The Nigerian Exchange (NGX) sustained its bearish momentum on Thursday and in the course of this strong sentiment, smart investors are taking a long-term view by buying into value. Thus, the article highlights sectors where this phenomenon occurs.
NGX ASI: Nigeria’s All-Share Index
The composite NGX All-Share Index closed at 233,580.83 basis points, after losing 0.64%, while in the process sustaining the index’s markdown phase as investors rebalance their portfolios.
Daily chart indicator analysis for NGX ASI
While the market momentum and volume declined, money flow sustained its upward trajectory. This means that the market is healthy and strong as it prepares for another bullish rally.
Key Sectoral Index Performance
NGXBNK: Banking Sector Index
The banking sector index shed 0.28%, closing at 2,136.30 bps. Today, the index closed with a bearish hammer candlestick pattern, which indicates that the market bulls rejected the basis point at 2,117.01 bps. This candlestick pattern is usually followed by a bullish sentiment. Thus, the notable contributors today included WEMABANK (-4.26%), UBA (-1.76%), FCMB (-1.00%), and FIRSTHOLD (-0.33%)
Daily chart indicator analysis for NGXBNK
The indicators for NGXBNK suggest profit-taking as liquidity and momentum decline. The bearish volume closed low, which means profit-taking was mild. Also, MACD sustained its divergence signal.
NGXCSMG: Consumer Goods Sector Index
On the daily chart, the NGXCMSG shed 0.21%, closing at 6,083.31. This performance signals profit-taking as investors buy into value. Given this performance, the index should commence another distribution phase within the 0.5 and 0.618 Fibonacci levels. Notable contributors included CORNERS (-9.23%), WAPIC (-6.67%), HONYFLOUR (-4.52%), WEMABANK (-4.26%), and ROYALEX (-3.33%).
Daily chart indicator analysis for NGXCSMG
The market liquidity and momentum remained flat despite the bearish volume. This performance signifies that investors are taking positions in fundamentally strong stocks. Amidst this performance, MACD’s bearish momentum sustained its divergence signal
NGXIND: Industrial Sector Index
As expected, the industrial index commences another brief consolidation after a strong pullback. During the intraday market, the index didn’t make any significant change while closing at 10,201.89 bps. This performance also signifies that investors are buying into value
Daily chart indicator analysis for NGXIND
Despite closing with an indecisive bearish market, volume closed strongly above its moving average. Also, money flow signaled a sustained market liquidity. These performances signify the sustained investors’ interest in this sector. In line with this performance, RSI’s momentum remained low, and MACD’s bearish momentum sustained its strength.
NGXOGSE: Oil and Gas Sector Index
The oil and gas index lost 5.22% and closed at 5,330.13 bps. This performance continued the index’s zig-zag correction, strengthening its consolidation phase. Given the index’s position within the 0.5 Fibonacci level, investors should expect another distribution phase.
Daily chart indicator analysis for NGXOGSE
The market volume and momentum declined following the strong bearish sentiment. Also, the bearish momentum regained its strength. On the other hand, the market liquidity remained flat, highlighting the sustained investors’ interest in this sector.
NGXINS: Insurance Sector Index
On the daily chart, the insurance index lost 2.59% and closed at 1,142.64 bps. This performance signifies continuous profit-taking for portfolio rebalancing. Notable losers included REGALIN (-9.57%), CORNERS (-9.23%), WAPIC (-6.67%), MBENEFIT (-5.48%), and INTENEG (-4.03%).
Daily chart indicator analysis for NGXINS
The bearish volume remained low despite the strong market sentiment. While the momentum declined and MACD’s signal closed with a mixed sentiment, the market liquidity remained solid. This signals the sustained investors’ confidence in the sector.
FAQs
How did the NGXASI perform?
The NGXASI lost 0.64%, which sustains its bearish sentiment
How did the NGX banking sector index perform?
The NGXBNK closed with a bearish sentiment, indicating profit-taking
How did the NGX consumer goods index perform?
The NGXCSMG closed bearish, indicating profit-taking
How did the NGX industrial sector index perform?
The NGXIND closed with an indecisive candlestick pattern as investors took advantage of these investment opportunities
How did the NGX oil and gas sector index perform?
The NGXOGSE experienced a strong bearish sentiment, which strengthened its markdown phase.
How did the NGX insurance sector index perform?
The NGXINS sustained its bearish momentum
