NGX ASI: Nigeria’s All-Share Index
The Nigerian Exchange All-Share index (NGX ASI) lost 0.30%, closing at 240,037.80 basis points on Thursday. The bourse, however, closed with an unusual volume due to the strong bearish gap on the lower timeframe. A total of 2.87 billion shares were sold, even as the index approaches its potential support level at 238,689.70 bps.
In line with this performance, the index’s liquidity and momentum declined drastically. This unusual bearish volume usually signals an exit of smart money, which strengthens an index’s markdown phase. Consequently, a continuous bearish momentum.
NGXBNK: Banking Sector Index
At the close of trading also, the banking sector index lost 0.41% and closed at 2,493.33 bps. The index pulled back during intraday trading, signaling continuous profit-taking. However, this bearish market did not trade below its previous candlestick low. Thus, if this support zone is maintained, investors should expect continuous bullish momentum
Although MACD’s bearish momentum strengthened, volume remained low. Also, the index’s liquidity and momentum remained static due to the bearish sentiment. Therefore, a divergence signal should confirm the continuous bullish momentum
Top gainers: IBTC (+0.26%), WEMABANK (+0.17%)
Top losers: FCMB (-4.17%), ETI (-4.01%), UBA (-1.74%), FIRSTHOLD (-1.59%), ZENITH (-1.21%)
NGXCSMG: Consumer Goods Sector Index
The NGXCSMG lost 0.23% and closed at 6,836.03 bps. After breaking its support level, the index commenced a consolidation phase during intraday trading. Thus, if the index surpasses its current resistance level at 6,861.60 bps, investors should prepare for a bullish rally.
In line with this bearish sentiment, MACD’s bearish momentum strengthened. Also, liquidity and momentum slightly declined, making the market moderate for investment.
Top gainers: NB (+1.23%), NPFMCRF (+1.22%)
Top losers: ROYALEX (-5.66%), UCAP (-1.71%)
NGXIND: Industrial Sector Index
The industrial sector closed at 10,378.74 bps. During intraday trading, the index did not make any significant move. Yet, volume closed moderately bullish, meaning market players bought into value. Also, the index’s liquidity improved.
Regardless of these sentiments, the index remains deep within its corrective phase. Thus, investors should watch for strong bullish momentum to determine the sector’s overall outlook.
Top gainer: CUTIX (+2.56%)
NGXOGSE: Oil and Gas Sector Index
The oil index lost a significant 2.29% and closed at 4,837.50 bps, following yetanother strong bearish sentiment during intraday trading, closing with bullish momentum. In line with this performance, volume and momentum remained low as MACD’s bearish momentum strengthened. The index continues to remain high amid this corrective market; therefore, investors should wait for continuous bullish momentum to determine the index’s outlook
NGXINS: Insurance Sector Index
The insurance index lost 0.79% and closed at 1,093.95 bps. This performance strengthened the index’s markdown phase on the lower timeframe. The bearish volume on the daily chart remained solid. Also, the index’s liquidity and momentum declined as MACD’s bearish momentum strengthened. Investors can buy into value as the insurance sector still has potential.
Top gainers: VERITASKAP (+1.52%), AIICO (+1.27%), MBENEFIT (+0.94%), SOVRENI (+0.57%)
Top losers: INTENEG (-9.85%), WAPIC (-9.84%), CONHALLPLC (-3.70%), LASACO (-3.55%), REGALIN (-1.25%)
Market Analyst Insight
On the lower time frame, investors are buying into value as the indices remain within their final corrective phase. Investors should watch for strong support levels amid a strong bearish market.
