The Nigerian Exchange (NGX), on Monday, continued its bearish performance. However, it is evident that investors are positioning in defensive sectors as the market prepares for another upward rally. This article should help investors determine which key sector is worth the watchlist.
NGX ASI: Nigeria’s All-Share Index
The NGX All-Share Index closed with a bearish sentiment which sustained the index’s markdown phase. Within this bearish momentum, smart investors are indulging in selective investment
Daily chart indicator analysis for NGX ASI
The index’s liquidity and momentum declined following the strong bearish momentum. A strong support level should determine the index’s trajectory.
Key Sectoral Index Performance
NGXBNK: Banking Sector Index
The banking sector lost 1.22%, closing at 2,104.30 bps, signifying a continued bearish momentum in the market. Also, the index distributes between the 0.618 and 0.786 Fibonacci levels, indicating that investors are buying into value. Notable contributors included WEMABANK (-7.41%), FCMB (-3.52%), FIRSTHOLD (-2.48%), ZENITH (-1.26%), and UBA (-0.88%).
Daily chart indicator analysis for NGXBNK
The bearish volume closed strongly above its moving average. In line with the performance, the index liquidity and momentum declined drastically. However, MACD’s bearish momentum maintained its divergence signal. This signals a potential bullish trend on the horizon
NGXCSMG: Consumer Goods Sector Index
The consumer goods index lost 2.30% and closed at 5,926.23 bps. This performance indicated a continuous bearish sentiment. In the intraday market, the index experienced a strong bearish momentum. However, it met strong support at 5,854.81 bps and 6,065.99 bps. Notable contributors included UNILEVER (-10.00%), MTNN (-10.00%), ETRANZA (-9.83%), and WAPIC (-9.66%).
Daily chart indicator analysis for NGXCSMG
Due to the strong bearish sentiment, volume closed strongly above its moving average. Also, the market liquidity and momentum declined.
NGXIND: Industrial Sector Index
The industrial index shed 0.39%, closing at 10,161.99 bps. This indicates a continuous bearish sentiment. Based on the bearish momentum, investors are buying into value by positioning in fundamentally good stocks.
Daily chart indicator analysis for NGXIND
Due to the continuous bearish sentiment, the index’s liquidity, volume, and momentum declined drastically. However, MACD’s bearish momentum declined, indicating divergence. Thus, investors will wait for further index action to determine the index’s trajectory.
NGXOGSE: Oil and Gas Sector Index
The oil index shed 0.06%, closing at 5,078.68 bps. This performance also signifies a continuous bearish sentiment as investors take profits to rebalance their portfolios.
Daily chart indicator analysis for NGXOGSE
The continuous bearish sentiment influenced the strong bearish volume, liquidity, and momentum. Thus, investors will also wait for further index action to determine the index’s overall performance.
NGXINS: Insurance Sector Index
The insurance index lost 1.33%, closing at 1,102.26 bps. During the intraday trade, the index experienced a full market cycle, according to Elliott’s wave theory. However, the market bears dominated.
Daily chart indicator analysis for NGXIND
The bearish sentiment also weakened the index’s liquidity, volume, and momentum. Also, MACD’s momentum sustained its strength. Thus, further index performance should determine the market’s trajectory.
FAQs
How did the NGXASI perform?
The NGXASI lost 1.57%, which sustains its bearish sentiment
How did the NGX banking sector index perform?
The NGXBNK closed with a continuous bearish sentiment
How did the NGX consumer goods index perform?
The NGXCSMG also closed bearish, requiring further index performance
How did the NGX industrial sector index perform?
The NGXIND closed with a bearish sentiment
How did the NGX oil and gas sector index perform?
The NGXOGSE experienced strong bearish sentiment, reinforcing its markdown phase.
How did the NGX insurance sector index perform?
The NGXINS sustained its bearish momentum
