Oct 20 (Lagos) - The Nigerian bourse recovered from a three-day downtrend, up 44bps from the last close on ample gains in the banking sector. On the global scene, whilst Asian stocks closed higher, European markets traded slightly lower ahead of the ECB meeting later today and as investors digested a raft of disappointing earnings. U.S. futures pointed to a higher open.
After receding to a negative ytd return in the previous session, the Financial Services Sector (+183bps) recovered from its brief ytd loss position and was at the heart of the ASI turnaround, after investors cheered 9M’16 earnings (PAT up 60% y/y) of GUARANTY
(+511bps), coupled with advances in FCMB
(+367bps) and ACCESS
The Oil & Gas sector snapped a 5-day rout following gains in SEPLAT
(+54bps) also inched higher amidst news of Exxon Mobil’s (majority shareholder) decision to sell its 60% equity stake to NIPCO Investments Limited. The Consumer Goods sector rose 12bps with mixed performances across INTERBREW (+500bps), GUINNESS
(+138bps) and DANGSUGAR
(-219bps) whilst Industrial Goods closed flat.
Market breadth turned positive with 20 advances and 14 declines.
What will shape the next trading session?
Analysts at Vetiva Capital Management Ltd in Victoria Island
highlight that market sentiment turned around, particularly within the Banking sector following earnings release from GUARANTY
- a pointer of what to expect from other banks. They think this underscores our erstwhile view that investors currently maintain a wait-and-see approach to Q3 earnings and believe this approach will persist in the sessions ahead.
reporting for easykobo.com on Thursday, Oct 20 2016 from Lagos, Nigeria
Source - analysts at Vetiva Capital Management Ltd in Victoria Island
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