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Energy Sector leads NSE ASI retreat at week open

​What shaped the market today?

• The NSE ASI retreated at the start of the week, a meek follow-up to the previous week when it posted a 5-month high w/w return. All key sectors pulled back into the red at the end of today’s trading session, save for the Consumer Goods Sector. Asian and European markets traded mostly down with investors awaiting the Bank of Japan final policy review on Tuesday whilst their European counterparts digested Germany economic data. U.S. stocks were up slightly at market open ahead of a speech by the Federal Reserve Chair.
• Oil & Gas Sector (-364bps) led declines for the third straight session following further profit taking in FO (-975bps) and losses in SEPLAT (-488bps). Likewise, the Financial Services Sector (-105bps) snapped an eight-session rally following losses in heavyweights ETI (-490bps) and GUARANTY (-86bps). Meanwhile, the Industrial Goods sector closed relatively flat. In contrast, the Consumer Goods sector (+28bps) bounced back from a four-session losing streak on the back of advances in GUINNESS (+954bps), DANGSUGAR (+410bps), and DANGFLOUR (+205bps) which outstripped losses in UNILEVER (-498bps) and PZ (-138bps).
• Market breadth remained negative with 18 advances and 30 declines.

What will shape the next trading session?

• We believe the relatively tepid sentiment of the last two trading sessions (as indicated by the negative market breadth) could persist tomorrow given the pressure on certain bellwether stocks.