3 High-Yield Energy Stocks to Buy in September for Steady Income

Nigerian stocks experienced a significant rebound towards the end of September, reversing a two-week decline caused by increased volatility in Open Market Operations (OMO). The All-Share Index (ASI) saw an increase of almost 81–90 basis points in late-month trading, as investor funds' gains topped N1.3 trillion within a few days.

This recovery demonstrates the market's resilience, with bulls fighting against key psychological support levels after shallow bouts of profit-taking. Nigerian equities are currently attractive compared to other emerging markets, with major tier-1 banks and industrials trading at attractive trailing P/E ratios ranging from 3.5-6.5, which is far from their historical averages and regional peers.

Corporate earnings continue to show strength despite economic challenges such as foreign exchange normalization and inflation pressures. The inclusion of Nigerian equities into the FTSE index on September 21 is likely to attract foreign portfolio investors, leading to an accumulation period before the inclusion. Market experts expect intense short-term trading as traders capitalize on weak-hand profit-taking and minor price fluctuations, presenting entry opportunities for institutional investors.

Oil and gas led the rebound on lower levels, while industrial and consumer goods consolidated near their peaks. The late-August rebound, coupled with increased trading volumes, suggests institutional accumulation due to the price pullback. The immediate resistance level is between 243,000–245,000 on the weekly chart, which, if breached, would negate the current correction and test recent highs once again.

The crucial pivot/ control area between 240,000–241,300 has shifted from resistance to immediate tactical support, with bulls needing to hold it. The intermediate trend bull structure remains healthy up to 238,680, and a break below this level could trigger a test to lower support around 235,000. As September typically involves portfolio restructuring before Q3 corporate results are released, market participants should watch for accumulation in high-liquidity stocks, primarily tier-1 banks like First Holdco, Access Holdings, GTCO, and solid industrial companies like Seplat, while maintaining sufficient cash buffers to leverage minor pullbacks.

A continued upward move above the resistance level will indicate whether September can enter another broad bullish phase.