Prevailing Bearish Momentum On NGX As Golden Buy Opportunity For Discerning Investors

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Trading activities in recent weeks remain bearish and weak despite the seeming oscillation, with the market closing lower on selloffs and profit booking in some highly priced stocks and blue-chips. Most of these rallied recently before the corporate earnings and actions were released.

The prices of stocks that announced dividend are being adjustment for dividend recommended and payment made to the qualifying investors. One of them is Accesscorp which credited the acounts of its shareholders with the cash dividend of N1.80 after its AGM on Friday.

The selling sentiments on the weekly and daily time frames reflect the power of liquidity in equity investment, as the market is witnessing outflow of funds into alternative investment windows due to the hawkish outlook of monetary policy. This has so far been made clear with the 600 basis points rate hike by the Central Bank of Nigeria in just two months, a situation that has impacted positively on fixed income market instruments like TB, fixed deposits and others. Money flow around the market is very important because it’s the driver of all things. Volume is the key to the market, especially today’s market where volatility is the order of the day in an extreme level to create buy and sell opportunities.

That is why I take time every day to go through the Money Flows. Where was the biggest volume? Where was money moving? Where was the volume today and yesterday?

These are all great questions to ask yourself when you are following the flow of fund but, on their own, they still don’t offer enough information to set up Big Money Flow trades. You need to combine your fundamental and technical analysis to arrive at a decision to trade or invest.

Let the charts and price actions below guide you in the new week. As more qualification dates draw closer and all eyes are on expected Q1 2024 scorecards to give market players an insight into what should be expected from this current financial year.

NGXASI Weekly Chart (Opening)

NGX Banking Index Weekly Chart