NGX Daily Market Summary for Thursday, May 8, 2025
1. Market Overview
The Nigerian stock market closed on a positive note as the NGX All Share Index (ASI) edged up by 0.35%, closing at 108,849.83. This nudged the Year-To-Date (YTD) performance up to +5.87%.
However, this gain masked a broader slowdown in overall market activity: volume traded dipped slightly to 526.68 million shares (from 565.05 million), and turnover plunged by 25.09% to ₦13.44 billion. This sharp drop in value suggests that, despite the index rise, trading enthusiasm weakened—especially among institutional players.
2. Market Breadth and Participation
Market breadth was strongly positive, with 40 gainers outpacing 23 losers, giving a breadth ratio of 1.74x. This kind of spread signals that more stocks are participating in the upward movement, supporting the broader trend.
However, the drop in turnover reveals a subtle shift—investors may be becoming more cautious. The rise in prices wasn’t backed by strong buying volume, meaning the recent gains may lack deep conviction and could be vulnerable to pullbacks.
Additionally, 71 stocks saw reduced trading volumes compared to the previous day, while 65 saw increases. This tilt toward lighter volumes adds nuance: the uptrend is still alive, but momentum may be softening.
3. Key Performers – YTD Trends
Several stocks have had extraordinary runs this year:
• BETAGLAS has gained +147.5% YTD.
• CHELLARAM leads with +155.7% YTD.
• SKYAVN is also up +80.9%.
However, all three have Relative Strength Index (RSI) values near 100, signaling they are extremely overbought. This level of momentum can’t be sustained indefinitely—sharp reversals or high volatility may follow.
On the flip side, the worst YTD performers include:
• VFDGROUP, down -63.96%,
• AFRIPRUD, down -29.2%, and
• VERITASKAP, down -32.9%.
Among them, AFRIPRUD stands out for its dividend yield of 1.27% and relatively moderate beta, which may attract value-focused or income-seeking investors, especially as the broader market starts showing signs of hesitation.
4. Rotation, Patterns & Outliers
Some stocks showed complex or rotational behavior:
• ABBEYBDS was today’s biggest loser but remains a strong YTD gainer. This kind of move often reflects investor rotation—where gains are being booked in overextended names, and funds are being redirected elsewhere.
• DEAPCAP appears both on today’s losers’ list and the worst YTD performers. Interestingly, it offers one of the highest dividend yields in the market. But its weak technical signals (price drifting below short-term moving averages) warn that chasing yield here may expose investors to capital losses.
In the ETF space, VSPBONDETF rallied strongly, while GREENWETF tumbled. This divergence suggests a rotation between asset classes (e.g., from equity-focused ETFs to fixed income), possibly driven by shifting risk sentiment.
5. Technical and Volume Highlights
Several technical indicators flagged potential momentum shifts:
• Stocks like CHELLARAM, BETAGLAS, and SKYAVN show RSI near 100 with continuing positive MACD histograms. These are classic signals of overstretched momentum—a zone where sharp corrections often begin.
• MAYBAKER is approaching overbought levels but still holding steady MACD positivity. It’s a stock to watch closely for a breakout or reversal.
• Stocks that showed bullish crossovers (i.e., trading above their 15-day moving average) include ETI, SUNUASSUR, NEIMETH, SOVRENINS, VSPBONDETF, and AUSTINLAZ. These names are currently benefitting from short-term momentum.
• On the flip side, DEAPCAP, TANTALIZER, and VETBANK fell below their 15-day averages—a potential early warning of sustained weakness.
In terms of volume surges, a few stocks drew special attention:
• CUSTODIAN saw an incredible +612% spike in volume, but its price remained flat. This suggests accumulation or distribution by large players—the kind of activity that can lead to breakout moves soon.
• TANTALIZER dropped by -5.74%, with volume up +449%. This is a textbook case of distribution—where traders are aggressively selling out.
• Banking stocks like GTCO and FIRSTHOLDCO also saw major volume surges, likely tied to a sector-wide rotation and institutional rebalancing.
6. Contrarian Signals to Watch
• CHELLARAM’s RSI at 100 and +155.7% YTD gain is a textbook overheating signal. Existing holders should consider tightening stop-losses or taking partial profits.
• ABBEYBDS, despite a sharp decline today, still shows an RSI of 72.1—well into overbought territory. It may be due for a deeper pullback.
• DEAPCAP, while offering a high yield, continues to trade below key short-term averages, indicating that dividend hunters should proceed with caution.
• INTENEGINS gained today, but is still down -11.2% YTD. This may be a case of a speculative bounce, not a fundamental turnaround—commonly referred to as a “dead cat bounce.”
Final Thoughts
The market remains in a bullish structure, supported by a healthy number of advancing stocks. However, the sharp drop in turnover, alongside extreme RSI readings in top gainers, softening volume breadth, and ETF rotation, signals the need for increased caution.
• Momentum traders should protect gains in overextended names.
• Contrarian investors may start looking at beaten-down value plays like AFRIPRUD.
• Watch closely for signals of broader sector rotation, as the next leadership leg may emerge from undervalued or defensive plays.
