The Nigerian Exchange (NGX) experienced mixed sentiment this week. However, the market began to show signs of recovery after a retracement to the 0.382 Fibonacci level. For the weekly analysis, we’ll use the Elliot wave analysis to understand the overall market performance from a bird’s-eye view.
NGX ASI: Nigeria’s All-Share Index
The NGX’s composite All-Share index lost 1.65%, closing at 232,049.02 basis points. During the intra-week trade, the index broke multiple resistance levels, but couldn’t close above its moving average. This performance led to the continuous bearish momentum. Currently, the NGX is still in its early corrective phase.
Weekly chart indicator analysis for NGX ASI
The indicators on the weekly chart signaled continuous bearish sentiment. MACD commenced its bearish sentiment, following the sustained bearish volume. However, the market liquidity and momentum stayed strong, an indication that the all-share index is healthy.
Key Sectoral Performance
NGXBNK: Banking Sector Index
On the weekly chart, the banking index gained 3.51% and closed at 2,130.27 bps. After retracing into the 0.382 Fibonacci zone, the index met support at 2058.07 bps. Despite this support, the index closed below its moving average. The index is expected to briefly rally upward before another pullback.
Weekly chart indicator analysis for NGXBNK
On the weekly chart, the index liquidity and momentum remained strong, while the bullish volume stayed low. In line with the week’s bullish volume, MACD’s bearish momentum sustained its strength. This performance indicated that long-term investors took profits.
NGXCSMG: Consumer Goods Sector Index
The consumer goods index gained 2.40%, closing at 6,065.99 basis points, while sustaining its corrective phase and trading below its moving average. After testing the 0.382 Fibonacci level, the index is expected to briefly rally upward.
Weekly chart indicator analysis for NGXCSMG
Despite the bullish sentiment, the MACD sustained a strong bearish momentum. This performance signifies profit-taking. In line with this performance, the index liquidity and momentum closed strongly. Consequently, it is worthy of note that the NGXCSMG has a good long-term potential.
NGXIND: Industrial Sector Index
The industrial goods index lost 8.21% in the course of its intraweek bearish performance. This strong bearish sentiment influenced the index’s retracement into the 0.382 Fibonacci level and closed at 10,201.73 bps. At this level, investors should expect a short-term bullish momentum.
Weekly chart indicator analysis for NGXIND
The index experienced a continuous bearish sentiment on the weekly chart. In line with this performance, MACD commenced its bearish signal. Regardless, the index liquidity and momentum stayed strong. These performances signal continuous profit-taking while investors buy into value.
NGXOGSE: Oil and Gas Sector Index
On the weekly chart, the oil and gas index lost 9.86% and closed at 5,081.62 bps. During the intraweek market, the index experienced a strong bearish trend, which retraced to the 0.382 Fibonacci level. Thus, investors should expect a continuous pullback amid discount investing.
Weekly chart indicator analysis for NGXOGSE
The bearish volume remained low, while MACD commenced its bearish signal. This performance indicates profit-taking as the index liquidity declined below its threshold. Regardless, the index momentum remained solid, indicating that the market still offers good investment opportunities
NGXINS: Insurance Sector Index
The insurance sector remains within its sideways WXY correction. The index lost 4.39%, closing at 1,117.15 basis points. During the intraday trade, the index experienced a strong bearish momentum that constituted wave 3 of the Y corrective wave. When the index retraces to the 0.382 Fibonacci level, investors should expect a strong bullish move.
Weekly chart indicator analysis for NGXINS
The indicators continued their downward trajectory, aside from money flow. While the index continued its bearish momentum, investors bought into value, which is why the index liquidity is solid. This performance indicates that the sector has good potential for a positive turnaround.
FAQs
How did the NGXASI perform this week?
The NGXASI lost 4.39% on the week, signaling continuous bearish momentum as selective sector investment prevails
How did the NGX banking sector index perform this week?
The NGXBNK displayed signs of recovery after a brief bullish momentum.
How did the NGX consumer goods index perform this week?
The NGXCSMG displayed signs of recovery after a brief bullish momentum
How did the NGX industrial sector index perform this week?
The NGXIND closed with a strong bearish trend on the weekly chart. This offers investors an investment opportunity
How did the NGX oil and gas sector index perform this week?
The NGXOGSE experienced a strong bearish market while investors bought into value
How did the NGX insurance sector index perform this week?
The NGXINS experienced a strong bearish sentiment. However, money flow reflected sustained market liquidity.
