NSE ASI swings back to the red
What shaped the market today?
§The Nigerian equity market swung back into negative territory amidst sharp reversals across key sectors. Ahead of a raft of economic data releases in the U.S and China, global markets traded mixed as the drop in oil prices continue to weigh on market sentiment.
§The Financial Services sector (-171bps) led the market reversal, weighed down by negative closes in GUARANTY (-119bps), DIAMOND (909bps) and investor reaction to H1’16 earnings (PAT down 28% q/q) from ZENITHBANK (-250bps). Industrial Goods (-106bps) was next on the list following losses in WAPCO (-252bps) and CAP (-500bps). The Consumer Goods (-39bps) and the Oil & Gas (-37bps) sectors also closed lower amidst losses in PZ (-500bps), NB (-77bps), OANDO (-491bps) and TOTAL (-208bps).
§ Market breadth remained negative with 14 advances and 29 declines.
What will shape the nexttrading session?
§Looking through the market intraday performance, we note that our expectation for a sustained rebound played out for a bulk of the session until towards the close of the market when ZENITHBANK released H1’16 earnings that missed estimates. We think this could have dampened sentiment within the Financial Services sector as most banking stocks turned around at that period. We think this could weigh further on the ASI in the session ahead.
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