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NSE ASI closes flat as mixed trading persists

What shaped the market today?

• Trading on the Nigerian bourse closed on a flat note as early session gains were tapered by quick profit taking. On the global front, Asian stocks traded higher as investors shrugged off Australia’s weak GDP numbers and cheered Trump’s announcement of a potential investment of $50 billion by Softbank (Japanese telco) in the U.S. European markets were also up amidst optimism that the European Central Bank will prolong its quantitative easing program whilst early trading in U.S. saw the Dow hit an all-time high.
• The Oil & Gas sector (+59bps) stretched its gaining streak to six sessions after another limit up close for FO outweighed profit taking in OANDO (-943bps) and TOTAL (-27bps). The Financial Services sector closed relatively flat as advances in FBNH (+301bps), ETI (+31bps) and GUARANTY (+22bps) were pared by declines in DIAMONDBNK (-116bps), UBA (-46bps) and ZENITHBANK (-35bps). Also, the Industrial Goods sector closed flat amidst mixed performances in CCNN (-25bps) and PORTPAINT (+481bps). The Consumer Goods sector (-35bps) however extended losses despite rebounds in heavyweight GUINNESS (+317bps) and NESTLE (+62bps) as NB (-103bps), FLOURMILL (-363bps) and DANGSUGAR (-214bps) closed under water.
• Market breadth remained negative with 17 advances and 22 declines.

What will shape the next trading session?

• We believe investors would be quick to cap gains in the sessions ahead. That said, we foresee another mixed trading with a bearish bias in tomorrow’s session.