The last trading session of the week closed on a positive note Friday, recording three bearish and a flat session. Overall, the Nigerian Exchange (NGX) All-Share Index decreased by 39 basis points week-on-week, closing at 99,671.28 basis points. This resulted in year-to-date growth of 33.30%, while market capitalization dipped by ₦0.150tr to ₦56.44tr.

The major decline resulted from the 8.3% decline in the shares of Seplat Energy, dragging the index back along with the market capitalization. The local market is gaining strength day by day as locals are investing their hard-earned money in its bourse to take ownership. Most of the funds in the market belong to Nigerians as Foreign Portfolio Investors moved most of their funds into alternative investments outlets.

The last two Treasury Bills auction has revealed the weekly weakness in the fixed income horizon because stop-rates in the 91-day and 182-day tenor that have been constant for several auctions, leaving the 365-day with a marginal increase.

We also saw the recent uproar by big market players regarding the hike in rate, causing the cost of production and borrowing to be on the high side and causing a lot of big players to leave the oil rich country. There is enough indication that members of the Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC) will keep rates constant or a marginal decrease.

There is no cause for alarm because the Naira has been stable for some months, and this is communicating a lot to foreign portfolio investors, because they factor in the exchange rate volatility before making any form of investment. Thanks to the federal government for the timely intervention.

From the charts, on Thursday the market broke the T-line, making the index shed 0.33% due to profit taking activities in Seplat Energy, as investors targeted sectorial rotation before Friday’s session reversed the previous day’s loss by 0.20%. The market has been fluctuating between the 99,000 and 100,000 psychological lines for the past two weeks.

However, from the chart patterns formed, it is forecast to do well next week because a lot of fixed income traders are losing confidence in their horizon as the stop rates across various tenors are not on the high side.

From technical indicators, the Relative Strength Index is currently at equilibrium, indicating that the market has large potential to move northward since earnings reports will begin to hit the market any moment from now.

Money Flow reading is facing the sky as we expect more funds to enter this space, as more banks unveil their right issues and public offering making this the best time to invest for a big Santa Claus celebration in December

NGXASI Weekly Chart (Opening chart)

NGX Insurance Index Weekly chart

This Index has declined by over 14% from its all-time high, but thanks to NEM insurance that has upheld this sector from further decline in the past few weeks. This index fell for five consecutive sessions last week due to profit taking activities in the shares of Sunu Assurance, AIICO and International Energy Insurance. Earnings for the second quarter will be hitting the market any moment from now and will later have significant impact on several stock.

It is liquidity that drives every exchange, and wise traders will position themselves before time to partake in full profits. Investors can also position themselves for dividend shopping because stocks in this sector reward their shareholders by way of interim dividends. The market is currently trading towards the support level around 391.10bps and this decline can be reversed as good earnings would be hitting the market. There is a large commitment of funds into this sector, signaling investor confidence in this sector. Money Flow reading of 69.86 and MACD currently trading above the signal line and a relative index of 61.5 shows that strength is in the market, and there will be a turnaround as earnings would be hitting the market any moment soon. A lot of big investors have positioned themselves in this sector in a bid to catch the big wave that would be happening soon. There is no need to panic because investors in this sector are on the right track

NGX Banking Index Weekly Chart

Anyone who would like to make a fortune should consider the banking sector over the next two years. If you are a long-term investor, lock in your funds till April 2026. You don’t need any soothsayer, astrologer to tell you that liquidity- I mean millions of U.S Dollars beyond Naira will hit this sector due to the ongoing banking sector recapitalization exercise. Short to mid-term traders can consider targeting interim dividends and buying bank shares that are trading below their right issue prices. Therefore, every sound, smart and strategic investor must consider this sector to make a fortune.

We foresee that very soon, mergers and acquisitions will be happening and this will have a significant impact on share prices. This sector index has fallen by over 23% from its all-time high, giving late investors more opportunity to make the most of the season. From the technical perspective, the market is trading slightly above the T-line (21-Day Moving Average) and from the market pattern formed. A bull section is imminent as confirmation from the Money Flow now reading 50.06, which shows that good funds is in this sector and a sign of the robust investor confidence. The Relative Strength Index of 56.1 indicates that a bullish movement will be happening sometime soon, even as MACD is currently looking bearish because of the decline in some banking stocks during the past trading week.

NGX Consumer Goods Index Weekly Chart

NGX Industrial Goods Index Weekly Chart

NGX Oil & Gas Index Weekly Chart

NGX 30 Weekly Chart