FREE

Earnings season hits full swing, ASI up 21bps

What shaped the market today?

• The NSE ASI (+21bps) closed the week on a positive note as investors digested another batch of earnings. On the global scene, Asian and European markets traded mixed amidst fresh earnings releases whilst U.S futures pointed to a higher open as U.S Q3 GDP grew at an annualized rate of 2.9%, beating market expectation of 2.5%.
• The Oil & Gas (+150bps) sector led gains in today’s session as investors mulled a raft of recent Q3’16 earnings announcement; notably, investors continued to cheer earnings release of TOTAL (+321bps), SEPLAT (+133bps) and FO (+219bps) also advanced. Similarly, the Industrial Goods (+103bps) sector closed in the green as WAPCO gained 284bps. Whilst the Financial Services sector extended gains amidst advances in ETI (+500bps) and FIDELITY (+471bps) amongst others (on market reaction to their earnings), the Consumer Goods (-30bps) sector receded following losses across DANGSUGAR (-385bps) and NESTLE (-87bps).
• Market breadth turned positive with 29 advances and 11 declines.

What will shape the next trading session?

• We highlight that a handful of earnings across sectors were released after session close, and believe the market will open to investor reaction to these results in the week ahead.