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NSE ASI rebounds amidst thin market volume

What shaped the market today?

• §The Nigerian equity market rebounded after a three-day losing streak amidst turnarounds across most key sectors. On the global scene, European markets closed higher after the Bank of England cut interest rates by 25bps to 0.25%, amongst a couple of economic stimulus measures. Asian markets also closed in the green, buoyed by a weakening Japanese Yen (positive for export) and a pick in oil prices following a drop in gasoline inventory. U.S Futures predicts a higher opening.
• §The Oil & Gas sector (+142bps) led the turnaround following strong bid for TOTAL (+806bps) and MOBIL (+500bps). The Consumer Goods (+78bps) and Industrial Goods sector (+44bps) also bounced off previous losses with NB (+185bps), GUINNESS (+107bps), PZ (+289bps) and WAPCO (+118bps) leading the gains. The Financial Services Sector (-58bps) however continued on the downtrend as ZENITHBANK (-61bps) and GUARANTY (-75bps) posted further losses.
• §Market breadth was neutral with 18 advances and 18 declines.

What will shape the nexttrading session?

• § We highlight that today’s positive close came amidst relatively thin market volumes. With this somewhat suggesting a lukewarm market sentiment, we see chances of a possible reversal in the ASI at week close.

What shaped the market today?

• §The Nigerian equity market rebounded after a three-day losing streak amidst turnarounds across most key sectors. On the global scene, European markets closed higher after the Bank of England cut interest rates by 25bps to 0.25%, amongst a couple of economic stimulus measures. Asian markets also closed in the green, buoyed by a weakening Japanese Yen (positive for export) and a pick in oil prices following a drop in gasoline inventory. U.S Futures predicts a higher opening.
• §The Oil & Gas sector (+142bps) led the turnaround following strong bid for TOTAL (+806bps) and MOBIL (+500bps). The Consumer Goods (+78bps) and Industrial Goods sector (+44bps) also bounced off previous losses with NB (+185bps), GUINNESS (+107bps), PZ (+289bps) and WAPCO (+118bps) leading the gains. The Financial Services Sector (-58bps) however continued on the downtrend as ZENITHBANK (-61bps) and GUARANTY (-75bps) posted further losses.
• §Market breadth was neutral with 18 advances and 18 declines.

What will shape the nexttrading session?

• § We highlight that today’s positive close came amidst relatively thin market volumes. With this somewhat suggesting a lukewarm market sentiment, we see chances of a possible reversal in the ASI at week close.