FREE

Energy stocks lift NSE ASI 9bps up

What shaped the market today?

• The NSE ASI opened the month on a slightly positive note (NSE ASI up 9bps) as the allure of heavily battered stocks continue to spur buying across board. On the global scene, Asian markets traded higher with energy stocks leading advances, riding on OPEC’s decision to cut oil production by 1.2 million barrels per day. However, European markets were lower amidst heightened political uncertainty in Italy ahead of a key referendum on Sunday whilst U.S. futures indicated a flat open.
• The Oil & Gas sector (+296bps) once again outperformed other key sectors, getting a boost from another limit up close for MOBIL and after FO bounced back from recent declines to close 10.22% up. The Financial Services also extended gains following advances in WEMABANK (+185bps) and GUARANTY (+66bps). The Consumer Goods sector however retraced previous session’s gains, weighed down by NB (-137bps) despite gains in INTERBREW (+315bps) and DANGFLOUR (+282bps). The Industrial Goods sector closed relatively flat.
• Market breadth turned positive with 18 advances and 14 declines.

What will shape the next trading session?

• We believe the ASI could nick another positive performance at week close as investors continue to take advantage of depressed equity prices.