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Brexit vote sparks global risk-off sentiment at week close

What shaped the market today?

• The Nigerian Stock Exchange halted a 3-day gaining streak on the final trading day of the week as Britain’s vote to leave the European Union (in a 52% to 48% vote in favor of exit) spurred a “risk-off” sentiment. Likewise, Global stock markets plummeted and oil prices tanked on the back of the shocking Brexit results.

• Key sectors reversed gains in today’s session with the Financial Services (-187bps) and Consumer Goods (-138bps) sectors dragged by losses in ZENITHBANK (-395bps), UBA (-392bps), ACCESS (-373bps), NB (-300bps) and UNILEVER (-208bps). Similarly, the Industrial Goods (-113bps) and Oil & Gas (-27bps) sectors slipped into negative territory owing to declines in heavyweight DANGCEM (-184bps) and OANDO (-278bps).

• NEM topped the volume chart trading 91 million units, whilst GUARANTY topped the value chart trading 36 million units worth N853 million.

What will shape the next trading session?

• Whilst we highlight that the result of the Brexit referendum dampened the positive market sentiment, we are of the opinion that the market was due for modest profit taking given recent rallies. That said, we anticipate a mixed trading session at week open as the investors further digest the impact of the Brexit decision.