Market Opens Week on a Positive Note- Monday 7th July, 2025
• The NGX All‑Share Index rose by 0.31%, closing at 120,989.66, bringing the year-to-date return to 17.62%.
• Although overall trading volume dipped (784 million vs. 862 million previous session), value traded surged by nearly 31% to ₦13.34 billion, driven largely by institutional activity—a bullish sign for major market players.
Market Breadth & Volume
• Market breadth was strong: 57 gainers vs. 29 lagging (a 1.97–to–1 ratio), indicating widespread optimism across sectors.
• A total of 71 stocks recorded rising volumes, even as total market volume declined.
• Institutions accounted for 84.45% of trade value—suggesting strategic positioning in big-cap and financial stocks.
Top Performers With Technical Signals
• Ellah Lakes surged 10%, hitting a limit-up with an RSI of 71.3, still in overbought territory—suggests a possible short-term top.
• Tripple Gee also hit +10%, but with RSI nearly 88 and a PE ratio over 200x—high risk of a pullback.
• Meristem Value ETF climbed nearly 10%, but RSI close to 89 flags overheated momentum.
• Red Star Express jumped almost 10%, clearing key moving averages—logistics sector showing renewed appetite.
• Cadbury Nigeria fell 10% unexpectedly—despite a strong RSI near 77, indicating volatile whipsaw behavior.
Notable Decliners
• VSP Bond ETF dropped ~14%, signaling unusual volatility for bond-linked securities.
• Sunu Assurances tumbled 10% and fell below its 15-day average—bearish momentum picking up.
• RT Briscoe, Prestige Assurance, and UPDC all declined around 8–10%, each with RSI pointing to potential reversals.
⚙️ Technical & Momentum Highlights
• Turnover rose sharply, suggesting institutional forces are actively shaping large cap trends.
• Blue-chip gainers like Champion Breweries (+257% YTD) and Meyer (+91% YTD) remain in overbought territory—caution advised.
• Insurance names such as SunuAssur, Lasaco, and AccessCorp slipped below their 15‑day averages—key bearish signals.
• Standout volume movers:
• Universal Insurance spiked +408% in volume with a 7.7% price gain, hinting at accumulation.
• AIICO surged +235% in volume, crossed above its 15‑day average—bullish sign.
• Japaul Gold saw +154% in volume but lost 6% in price—likely distribution.
⚖️ Contrarian & Caution Signals
• Cadbury’s RSI remains high despite price drop—potential blow-off top or bull trap.
• Champion Breweries maintains strong momentum but shows signs of cooling—watch for retracement.
• SunuAssur continues downtrend with no RSI oversold—further downside possible.
• RT Briscoe’s overbought RSI followed by steep drop—classic profit-taking at work.
️ Defensive Plays to Watch
• High-yield, low-risk options like Regal Investments and Learn Africa offer solid dividend yields without excessive volatility.
• Fidelity Bank and UBA also present attractive dividend income with moderate beta.
Institutional Focus Continues
• Zenith Bank, AccessCorp, and GTCO remain central–stage, with institutional investors making large value trades.
• Retail investors are also active—particularly in insurance and speculative mid‑caps.
Outlook & Strategy
1. Momentum traders should use trailing stops, as many winners are overbought.
2. Defensive investors can rotate into dividend-paying, low‑beta stocks.
3. Contrarian players might explore price surges in stocks without clear news catalysts—but watch for reversals.
4. Avoid SunuAssur until momentum stabilizes.
5. Watch banks closely—technical fatigue might lead institutions to shift into mid‑caps.
️ Weekly Kick-Off Notes
• Institutional buying dominates, supported by bullish sentiment in financials.
• Retail flow remains strong in insurance and speculative stocks.
• The naira weakened slightly, boosting demand for yield-focused equities.
• Momentum names are overheated—profit-taking is likely if sustained buying doesn’t continue.
Bottom line: Monday showed strength in both value and sentiment, led by institutional investment. Still, with many stocks technically overbought, system-wide caution and strategic shifts toward income-generating securities may define the days ahead.
