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Equities slip further, ASI down 34bps

What shaped the market today?

• The NSE ASI dipped further in the red, closing 34bps lower as key sectors traded mixed. Global markets were mixed amidst political uncertainty in Italy and South Korea and as investors continued to focus on OPEC production cut talks ahead of its meeting tomorrow.
• The Industrial Goods sector underperformed other key sectors as a slide in heavyweight DANGCEM (-124bps) sent the Industrial Goods Index 70bps under water. The Financial Services sector (-41bps) reversed week open gains following losses in FIDELITY (-488bps), ACCESS (-271bps) and GUARANTY (-41bps). Meanwhile, the Oil & Gas sector (+51bps) swung into positive territory after TOTAL rose 383bps and MOBIL closed limit-up, surging to its year-high and stretching gains to six consecutive sessions; however, sector gains were watered down as FO slumped 974bps to a new year-low and OANDO lost 500bps. The Consumer Goods sector (+53bps) also traded higher as INTERBREW (+155bps) and NB (+199bps) closed in the green.
• Market breadth remained negative with 13 advances and 20 declines.

What will shape the next trading session?

• We highlight that today’s ASI performance was particularly dragged down by heavyweight DANGCEM. We observed pockets of gain across a few oversold Banking, Oil & Gas and Consumer stocks and think the hunt for bargains is already on.