NGX ASI: Nigeria’s All-Share Index
The Nigerian Exchange All-Share Index (NGX ASI) lost 1.06% and closed at 240,196.64 basis points on Friday. This week, the index experienced strong bearish volume that strengthened its markdown phase leading to a decline in liquidity, while the MACD also regained its bearish momentum.
Amid this performance, the index momentum remained solid as investors continued to buy into value. This is the final corrective phase for NGX ASI. After this phase, investors should expect a strong bullish rally while watching for strong support levels across the NGX indices
NGXBNK: Banking Sector Index
The banking sector index lost 2.92% and closed at 2,473.50 bps on the weekly chart. During the week, the banking index experienced a strong markdown with weak bullish sentiment. Despite this bearishness, investors bought into value, as this corrective phase should be the final before a strong bullish rally.
The index volume remained low, indicating mild profit-taking. In line with this performance, MACD began to signal a bullish divergence. However, the index’s liquidity and momentum remained strong, reading at 74 and 63, respectively. This performance signals that the index is strong.
NGXCSMG: Consumer Goods Sector Index
The consumer goods index lost 2.09% and closed at 6,798.09 bps. During the week, the index experienced strong bearish momentum that broke its support level. However, investors bought into value amid this corrective phase.
In line with this sentiment, MACD commenced its bullish divergence signal. Also, volume closed low, signaling mild profit-taking. However, the index remains strong and attractive for investment, with liquidity and momentum closing solidly.
NGXIND: Industrial Sector Index
The industrial index closed at 10,378.88 basis points. During the week, the index did not make any significant change in points. This performance sustained the index’s bearish volume, and liquidity declined. While momentum remained solid, MACD sustained its bearish divergence signal.
NGXOGSE: Oil and Gas Sector Index
The oil index lost 5.29% and closed at 4,960.37 bps. During the week, the index experienced a strong pullback and commenced its recovery phase. However, the index remains strongly bearish on the weekly chart. Volume maintained its bearish momentum, further strengthening the decline in money flow. Notably, MACD sustained its bearish divergence signal amid solid momentum.
NGXINS: Insurance Sector Index
The insurance sector index lost 3.75% and closed at 1,086.42 basis points on the weekly chart. In line with this performance, the bearish volume closed strongly above its moving average, signaling a strong markdown phase. Also, the index’s liquidity and momentum declined. Thus, investors should watch for support at 1,080 bps.
Market Analyst Insight
On the weekly chart, the overall market remained strong amid this corrective market. This coming week, investors should expect a final bearish momentum to close the month. After this sentiment, the indices should commence another recovery phase. Sectors to watch include banking, consumer goods, and insurance.
