Trading on the Nigerian Exchange (NGX) closed relatively strong on Tuesday, with a few key sectors dominating the gainers’ chart.
This article should enlighten investors on which sector to focus on based on the expected performance from each index.
NGX ASI: Nigerian All-Share Index
The NGX All-Share Index gained a marginal 0.01%, after closing at 241,761.23 basis points. During the intraday trade, the market didn’t make any significant change in basis points. This performance signifies profit-taking and discount investing amid sector rotation
Daily chart indicator analysis for NGX ASI
According to the indicator readings, the market remains relatively strong amid the recovery phase. Money flow attempts to recover as the index momentum and volume remain solid.
NGXBNK: Banking Sector Index
Today, the NGXBNK gained 2.28% and closed at 2,166.48 bps. During intraday trading, the market experienced a strong 100% buy sentiment. This performance strengthened the index’s recovery phase as it’s expected to reach the 0.5 Fibonacci level. Notable contributors included FIRSTHOLD (+9.98%), FCMB (+6.93%), IBTC (+3.82%), FIDELITY (+2.05%), and ZENITH (+1.31%).
Daily chart indicator analysis for NGXBNK
Following the strong bullish momentum, the banking sector indicators regained their strength. The index’s bullish volume closed strongly above its moving average. Also, its liquidity and momentum remain solid, inviting investment opportunities.
NGXCSMG: Consumer Goods Sector Index
The consumer goods index gained 1.42%, closing at 6,173.29 bps. This performance signals that investors bought into value during the pullback; thus, strengthening the index recovery phase. Notable gainers included TRANSCOHOT (+8.37%), ROYALEX (+8.28%), and HONYFLOUR (+4.38%)
Daily chart indicator analysis for NGXCSMG
According to the indicator readings, the strong bullish sentiment improved the index’s volume, liquidity, and momentum. Thus, investors should expect a continuous bullish market.
NGXIND: Industrial Sector Index
The industrial sector index closed with an indecisive bullish candlestick pattern. This performance requires further action to determine the index’s support level strength at 10,361.67 bps.
Daily chart indicator analysis for NGXIND
Following the indecisive performance, the bullish volume closed strongly above its moving average. Also, the index’s momentum and liquidity are gradually recovering. Thus, investors can watch this sector for potential entries.
NGXOGSE: Oil and Gas Sector Index
The oil and gas index shed 0.1%, closing at 5,245.02 bps. During the intraday trade, the index experienced continuous bearish momentum amid discount investing. Since the index closed above its moving average, marketers should expect continuous bullish momentum.
Daily chart indicator analysis for NGXOGSE
In line with the continuous bearish sentiment, indicators on the daily chart didn’t make any significant move. Volume and money flow remained low. Also, MACD and RSI remained neutral.
NGXINS: Insurance Sector Index
The insurance sector attempted to recover after closing with a moderate bullish sentiment. The NGXINS gained 0.48% and closed at 1,113.64 bps. Notable contributors included SOVRENI (+7.53%), CONHALLPLC (+4.33%), WAPIC (+3.18%), and LASACO (+0.52%). Currently, the index is below its moving average; thus, more index action is required
Daily chart indicator analysis for NGXINS
The indicator reading on the daily chart suggests low volume, money flow, and weak momentum. This performance aligns with the index’s position.
Market Analyst Insight
Given the performance from the key sectors, the NGX is currently experiencing sector rotation. Thus, the key sectors experiencing this market action are the banking and consumer goods sectors. The industrial, insurance, and oil sectors have low money flow, suggesting that smart money hasn’t rotated to these sectors. Investors should position in fundamentally strong stocks as the overall market must remain corrective.
FAQs
How did the NGXASI perform?
The NGXASI gained 0.1%, closing above its moving average.
How did the NGX banking sector index perform?
The NGXBNK gained 2.28%, which strengthened the index’s recovery phase
How did the NGX consumer goods index perform?
The NGXCSMG gained 1.42% and closed above its moving average, suggesting a strong market
How did the NGX industrial sector index perform?
The NGXIND closed indecisive.
How did the NGX oil and gas sector index perform?
The NGXOGSE closed bearish, shedding 0.1%.
How did the NGX insurance sector index perform?
The NGXINS closed below its moving average, gaining 0.48%
