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NSE ASI slides further, down 17bps

What shaped the market today?

• The NSE ASI (-17bps) closed lower in today’s session as all key sectors traded in negative territory (save for the Industrial Goods sector). On the global front, European stocks traded higher as investors shrugged off terror threats in Germany and Turkey. Also, Asian markets were mostly higher amidst the BOJ’s decision to leave its monetary policy unchanged. U.S futures pointed to a higher open ahead of a slew of earnings release.
• The Oil & Gas sector (-185bps) was yet again the worst performer following continued sell down in FO (-974bps) and TOTAL (-104bps). The Financial Services sector (-37bps) also closed in the red after declines in GUARANTY (-190bps), FBNH (-145bps) and ZENITHBANK (-14bps) outweighed advances in DIAMONDBNK (+465bps), ACCESS (+234bps) and UBA (+156bps). The Consumer Goods sector closed relatively flat amidst mixed performances across NASCON (+526bps), GUINNESS (+294bps) and UNILEVER (-426bps). The Industrial Goods sector (+89bps) was however the sole gainer in today’s session supported by advances in JBERGER (+481bps) and WAPCO (+256bps).
• Market breadth turned positive with 23 advances and 21 declines.

What will shape the next trading session?

• A look at today’s intraday chart reveals that the ASI was on the path of recovery save for a late session dip in select heavyweights. That said, we think the index could stage a modest recovery in the coming session even as market breadth turned positive.