NGX ASI: Nigeria All-Share Index
The Nigerian Exchange’s All-Share Index (NGX ASI) rose 1.65% on Monday, closing at 251,290.55 basis points, after closing last week with a strong bullish momentum after meeting support at 244,289 basis points. The composite index started the week with continued bullish momentum, confirming a strong recovery phase and renewed investor interest. In line with this performance, the index’s liquidity, volume, and relative strength improved. MACD also sustained its divergence signal, setting up a potential trend reversal.
NGXBNK: Banking Sector Index
The banking sector gained 2.34% to close at 2,574.45 basis points. This performance signals a strong recovery phase as the index closed above its moving average. In line with this performance, the index’s volume, momentum, and liquidity improved. MACD also sustained its divergence signal, aligning with this current trend reversal
Top gainers: FIRSTHOLD (+7.56%), ACCESSCORP (+4.15%), GTCO (+2.54%), FCMB (+1.85%), UBA (+0.25%)
Top losers: FIDELITY (-4.17%), WEMABANK (-0.33%)
NGXCSMG: Consumer Goods Sector Index
The consumer goods sector gained 1.81% and closed at 7,378.52 bps. This performance also signified a strong recovery phase. During intraday trading, the index consolidated and closed strongly bullish above its moving average. In line with this performance, the index’s liquidity, volume, and momentum improved. MACD also sustained its divergence signal, aligning with the index’s performance.
Top gainers: HONEYFLOUR (+9.78%), ROYALEX (+9.18%), AFRIPRU (+5.88%)
Top losers: PZ (-7.61%), UCAP (-2.07%), ETRANZA (-1.75%), NB (-1.33%)
NGXIND: Industrial Sector Index
The industrial index rose 5.37% to close at 11,218.05 bps. This performance broke the index’s resistance zone at 11,054 bps, confirming a strong recovery phase. In line with this performance, the index’s liquidity, relative strength, and volume improved exponentially. MACD also initiated its bullish signal with strong momentum.
Top gainer: DANGCEMENT (+10%)
Top loser: CUTIX (-5.29%)
NGXOGSE: Oil and Gas Sector Index
The oil and gas index rose 0.88% to close at 6,089.08 bps. During intraday trading, the index consolidated and closed strongly bullish. This performance signaled renewed investor interest as the index attempts a recovery. In line with this performance, the index’s volume, liquidity, and relative strength improved. However, MACD’s bearish momentum strengthened, suggesting continued downside pressure. Thus, investors should watch for a MACD divergence signal.
NGXINS: Insurance Sector Index
The insurance index rose 0.67% to close at 1,056.47 bps. During intraday trading, the index faced strong distribution and closed with a doji candlestick pattern on the daily chart. This pattern usually indicates a trend reversal.
Given the strong volume performance and MACD divergence signal, investors should expect bullish momentum. In line with this sentiment, the index’s relative strength improved. Investors should also watch money flow for improved liquidity performance to determine the index’s outlook.
Top gainers: AIICO (+4.18%), WAPIC (+2.88%), CONHALLPLC (+0.46%)
Top losers: VERITASKAP (-1.82%), MBENEFIT (-1.67%), REGALIN (-1.41%), LASACO (-1.11%)
Market Analyst Insight
As the Dangote IPO ends soon, the NGX showed strong recovery signs across benchmark indices to commence the week. The banking and industrial sectors led the index as high-cap stocks remain attractive. Other factors that could sustain this positive momentum include strong Q3 result releases, seasonality factors, and outstanding interim dividends.
