NSE shrugs off disappointing economic data
What shaped the market today?
The Nigerian equity market maintained positive momentum, nudging 39bps as investors looked past a flurry of weak economic data - Q2’16 GDP contracted 2.06%y/y (Q1’16: -0.36%), July Headline Inflation spiked to 17.1% y/y from 16.5% and Unemployment rate jumped to 13.3% from 12.1%. On the global front, markets traded mixed as investors reacted to a slew of data from the Eurozone and looked forward to the key August U.S. nonfarm payroll data due Friday..
Having lost in the previous session, the Oil & Gas and Financial Services sectors rebounded to lead advances, thanks to gains across SEPLAT (+10.25%), OANDO (+61bps), GUARANTY (+153bps), ETI (+35bps) and FBNH (+167bps). The Consumer Goods (+27bps) and Industrial Goods (+12bps) sectors continued on an upward trend, albeit marginal, as 7UP (+938bps), HONYFLOUR (-500bps) DANGCEM (+22bps) and JBERGER (-971bps) traded mixed
Market breadth turned negative with 19 advances and 21 declines.What will shape the next trading session?
We believe the economic data releases are not far away from market expectation, hence, the muted impact on market. Nonetheless, we believe investors would digest the numbers more cautiously, and think this could result in mixed trading pattern in the session ahead.
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