The Nigerian Exchange (NGX) experienced a strong bullish momentum across key sectors. Aside from the banking and consumer goods sectors, other sectors have shown potential for a strong upward rally. Thus, this article should help investors spot those sectors
NGX ASI: Nigeria’s All-Share Index
The NGX ASI gained 0.98%, closing at 247,832.97 basis points, suggesting a continuous bullish momentum. However, investors should watch for a breakout to determine the index’s outlook.
Daily chart indicator analysis for NGX ASI
Notably, MACD sustained its divergence signal as the index remained within its critical zone. Despite this sentiment, volume, liquidity, and momentum strengthened, suggesting continuous bullish momentum.
NGXBNK: Banking Sector Index
The banking sector gained 3.92% and closed at 2,555.30 basis points. During intraday trading, the index experienced strong bullish momentum. This sentiment broke the index’s 52-week high, confirming a full market recovery. Notable contributors included ACCESSCORP (+9.42%), FIRSTHOLD (+8.95%), ZENITH (+4.17%), UBA (+3.19%), and GTCO (+2.32%).
Daily chart indicator analysis for NGXBNK
Volume sustained its strong momentum above its moving average with 369.6 million shares purchased. MACD’s bullish momentum increased, closing strong at 57.75. Finally, money flow and RSI improved, closing at 96.82 and 77.68, respectively. These performances signal a strong bullish rally is on the horizon.
NGXCSMG: Consumer Goods Sector Index
The consumer goods index gained 3.05% and closed at 6,994.42 bps. During intraday trading, the index also experienced strong bullish momentum, which surpassed its 52-week high. This performance means that the index has fully recovered, making it attractive for investment. Notable contributors included GUINNESS (+10%), MANSARD (+8.30%), and UNILEVER (+7.64%)
Daily chart indicator analysis for NGXCSMG
Volume sustained strong momentum, closing above its moving average with 437.27 million shares purchased. RSI and money flow closed at 77.26 and 97.82, respectively. Also, MACD’s bullish momentum improved, closing at 124.85. These performances align with the index’s sentiment, suggesting a strong markup phase is on the horizon
NGXIND: Industrial Sector Index
The industrial sector index gained 1.27%, closing at 10,546.23 bps. During intraday trading, the index went on a strong bullish run amid a corrective market. This performance strengthened the index’s first recovery phase. A notable contributor included BUACEMENT (+4.52%).
Daily chart indicator analysis for NGXIND
Volume closed strongly above its moving average with 13.13 million shares purchased. Money flow and RSI improved, closing at 63.75 and 50.59. Also, MACD’s bullish momentum increased, with the indicator closing at 57.04. These performances suggest a strong market recovery phase and also invite investors to buy into value.
NGXOGSE: Oil and Gas Sector Index
The oil and gas sector index closed with a fractional gain of 0.04% at 5,257.11 bps. This performance sustained the index’s recovery phase above its moving average.
Daily chart indicator analysis for NGXOGSE
Volume closed below its moving average with 19.43 million shares purchased. RSI and money flow closed at 46.64 and 76.52, respectively. Finally, MACD’s bullish momentum declined, closing at 27.37. Since the index’s liquidity is strong, it could continue its bullish momentum despite divergence signals.
NGXINS: Insurance Sector Index
The insurance index gained 0.75%, closing at 1,171.84 bps. During intraday trading, the index pulled back and met support at 1,153.73 bps, strengthening the market’s momentum. Notable contributors included MANSARD (+8.30%), PRESTIGE (+4.96%), LINKASS (+3.33%), VERITASKAP (+3.11%), and CONHALLPLC (+3.03%).
Daily chart indicator analysis for NGXINS
Volume sustained its strong momentum, closing above its moving average with 69.11 million shares purchased. MFI and RSI increased, closing at 66.71 and 57.39, respectively. Finally, MACD’s bullish momentum also increased, closing at 11.5. These performances suggest a strong market recovery, making the index attractive for investment.
Market Analyst Insight
The banking and consumer goods sectors are leading this recovery phase. Now, investors should watch for potential resistance at the 0.618 and 1 Fibonacci levels. Currently, the market offers investors favourable investment conditions.
Following this strong sentiment, other sectors sustained their strength above the moving average. A sector to watch in this recovery phase is insurance. The index also offers good investment conditions.
