transaction volume index stood at 0.96points, just as momentum behind the day’s performance was relatively strong as Money Flow Index inched higher to read 59.34pts, from the previous day’s 52.23pts, indicating that funds entered the market.
To successfully invest and trade in this volatile market for the rest of the quarter and 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 acti on 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 NGXASI gained 363.13 basis points, closing at 106,116.18bps from 105.752.61bps, representing a 0.35% growth, while market capitalization rose by N229bn, at N66.69tr from the previous day’s N66.47tr, representing a 0.35% 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 position taking in Cadbury, Eterna Dangote Sugar, International Breweries, Accesscorp, UBA, Zenith Bank and Legend Internet, among others. This impacted positively on Year-To-Date gain which inched up to 3.10%, while Market capitalization gain stood at N6.10tr, representing 6.12% increase over its opening level for the year.
Bullish Sector Indices
Sectoral performance indexes rose, except the NGX Oil and Gas index that closed lower with 2.87%, while the NGX Consumer goods index led the advancers after gaining by 2.38% followed by Banking, Insurance and Industrial goods with 1.31%, 0.32% and 0.31% respectively.
Market breadth was positive as gainers outnumbered losers in the ratio of 46:16, while activities in volume and value were mixed, after investors exchanged 500.54m shares worth N12.11bn, with volume driven by trades in Accesscorp, Fidelity Bank, UBA, GTCO and NB.
International Breweries and Legend were the best performing stocks, gaining 10% and 9.87%, respectively closing at N8.47 and N7.50 per share respectively on the back of sentiment and impressive. On the flip side, Livestock Feeds and Aredel lost 10% and 9.86%, closing at N8.55 and N448.00 per share, purely on profit taking.
Market Outlook
We expect positive sentiments to continue on positive reaction to Q1 numbers and 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
