The extended bull market on the NGX is anticipated to persist, as the index looks poised to surpass the previous peak of 109,850.83 and maintain strength from the 200-day moving average. This robust buying sentiment has bolstered numerous stocks to reach their highest points within the past year, despite changing economic conditions and surprisingly positive earnings reports from publicly traded firms.
The V-shaped chart pattern for the index suggests an influx of capital into equities, driving purchase activity across various segments including low-priced, mid-range, and high-end stocks. This sustained recovery and upward trend have received additional support from rising trading volumes. Currently, the market operates notably above its daily average level with increasingly favorable internal conditions.
At this juncture of the uptrend phase in NGX, profit-taking or minor retracements present opportunities for fresh entries and simultaneously enhance the index’s potential to move upward.
Trading and investment in stocks have resumed following a roughly one-month period marked by profit-taking in March and early April. This lull came as major corporations and industries reported their verified financial statements along with corporate decisions. These events were compounded by tensions arising from U.S. trade policies, leading to an escalation into a tariff conflict. The resulting sell-offs across global equity markets sparked concerns about potential economic downturns, which significantly affected investor sentiment.
In early April 2025, when the initial quarterly financial reports began circulating, they transformed what had been a pessimistic investor outlook into one marked by reduced volatility. Strong performances reported by companies like Nigerian Breweries spurred significant investment activity in sectors such as consumer goods and beyond.
As more companies' performance metrics surpass forecasts before their designated dates for dividend eligibility and disbursement.
This drove the upward trend, with players capitalizing on previous dips and robust Q1 financial releases to realign their holdings amid discount seeking and shifts between sectors.
Despite the common trading adage "sell in May and come back in October," May has historically been favorable for the NGX. Over the last 27 years, it has closed positively 18 times and only declined 9 occasions, continuing this trend.
The aforementioned factors were sufficient to significantly drive the NGX index upwards toward its 200-day moving average for the second time in more than two months.
In the previous instances in 2025 during the ongoing bullish market phase (which didn’t officially conclude according to the index metrics), equities proceeded to climb to unprecedented peak levels. Referencing the graph beneath—the red line denotes the T line, the green signifies the 50-day moving average, whereas the black represents the 200-day moving average for additional perspective.
Is it going to be the same outcome this time as well? Definitely not.
Actually, when the NGX index crossed above the 200-day moving average for the first time during the ongoing bullish trend on December 24, 2024, the upward movement continued for about two weeks before dropping back beneath this level. It then experienced a brief recovery, rallying again until midway through February 16, 2025, lasting roughly one more month.
Given that selloffs and volatility in the downtrend lasted for two months till April 16, 2025 before this uptrend that signalled recovery and likely a breakout of all-time high of 109,850.83 bps.
Why the 200-Day Moving Average Is Significant
Nevertheless, the 200-day line remains a significant technical barrier, and it was quite distant from the index activity at the start of this month.
Rising above the black line prior to moving downward as part of a mirror adjustment suggests that the bullish trend might persist; historically, when this occurred previously, equities went up for approximately one month and three weeks on average. Following the Q1 earnings period, the market displays genuine upward thrust despite conflicting broader economic indicators.
Many investors see technical analysis as an examination of psychological factors and market sentiments, yet at times it can provide crucial historical indicators, similar to the one mentioned here.
The 200-day moving average has primarily served as a dividing line throughout this bullish trend, with stocks generally trading above this level. Whenever they have dropped beneath this mark, it has signaled a move into correction territory.
On the contrary, the 200-day moving average has served both as a support and resistance level since October 2024.
The dark line deserves close observation. Given that the chart indicates the NGX’s index has remained beneath this dark line over the last two months and seems poised for a potential breakthrough, it signals that the market remains robust. With the market having reached an all-time peak again, consider this a clear signal to use some surplus funds to invest in stocks you’ve had your eye on or to increase holdings in those you favor most. Additionally, let the trading volumes influence your decisions regarding buys and sells.
Sentiment Analysis for the Week Ending May 16, 2025
NGXASI purchased with a 100% trading volume at an index of 1.09, accompanied by an MFI of 57.41.
Abbey sells with a 100% volume index of 0.71 and an MFI of 82.40.
Abc purchases 35%, sells 65%; volume index is 1.48; MFI stands at 91.95.
Institute purchases account for 39%, sales make up 61%. The trading volume indicator stands at 1.81 with an Money Flow Index of 64.80.
Acquire full 100% volumetric index at 0.96 with an MFI of 28.28.
Afriprud purchase 39%, sale 61%, MFI 68.17
Aiico purchases 13%, sells 87%, with a volume index of 1.72 and an MFI of 44.28.
Berger purchases an index with 100% volume and a factor of 1.58; MFI is at 63.03 U
Purchase 100% volume with an index of 2.52 and an MFI of 100.00.
Cadbury has a 0% volume growth with an index of 1.75, MFI at 70.99.
Caverton purchases 81%, sells 19%; volume index at 4.89; Money Flow Index (MFI) at 85.04.
Chams purchases account for 92%, sales make up 8%. The volume index stands at 0.92, with an MFI of 57.75 U.
Leasing purchase 100% MFI 61.87 U
CHH purchases 100% with an MFI of 60.17D
Purchase corner with 100% MFI at 44.66U
Janitor purchases 0% MFI 28.91U
Cutix purchase 67%, sale 33%, MFI 19.47 U
CWG purchases 100% volume with an index of 2.19; MFI at 69.39.
