NSE ASI posts first green close for the week

What shaped the market today?                   

§ The NSE ASI clinched a positive close even as trading across key sectors remained mixed. Asian markets traded in the green as investors cheered clarity from the Fed on its interest rate hiking path (projection for the number of hikes was cut from four to two for 2016). European markets however traded in the red as investors continue to react to the downgrade in U.K’s growth and productivity rates for 2016 whilst U.S. stock markets opened mixed ahead of a raft of economic data due today.

§  The Financial Services sector (-121bps) extended its losing streak as sector-leaders ACCESS (-820bps), FBNH (-463bps), ETI (-291bps) and ZENITHBANK (-65bps) remained under pressure. The Consumer Goods sector (+105bps) however extended gains as an advance in bellwether NB (+411bps) overwhelmed losses in HONYFLOUR (-494bps), PZ (-384bps) and GUINNESS (-138bps). Similarly, the Industrial Goods sector (+54bps) climbed into positive territory following an advance in heavy-weight DANGCEM (+61bps).

§ FBNH topped the volume chart trading 44 million units whilst ZENITHBANK topped the value chart trading 31 million units worth N391 million.

What will shape the next trading session?

§ We expect bears to dominate trading in tomorrow’s session despite positive earnings releases as we think some investors maybe selling into the strength of the earnings season given the generally weak outlook on the economy.