The Nigerian Exchange (NGX) closed the week on a bearish note on Friday, with its capitalization dipping by N6.61 billion to close at N56.43 trillion, representing a slight decrease of 0.01% from the previous day’s value and thereby settling at 98,070.28 points.
Despite the marginal loss in capitalization value, the domestic bourse’s performance was buffered primarily by the 8.76%, 5.37%, and 4.10% share price gains by TRANSPOWER, STANBIC, and UBA respectively at the end of the day’s trading session.
According to the data from the capital market’s supervisory authority, the Nigerian Exchange Group, the All-Share Index (ASI) closed slightly lower at 98,070.28 points, reflecting a small decline in momentum.
However, the data indicated that the MACD at 158.73 remained above the signal line at 153.52, indicating continued bullish sentiment, although the moderate 5.21 difference in the histogram suggests that the momentum may be slowing.
Bancorp Securities Limited’s market analysts advised that in the face of the situation in the domestic bourse, investors should maintain cautious optimism while monitoring for potential trend reversals.
In addition, they noted that a bullish Up/down (UD) ratio of 3.26x indicated strong upward momentum, adding that however, this is largely skewed by the 136.56 million units of JAPAULGOLD traded, which accounted for 38.06% of total volume traded for the day.
The investment experts further clarified: “With many stocks trading above their moving averages, the AD ratio of 0.96x reveals weaker market breadth, suggesting more declining stocks than advancing ones. This disparity hints at potential volatility, and investors are advised to focus on strong-performing stocks while being cautious of a possible market divergence.
“The exchanges’ newest bride (ARADEL) is still taking a more than proportionate hit, after Wednesday’s announcement of the federal government back tracking on approving the onshore asset sales from Shell. ARADEL has cumulatively lost 18.99% after the announcement, closing at NGN625.40% on Fridays close”, they added.
