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ASI opens 6bps lower as key sectors trade mixed

What shaped the market today?

• The Nigerian equity market opened the week lower, albeit marginally (6bps) as broad market losses were watered down by gains in a few heavyweight names. Global markets traded mostly lower amidst fading hopes of a production cut by OPEC at its meeting on Wednesday.
• After halting a bearish run in the previous session, the Oil & Gas sector (-42bps) pulled back to lead declines as losses in FO (-500bps), OANDO (-476bps) and TOTAL (-16bps) offset an advance in today’s top gainer – MOBIL (+500bps). The Industrial Goods sector closed flat as WAPCO relinquished early-session gain, likewise the Consumer Goods sector after mixed performances across DANSUGAR (-237bps), HONEYWELL (-183bps) and NASCON (+234bps). The Financial Services sector however bucked the trading trend, closing 24bps higher largely on the back of advances in ETI (+316bps) and GUARANTY (+177bps) as a number of banking stocks shed points, notably, ZENITHBANK (-217bps) extended its losing streak to five sessions.
• Market breadth remained negative with 8 advances and 24 declines.

What will shape the next trading session?

• We believe the present oversold market condition could incite opportunistic buying across select stocks. Thus, a mixed trading pattern could surface in coming sessions.