The bearish sentiment from June extended this week into July, before being cut short on Friday. The week’s performance revealed that the Nigerian Exchange is gradually recovering. Consequently, this review should help retail investors spot the investment opportunities for July.
NGX ASI: Nigeria’s All-Share Index
Despite Friday’s robust recovery, the composite NGX All-Share Index lost 1.21% lower for the week at 229,240.34 bps, the third consecutive weekly loss, after blue-chips like Aradel, MTNN, Dangote Cement, Zenith and GTCO ended the week socked in red. Currently, the NGX trades within its fourth wave of the grand cycle (Wave III). Thus, investors should expected a continuous bearish market.
Weekly chart indicator analysis for NGX ASI
Although the bearish momentum is strong, the NGX ASI’s liquidity and momentum remains strong on the weekly chart. These mixed sentiment suggests that the market remains healthy. Thus, selective investment and portfolio rebalancing is imperative.
Key Sectoral Performance for the Week
NGXBNK: Banking Sector Index
The banking sector lost 3.72% on the weekly chart, closing at 2,041.92 bps. The index remains within its corrective zone of wave A. Thus, a brief bullish run is expected for wave B. Given this sentiment, retail investors would prepare to buy into value to recover the strong loss of June.
Weekly chart indicator analysis for NGXBNK
On the weekly chart, the banking sector continues its strong bearish sentiment according to MACD. However, volume remains low, closing below its moving average. Despite this sentiment, the index liquidity and momentum remained strong and healthy.
NGXCSMG: Consumer Good Sector Index
On the weekly chart, the NGXCSMG lost 4.56% and closed at 5,789.36 bps. Currently, the index is in its wave A correction and is expected to go on a brief bullish rally to commence wave B. Thus, positioning in high-value companies in this sector should be a viable investment strategy.
Weekly chart indicator analysis for NGXCSMG
The index’s liquidity and momentum sustained their downward trajectory amid strong bearish sentiment. However, these metrics have yet to close below their threshold. As a result, the index remains healthy and favorable for long-term investment.
NGXIND: Industrial Sector Index
On the weekly chart, the market remains in its fourth wave within the third wave of the grand cycle (Wave III). Using the Fibonacci retracement, the sector should commence a bullish as investors continuously buy into value. The index lost 4.93% closing at 9,698.31 bps.
Daily chart indicator analysis for NGXIND
The strong bearish momentum weakened the index’s liquidity and momentum. However, these metrics remains above their threshold, signalling a strong and healthy market. While a brief bullish momentum is expected, the index remains strongly bearish according to MACD. Given this sentiment, investors are expected to watch for a strong bullish momentum — which acts as a support zone for the index.
NGXOGSE: Oil and Gas Sector Index
The oil index lost 4.34% and closed at 4,861.01 bps. The index sustained its corrective momentum within wave A and is expected to also commence a brief bullish momentum. Given this sentiment, retail investors can buy into value by selecting fundamentally strong stocks in the sector.
Weekly chart indicator analysis for NGXOGSE
The index’s liquidity closed low below its threshold due to strong bearish sentiment. In the same vien, the index momentum remained solid, while MACD’s bearish momentum strengthened. Given these performances, investor could wait for a strong support which will determine the index’s outlook.
NGXINS: Insurance Sector Index
The insurance sector lost 2.52%, closing at 1,089.02 bps. The index closed with a hanging candlestick formation, indicating that the market bulls rejected the index’s basis point at 1,046.53 bps. This rejection level now acts as a strong support level for the index.
Weekly chart indicator analysis for NGXINS
As the bearish momentum strengthens, the index liquidity sustains its upward trajectory. Given the current closed perfromance, the NGXINS should commence a bullish run soon.
FAQs
How did the NGXASI perform this week?
The NGXASI lost 1,21% on the week, signaling continuous bearish momentum as selective sector investment prevails
How did the NGX banking sector index perform this week?
The NGXBNK remains bearish amid recovery signs.
How did the NGX consumer goods index perform this week?
The NGXCSMG remains bearish amid recovery signs.
How did the NGX industrial sector index perform this week?
The NGXIND closed with a strong bearish trend with the 0.5 Fibonacci level on the weekly chart. This offers investors an investment opportunity
How did the NGX oil and gas sector index perform this week?
The NGXOGSE experienced a strong bearish market while investors bought into value
How did the NGX insurance sector index perform this week?
The NGXINS experienced a strong bearish sentiment. However, money flow reflected sustained market liquidity.
