The Nigerian Exchange (NGX) continued its recovery phase at the midweek, despite the profit-taking that prevailed, but enabled investors to position in fundamentally sound stocks. With this article, investors should be able to select key sector to invest in.
NGX ASI: Nigeria’s All-Share Index
Among the day’s highlight was the 2.27% gain by the NGX All-Share Index which closed at 242,459.98 basis points. After the close of trading, the market recorded a 100% bullish sentiment, which strengthened its recovery phase. In line with this performance, the NGX ASI broke its resistance level and commenced its second recovery phase.
Daily chart indicator analysis for NGX ASI
Given this strong bullish performance, the index’s momentum closed strongly at 58.94 while liquidity recovered. Also, MACD’s bullish momentum strengthened, aligning with the overall market sentiment.
Key Sectoral Index Performance
NGXBNK: Banking Sector Index
The banking sector index gained 1.07%, closing at 2,137.61 bps, signifying a continuous bullish momentum as the market remains in its first recovery phase. Notable contributors to this gainincluded FIDELITY (+9.97%), FCMB (+3.35%), ACCESSCORP (+2.52%), and ZENITH (+1.38%).
Daily chart indicator analysis for NGXBNK
MACD strengthened its bullish momentum as the index’s liquidity and momentum sustained their upward trajectory. This performance indicates a relatively strong market recovery.
NGXCSMG: Consumer Goods Sector Index
The NGXCSMG experienced a fractional gain of 0.81% and closed at 6,068.58 bps, signaling continuous investor interest in the market. The index remains within its first recovery phase as investors watch for strong resistance levels above.
Daily chart indicator analysis for NGXCSMG
MACD’s bullish momentum strengthened as volume remained solid. In line with this performance, the index liquidity and momentum strengthened, offering investors favorable investment conditions.
NGXIND: Industrial Sector Index
On the daily chart, the NGXIND gained 1.89% and closed at 10,712.92 bps. The bullish sentiment continues as investors buy into value. Notable gainers included DANGCEMENT (+3.15%) and WAPCO (+2.13%).
Daily chart indicator analysis for NGXIND
The bullish volume remains solid, which strengthens the index’s liquidity and momentum. While the index is in its early recovery phase, market participants can invest in leading industrial companies.
NGXOGSE: Oil and Gas Sector Index
The oil index gained 3.58%, closing at 5,292.70 bps. During intraday trading, the index experienced strong bullish momentum (99% buy sentiment), propelling it to close above its moving average. This performance commences the index’s first recovery phase.
Daily chart indicator analysis for NGXOGSE
With a solid bullish volume, the index’s momentum and liquidity strengthened. However, MACD hasn’t fully confirmed this bullish sentiment. Those investors should watch for a pullback to buy into value in this sector.
NGXINS: Insurance Sector Index
The insurance sector shed 0.2%, closing at 1,129.40 bps. This performance signifies profit-taking. During the intraday market, the market bears dominated despite the bulls’ efforts. Regardless, the index closed above its moving average, sustaining its recovery strength. Notable losers included AIICO (-1.71%), LASACO (-1.60%), CONHALLPLC (-0.44%), WAPIC (-0.40%)
Daily chart indicator analysis for NGXINS
The bearish volume closed strongly above its moving average, aligning with the overall index performance. Also, liquidity and momentum slightly declined. However, MACD sustained its bullish momentum amid profit-taking. This performance suggests a continuous bullish trend.
FAQs
How did the NGXASI perform?
The NGXASI gained 2.27%, closing above its moving average. This performance signals a continuously recovering market
How did the NGX banking sector index perform?
The NGXBNK closed above its moving average, signaling a strong recovering market
How did the NGX consumer goods index perform?
The NGXCSMG also closed above its moving average, suggesting that the market has started its recovery phase
How did the NGX industrial sector index perform?
The NGXIND closed above its moving average, strengthening its recovery phase
How did the NGX oil and gas sector index perform?
The NGXOGSE closed, gaining 3.58%, and closed above its moving average.
How did the NGX insurance sector index perform?
The NGXINS experienced a pullback, which indicates profit-taking
