Monday, April 24, 2017 4:21:23 PM- Nigerian Stock Exchange.



  Banking stocks lead market declines

      

Oct 13 (Lagos) - Nigerian equities closed lower in today’s session (NSE ASI down 62bps) with banking stocks leading the decline. Global markets traded mostly lower after minutes from the U.S. Federal Reserve's September meeting raised expectations of a December interest rate hike and as weak China trade data (exports and imports slipped by 10% and 2% respectively) weighed on investor sentiment.


 
The Financial Services sector snapped a 3-day positive run, down 213bps amidst news of CBN directive to all  banks (excluding First Bank) to halt the sale of FX to Bureau De Change (BDC) operators; 



GTB GUARANTY (-475bps), WEMABANK (-4.62%) and STANBIC (-3.15%) led the declines. The Oil & Gas sector (-1.31%) snapped a 2-day rally following market reaction to the 9M’16 earnings (PAT down 35% y/y and 56% q/q) of FO (-4.82%) coupled with loss in OANDO (-0.77%). 



Whilst the Industrial Goods sector (-0.93%) dipped further into the red amidst continued decline in WAPCO (-2.58%), the Consumers Goods sector proved resilient as it advanced 0.33% thanks to gains in DANGSUGAR (+2.85%), NB (+0.82%) and HONYFLOUR (+0.78%).
 


Market breadth remained negative with 12 advances and 31 declines.



Analysts at Vetiva Capital Management Ltd in Victoria Island expect the NSE ASI to further drop points in tomorrows session following the pressure across board, particularly banking stocks even as the negative spread in market breadth widened.



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