NGX Daily Market Summary for Thursday, July 17, 2025Market Overview
The Nigerian Exchange (NGX) had a bullish trading session today, reflecting a solid rebound after recent market softness. The All Share Index (ASI) rose by 1.02% to close at 128,967.08 points. This brings the year-to-date (YTD) return to +26.27%, underscoring a strong performance in 2025 so far.
Despite the index moving up significantly, market breadth remained narrow—with only 31 stocks advancing versus 48 declining—suggesting the rally was concentrated in a few large-cap stocks rather than being broad-based.
Turnover experienced a significant surge, increasing by 294.23% to reach ₦37.81 billion. Trading volume also spiked, hitting 1.06 billion shares, indicating robust institutional activity, particularly in the cement, banking, and insurance sectors.
Market Breadth & Trading Trends
• Breadth was weak, with more stocks losing value than gaining (48 losers vs. 31 gainers). Despite the strong index gain, this narrow breadth implies that only a few stocks were responsible for the upward momentum.
• Institutional investors dominated the session, contributing 70% of the total volume and over 91% of the total value traded. This suggests strong, deliberate moves from large players, particularly in banking and cement stocks.
Unusual Volume Highlights
Several stocks showed trading activity far above their normal levels:
• FIRST HOLDCO jumped +9.94%, trading at nearly 6 times its average volume.
• ACCESSCORP rose +2.43% on nearly double its usual volume.
• ZENITHBANK declined -1.32%, but still traded at 1.7x its normal volume.
• Nigerian Breweries (NB) rose modestly (+1.35%) but saw a strong volume spike.
• AIICO Insurance lost -4.35%, but traded more than 2.7x its average volume, reflecting active selling.
Top Gainer and Loser
• The top gainer was BUA Cement, closing at ₦112.20, up +10.00%, with technical indicators pointing to strong bullish momentum (RSI: 71.4, MACD positive, price above both 15- and 50-day moving averages).
• The top loser was Dangote Cement, which fell by -9.99% to ₦473.30. While the stock is under pressure, some indicators suggest it may stabilize soon (RSI: 46.1, MACD flattening).
Noteworthy Momentum Stocks
• ABCTRANS continued its meteoric rise, with a YTD return of +362.60% and RSI close to 90, signaling it may be overheated.
• EUNISELL posted a gain of +25.87% YTD, with RSI near 100, suggesting high risk of a reversal.
• UACN, another top gainer this year, rose +48.71% YTD and also displays overbought signals.
• MECURE, on the other hand, is a bearish standout: despite an RSI of 99.3 (very high), it dropped 10% today and is now trading below its 15-day moving average, which could indicate a trend reversal.
Sector Performance Highlights
• Cement Sector showed sharp divergence: BUA Cement surged +10%, while Dangote Cement dropped nearly the same percentage.
• Banking Stocks saw strong interest from institutions, particularly in FIRSTHOLDCO, ACCESSCORP, and ZENITHBANK, though not all posted gains.
• Insurance Stocks came under pressure, with names like PRESTIGE, CONHALLPLC, and GUINEAINS all declining.
• Consumer Goods sector was mostly stable, with PZ Cussons climbing 6.6% and BUAFOODS holding flat near its highs.
• Pharmaceuticals faced sharp selloffs, with MAYBAKER and MECURE both losing 10% in value today.
Trading Behavior and Institutional Activity
• The banking sector continues to act as a liquidity magnet. ZENITHBANK, ACCESSCORP, and FIRSTHOLDCO alone accounted for a huge chunk of institutional trades, with ZENITHBANK representing over 20% of total institutional trade value.
• Retail traders are still active in bank stocks but mostly in small lots. Institutions are the clear market drivers at the moment.
• Volume-price divergence appeared in names like ZENITHBANK, where high trading volumes didn’t result in a price increase—often a warning sign for possible near-term reversals.
Technical and Tactical Insights
• Overbought conditions are building across several hot stocks. Names like ABCTRANS, UACN, and EUNISELL have extremely high RSI levels, which may signal short-term corrections.
• Defensive plays like PZ, AFRIPRUD, and CORNERSTONE are worth watching. These stocks offer a blend of high dividend yields and low beta (less market risk), ideal for more cautious investors.
• Contrarian opportunities exist in stocks like DANGOTE CEMENT and select insurance names that have sold off sharply but remain fundamentally intact.
Final Take for Investors & Traders
• The market remains bullish overall, but the rally is increasingly narrow, and momentum fatigue is building in some of the top gainers.
• Investors should consider taking profits gradually in highly extended names and shifting focus to defensive or undervalued stocks.
• Keep a close watch on institutional trading patterns, as these will likely continue to dictate short-term market direction.
• Sector rotations, especially in cement and banking, are key drivers. When these cool down, a broader correction might follow.
• For now, remain alert, manage risk tightly, and favor stocks with solid technicals, strong institutional support, or attractive yield-risk profiles.