NGX ASI: Nigeria’s All-Share Index
The Nigerian Exchange’s composite All-Share Index (NGX ASI) fell 1.60% to close the week at 243,052.73 basis points. During the week, the index experienced a strong bearish momentum, spanning key sectors. However, these sectors’ liquidity and momentum readings offer a different story.
Despite the bearish market, the NGX ASI sustained strong momentum on the weekly chart. This momentum improved the index’s liquidity and sustained MACD’s divergence signal. Given this sentiment, investors should watch for continued bullish momentum.
NGXBNK: Banking Sector Index
The banking sector index fell 4.07% to close at 2,528.80 bps. During the week, the index saw strong bearish momentum. In line with this performance, it started to recover. This performance suggests renewed investor interest in the sector.
Despite the strong bearishness during the week, the index’s volume remained weak. This performance suggests mild profit-taking. This bearish sentiment weakened MACD’s bullish momentum. However, liquidity and RSI’s momentum remained strong.
NGXCSMG: Consumer Goods Sector Index
The consumer goods index lost 2.42% and closed at 7,136.69 bps. During the week, the index experienced strong bearishness. Then, it started to recover. This performance also suggest renewed interest in the sector.
The bearish volume was moderately strong on the weekly chart. Also, MACD’s bullish momentum weakened. However, the index’s liquidity and RSI’s momentum remain strong, making the sector attractive for investment.
NGXIND: Industrial Sector Index
The industrial index lost 3.36% and closed at 9,994.79 bps. This performance strengthened the index’s markdown phase and volume. Notably, the index’s liquidity regained momentum as the Relative Strength Index remained solid. The NGXIND remains within the 0.382 Fibonacci level in wave 4 of the intermediate cycle. This means that the sector has potential for a strong bullish rally.
NGXOGSE: Oil and Gas Sector Index
The oil and gas index gained 2.83% and closed at 5,817.36 bps. This performance strengthened the index’s recovery phase. Also, the index closed with a bullish hammer candlestick pattern, suggesting strong bullish sentiment.
Amid this bullish market, volume remained fairly strong as money flow slowly recovered. Also, the index’s momentum remained strong, which weakened MACD’s bearish signal. Thus, investors should watch for continued bullish momentum.
NGXINS: Insurance Sector Index
The insurance index lost 5.52% and closed at 1,059.16 bps. During the week, the index sustained its markdown phase, trading near its 52-week low. Following this performance, the index commenced its recovery to end the week.
Due to this bearishness, the index’s liquidity and momentum declined. Also, volume closed strongly above its moving average. Investors should watch for continued market recovery.
Market Analyst Insight
The NGX market remains strong and healthy for investment despite the strong bearish momentum during the week. Investors should use this opportunity to buy into value.
