NGX ASI: Nigeria’s All-Share Index
The NGX All-Share Index gained 6.92% and closed at 245,283.69 basis points. Although the bullish momentum was strong, it could not surpass its resistance level at 254,067.42 bps. This performance leaves the index within its corrective fourth wave.
Investors should remain vigilant, as MACD’s bullish momentum sustained its divergence signal amid strong liquidity and RSI momentum. On the other hand, the index has potential for a strong bullish run, as it remains within Wave III of the grand cycle.
NGXBNK: Banking Sector Index
On the monthly chart, the banking index gained 22.10% and closed at 2,527.59 bps. First Hold Co. led this strong bullish momentum as the index remained within Wave III of the grand cycle. The index is expected to maintain this bullish momentum for a brief period.
In line with this strong bullish sentiment, volume closed strongly above its moving average. Also, MACD regained its bullish momentum, with liquidity and momentum closing above their thresholds.
NGXCSMG: Consumer Goods Sector Index
The consumer goods sector index gained 19.47% on the monthly chart, closing at 6,941.47 bps. During intra-month trading, the index experienced strong bullish momentum, which broke its resistance level at 6,919.04 bps. This performance suggests a continuous bullish run as the index’s volume, liquidity, and momentum remained strong. Also, the index remains within Wave III of the grand cycle, trading at Wave 5.
NGXIND: Industrial Sector Index
The industrial index experienced a fractional gain of 3.57% on the monthly chart, closing at 10,525.17 bps. During intra-month trading, this index attempted to recover from June’s corrective market. However, it didn’t make any significant momentum to strengthen its recovery phase.
In line with this low sentiment, the bullish volume closed low. Also, MACD’s momentum closed with divergence, suggesting continuous bearish momentum. Although liquidity and momentum declined, they remained strong and closed above their threshold.
NGXOGSE: Oil and Gas Sector Index
On the monthly chart, the oil and gas index experienced a fractional gain of 3.21%, closing at 5,242.33 bps. Currently, the index is trading within Wave IV of the grand cycle. Thus, investors should expect a deep corrective phase. In line with this performance, MACD sustained its divergence signal. Also, liquidity and momentum declined yet closed strongly above their threshold.
NGXINS: Insurance Sector Index
The insurance sector index gained 9.29% and closed at 1,200.08 bps. During intra-month trading, the index experienced strong bullish momentum after completing a complex WXY correction within Wave IV of the grand cycle.
This momentum should help the sector recover. However, investors should watch MACD’s bearish performance on the monthly chart as it closed with strong momentum. With strong liquidity and momentum, the insurance sector has potential for a solid bullish rally.
Market Analyst Insight
The market is recovering from June’s corrective phase as sectors such as banking, consumer goods, and insurance display good potential for long-term investment. Investors should expect continuous bullish momentum amid this recovery phase and the release of interim financial results.
