NGX ASI: Nigeria’s All-Share Index
The composite NGX All-Share Index shed 0.97% and closed the week at 248,363.55 basis points, after a strong bearish momentum due to massive profit-taking and bargain hunting during the period. Despite this sentiment, the index’s liquidity and momentum gradually improved. MACD also sustained its divergence signal. Thus, investors should watch for a sustained trend as the index attempts a full recovery.
NGXBNK: Banking Sector Index
The banking sector index lost 2.64% to close at 2,614.79 bps. During the week, the index experienced strong bearish momentum as investors took profits. In line with this performance, its volume closed strongly above the moving average. MACD also initiated its bearish signal. However, the index’s liquidity and momentum remained strong, suggesting that the market remains resilient within Wave 5 of the intermediate cycle.
NGXCSMG: Consumer Goods Sector Index
The NGXCSMG lost 1.89% and closed at 7,416.72 bps. The index experienced strong bearish sentiment during the week, which supported its bearish volume. This performance indicated that strong profit-taking prevailed in the market amid bargain hunting.
In line with this performance, MACD’s bullish momentum weakened, preparing investors for a trend reversal. However, the index’s liquidity and momentum remained strong, suggesting sustained investor interest.
NGXIND: Industrial Sector Index
The industrial sector rose 0.02% to close at 10,442.50 bps. Although the index made no significant change in points, the market bulls dominated during the week. This performance gradually improved the index’s liquidity and momentum. Also, MACD sustained its divergence signal, preparing investors for a trend reversal.
NGXOGSE: Oil and Gas Sector Index
The oil and gas index fell 3.85% to close at 6,005.98 basis points. During the week, the index saw a strong pullback and broke its support level. This performance returned the index to its recovery zone. In line with this performance, MACD signaled divergence, and liquidity remained low and flat. The index’s momentum remains solid despite the bearish momentum. Thus, investors should prepare for a trend reversal.
NGXINS: Insurance Sector Index
The insurance index fell 1.75% to close at 1,081.10 bps. During the week, the index consolidated with an ascending triangle, suggesting a continuous trend. However, the index broke below the ascending triangle to end the week. This performance should prepare investors for a potential trend reversal.
Amid this bearish sentiment, the index’s liquidity and momentum gradually improved. Notably, MACD sustained its bearish divergence signal, aligning with this overall index sentiment.
Market Analyst Insight
The NGX market sustained its liquidity and momentum through the week despite the strong bearish momentum. The market sentiment remains mixed as profit-taking and discount investing prevailed. This performance makes the market recovery slow, as the indices’ correction phase was deep. Investors should watch the insurance and industrial sectors’ recovery for a potential strong upward rally in the long run.
