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Equities mixed as investors hunt for bargains

What shaped the market today?

· The Nigerian equity market traded relatively flat on the last trading day of the month, with the ASI inching 3bps higher as bargain hunters snap up beaten-down stocks. Nonetheless, the ASI ended the lackluster month in red, posting a negative month-to-date (mtd) return of 7.3% - the worst performance since January. On the global front, Asian markets (which closed earlier) were mixed amidst an overnight decline in oil prices ahead of OPEC’s meeting. However, European and U.S markets were higher following a jump in oil prices as OPEC agreed its first cut (1.2 mbpd) on oil output since 2008.

· The Oil & Gas sector (+244bps) led advances after MOBIL closed limit up for the second consecutive session, riding on positive sentiment on deal valuation of ExxonMobil’s proposed sale of 60% stake to NIPCO, as well as gains in OANDO (+499bps) and TOTAL (+159bps). The Financial Services (+288bps) and Consumer Goods sector (+57bps) also closed in positive territory following gains across GUARANTY (+390bps), STANBIC (+388bps), ZENITHBANK (+207bps), CADBURY (10.15%) and NB (+140bps). However, the Industrial Goods sector (-125bps) underperformed yet again, dragged down by a 253bps loss in DANGCEM.

· Market breadth turned even with 20 advances and 20 declines.

What will shape the next trading session?

We expect the mixed trading pattern to persist in coming sessions as investors continue to pick up battered bellwethers.