FREE

NSE ASI flat at week close, down 95bps w/w

What shaped the market today?

• The NSE ASI closed the week flat after a brief surge mid-session as key sectors surrendered previous session’s gains. On the global front, Asian stock traded mixed amidst news of natural disasters in Japan, Philippines and Hong Kong and as investors mulled China’s property price data. However, European markets traded higher after the ECB held its key interest rate and quantitative easing policy steady whilst U.S. futures pointed to a lower open ahead of comments from Fed speakers.
• The Oil & Gas sector (+207bps) closed the week on a positive note following advances in SEPLAT (+500bps), OANDO (+196bps) and MOBIL (+160bpsbps). However, the Financial Services (-31bps) and the Consumer Goods (-23bps) sectors relinquished yesterday’s gains as momentum cooled off on GUARANTY (-86bps), and CADBURY declined 499bps following market response to its 9M’15 earnings (net loss: ₦842 million). The Industrial Goods sector however remained flat.
• Market breadth turned negative with 13 advances and 16 declines.

What will shape the next trading session?

• Whilst we observe that market turnover returned to the low levels typical of this week, we note that investors remained quite active on GUARANTY (accounted for 30% of market trade) following impressive 9M’16 earnings. We think this market pattern will persist in the week ahead as investors react to earnings release.