Daily Market Summary - January 15, 2025

Today, the Nigerian Stock Exchange (NGX) experienced a notable decline, with the All Share Index (ASI) closing down by -1.47% at 103,622.09. This brings the year-to-date (YTD) performance to -1.05%. Market turnover saw a significant drop of -45.33%, indicating a decrease in trading activity, which may reflect investor caution amid current market conditions. The market breadth was negative, with 36 advancers and 55 decliners, suggesting a challenging environment for many stocks.

Significant Trends in Market Breadth:

• Market Breadth: The breadth ratio stood at 0.65x, indicating more decliners than advancers.
• Volume Trends: Trading volume decreased to 423.87M, down from 504.65M in the previous session, highlighting reduced investor engagement.
• Declining Stocks: A total of 103 stocks saw a decline in volume, compared to 56 that experienced an increase.

Highlights of the Top Gainers and Losers:

• Top Gainers:
  • NATIONAL SALT CO. NIG. PLC (NASCON): Closed at ?38.50, up 10.00%.
  • SUNU ASSURANCES NIGERIA PLC (SUNUASSUR): Closed at ?6.71, up 10.00%.
  • SKYWAY AVIATION HANDLING COMPANY PLC (SKYAVN): Closed at ?33.15, up 9.95%.
• Top Losers:
  • DANGOTE CEMENT PLC (DANGCEM): Closed at ?387.90, down -10.00%.
  • UNIVERSAL INSURANCE COMPANY PLC (UNIVINSURE): Closed at ?0.63, down -10.00%.
  • JOHN HOLT PLC (JOHNHOLT): Closed at ?8.47, down -9.99%.

Insights and Predictions:

• Turnover Decrease: The -45.33% drop in market turnover could indicate a cautious sentiment among investors, possibly due to macroeconomic concerns or upcoming earnings reports.
• Advancing vs. Declining Stocks: The trend of more declining stocks (55) compared to advancing ones (36) suggests a bearish sentiment prevailing in the market.
• Unusual Volume Movements: Stocks like UNIVINSURE and AIICO showed unusual trading volumes, with 70.31M and 39.68M shares traded, respectively, indicating heightened interest or potential volatility.
• YTD Trends: The top YTD gainers include NEWGOLD ETF and NEIMETH, both showing strong momentum, while WAPIC INSURANCE and DANGCEM lead the YTD losers, reflecting ongoing challenges in their respective sectors.

High Dividend Yield Stocks:

DANGCEM has a notable dividend yield, but its recent performance in the bearish momentum table raises concerns about sustainability. Investors may want to assess the long-term viability of dividends in light of current price pressures.

Suggestions for Traders:

• Opportunities: Consider monitoring NASCON and SUNUASSUR for potential upward momentum, especially as they have crossed above their 15-day moving averages.
• Cautions: Be wary of stocks in the bearish momentum table, particularly DANGCEM and UNIVINSURE, as they may continue to face selling pressure.
• Volume Analysis: Keep an eye on stocks with unusual volumes, as they may present trading opportunities or indicate shifts in market sentiment.