The Nigerian Exchange (NGX) experienced a strong bullish momentum this week amid a corrective market. Thus, this report should help investors make informed investment decisions.
NGX ASI: Nigeria’s All-Share Index
The NGX All-Share Index gained 1.6%, closing at 247,357.40 basis points, an indication that the market is still recovering. However, the index remains at a strong resistance zone, inviting investors to be vigilant.
Weekly chart indicator analysis for NGX ASI
Based on the indicator readings, the index’s volume, liquidity, and momentum remain strong. In line with this performance, MACD maintained its divergence signal. Thus, investing in fundamentally strong stocks is imperative.
NGXBNK: Banking Sector Index
The banking sector index gained 8.35% on the weekly chart. Closing at 2,545.13 basis points, the index surpassed its 52-week high, creating a new all-time high at 2,605.41. Plotting the Elliott wave, the index just commenced its fifth impulsive wave of the primary cycle. Thus, this performance makes the banking sector attractive for investment.
Weekly chart indicator analysis for NGXBNK
Volume closed strongly above its moving average with 2.71 billion shares purchased. MACD’s bearish momentum declined, closing at -20.62. Also, MFI and RSI closed at 69.25 and 68.98. These performances align with the current bullish momentum as liquidity, momentum, and volume remain strong.
NGXCSMG: Consumer Goods Sector Index
The NGXCSMG gained 6.30% on the weekly chart, closing at 6,965.87 bps. This performance also surpassed its 52-week high and created a new all-time high at 7,098.10 bps. Based on Elliott wave analysis, the index commenced its fifth impulsive wave.
Weekly chart indicator analysis for NGXCSMG
Volume closed strongly above its moving average with 2.93 million shares purchased. RSI and MFI increased, closing at 70.11 and 60.82. Finally, MACD’s bearish momentum declined, closing at -69.95. These performances align with the strong bullish sentiment, making the sector attractive for investment.
NGXIND: Industrial Sector Index
On the weekly chart, the industrial index gained 5.01% and closed at 10,545.80 basis points. The index remains within the 0.382 Fibonacci level, meaning there is still room to buy into value amid a corrective market
Weekly chart indicator analysis for NGXIND
Volume closed strongly above its moving average with 95.95 million shares purchased. MFI and RSI also improved, closing at 61.65 and 59.03, respectively. Also, MACD’s bearish momentum declined, closing at -426.35. These performances signal a strong recovering market with bullish potential.
NGXOGSE: Oil and Gas Sector Index
The oil index gained 0.11% and closed at 5,255.07 bps. This performance shows the low investment interest in this sector, as banking and consumer goods lead in this recovery phase.
Weekly chart indicator analysis for NGXOGSE
Volume closed low with 79.4 million shares purchased. RSI and MFI remained stagnant, closing at 59.28 and 46.20, respectively. Also, MACD’s bearish momentum declined, closing at -194.19. Based on these indicator readings, the index is slowly recovering with low investment interest and low volume. Yet, the index remains strong.
NGXINS: Insurance Sector Index
The insurance sector gained 3.68%, closing at 1,179.76 bps on the weekly chart. Currently, the index is recovering with strong bullish momentum. This performance makes the index attractive for investment.
Weekly chart indicator analysis for NGXINS
Volume closed below its moving average with 369.89 million shares purchased. Money flow and RSI increased, closing at 63.95 and 48.14, respectively. Finally, MACD’s bearish momentum weakened, closing at -16.81. These indicator readings show NGXINS’ recovery strength. Although volume is low, liquidity and momentum support this index’s strength.
Market Analyst Insight
Although the banking and consumer goods sectors displayed strong recovery, long-term investors can give the market one more bullish run to determine the market’s full recovery strength. Also, insurance has become another interesting sector to watch, following its strong recovery performance
