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NSE ASI bows to declines across blue chips

What shaped the market today?

• Amidst the release of CBN Purchasing Managers’ Index which showed perception of business activity deteriorated in September and October respectively, the NSE ASI (-11bps) slid into negative territory after most key sectors finished under water. Global markets traded lower as uncertainty over the U.S election continue to weigh on market sentiment.
• The Oil and Gas sector (-103bps) continued its downward trend as TOTAL shed 362bps on profit taking and OANDO (-489bps) extended losses following market reaction to its announcement of LAT of ₦36 billion for 9M’16. The Financial Services (-60bps) sector receded into the red after FBNH (-161bps) and GUARANTY (-84bps) pared previous gains. The Consumer Goods (-15bps) sector also closed lower after weightier decline in NB (-69bps) trumped gains across CHAMPION (+732bps) and GUINNESS (+233bps). The Industrial Goods sector (+173bps) bucked the trend following fresh investor appetite for WAPCO (+484bps).
• Market breadth remained positive with 20 advances and 18 declines.

What will shape the next trading session?

• We highlight that trading turned more volatile towards session close and believe it would persist in the session ahead. We expect this to fuel mixed performances across board.