The Nigerian Exchange (NGX) experienced a strong bearish momentum that commenced last weekend. However, this performance shouldn’t attract panic, as investment opportunities always emerge in a corrective market. At the end of the article, investors should know the sectors that offer these opportunities
NGX ASI: Nigeria’s All-Share Index
The NGX ASI lost 0.9%, closing at 241,749.11 basis points. This performance makes 244,289.06 basis points a strong resistance level. Thus, a continuous bearish market would determine the strength level of this resistance.
Daily chart indicator analysis for NGX ASI
In line with Monday’s bearish sentiment, the Nigerian Exchange’s All-Share Index (NGX ASI) lost liquidity, but maintained solid momentum. Since the index is within its resistance zone, further action is required to determine its outlook.
Key Sectoral Index Performance
NGXBNK: Banking Sector Index
The banking sector index lost 1.44%, closing at 2,118.28 bps. After last week’s bullish rally, traders commenced profit-taking. This market activity opened more investment opportunities. Notable contributors included FCMB (-6.48%), FIRSTHOLD (-5.20%), ZENITH (-3.25%), GTCO (-1.43%), and UBA (-0.61%).
Daily chart indicator analysis for NGXBNK
The bearish volume closed low, indicating that mild profit-taking prevailed in the market. In line with this performance, MACD’s bullish momentum stayed solid. Also, the market’s liquidity closed strongly above its threshold, while momentum remained neutral. These performances suggest a continuous bullish run.
NGXCSMG: Consumer Goods Sector Index
The consumer goods index lost 0.94% and closed at 6,087.10 bps. During the intraday trade, the market bears dominated and closed in a distribution phase as investors bought into value. Notable losers included PZ (-10%), REDSTAR (-9.98%), WAPIC (-8.33%), and HONYFLOUR (-5.88%).
Daily chart indicator analysis for NGXCSMG
The bearish volume closed low, aligning with the index’s sentiment. Despite the bearish sentiment, the market liquidity and momentum remained solid. This performance suggests profit-taking and a continuous bullish trend.
NGXIND: Industrial Sector Index
The NGXIND lost 3.28% and closed at 10,361.67 bps. During the intraday market, the index experienced a 99% bearish sentiment. This performance signifies profit-taking and opens doors for investments. Notable contributors included BUACEMENT (-9.99%) and CUTIX (-3.45%).
Daily chart indicator analysis for NGXIND
Despite closing above its moving average, the index’s momentum and liquidity remained low. In line with this sentiment, the bearish volume closed strongly above its moving average. This volume performance made MACD’s bullish signal remain neutral. Thus, further index performance is required to determine its outlook.
NGXOGSE: Oil and Gas Sector Index
The oil and gas index lost 0.78%, closing at 5,250.22 bps. This performance indicates profit-taking as investors prepare to buy into value.
Daily chart indicator analysis for NGXOGSE
The market liquidity and momentum remain average as volume closed strongly above its moving average. Despite the strong bearish sentiment, MACD’s bullish momentum strengthened, suggesting a continuous bullish trend.
NGXINS: Insurance Sector Index
The insurance sector lost 2.18%, closing below its moving average at 1,108.30 bps. During the intraday trade, the bulls attempted to support the market’s growth. However, the Bears dominated throughout the day. Notable losers included WAPIC (-8.33%), PRESTIGE (-7.01%), SOVRENI (-7%), INTENEG (-6%), and MANSARD (-4.88%)
Daily chart indicator analysis for NGXINS
Due to the strong bearish sentiment, the indicators on the daily chart declined drastically. Liquidity and momentum closed low. Also, MACD’s bullish momentum weakened.
Market Analyst Insight
My overall take on today’s market performance is that investment opportunities lie within the banking, consumer goods, industrial, and oil and gas sectors. This is because these sectors closed above their moving average, signaling profit-taking. For the insurance sector, investors should expect medium to long-term returns on investment
FAQs
How did the NGXASI perform?
The NGXASI lost 0.9%, closing above its moving average. This performance signals profit-taking
How did the NGX banking sector index perform?
The NGXBNK lost 1.44%, signalling profit-taking
How did the NGX consumer goods index perform?
The NGXCSMG lost 0.94%, signaling profit taking
How did the NGX industrial sector index perform?
The NGXIND closed bearish, losing 3.28%.
How did the NGX oil and gas sector index perform?
The NGXOGSE closed bearish, losing 0.78%.
How did the NGX insurance sector index perform?
The NGXINS closed below its moving average, losing 2.18%
