NSE ASI slides further amid pressure on financials

What shaped the market today?                   

§ The NSE ASI showed little signs of recovery as bears tightened their grip on the Financial Services sector following the release of February inflation figure which came in higher than expected. Global markets traded mostly mixed following the decision of the U.K fiscal authorities to cut growth and productivity forecasts for the country (citing weak outlook for the world economy as a reason) and as investors awaited the outcome of the U.S Federal Reserve meeting due later today.

§  The Financial Services sector (-131bps) remained under pressure as heavy-weight ZENITHBANK (-374bps), UBA (-374bps) and ETI (-498bps) continue to lose ground. However, the Consumer Goods sector (+55bps) posted a mild rebound following two consecutive negative sessions, off bargain hunting in NB (+433bps) and DANGSUGAR (+499bps) whilst the Industrial Goods sector closed flat.

§ ZENITHBANK topped both volume and value charts trading 44 million units worth N560 million.

What will shape the next trading session?

§ We expect mixed trading pattern to persist in tomorrow’s session as investors continue to react to the higher-than-expected February inflation figure released yesterday.