Report
Vetiva Capital Management

Banking stocks lift ASI as Energy sector pulls back

What shaped the market today?

  • The Nigerian equity market continued to trend higher bolstered by advances across banking stocks as the Oil & Gas sector hit the brakes. Global markets traded mixed after the U.S. Fed announced a 25bps rate increase and revealed a hawkish outlook for 2017. Whilst European markets were higher with banking stocks leading gains, Asian markets were mostly lower save for the Nikkei which rose on the back of a relatively weaker yen.
  • The Financial Services sector (+312bps) extended its rally after gains across banking blue chips – ETI (+499bps), UBA (+485bps), GUARANTY (+445bps) and ZENITHBANK (+159bps). The Consumer Goods sector (-18bps) remained under water following continued pressure on NB (-73bps). Whilst the Industrial Goods sector closed flat, the Energy sector (-105bps) pulled back as FO (-25bps) finally bowed to profit taking after notching an impressive return of c.140% in a nine session rally. MOBIL (-500bps), OANDO (-467bps) and TOTAL (-440bps) also lost as investors locked in recent gains.
  • Market breadth remained positive with 23 advances and 14 declines.

What will shape the next trading session?

  • We expect the NSE ASI to add more points at week close as investors continue to bid up bellwether stocks.


15/12/2016 3 EN
Provider
Vetiva Capital Management
Vetiva Capital Management

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