• The NGX All‑Share Index rose by 0.31%, closing at 120,989.66, bringing the year-to-date return to 17.62%.
• Although overall trading volume dipped (784 million vs. 862 million previous session), value traded surged by nearly 31% to ₦13.34 billion, driven largely by institutional activity—a bullish sign for major market players.
Market Breadth & Volume
• Market breadth was strong: 57 gainers vs. 29 lagging (a 1.97–to–1 ratio), indicating widespread optimism across sectors.
• A total of 71 stocks recorded rising volumes, even as total market volume declined.
• Institutions accounted for 84.45% of trade value—suggesting strategic positioning in big-cap and financial stocks.
Top Performers With Technical Signals
• Ellah Lakes surged 10%, hitting a limit-up with an RSI of 71.3, still in overbought territory—suggests a possible short-term top.
• Tripple Gee also hit +10%, but with RSI nearly 88 and a PE ratio over 200x—high risk of a pullback.
• Meristem Value ETF climbed nearly 10%, but RSI close to 89 flags overheated momentum.
• Red Star Express jumped almost 10%, clearing key moving averages—logistics sector showing renewed appetite.
• Cadbury Nigeria fell 10% unexpectedly—despite a strong RSI near 77, indicating volatile whipsaw behavior.
Notable Decliners
• VSP Bond ETF dropped ~14%, signaling unusual volatility for bond-linked securities.
• Sunu Assurances tumbled 10% and fell below its 15-day average—bearish momentum picking up.
• RT Briscoe, Prestige Assurance, and UPDC all declined around 8–10%, each with RSI pointing to potential reversals.
⚙️ Technical & Momentum Highlights
• Turnover rose sharply, suggesting institutional forces are actively shaping large cap trends.
• Blue-chip gainers like Champion Breweries (+257% YTD) and Meyer (+91% YTD) remain in overbought territory—caution advised.
• Insurance names such as SunuAssur, Lasaco, and AccessCorp slipped below their 15‑day averages—key bearish signals.
• Standout volume movers:
• Universal Insurance spiked +408% in volume with a 7.7% price gain, hinting at accumulation.
• AIICO surged +235% in volume, crossed above its 15‑day average—bullish sign.
• Japaul Gold saw +154% in volume but lost 6% in price—likely distribution.
⚖️ Contrarian & Caution Signals
• Cadbury’s RSI remains high despite price drop—potential blow-off top or bull trap.
• Champion Breweries maintains strong momentum but shows signs of cooling—watch for retracement.
• SunuAssur continues downtrend with no RSI oversold—further downside possible.
• RT Briscoe’s overbought RSI followed by steep drop—classic profit-taking at work.
️ Defensive Plays to Watch
• High-yield, low-risk options like Regal Investments and Learn Africa offer solid dividend yields without excessive volatility.
• Fidelity Bank and UBA also present attractive dividend income with moderate beta.
Institutional Focus Continues
• Zenith Bank, AccessCorp, and GTCO remain central–stage, with institutional investors making large value trades.
• Retail investors are also active—particularly in insurance and speculative mid‑caps.
Outlook & Strategy
1. Momentum traders should use trailing stops, as many winners are overbought.
2. Defensive investors can rotate into dividend-paying, low‑beta stocks.
3. Contrarian players might explore price surges in stocks without clear news catalysts—but watch for reversals.
4. Avoid SunuAssur until momentum stabilizes.
5. Watch banks closely—technical fatigue might lead institutions to shift into mid‑caps.
️ Weekly Kick-Off Notes
• Institutional buying dominates, supported by bullish sentiment in financials.
• Retail flow remains strong in insurance and speculative stocks.
• The naira weakened slightly, boosting demand for yield-focused equities.
• Momentum names are overheated—profit-taking is likely if sustained buying doesn’t continue.
Bottom line: Monday showed strength in both value and sentiment, led by institutional investment. Still, with many stocks technically overbought, system-wide caution and strategic shifts toward income-generating securities may define the days ahead.