NGXASI: All Shares Index
Despite the profit-taking and strong bearish sentiments from sectoral indexes, the Nigerian Exchange’s All-Share Index remains resilient above its moving average and resistance level. Currently, the index closes at 201698.89.
Money flow indicated profit-taking, consistent with the MACD. The MACD histogram’s bullish signal has slightly reduced, signaling an upcoming bearish sentiment. Regardless, momentum, money flow, and volume remained positive and sturdy. How did other sectors commence the second quarter?
Sectoral Index Performance
NGXBNK: Banking Sector Index
On the weekly chart, the banking index started the month on a positive note. After testing its support level, the index attempted to break its resistance level. However, the bullish sentiment wasn’t sturdy enough to propel the market. The index continues to trade within its resistance zone above the moving average.
According to these indicators, the market hasn’t recovered from last month’s profit-taking, despite remaining strong above its moving average. Liquidity and momentum remain sustainable, while volume is relatively low. MACD indicates a loss in momentum.
NGXCSMG: Consumer Goods Sector Index
The consumer goods index consolidated within its resistance zone. It also remained above its moving average, closing at 5568.77. The index started April on a positive note, with the possibilities of a resistance breakout.
Due to the holiday, investors couldn’t get a full picture of how the second quarter commenced. However, this performance offers a good perspective of what investors should expect. These indicators are still recovering from last month’s profit-taking. Thus, a full week of action will define the trajectory of this index.
NGXIND: Industrial Sector Index
The industrial sector started its distribution phase after a strong markup phase. However, the bearish sentiment wasn’t strong because investors find this sector attractive. The index is expected to pull back before another markup phase.
Despite the bearish sentiment from volume, other indicators remained strongly bullish. Given the level of liquidity and momentum in the market, the index should pull back properly. Investors will prepare to take profit and wait for another bull opportunity.
NGXOGSE: Oil and Gas Sector Index
The NGXOGSE finished the previous month with an engulfing bear candlestick. This index action signals a potential bear surge. However, the index showed signs of recovery as the second quarter began.
Due to the engulfing candlestick signal, MACD’s histogram gradually lost its bullish momentum. However, liquidity and momentum remained high. The index is expected to transition into its distribution phase
NGXINS: Insurance Sector Index
While consolidating, the insurance index formed an inverse head–and–shoulder. This chart pattern formation usually signals a potential trend reversal. Thus, it’s expected to commence a bullish run.
Bearish volume decreased gradually despite an increase in MACD’s bearish momentum. According to MFI and RSI, liquidity and momentum are sustainable. This sustainability gives room for a potential uptrend rally.
Final Thoughts
Overall, the market is strong and healthy for investments. The banking and consumer goods sectors are recovering with breakout expectations. Investors should be more risk-averse in the industrial and oil sectors due to a potential distribution phase.
