NGX ASI: Nigeria’s All-Share Index
The NGX ASI experienced a strong bearish momentum after losing 1.14% on the weekly chart. This performance signaled the exit of smart money as volume closed strongly above its moving average. During the week, the index traded within the 0.382 Fibonacci range and closed at 242,770.94 basis points and ₦156.624 trillion, respectively.
In line with this performance, the index’s liquidity closed low while momentum remained flat and solid. Notably, MACD’s divergence signal remained flat. Thus, investors should watch for a continuous market trend.
NGXBNK: Banking Sector Index
The banking sector index lost 1.48% and closed at 2,548.02 bps on the weekly chart. During the week, the index remained resilient above its moving average as profit-taking prevailed. The bearish volume on the weekly chart remained low, suggesting mild profit-taking and strong reinvestment. In line with this performance, MACD’s bullish momentum remained strong. Also, money flow and RSI momentum stayed strong, closing at 80 and 67, respectively.
NGXCSMG: Consumer Goods Sector Index
The consumer goods sector lost 1.91% and closed at 6,943.03 bps. During the week, the NGXCSMG was resilient, above its moving average. However, due to strong market bearishness, the index closed below its moving average, which signalled a continued bearish market.
On the weekly chart, the index’s liquidity and momentum remained strong despite the strong bearish sentiment. Also, MACD sustained its bullish momentum. Thus, investors should expect a continuous bullish run as the index commences its fifth wave.
NGXIND: Industrial Sector Index
The industrial index lost 1.22% and closed at 10,379.10 bps. During the week, the index sustained its position below the moving average. In line with this performance, the index’s liquidity declined while momentum remained neutral. Notably, MACD sustained its bearish divergence signal. Thus, investors should watch for a continuous bullish run in the long run.
NGXOGSE: Oil and Gas Sector Index
The oil index experienced a fractional loss of 0.06% and closed at 5,237.51 basis points. During the week, the index sustained strong liquidity; however, this high liquidity hasn’t taken effect on the weekly chart, as money flow closed at 15. Thus, investors should always have a holistic view while analysing the oil index.
Unlike its predecessors, the bearish volume bar closed relatively low with neutral momentum. Notably, MACD sustained its bearish divergence signal as investors buy into value. Given these sentiments, investors should expect a bullish market in the long run.
NGXINS: Insurance Sector Index
The insurance sector sustained its corrective phase with another strong bearish momentum. During the week, the index experienced massive profit-taking to continue its markup phase. The index lost 2.72% and closed at 1,128.74 bps. This performance marks the index’s final corrective phase before a strong bullish recovery. Thus, investors should position in fundamentally sound insurance companies.
Amid this strong corrective market, the index closed with strong bearish volume. However, liquidity and momentum remained solid and attractive for investment. Finally, MACD sustained its bearish divergence signal, preparing investors for a bullish rally.
Market Analyst Insight
Despite the bearish sentiment across the indices, the Nigerian Stock Market remains strong as top sectors sustained solid liquidity and momentum. Amid this corrective market, low-cap stocks with good fundamentals have started gaining momentum. Thus, investors should watch for bargain hunting.
