Daily Market Summary - January 13, 2025

Today, the Nigerian Stock Exchange (NGX) experienced a slight dip, with the All Share Index (ASI) closing down by -0.08% at 105,451.06. Year-to-date, the ASI has returned 2.12%, reflecting a cautious market sentiment. Trading volume decreased to 502.34M, down -24.00% from the previous day, indicating a potential slowdown in market activity. Market breadth was negative, with 35 advancers and 50 decliners, suggesting that bearish sentiment is prevailing among investors.

Significant Trends in Market Breadth:

• Market Breadth: The breadth ratio stood at 0.70x, indicating more decliners than advancers.
• Volume Dynamics: Trading volume was up for 88 listed companies while down for 77, highlighting a mixed sentiment across sectors.

Highlights of the Top Gainers and Losers:

Top Gainers:

• CAP PLC (CAP): Closed at ?41.80, up 10.00%.
• NEIMETH INTERNATIONAL PHARMACEUTICALS PLC (NEIMETH): Closed at ?2.87, up 9.96%.
• LIVESTOCK FEEDS PLC (LIVESTOCK): Closed at ?5.55, up 9.90%.
• SECURE ELECTRONIC TECHNOLOGY PLC (NSLTECH): Closed at ?0.89, up 9.88%.

Top Losers:

• VETIVA S & P NIGERIA SOVEREIGN BOND ETF (VSPBONDETF): Closed at ?225.00, down -13.49%.
• LASACO ASSURANCE PLC (LASACO): Closed at ?3.24, down -10.00%.
• N NIG. FLOUR MILLS PLC (NNFM): Closed at ?41.00, down -9.99%.
• ACADEMY PRESS PLC (ACADEMY): Closed at ?2.93, down -9.85%.

Insights and Predictions:

• Turnover Decrease: The -24.00% drop in market turnover could indicate a lack of investor confidence or a wait-and-see approach ahead of upcoming economic data releases.
• Advancing vs. Declining Stocks: The trend of more decliners than advancers suggests that bearish momentum may continue unless there is a catalyst to shift sentiment.
• Unusual Volume Movements: Stocks like HONEYWELL FLOUR MILL PLC (HONYFLOUR) saw significant trading volume, with 23.78M shares traded, indicating strong interest despite a 5.79% price increase.
• YTD Trends: The top gainers for the year include SECURE ELECTRONIC TECHNOLOGY PLC (NSLTECH), which has shown remarkable resilience with a 28.99% YTD increase, while VETIVA S & P NIGERIA SOVEREIGN BOND ETF (VSPBONDETF) leads the losers with a -35.71% YTD decline.

High Dividend Yield Stocks:

• LASACO ASSURANCE PLC (LASACO) has a dividend yield of 4.05% but is currently in a bearish trend. This could present a buying opportunity for income-focused investors if the stock stabilizes.
• VETIVA S & P NIGERIA SOVEREIGN BOND ETF (VSPBONDETF), despite its losses, may attract investors looking for yield in a volatile market.

Suggestions for Traders:

• Opportunities: Consider looking into CAP PLC and NEIMETH for potential short-term gains, given their recent bullish momentum.
• Cautions: Be wary of stocks like LASACO and VSPBONDETF, which are experiencing significant downward pressure. It may be prudent to wait for signs of stabilization before entering positions.