Market Overview – NGX Recap for Friday, July 18, 2025

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Olori Uwem

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Mar 18, 2024
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Market Overview – NGX Recap for Friday, July 18, 2025

The Nigerian stock market closed the week on a strong bullish note, with the All-Share Index (ASI) rising by +1.00% to end at 130,283.87 points. This pushes the year-to-date (YTD) return higher to +27.53%, reflecting continued investor confidence.

Despite a -1.55% dip in market turnover (₦37.22 billion traded), trading activity was highly elevated — over 2.13 billion shares exchanged, double the volume of the previous day. This points to a surge in investor appetite for Nigerian equities.

The market’s breadth was also very positive, with 54 stocks advancing compared to 25 declining, giving a strong advancers-to-decliners ratio of 2.16x. That means buyers heavily outnumbered sellers.


Top Gainers and Positive Standouts
• NEWGOLD ETF jumped +12.40% to close at ₦58,000, making it the best-performing asset for the day. Technically, it crossed key moving averages, which could attract more institutional interest going forward.
• LEARNAFRCA, GREENWETF, NCR, and UPDC all closed +10.00%, showing strong buying momentum. LEARNAFRCA’s steady RSI and low price-to-earnings ratio point to more rerating potential.


Top Losers and Caution Signals
• REDSTAREX fell by -9.97%, dragged down by a dangerously high RSI of 95 — a technical red flag for an overbought and likely exhausted stock.
• UNIONDICON dropped -9.62%, also with a similar RSI nearing 97, suggesting it may be due for a sharp pullback.
• FIRSTHOLDCO, despite being a YTD gainer, lost -4.10% today. Its high RSI combined with falling price indicates profit-taking or sector rotation.


Notable Trading Trends
• FCMB traded over 7,000% above its 90-day average volume — an eye-catching spike. However, the price declined, which could mean a large selloff or institutional repositioning. This warrants close monitoring.
• Other unusually high-volume stocks include CHAMS, AIICO, and FIRSTHOLDCO. These may be showing signs of quiet accumulation or early exit by big players.
• AFRIPRUD, with a 1.27% dividend yield, a low beta of 0.64, and bullish price action, stands out as an attractive pick for both income and growth-seeking investors.


Sectors in Focus
• Banking stocks led the market in both activity and value traded. Heavyweights like ZENITHBANK, GTCO, ACCESS, UBA, and FIRSTHOLDCO drew attention from both retail and institutional investors.
• Industrials such as BUACEMENT and DANGCEM also performed well, signaling strength in the materials sector.
• ETFs like NEWGOLD and GREENWETF showed breakout strength, indicating increased investor appetite for diversified or safe-haven instruments.


Losers YTD and Reversal Risks
• Stocks like ACADEMY, RTBRISCOE, DEAPCAP, and CONHALLPLC remain deep in negative territory YTD. Despite some recent gains, technicals still don’t suggest a sustained reversal yet.
• Be cautious with overbought names like NASCON (RSI 95+), REDSTAREX, and ABCTRANS. These high-momentum stocks often face profit-taking pressure after strong runs.


Key Contrarian and Tactical Insights
• FIRSTHOLDCO lost ground today, but remains up over +20% YTD. This kind of technical dip, especially on high volume, could either signal short-term weakness or become a dip-buying opportunity. Keep it on watch.
• NEWGOLD ETF is rallying while RSI is cooling — this non-confirmation is often bullish, as it may suggest there’s still runway ahead.
• AFRIPRUD remains a standout for conservative or dividend-focused investors — high yield, low beta, and bullish signals all line up in its favor.


Retail vs Institutional Participation
• Institutional investors dominated trading value, controlling over 92% of the market value traded, despite making up just 40% of the total number of trades.
• Retail investors accounted for 60% of the trades, but only 12.65% of volume — a sign that retail traders are actively participating, but at smaller trade sizes.

This split is typical in late-stage rallies, where institutionals make bigger bets, and retail comes in with more optimism.


✅ Actionable Takeaways for Investors
• Momentum Play: ETFs like NEWGOLD and GREENWETF are in breakout territory — but use stop-losses given rising volatility.
• Defensive Value: AFRIPRUD, PRESCO, and SOVRENINS combine dividends, low beta, and bullish trends — ideal for cautious investors.
• Contrarian Watch: FIRSTHOLDCO and FCMB may offer re-entry if prices stabilize next week.
• Caution Flags: Avoid chasing names like REDSTAREX, UNIONDICON, and NASCON with RSIs > 90 — these are high-risk for reversal.
• Sector Focus: Financials, ETFs, and industrials remain the most active themes — expect more rotational activity here as Q3 progresses.


Currency Market Note

The Naira appreciated slightly by +0.07% to close at ₦1,530/USD, showing some FX stability to end the week.