NGX ASI: Nigeria’s All-Share Index
The NGX All-Share Index closed at 245,386 points on Thursday, losing 0.65% off its opening level, but with a strong bearish volume as investors sold 2.1 billion shares across sectors. During the intraday trading, the index experienced a strong bearish momentum, conforming to Fibonacci’s critical resistance zone.
In line with this performance, the NGX ASI’s liquidity and momentum declined drastically. Also, MACD bullish momentum sustained its divergence signal. Given this performance, investors should prepare for a potential bearish rally.
NGXBNK: Banking Sector Index
The NGX banking index lost 2.04%, closing at 2,480.57 bps. During intraday trading, the index retraced deep into the 0.382 Fibonacci level. This performance suggests continuous bearish momentum as the index’s volume closed strongly above its moving average with 1.7 billion shares sold.
In line with this performance, MACD’s bullish momentum declined drastically, signaling divergence. Also, the index’s liquidity and momentum declined drastically, closing at 65 and 64, respectively. These performances suggest smart money exit and a potential markdown phase.
Top gainers: FCMB (+0.89%) and GTCO (+0.16%)
Top losers: WEMABANK (-5.65%), FIRSTHOLD (-3.96%), ZENITH (-3.60%), ACCESSCORP (-3.33%), and UBA (-1.29%)
NGXCSMG: Consumer Goods Sector Index
The consumer goods index lost 1.58% and closed at 6,868.30 bps. During intraday trading, the index experienced strong bearish momentum and met support at 6,861.60 bps. The next index action should determine the strength of this support level.
The index volume closed strong above its moving average with 1.8 billion shares sold. This performance suggests smart money exit and potential bearish momentum. In line with this performance, the index’s liquidity and momentum declined, closing at 67.5 and 65.6, respectively. Also, MACD’s bullish momentum weakened, suggesting that a trend reversal is on the horizon.
Top gainers: ROYALEX (+4.69%), CORNERS (+1.85%), and GTCO (+0.16%)
Top losers: SUNUASSUR (-8.44%), WEMABANK (-5.65%), HBMNG (-4.00%), FIRSTHOLD (-3.96%), and WAPIC (-3.85%)
NGXIND: Industrial Sector Index
The NGXIND lost 0.7%, closing at 10,514.45 bps. During intraday trading, the index sustained its bearish position below the moving average. This performance signals continuous bearish momentum. On the daily chart, the bearish volume closed solid. Also, the index’s liquidity and momentum declined, aligning with the market’s performance.
Top losers: TRIPPLE (-10%), HBMNG (-4.00%), and CUTIX (-2.62%)
NGXOGSE: Oil and Gas Sector Index
The oil and gas index experiences a fractional gain of 0.01%, closing at 5,247.25 bps. On the 60-min chart, the index did not display any significant point movement due to low volume and momentum.
In line with this performance, the index’s bullish volume was moderate on the daily chart with flat market momentum. Despite this bullish momentum, the index’s liquidity and MACD’s bullish momentum sustained their declining position.
Top loser: ETERNAO (-1.64%)
NGXINS: Insurance Sector Index
The insurance index lost 2.26% and closed at 1,191.15 bps. On the 60-min chart, the index retraced to the 0.382 Fibonacci level. At this level, investors should watch for possible strong support that should signal a continuous bullish run.
Based on the indicator readings for NGXINS, massive profit-taking prevailed during intraday trading. The bearish volume closed strongly above its moving average. Also, the index momentum and liquidity declined yet closed strongly above their threshold.
Top gainers: SOVRENI (+5.73%) and CORNERS (+1.85%)
Top losers: LASACO (-9.92%), MBENEFIT (-9.80%), SUNUASSUR (-8.44%), LINKASS (-8.00%), and CONHALLPLC (-5.00%)
Market Analyst Insight
While the bearish sentiment for the banking and consumer goods sectors remains strong, investors should watch their next support level as these indices remain above their moving averages. The insurance sector’s recovery phase remains strong despite the bearish sentiment. Thus, investors should watch for more resistance breakouts.
