Daily Market Summary - January 21, 2025

Today, the Nigerian Stock Exchange (NGX) experienced a modest uptick, with the All Share Index (ASI) rising by 0.75% to close at 102,370.36. Despite this daily gain, the YTD performance remains slightly negative at -0.04%. Market turnover increased by 13.95%, indicating heightened trading activity, with a total value of 7.98 billion Naira traded across 12,486 deals. However, market breadth showed a slight bearish tilt, with 29 advancers compared to 32 decliners. Notably, MTN Nigeria PLC emerged as the top gainer of the day, surging 10.00%, while S C O A NIG. PLC. faced significant selling pressure, dropping 9.93%.

Significant Trends in Market Breadth

• Market Breadth: The breadth ratio stands at 0.91x, indicating more decliners than advancers.
• Volume Trends: Trading volume increased to 437.90 million, up from 350.71 million in the previous session, suggesting increased investor engagement.
• Advancing vs. Declining Stocks: A total of 64 stocks advanced while 74 declined, reflecting a challenging environment for many investors.

Highlights of the Top Gainers and Losers

Top Gainers:

• MTN Nigeria PLC (MTNN): Closed at 256.30, up 10.00%.
• S C O A NIG. PLC. (SCOA): Closed at 2.99, up 9.93%.
• Omatek Ventures PLC (OMATEK): Closed at 0.89, up 9.88%.
• Universal Insurance Company PLC (UNIVINSURE): Closed at 0.75, up 8.70%.
• CAP PLC (CAP): Closed at 47.75, up 8.52%.

Top Losers:

• VETIVA S & P Nigeria Sovereign Bond ETF (VSPBONDETF): Closed at 243.04, down -28.52%.
• Greenwich Asset ETF (GREENWETF): Closed at 481.00, down -9.93%.
• Secure Electronic Technology PLC (NSLTECH): Closed at 0.73, down -9.88%.
• Lotus Halal Equity ETF (LOTUSHAL15): Closed at 39.30, down -9.78%.
• Abbey Building Society PLC (ABBEYBDS): Closed at 3.30, down -9.09%.

Insights and Predictions

• Turnover Increase: The 13.95% increase in market turnover could indicate a potential shift in investor sentiment, possibly driven by the strong performance of key stocks like MTN.
• Advancing and Declining Stocks: The trend of more decliners than advancers suggests caution among investors, particularly in sectors facing headwinds.
• Unusual Volume Movements: Stocks like MTNN and LASACO showed unusual trading volumes, with MTNN trading 6.52 million shares, significantly above its 90-day average of 2.65 million. This could signal strong interest or speculative trading.
• YTD Trends: The top YTD gainers, such as SCOA, have shown remarkable resilience, with a 45.15% increase, indicating strong momentum that may continue if market conditions remain favorable.
• Dividend Yield Considerations: Stocks like UNIVINSURE and VITAFOAM are showing bullish momentum while also offering attractive dividend yields, making them appealing for income-focused investors.

Suggestions for Traders

• Opportunities: Consider positions in stocks showing bullish momentum, particularly those crossing above their 15-day moving averages like OMATEK and UNIVINSURE.
• Caution: Monitor stocks with bearish momentum, especially those crossing below their 15-day moving averages, such as FCMB and NSLTECH, as they may continue to face selling pressure.
• Dividend Stocks: Look for high dividend yield stocks that are also in bullish momentum for potential income generation alongside capital appreciation.