Daily Market Summary - January 22, 2025

Today, the Nigerian Stock Exchange (NGX) experienced a slight decline, with the All Share Index (ASI) closing down by -0.29% at 103,137.99. Year-to-date, the ASI is down -0.33%, reflecting a cautious market sentiment. Despite the overall dip, market turnover surged by 68.76% to 13.47 billion Naira, indicating increased trading activity. Market breadth was slightly positive with 29 advancers against 25 decliners, suggesting a mixed performance among listed stocks.

Significant Trends in Market Breadth:

• Market Breadth: 1.16x, indicating a slight bullish sentiment with more advancers than decliners.
• Volume Dynamics: Trading volume decreased to 387.31 million from 437.90 million, yet the number of trade deals increased to 10,322, suggesting heightened trading interest despite lower volume.
• Advancing vs. Declining Stocks: 63 stocks advanced while 73 declined, highlighting a mixed performance across the board.

Highlights of the Top Gainers and Losers:

• Top Gainers:
  • THE SIAML PENSION ETF 40 (SIAMLETF40): Closed at ?770.00, up 10.00%.
  • LOTUS HALAL EQUITY ETF (LOTUSHAL15): Closed at ?43.19, up 9.90%.
  • S C O A NIG. PLC. (SCOA): Closed at ?3.28, up 9.70%.
  • CADBURY NIGERIA PLC. (CADBURY): Closed at ?25.00, up 9.65%.
• Top Losers:
  • MULTIVERSE PLC (MULTIVERSE): Closed at ?10.05, down -9.87%.
  • MAY & BAKER NIGERIA PLC. (MAYBAKER): Closed at ?8.30, down -9.78%.
  • PRESTIGE ASSURANCE CO. PLC. (PRESTIGE): Closed at ?1.32, down -7.69%.
  • GUINEA INSURANCE PLC (GUINEAINS): Closed at ?0.87, down -7.45%.

Insights and Predictions:

• Turnover Increase: The significant increase in market turnover suggests that investors are actively repositioning their portfolios, possibly in anticipation of upcoming earnings reports or macroeconomic developments.
• Advancing and Declining Stocks: The slight edge in advancing stocks may indicate a potential for a rebound, especially if the broader market sentiment improves.
• Unusual Volume Movements: Stocks like ACCESSCORP and UNILEVER showed unusual trading volumes, indicating potential interest or news that could affect their prices in the near term.
• YTD Trends: Notably, SCOA and CADBURY are both in the top gainers for the day and also show strong YTD performance, suggesting sustained investor interest.

High Dividend Yield Stocks:

• ACCESSCORP: With a dividend yield of 1.87%, it remains a solid choice for income-focused investors, especially as it shows bullish momentum.
• PRESTIGE: Despite its bearish trend, it offers a dividend yield of 2.50%, which may attract value investors looking for income amidst price declines.

Suggestions for Traders:

• Opportunities: Consider positions in THE SIAML PENSION ETF 40 and SCOA, which are showing strong bullish momentum and could continue to rise.
• Cautions: Monitor stocks like MULTIVERSE and MAYBAKER, which are experiencing significant declines and may indicate broader sector weaknesses.
• Volume Watch: Keep an eye on stocks with unusual volumes, as they may present trading opportunities or signals of upcoming volatility.