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NSE ASI caps week with mild gain, up 15bps

What shaped the market today?

• Having retraced from the session’s peak, the NSE ASI bounced back late in the session to close 15bps higher. On the global front, whilst a number of Asian markets were shut for public holiday, the Japanese market traded higher after December’s core consumer prices fell 0.2% y/y, its slowest pace since February 2016. Meanwhile, European and U.S. markets traded lower as investors reacted to downbeat U.S GDP figures (which grew at 1.7%, missing estimates of 2.2%) and waded through a stream of corporate earnings releases.
• The Oil & Gas sector (+116bps) completed a week long positive run, on the back of gains in TOTAL (+490bps) and OANDO (+405bps). Also, the banking sector (+12bps) held on to previous gains as declines in DIAMONDBNK (-388bps), ACCESS (-317bps) and GUARANTY (-61bps) were offset by gains in heavyweight ZENITHBANK (+323bps). The Consumer Goods sector (+16bps) turned positive following gains in CHAMPION (+873bps), 7UP (+557bps) and NESTLE (+135bps). However, the Industrial Goods sector extended its flat close.
• Market breadth turned negative with 14 advances and 22 declines.

What will shape the next trading session?

• Amidst a number of earnings release this week and notice of FY’16 earnings scheduled for next week (including FO), we anticipate increased market activity as investors take positions. Overall, we foresee mixed trading ahead, with increased volatility.