1. Market Overview
The Nigerian stock market closed on a positive note as the NGX All Share Index (ASI) edged up by 0.35%, closing at 108,849.83. This nudged the Year-To-Date (YTD) performance up to +5.87%.
However, this gain masked a broader slowdown in overall market activity: volume traded dipped slightly to 526.68 million shares (from 565.05 million), and turnover plunged by 25.09% to ₦13.44 billion. This sharp drop in value suggests that, despite the index rise, trading enthusiasm weakened—especially among institutional players.
2. Market Breadth and Participation
Market breadth was strongly positive, with 40 gainers outpacing 23 losers, giving a breadth ratio of 1.74x. This kind of spread signals that more stocks are participating in the upward movement, supporting the broader trend.
However, the drop in turnover reveals a subtle shift—investors may be becoming more cautious. The rise in prices wasn’t backed by strong buying volume, meaning the recent gains may lack deep conviction and could be vulnerable to pullbacks.
Additionally, 71 stocks saw reduced trading volumes compared to the previous day, while 65 saw increases. This tilt toward lighter volumes adds nuance: the uptrend is still alive, but momentum may be softening.
3. Key Performers – YTD Trends
Several stocks have had extraordinary runs this year:
• BETAGLAS has gained +147.5% YTD.
• CHELLARAM leads with +155.7% YTD.
• SKYAVN is also up +80.9%.
However, all three have Relative Strength Index (RSI) values near 100, signaling they are extremely overbought. This level of momentum can’t be sustained indefinitely—sharp reversals or high volatility may follow.
On the flip side, the worst YTD performers include:
• VFDGROUP, down -63.96%,
• AFRIPRUD, down -29.2%, and
• VERITASKAP, down -32.9%.
Among them, AFRIPRUD stands out for its dividend yield of 1.27% and relatively moderate beta, which may attract value-focused or income-seeking investors, especially as the broader market starts showing signs of hesitation.
4. Rotation, Patterns & Outliers
Some stocks showed complex or rotational behavior:
• ABBEYBDS was today’s biggest loser but remains a strong YTD gainer. This kind of move often reflects investor rotation—where gains are being booked in overextended names, and funds are being redirected elsewhere.
• DEAPCAP appears both on today’s losers’ list and the worst YTD performers. Interestingly, it offers one of the highest dividend yields in the market. But its weak technical signals (price drifting below short-term moving averages) warn that chasing yield here may expose investors to capital losses.
In the ETF space, VSPBONDETF rallied strongly, while GREENWETF tumbled. This divergence suggests a rotation between asset classes (e.g., from equity-focused ETFs to fixed income), possibly driven by shifting risk sentiment.
5. Technical and Volume Highlights
Several technical indicators flagged potential momentum shifts:
• Stocks like CHELLARAM, BETAGLAS, and SKYAVN show RSI near 100 with continuing positive MACD histograms. These are classic signals of overstretched momentum—a zone where sharp corrections often begin.
• MAYBAKER is approaching overbought levels but still holding steady MACD positivity. It’s a stock to watch closely for a breakout or reversal.
• Stocks that showed bullish crossovers (i.e., trading above their 15-day moving average) include ETI, SUNUASSUR, NEIMETH, SOVRENINS, VSPBONDETF, and AUSTINLAZ. These names are currently benefitting from short-term momentum.
• On the flip side, DEAPCAP, TANTALIZER, and VETBANK fell below their 15-day averages—a potential early warning of sustained weakness.
In terms of volume surges, a few stocks drew special attention:
• CUSTODIAN saw an incredible +612% spike in volume, but its price remained flat. This suggests accumulation or distribution by large players—the kind of activity that can lead to breakout moves soon.
• TANTALIZER dropped by -5.74%, with volume up +449%. This is a textbook case of distribution—where traders are aggressively selling out.
• Banking stocks like GTCO and FIRSTHOLDCO also saw major volume surges, likely tied to a sector-wide rotation and institutional rebalancing.
6. Contrarian Signals to Watch
• CHELLARAM’s RSI at 100 and +155.7% YTD gain is a textbook overheating signal. Existing holders should consider tightening stop-losses or taking partial profits.
• ABBEYBDS, despite a sharp decline today, still shows an RSI of 72.1—well into overbought territory. It may be due for a deeper pullback.
• DEAPCAP, while offering a high yield, continues to trade below key short-term averages, indicating that dividend hunters should proceed with caution.
• INTENEGINS gained today, but is still down -11.2% YTD. This may be a case of a speculative bounce, not a fundamental turnaround—commonly referred to as a “dead cat bounce.”
Final Thoughts
The market remains in a bullish structure, supported by a healthy number of advancing stocks. However, the sharp drop in turnover, alongside extreme RSI readings in top gainers, softening volume breadth, and ETF rotation, signals the need for increased caution.
• Momentum traders should protect gains in overextended names.
• Contrarian investors may start looking at beaten-down value plays like AFRIPRUD.
• Watch closely for signals of broader sector rotation, as the next leadership leg may emerge from undervalued or defensive plays.