NGXASI: All Share Index
The Nigerian Exchange’s composite All-Share Index traded above its support level last week, confirming its sturdiness as shown by the capacity to withstanding strong bearish sentiments. The sectoral index reflected mixed sentiment due to portfolio rebalancing and the prevailing global tension.
The All Shares index traded above its moving average, reflecting the market’s strength and resilience. The indicators on the weekly chart remain strongly bullish aside from the volume. Though volume didn’t cross its moving average, investors should understand that profit-taking prevailed in the Nigerian Bourse last week. How did other sectors perform?
Index Performance Per Sector
NGXBNK: Banking Sector Index
On the weekly chart, the banking index trades above its moving average, indicating a strong bull market. However, when the index’s basis point reached 2000, it formed a resistance level.
Based on these indicators, investors took profit to prepare for another bull run. That’s why the index experienced strong bearish sentiment according to volume. Regardless, the other indicators, such as MFI and RSI, depicted sustained high liquidity and momentum. Finally, MACD remains strongly bullish. Overall, the banking index is healthy and offers investment opportunities
NGXCSMG: Consumer Goods Sector Index
The consumer goods index is in its distribution phase on the weekly chart. Throughout the week, this index traded within its resistance level due to profit-taking. Market analysts will predict another bull run, since the market closed within its support zone.
In terms of volume, the NGXCSMG sold 2.189 billion shares, which reflects the week’s performance. Despite this massive bearish sentiment, other indicators remain positive. MACD is bullish, while RSI and MFI align with the overall market sentiment.
NGXIND: Industrial Sector Index
Investors took profit on the industrial index. With this performance, the index is expected to transition into its distribution phase for another markup. The NGXIND has shown top-notch resilience and continues to attract investors.
Based on these indicator reports, the index remains strongly bullish. Liquidity and momentum are high and sustainable. Finally, the bullish sentiment is stronger than the bearish sentiment, according to volume.
NGXOGSE: Oil and Gas Sector Index
The oil sector index began its recovery phase after breaking its resistance level (4430.77 bps) last week. This performance indicates that investors are buying into value. Thus, when the index surpasses its resistance level, it indicates the market has regained momentum.
The indicator reading for this index on the weekly chart remains bullish. The index is expected to continue its recovery phase and gradually gain momentum. Generally, the NGXOGSE remains resilient amidst the global crisis.
NGXINS: Insurance Sector Index
While consolidating on the weekly chart, the insurance index formed an inverse head-and-shoulder chart pattern. This chart pattern indicated a trend reversal. During the period, the NGXINS traded within its support zone with 1307.89 and 1257.61 as its resistance and support levels, respectively.
The insurance index hasn’t fully recovered despite promising bullish sentiment. The index is expected to recover fully when it breaks its resistance level at 1307.89 bps. Currently, MFI and RSI readings indicate high liquidity and strong momentum in the market. These conditions make investment favorable for market players.
Final Thought
The Nigerian Bourse is healthy. Despite the global tension, the market remains calm. The NGXASI is expected to pick up momentum and increase its liquidity as the first quarter ends next week.
