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NSE ASI stages mild recovery, up 15bps

What shaped the market today?

• The NSE ASI (+15bps) staged a mild recovery in today’s session amidst mixed performances across key sectors. Major bourses around the world trended higher ahead of Donald Trump's first official press conference as investors look for clues on policy direction.
• Bouncing off the sharp decline in the previous session, the Banking sector (+73bps) swung into positive territory following pocket of gains across board – DIAMONDBNK (+206bps), WEMABANK (+200bps), GUARANTY (+187bps) and ACCESS (+159bps). The Oil & Gas sector (+37bps) continued to trade higher as FO (+217bps) extended gains. The Consumer Goods (-28bps) and Industrial Goods (-5bps) however remained in the red amidst declines in GUINNESS (-637bps), HONYFLOUR (-388bps) and CCNN (-386bps). Meanwhile, OKOMUOIL and PRESCO (Agriculture Sector) rose 10.2% apiece likely on the back of their inclusion in the NSE 30 as portfolio managers look to rebalance their portfolios.
• Market breadth turned even with 19 advances and 19 declines.

What will shape the nexttrading session?

• Although the ASI closed higher, we note that investor sentiment was quite mixed across sectors even as market breadth balanced out. That said, we foresee mixed sentiment (with a positive bias) in the next session - supported by the stronger appeal for banking stocks.