Nigeria Stock Market Weekly Summary (Week Ending April 11, 2025)

This week, the Nigerian Stock Exchange (NGX) exhibited a modest recovery, with the All Share Index (ASI) closing at 104,563.34, reflecting a 0.33% increase from the previous week. Despite this uptick, the year-to-date (YTD) performance has slipped to 1.34%, down from 2.26% last week. Notably, market turnover surged by 45.34%, indicating increased trading activity, while the volume traded also rose by 42.82%. However, market breadth remains a concern, with a ratio of 0.48x, highlighting more decliners than advancers. This week’s trading dynamics suggest a cautious sentiment among investors, as evidenced by the significant number of decliners.

Key Market Trends

• Market Breadth: The market breadth ratio stands at 0.48x, with 30 advancers and 62 decliners.
• Top Gainers:
  • VFD Group PLC: 39.87% WTD
  • Union Dicon Salt PLC: 31.03% WTD
  • Abbey Building Society PLC: 19.03% WTD
• Top Losers:
  • NewGold ETF: -18.90% WTD
  • Royal Exchange PLC: -13.04% WTD
  • CAP PLC: -11.70% WTD

Insights and Predictions

• Turnover Increase: The significant increase in turnover suggests heightened trading interest, potentially driven by speculative trading or repositioning by institutional investors.
• Advancing vs. Declining Stocks: The ratio of advancing to declining stocks indicates a bearish sentiment, with 34.64% of stocks declining.
• Unusual Volume Movements: Stocks like VFD Group and Union Dicon Salt have shown unusual volume spikes, indicating strong investor interest.
• YTD Trends: The overlap between YTD gainers and current week gainers suggests that momentum may continue for stocks like VFD Group, which has shown strong bullish momentum.
• Bullish Momentum Stocks: Stocks like VFD Group (RSI: 97.52) and Union Dicon Salt (RSI: 5.56) are exhibiting strong bullish momentum.
• Bearish Momentum Stocks: NewGold ETF (RSI: 37.10) and Royal Exchange (RSI: 49.15) are showing bearish momentum.

Index Performance Analysis

The NGX-AFR Bank Value Index led the week with a remarkable 4.47% increase, while the NGX Industrial Index lagged with a -0.25% change. Year-to-date, the Banking Index remains a strong performer with a 4.55% increase, while the Insurance Index continues to struggle with a -18.71% YTD performance.

Comparison of Indexes

• Top Performer: NGX-AFR Bank Value Index with 4.47% WTD.
• Underperformer: NGX Industrial Index with -0.25% WTD.

Dividend Yield Insights

Investors should note that stocks with high dividend yields, such as CAP PLC (Div Yield: 4.13%), are also present in the bearish momentum category, indicating potential risks for income-focused investors.

Trading Suggestions

• Consider taking positions in stocks showing bullish momentum, particularly VFD Group and Union Dicon Salt.
• Exercise caution with stocks exhibiting bearish momentum, especially those with declining RSI values.

Top Year-To-Date (YTD) Gainers and Losers

Top Week-To-Date (WTD) Gainers and Losers

Market Activity Summary

Retail investors accounted for 87.28% of trade counts, while institutional investors dominated in terms of volume and value, holding 67.15% of total volume traded. The top traded stocks for retail included Access Holdings and UBA, while institutional investors favored Access Holdings and GTCO.