Nigerian Stock Market Cools Off Amid Profit-Taking and Volatile Flows
After several days of bullish momentum, the Nigerian equity market took a pause on Thursday, June 26, 2025, as the NGX All-Share Index (ASI) dipped by 0.39%, closing at 121,257.69. This minor pullback signals a shift in market sentiment, characterized by profit-taking, especially among overbought stocks, and growing caution from institutional investors.
Despite the index drop, volume slightly rose to 862 million shares, showing retail investors remained active. However, the market turnover declined sharply by 27.03% to ₦17.04 billion, highlighting smaller trade sizes and reduced institutional engagement. The day’s trading was spread across 23,908 deals, with 36 stocks gaining and 39 declining, leading to a market breadth of 0.92x—tilted slightly negative.
Key Highlights from Today’s Session
• Top gainer: UNILEVER rose by 10.00%, closing at ₦51.70.
• Top loser: SFSREIT fell by 10.00%, ending the day at ₦249.25.
• Volume direction: Increased in 63 stocks, declined in 76.
• Currency market: Naira/USD held steady with no major movement.
Market Trends and Signals
• Momentum Divergence: Several leading gainers showed strong price movement but extremely high RSI (Relative Strength Index), warning of short-term overbought conditions. For example, NEIMETH had an RSI of 83.4 and ELLAHLAKES hit 87.7—both are technically overextended and could see pullbacks.
• Profit-Taking in High-Flyers: Stocks like CHAMPION and THOMASWY posted negative price moves despite massive YTD gains and strong technicals, signaling potential exhaustion.
• Institutional Rotation: Heavy buying was seen in the banking sector, notably in ZENITHBANK, which rose slightly by 0.52% as institutions showed preference for safer, large-cap plays.
• Retail-Led Volatility: Unusual volume spikes in stocks such as ELLAHLAKES, CAVERTON, and FTNCOCOA point to speculative retail action. However, these names now carry higher risk of sharp reversals.
Stocks Drawing Attention
• NEIMETH: Up 9.98% today, +115.1% YTD, but RSI at 83.4 indicates possible short-term ceiling.
• ELLAHLAKES: Down 3.95% today after YTD gain of 125.9% — profit-taking is likely underway.
• FTNCOCOA: Mild dip today, but with huge volume and RSI of 79.4, it’s in overheated territory.
• CHAMPION: Down 8.34% despite 162.47% YTD gain; momentum possibly fading.
Contrarian Signals to Watch
• GREENWETF: Down 9.98% with an RSI of 28.6 — this level is typically oversold, potentially signaling a rebound.
• THOMASWY: Plunged 10% despite a high RSI of 79.2 — classic reversal setup.
• OANDO: Declined nearly 10%, breaking below key short-term technicals. Volatility likely to persist.
Sector Snapshot
• Banking: Led by ZENITHBANK with strong institutional flows and a bullish setup.
• Insurance: Retail-driven push in NEIMETH, though short-term technicals are stretched.
• Agriculture: ELLAHLAKES saw massive volume but profit-taking pulled price lower.
• Oil & Gas: OANDO sold off sharply; caution warranted despite longer-term bullish bias.
• Food Products: BUAFOODS experienced a sharp breakdown, losing over 6%.
• ETFs: GREENWETF entered oversold territory, while NEWGOLD saw positive movement above its 15-day moving average.
Defensive Plays & Dividend Watch
For investors looking for income and reduced volatility:
• NEIMETH offers a 3.38% yield with very low beta, though current price action is overheated.
• FIDELITYBK remains a steady performer with a 5.48% yield and moderate beta — a balanced income option.
• UPDC has an eye-catching 34.25% yield but could be a value trap if price weakens.
• DANGSUGAR and AIICO offer decent yields but are showing signs of bearish short-term momentum.
Investor Takeaway
Today’s market reflects a shift toward cautious optimism, with investors showing selectivity in stock picking. Overbought signals, increased retail speculation, and thinning institutional trades are red flags for short-term players. However, underlying strength in sectors like banking, and possible rebounds in oversold names like GREENWETF, may offer opportunities.
In summary: watch your RSI, beware of hot stocks losing steam, and consider defensive plays as volatility rises.
