NGX ASI: Nigeia’s All-Share Index
The Nigerian Exchange All-Share index (NGX ASI) gained 0.29% and closed at 247,699.78 basis points. This performance sustained the index’s recovery strength as it attempted to surpass major resistance at 249,000 bps. In line with this performance, the index’s liquidity and bullish momentum improved, while volume remained relatively low. This performance suggests strong support from sectoral indices amid profit-taking.
NGXBNK: Banking Sector Index
The banking sector index lost 0.72% and closed at 2,617.10 bps. This performance is the continuous corrective phase following the double-top chart pattern formation during intraday trading. In line with this bearish momentum, all the top-tier banks lost volume, liquidity, and momentum.
The bearish volume remained moderately strong, suggesting mild profit-taking. Also, liquidity remained flat, while RSI momentum declined, aligning with the current market sentiment. Notably, MACD initiated a bullish divergence signal, which investors should watch
Top losers: ETI (-8.31%), FCMB (-2.94%), UBA (-1.96%), FIDELITY (-2.00%), FIRSTHOLD (-1.97%)
NGXCSMG: Consumer Goods Sector Index
On the daily chart, the NGXCSMG lost 0.24% and closed at 7,295.85bps. This performance signifies profit-taking as the index closed above its moving average. Despite the bearish momentum, the index’s liquidity and momentum remained solid, sustaining MACD’s bullish signal.
Top gainer: MTNN (+2.45%)
Top losers: NEIMETH (-6.25%), AFRIPRUD (-3.96%), BERGER (-9.99%)
NGXIND: Industrial Sector Index
The industrial sector index shed 0.01% and closed at 10,341.21 bps. The index did not make any significant change in points during intraday trading. However, its bearish volume closed strongly above its moving average. This performance weakened the index’s bullish strength as liquidity and momentum declined.
Top gainer: CUTIX (+2.13%)
Top loser: CAP (-4.72%)
NGXOGSE: Oil and Gas Sector Index
The oil and gas index experienced a subdued gain of 2.19% and closed at 5,780.89 bps. After strong bullish momentum – which created a gap – the index pulled back to the 0.382 Fibonacci level. At this level, the index is in a critical zone; thus, investors should watch for continued bullish momentum to determine the index’s outlook, amid the upcoming IPO.
Due to the bearish sentiment, volume closed strongly above its moving average. Yet, the index’s volume and bullish momentum remained strong, attracting investment opportunities.
NGXINS: Insurance Sector Index
The insurance index lost 1.22% and closed at 1,107.35 bps. During intraday trading, the index experienced a strong markdown phase, which retraced to the 0.5 Fibonacci level. Given this performance, investors should watch 1,100 bps as a potential support level amid the correction.
The bearish volume closed relatively low, suggesting mild profit-taking. Also, the index’s liquidity improved despite its bullish momentum decline. Thus, investors should watch for continued bullishness.
Top gainers: SOVRENI (+2.15%), MBENEFIT (+0.97%), VERITASKAP (+0.87%)
Top losers: SUNUASSUR (-9.42%), WAPIC (-7.08%), REGALIN (-6.90%), LINKASS (-3.66%), CONHALLPLC (-2.34%)
Market Analyst Insight
Based on today’s performance, the oil and gas sector benefitted massively from sector rotation. This sentiment is due to the upcoming refinery IPO, as investors take profits from the banking, consumer goods, and insurance sectors to position for this IPO. Regardless, investors should watch for continuous bullish momentum amid a corrective market.
