Nigeria’s All-Share Index Performance
The Nigerian bourse saw outstanding growth this week due to the sectoral indices’ performance. The All Share index closed with a 6.57% growth. This action reflected a rekindled interest in fundamentally strong companies and the impact of the eased global tension.
The index scaled from 203,763.38 to 217,303.63, closing above its moving average at 217,167.55 (+13,397.11). As a result, we’ll discuss the key sectors and companies that influenced this week’s NGXASI performance.
The indicators on the NGXASI’s weekly chart revealed a progressive bullish sentiment. By volume, the shares purchased this week exceeded last week’s, with a reading of 3.588 billion shares against 3.361 billion shares. MACD aligned with this sentiment as it enhanced its bullish momentum. Finally, MFI and RSI indicated a solid market strength and liquidity. How did the sectoral indices perform?
Key Sectoral Index Performance
NGXBNK: Banking Sector Index
The NGXBNK experienced strong bullish sentiments this week, gaining 11.85%. Following last week’s breakout, the new support level (2,006.46 bps) boosted the index’s performance. This support attracted more investments as investors anticipate good returns from the company’s earnings results.
The index scaled from 1,985.35 to 2,267.35, closing above its moving average at 2,260.65 (+282). Companies that dominated the NGXBNK performance were ETI, FIRSTHOLDCO, STANBIC, GTCO, ACCESSCORP, FCMB, UBA, and WEMA.
The bullish volume was solid this week, with more money flowing into the market. MACD’s bullish signal gained momentum by the weekend, aligning with the Relative Strength Index’s (RSI) signal. The Money Flow Index (MFI) remained flat this week, indicating that investors held their position in the NGXBNK.
NGXCSMG: Consumer Goods Sector Index
The consumer goods index closed this week with a 7.76% gain. Commencing the week with uncertainty, the index turned its former resistance level (5,795.39) into strong support. This performance attracted investors to buy into value.
The index rose from 5,705.50 to 6,238.17, closing at 6,225.19 (+533.67). Companies that influenced the NGXCSMG’s performance were GUINNESS, NASCON, NESTLE, HONYFLOUR, and CHAMPION.
Volume closed with a solid bullish sentiment. This performance reflected a renewed investor interest in the sector. MACD regained bullish strength following RSI’s increased momentum. MFI closed flat, indicating solid liquidity and position holding in the index.
NGXIND: Industrial Sector Index
Despite being in its distribution phase, the NGXIND gained 1.26% this week. The index scaled from 8,844.26 to 8,967.78, closing above its moving average at 8,958.44 (+123.52). This performance reached a new all-time high, suggesting a potential markup phase.
This week’s volume closed with a good bullish sentiment. Profit-taking prevailed in this sector, which is why MACD’s bullish signal weakened. Amid this performance, investors held their investment, as seen on MFI and RSI. MFI and RSI closed the week with sustainable liquidity and momentum.
NGXOGSE: Oil and Gas Sector Index
Following eased global tensions, the oil sector index closed the week up 17.59%. Investors rekindled their interest in the sector as a result of the ceasefire declaration between the US and Iraq, amid attempts to renegotiate terms. The global oil market has also experienced significant improvement.
With this sentiment, the index rose from 4,490.60 to 5,307.18, closing at 5,285.63 (+816.58). Companies that had a significant impact on this sector’s performance were ARADEL and SEPLAT.
The bullish volume for this index was solid this week. MACD regained bullish momentum following RSI’s enhancement in its overbought region. MFI retained its high liquidity, indicating the investors’ interest in this sector.
NGXINS: Insurance Sector Index
Despite the uneven sentiment in this index, the NGXINS closed the week losing 0.04%. This performance validated the strength of the index’s support level (1,195.58). The index formed a doji candlestick pattern on this support level, indicating a major trend reversal.
The index declined from 1,218.36 to 1,162.38, closing below its moving average at 1,195.21 (-2.09). Thus, the companies that maintained this index’s strength were INKASSURE, ROYALEX, INTENEGINS, and SOVRENINS.
For this week, the bearish volume for this index closed low. Following this performance, money flowed out of the market, reinforcing MACD’s bearish signal. Also, RSI’s momentum closed moderately, waiting for a bullish trigger.
Final Thought
The banking, oil, consumer goods, and industrial sectors closed the week with an exponential performance, leaving the insurance sector behind. Regardless, the insurance sector still has potential for an upward rally. The overall stock market is fully recovered in its markup phase.
