NGX Bullish Run Continued As Buying Interest Increased Across Sectors Amidst Profit Taking

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NGX Bullish Run Continued As Buying Interest Increased Across Sectors Amidst Profit
Taking
Equity prices continued to recover on a new momentum and positive sentiment in the midst
of year-end seasonality, expected macroeconomic data and last quarter window dressing
ahead of 2023 corporate actions in the face of general election uncertainty as volatility
entered its extreme to create buying opportunity. Stocks are entering a fresh bull cycle after
forming cup and handle chart pattern that signalled continuation of uptrend and recovery
move.
It seems the NGX correction is over, and as such I think two things are favouring the market
now, relatively low prices of stocks and high dividend yield are the attraction as investors
hedge against inflation in defensive stocks and sectors with strong earnings potentials that
will drive prices and support high pay-out as all eyes are on unaudited and audited financials
in Q1 2023.
At the current market level, which represents a 11.06% upside from Friday’s close of
48,881.90 basis points, and would surpass the index year high of 54,290.80bps notched in
May 2022. The composite NGX All-Share Index this year has gained 14.43%, despite the fact
that three of its major sectors are in the red, especially the insurance sector that had lost
15.49% year-to-date, while energy and industrial goods gained 29.27% and 15.49%
respectively YTD.. Below are chart patterns of NGX and other stocks to watch
NGXASI