Report
Vetiva Capital Management

Bellwether stocks drag ASI under water

​What shaped the market today?

  • The Nigerian Equity Market closed lower today as the ASI shed 69bps. On the global scene, Asia markets traded lower amidst immigration jitters over President Trump’s actions to secure U.S. borders. Meanwhile, European markets traded positively following better than expected GDP and inflation data. The Eurozone grew 1.8% in 2016 (2015: 1.5%) while January 2017 flash inflation registered 1.8%, a three-year high, on the back of higher energy prices.
  • In a contrast to yesterday’s gain, the Consumer goods sector (-143bps) was the chief laggard today following declines across heavyweights NESTLE (-307bps) and NB (-155bps), as well as PZ (-498bps). The Banking sector (-127bps) maintained its losing streak as UBA (-422bps), ZENITHBANK (-126bps), and GUARANTY (-113bps) all declined for the second time this week. Meanwhile, the Oil & Gas sector (-126bps) sank further under water, weighed down by OANDO (-490bps), FO (-376bps), and TOTAL (-299bps). However, the Industrial Goods sector (+59bps) closed in the green on the back of advances in WAPCO (+143bps).
  • Market breadth remained negative with 15 advances and 25 declines.

What will shape the next trading session?

  • Broad market sentiment remains bearish and with persistent pressure on bellwether stocks, we anticipate further tepid trading mid-week.


31/01/2017 4 EN
Provider
Vetiva Capital Management
Vetiva Capital Management

​Vetiva provides clients with independent and unbiased access to analysis and opinion. We keep our clients on the cutting edge of market information and provide up to date market intelligence on quoted companies. Our services allow brokers, investment firms, and asset managers focus their energies on developing investment strategies and client relationships.

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