After several days of bullish momentum, the Nigerian equity market took a pause on Thursday, June 26, 2025, as the NGX All-Share Index (ASI) dipped by 0.39%, closing at 121,257.69. This minor pullback signals a shift in market sentiment, characterized by profit-taking, especially among overbought stocks, and growing caution from institutional investors.
Despite the index drop, volume slightly rose to 862 million shares, showing retail investors remained active. However, the market turnover declined sharply by 27.03% to ₦17.04 billion, highlighting smaller trade sizes and reduced institutional engagement. The day’s trading was spread across 23,908 deals, with 36 stocks gaining and 39 declining, leading to a market breadth of 0.92x—tilted slightly negative.
Key Highlights from Today’s Session
• Top gainer: UNILEVER rose by 10.00%, closing at ₦51.70.
• Top loser: SFSREIT fell by 10.00%, ending the day at ₦249.25.
• Volume direction: Increased in 63 stocks, declined in 76.
• Currency market: Naira/USD held steady with no major movement.
Market Trends and Signals
• Momentum Divergence: Several leading gainers showed strong price movement but extremely high RSI (Relative Strength Index), warning of short-term overbought conditions. For example, NEIMETH had an RSI of 83.4 and ELLAHLAKES hit 87.7—both are technically overextended and could see pullbacks.
• Profit-Taking in High-Flyers: Stocks like CHAMPION and THOMASWY posted negative price moves despite massive YTD gains and strong technicals, signaling potential exhaustion.
• Institutional Rotation: Heavy buying was seen in the banking sector, notably in ZENITHBANK, which rose slightly by 0.52% as institutions showed preference for safer, large-cap plays.
• Retail-Led Volatility: Unusual volume spikes in stocks such as ELLAHLAKES, CAVERTON, and FTNCOCOA point to speculative retail action. However, these names now carry higher risk of sharp reversals.
Stocks Drawing Attention
• NEIMETH: Up 9.98% today, +115.1% YTD, but RSI at 83.4 indicates possible short-term ceiling.
• ELLAHLAKES: Down 3.95% today after YTD gain of 125.9% — profit-taking is likely underway.
• FTNCOCOA: Mild dip today, but with huge volume and RSI of 79.4, it’s in overheated territory.
• CHAMPION: Down 8.34% despite 162.47% YTD gain; momentum possibly fading.
Contrarian Signals to Watch
• GREENWETF: Down 9.98% with an RSI of 28.6 — this level is typically oversold, potentially signaling a rebound.
• THOMASWY: Plunged 10% despite a high RSI of 79.2 — classic reversal setup.
• OANDO: Declined nearly 10%, breaking below key short-term technicals. Volatility likely to persist.
Sector Snapshot
• Banking: Led by ZENITHBANK with strong institutional flows and a bullish setup.
• Insurance: Retail-driven push in NEIMETH, though short-term technicals are stretched.
• Agriculture: ELLAHLAKES saw massive volume but profit-taking pulled price lower.
• Oil & Gas: OANDO sold off sharply; caution warranted despite longer-term bullish bias.
• Food Products: BUAFOODS experienced a sharp breakdown, losing over 6%.
• ETFs: GREENWETF entered oversold territory, while NEWGOLD saw positive movement above its 15-day moving average.
Defensive Plays & Dividend Watch
For investors looking for income and reduced volatility:
• NEIMETH offers a 3.38% yield with very low beta, though current price action is overheated.
• FIDELITYBK remains a steady performer with a 5.48% yield and moderate beta — a balanced income option.
• UPDC has an eye-catching 34.25% yield but could be a value trap if price weakens.
• DANGSUGAR and AIICO offer decent yields but are showing signs of bearish short-term momentum.
Investor Takeaway
Today’s market reflects a shift toward cautious optimism, with investors showing selectivity in stock picking. Overbought signals, increased retail speculation, and thinning institutional trades are red flags for short-term players. However, underlying strength in sectors like banking, and possible rebounds in oversold names like GREENWETF, may offer opportunities.
In summary: watch your RSI, beware of hot stocks losing steam, and consider defensive plays as volatility rises.