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Equities extend slide, NSE ASI down 13bps

What shaped the market today?

• The NSE ASI (-13bps) shed more points at mid-week as key sectors closed in negative territory. On the global front, whilst Asian markets traded mostly higher amidst dollar volatility, European markets were mixed as investors digested a host of corporate earnings. The U.S futures predicted a higher open as investors eye a speech by U.S. Fed Chair- Yellen Janet and the release of a stream of economic data, chief of which is the Consumer Price Index.
• The Banking sector (-10bps) continued the mixed trading but finally settled lower as DIAMONDBNK (-480bps), FBNH (-55bps), ETI (-31bps) and ZENITHBANK (-19bps) declined. Losses across GUINNESS (-500bps), UNILEVER (-429bps), CADBURY (-142bps) and NESTLE (-79bps) ensured the Consumer Goods sector (-19bps) extended its negative run to twelve sessions. The Oil & Gas sector (-44bps) also remained in the red following declines in FO (-185bps), OANDO (-63bps) and MOBIL (-57bps). However, the Industrial Goods sector was relatively unchanged as CUTIX (+211bps) rebounded from its recent downtrend whilst PORTPAINT (-500bps) slipped likely on the back of investor reaction to its announcement of a 1 for 3 Rights Issue which was offered at a c.5% discount to its market value.
• Market breadth remained negative with 12 advances and 20 declines.

What will shape the next trading session?

• Considering the widening negative market breadth, weakening bid for banking stocks (amidst profit taking) and the persistent bearish bias across other key sectors, we foresee another bearish trading session.