In this scenario, purchase 82%, sell 18%, with a volume index of 0.73 and an MFI of 31.27 U.
Dangsugar purchases 9%, sells 91%. MFI is 43.64.
Deep buy with 0% volume, index at 3.17, MFI at 26.15.
Ellah purchases 60%, sells 40%, with a volume index of 1.17 and an MFI of 34.33.
Eterna buy 0% volume index 3.78 MFI 52.19D
Etranzact purchases 100% of MFI 42.17D
FCMB purchase 60%, sale 40%; Volume Index: 4.91; MFI: 19.20
Fidelity has a buying score of 87%, a selling score of 13%, with a trading volume indicating an index of 0.98. The Money Flow Index (MFI) stands at 66.50.
Fidson purchases 96%, sells 4%; trading volume index stands at 4.31; Money Flow Index (MFI) is 79.36.
FHC purchases 27%, sells 73%; MFI at 53.90D
FTN purchase 79%, sale 21%, trading volume index 4.62M, money flow index 70.07
GTCO purchases account for 32%, sales make up 68%. The volume index stands at 1.43 with an MFI of 58.03.
In Guinea, purchases account for 43%, sales make up 57%. The volume index stands at 1.59 with an MFI of 19.99.
HFM purchases 100% volume with an index of 1.39; MFI at 78.25 U
IEI purchase 14%, selling 86%. Volume index stands at 4.96 with an MFI of 60.66.
Jaiz purchases 53%, sells 47%; MFI at 34.84.
He buys 42%, sells 58%, MFI is 38.72 U
Johnholt purchases an asset with a full volume of 0.99 and a Money Flow Index of 62.32.
Lasaco purchase 100% MFI 35.36D
Master selling with a 100% volume index at 1.49 MFI of 36.12 U
Buy link with 100% volume index at 1.87 and an MFI of 42.11.
Lvstk purchase 38%, sale 62%. Money Flow Index at 69.45.
Mansard buy 100% MFI 40.15U
M&B buy 83% sell 17% volume index 3.51 MFI 74.44U
When purchasing 90%, selling 10%, the volume index stands at 1.28 with an MFI of 68.89.
Mcnicho buy 100% volume index 5.37 MFI 57.20U
Buy 75%, sell 25%, volume index 2.87, MFI 46.85 U
MLTVS sells a volume index of 2.52 with an MFI of 74.82.
Nahco sells 100% of its volume with an index of 0.92 and an MFI of 72.73.
Buy Nascon with a 100% volume index of 0.72 and an MFI of 76.64 U
Neimeth purchases 100% volume with an index of 6.34; MFI at 81.36 U
Sell 100% at MFI 59.79D
Nestle buy 100% volume index 1.50 MFI 89.78U
NGXGR has sold 100% of the volume with an index of 1.68 and an MFI of 63.71.
NNFM purchase 100% volume index 3.79 with an MFI of 71.07 U
NPFMC purchases 100% of the volume index at 3.50 with an MFI of 81.35 U
Oando purchases 78%, sells 22%; volume index stands at 0.92; MFI is 47.65.
Okomu purchases 100% MFI 81.62D
Omatek purchases 100% MFI 25.75U
Premium purchase at 80%, sale at 20%. Money Flow Index stands at 21.52 U.
Regalins purchase 33%, sell 67%, MFI at 37.50
Buy Royalex at 100% MFI for 57.21U
RTB purchase full volume index at 1.00 with an MFI of 36.58 U
Sovren buys 17%, sells 83%. MFI is at 61.20.
Standard Bank acquires 100% trading volume with an index of 1.81 and an MFI of 54.16.
Sterling purchases 54%, sells 46%; MFI is at 65.65.
Buy Sunu with 100% MFI at 51.57U
Buy Tantalizer at 25%, sell at 75%. Volume index is 2.47 with an Money Flow Index of 56.20.
Advice: Purchase at 12%, Sell at 88%; Volume Index stands at 1.71; Money Flow Index is 94.90.
TPLC buys 58%, sells 42%; MFI at 60.39.
Uba buys 91%, sells 9%. MFI is 43.88.
Ucap buys 74%, sells 26%; trading volume reaches 0.74M; MFI at 19.47.
Univinsure purchases 100% of the volume with an index of 0.90 and an MFI of 51.50.
UPDC buys 62%, sells 38%. MFI is at 63.62.
Buy 10%, sell 90%, volume at 3.16M, MFI at 15.53DDevice صندFilterWhere صند
Veritas purchases 80%, sells 20%. Volume index stands at 1.45 with an MFI of 44.14.
For VFD, purchase 33%, sell 67%. Volume index stands at 10.53 with an MFI of 41.27.
Vitafoam purchase 100% volumetric index of 0.88 with an MFI of 79.49U
Wapco purchases 100% MFI 45.01D
Wapic purchases 9%, sells 91%; MFI at 39.87
Wema purchases 42%, sells 58%, with a volume index of 0.81 and an MFI of 65.88.
At Zenith, purchase activity accounts for 41%, while sales make up 59%. The volume index stands at 1.12 with an MFI of 42.21.
Investdata Weekly Sentiment Report
Provided by Syndigate Media Inc. ( Syndigate.info ).
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