NGX ASI: Nigeria’s All-Share Index
The Nigerian Exchange’s All Share Index (NGX ASI) lost all of 1.17%, closing at at 244,802.11 basis points on Tuesay, remaining however within the 0.382 Fibonacci level, while attempting to break its resistance zone at 248,000 bps. Following the strong bearish sentiment across sectors, the index pulled back toward its first support level at 244,289.06 bps. Thus, investors should watch for continuous bullish momentum to determine the support level’s strength.
NGXBNK: Banking Sector Index
The banking index lost 4.21%, following the last week’s double-top chart pattern on the hourly timeframe. Closing at 2,506.90 bps, this strong bearish momentum offers investors an opportunity to buy into value.
In line with this sentiment, volume closed strongly above its moving average, suggesting massive profit-taking. MACD sustained its bullish divergence signal, following the decline of money flow and RSI momentum.
Top gainer: WEMABANK (+0.68%)
Top losers: FIRSTHOLD (-9.30%), ACCESSCORP (-7.06%), UBA (-5.00%), ZENITH (-3.94%), FCMB (-2.16%)
NGXCSMG: Consumer Goods Sector Index
The consumer goods index lost 3.40% and closed at 7,047.45 bps. The index experienced strong bearish momentum, which suggests massive profit-taking across top-tier institutions. In line with this performance, the volume closed strongly above its moving average. Also, MACD sustained its bullish divergence signal. However, the index’s liquidity and momentum remained solid.
Top losers: ROYALEX (-9.09%), NEM (-5.50%)
NGXIND: Industrial Sector Index
The industrial sector lost 0.22% and closed at 10,318.23 bps. This index continued its bearish momentum, retracing to the 1.0 Fibonacci level. At this level, investors should expect bullish momentum amid this strong corrective market.
The bearish volume remained solid, while the index’s momentum and liquidity remained neutral. This performance aligns with the overall market sentiment and also attracts investment opportunities.
Top losers: CAP (-7.73%), CUTIX (-4.58%), HBMNG (-1.22%)
NGXOGSE: Oil and Gas Sector Index
The oil and gas index shed 0.14%, closing at 5,773.07 bps. This performance suggests profit-taking after a brief markup phase. Also, the index is at its resistance zone; thus, investors should expect a brief consolidation phase before a breakout.
Amid this brief correction, the index’s liquidity and momentum remained strong. Also, MACD sustained its strong bullish signal. Given this performance, investors should watch for continuous bullish momentum
Top loser: ETERNAO (-4.17%)
NGXINS: Insurance Sector Index
The insurance sector index lost 2.82% and closed at 1,076.16. During intraday trading, the index experienced a strong markdown phase and closed with a bullish candlestick. This performance suggests that this bearish momentum also offers investment opportunities.
On the daily chart, the index closed with unusual volume, which suggests a continuous markdown phase. Also, its liquidity and momentum declined, aligning with the overall market sentiment.
Top losers: SOVRENI (-8.95%), VERITASKAP (-6.90%), SUNUASSUR (-6.04%), NEM (-5.50%), INTENEG (-4.53%)
Market Analyst Insight
The Nigerian Stock Market remained strongly bearish due to the upcoming IPO. It could be that investors are taking out their positions to invest in this IPO. While IPO investors claim their spot, the overall bearish sentiment offers good investment opportunities.
Thus, this opportunity is for investors who did not buy into value in top-tier companies. Finally, while most sectors remain down, investors should watch the oil and gas sector for breakouts and a continuous markup phase.
